Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Apr. 12, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ChinaNet Online Holdings, Inc. | ||
Trading Symbol | cnet | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 30,355,722 | ||
Entity Public Float | $ 22,766,150 | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,376,321 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Current assets: | |||
Cash and cash equivalents | $ 5,503 | $ 5,037 | |
Term deposit | 3,265 | 3,465 | |
Accounts receivable, net | 2,549 | 2,407 | |
Other receivables, net | 1,910 | 8,392 | |
Prepayment and deposit to suppliers | 5,843 | 8,092 | |
Due from related parties | 41 | 51 | |
Other current assets | 45 | 61 | |
Deferred tax assets-current | 176 | ||
Assets classified as held for sale | 1,882 | ||
Total current assets | 21,038 | 27,681 | |
Long-term investments | 1,133 | 909 | |
Property and equipment, net | 681 | 943 | |
Intangible assets, net | 5,638 | 9,238 | |
Deposit and prepayment for purchasing of software technology | 1,024 | 850 | |
Goodwill | 4,396 | 6,772 | |
Deferred tax assets-non current | 1,550 | 1,037 | |
Total Assets | $ 35,460 | 47,430 | |
Current liabilities: | |||
Short-term bank loan * | [1] | 817 | |
Accounts payable * | [1] | $ 95 | 782 |
Advances from customers * | [1] | 1,313 | 832 |
Accrued payroll and other accruals * | [1] | $ 685 | 585 |
Due to noncontrolling interest of VIE * | [1] | 638 | |
Payable for purchasing of software technology * | [1] | 2,826 | |
Guarantee payment and prepayment from new investors | $ 944 | ||
Taxes payable * | [1] | 3,186 | 3,332 |
Other payables * | [1] | 234 | $ 602 |
Liabilities classified as held for sale * | [1] | 913 | |
Total current liabilities | 7,370 | $ 10,414 | |
Long-term liabilities: | |||
Deferred tax liability-non current * | [1] | 118 | 964 |
Long-term borrowing from a director | 135 | 143 | |
Total Liabilities | 7,623 | 11,521 | |
Commitments and contingencies | 129 | ||
ChinaNet Online Holdings, Inc.’s stockholders’ equity | |||
Common stock (US$0.001 par value; authorized 50,000,000 shares; issued and outstanding 29,640,130 shares and 29,030,130 shares at December 31, 2015 and 2014, respectively) | 30 | 29 | |
Additional paid-in capital | 26,510 | 24,703 | |
Statutory reserves | 2,607 | 2,607 | |
Retained (deficit)/earnings | (3,870) | 5,222 | |
Accumulated other comprehensive income | 2,056 | 3,625 | |
Total ChinaNet Online Holdings, Inc.’s stockholders’ equity | 27,333 | 36,186 | |
Noncontrolling interests | 375 | (277) | |
Total equity | 27,708 | 35,909 | |
Total Liabilities and Equity | $ 35,460 | $ 47,430 | |
[1] | 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 (Note 2). |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 29,640,130 | 29,030,130 |
Common stock, shares outstanding | 29,640,130 | 29,030,130 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | ||
From unrelated parties | $ 31,522,000 | $ 37,613,000 |
From related parties | 743,000 | 353,000 |
Total revenues | 32,265,000 | 37,966,000 |
Cost of revenues | 24,655,000 | 31,671,000 |
Gross profit | 7,610,000 | 6,295,000 |
Operating expenses | ||
Sales and marketing expenses | 4,586,000 | 6,916,000 |
General and administrative expenses | 7,498,000 | 5,780,000 |
Research and development expenses | 2,164,000 | 2,660,000 |
Gain on deconsolidation of VIEs | (20,000) | (266,000) |
Impairment on equity method investments | 874,000 | |
Goodwill impairment and impairment on fixed assets and intangible assets | 1,824,000 | 4,193,000 |
Total operating expenses | 16,926,000 | 19,283,000 |
Loss from operations | (9,316,000) | (12,988,000) |
Other income/(expenses) | ||
Interest income | 117,000 | 122,000 |
Interest expense | (47,000) | (52,000) |
Other income/(expenses) | 34,000 | (28,000) |
Total other income | 104,000 | 42,000 |
Loss before income tax benefit, equity method investments, noncontrolling interests and discontinued operation | (9,212,000) | (12,946,000) |
Income tax benefit | 1,496,000 | 478,000 |
Loss before equity method investments, noncontrolling interests and discontinued operation | (7,716,000) | (12,468,000) |
Share of (losses)/income in equity investment affiliates | (2,000) | 47,000 |
Loss from continuing operation | (7,718,000) | (12,421,000) |
Loss from discontinued operation, net of income tax | (1,465,000) | (1,471,000) |
Net loss | (9,183,000) | (13,892,000) |
Net loss attributable to noncontrolling interests from continued operations | 91,000 | 154,000 |
Net loss attributable to ChinaNet Online Holdings, Inc. | (9,092,000) | (13,738,000) |
Net loss | (9,183,000) | (13,892,000) |
Foreign currency translation loss | (1,594,000) | (64,000) |
Comprehensive Loss | (10,777,000) | (13,956,000) |
Comprehensive loss attributable to noncontrolling interests | 116,000 | 154,000 |
Comprehensive loss attributable to ChinaNet Online Holdings, Inc. | $ (10,661,000) | $ (13,802,000) |
Loss from continued operations per common share | ||
Basic and diluted (in Dollars per share) | $ (0.29) | $ (0.55) |
Loss from discontinued operations per common share | ||
Basic and diluted (in Dollars per share) | $ (0.05) | $ (0.07) |
Weighted average number of common shares outstanding: | ||
Basic and diluted (in Shares) | 26,765,673 | 22,414,523 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | ||
Net loss | $ (9,183) | $ (13,892) |
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Depreciation and amortization | 1,768 | 1,437 |
Share-based compensation expenses | 2,256 | 4,840 |
Provision for/(reverse of) allowances for doubtful accounts | 88 | (861) |
Share of losses/(income) in equity investment affiliates | 2 | (47) |
Goodwill impairment and impairment on fixed assets and intangible assets | 3,110 | 5,639 |
Impairment on equity method investments | 874 | |
Gain on deconsolidation of VIEs | (20) | (266) |
Loss on disposal of other long-term assets | 63 | |
Deferred taxes | (1,558) | (850) |
Changes in operating assets and liabilities | ||
Accounts receivable | (580) | 5,226 |
Other receivables | 6,369 | 1,370 |
Prepayment and deposit to suppliers | 1,476 | (1,499) |
Due from related parties | 7 | 449 |
Other current assets | 13 | (42) |
Accounts payable | (509) | 390 |
Advances from customers | 1,152 | (118) |
Accrued payroll and other accruals | 173 | (60) |
Other payables | 37 | 318 |
Taxes payable | 59 | (76) |
Commitment and contingencies | 135 | |
Net cash provided by operating activities | 5,732 | 1,958 |
Cash flows from investing activities | ||
Purchases of vehicles and office equipment | (356) | (280) |
Payment for purchasing of software technology | (3,880) | (847) |
Refund of prepayment for software development contract terminated | 772 | |
Repayment of short-term loan from unrelated entities | 790 | |
Long-term investment in cost/equity method investees | (1,163) | (18) |
Collection of receivable on disposal of VIEs | 1,604 | |
Cash effect on deconsolidation of VIEs | (358) | |
Net cash (used in)/provided by investing activities | (4,627) | 891 |
Cash flows from financing activities | ||
Proceeds from short-term bank loan | 814 | |
Repayment of short-term bank loan | (803) | (814) |
Short-term loan from noncontrolling interest of VIE | 717 | |
Repayment of short-term loan to noncontrolling interest of VIE | (312) | (81) |
Repayment to former VIE | (1,893) | |
Guarantee payment and prepayment from new investors | 984 | |
Net cash used in financing activities | (131) | (1,257) |
Cash and cash equivalents included in assets held for sale | (189) | |
Effect of exchange rate fluctuation on cash and cash equivalents | (319) | 3 |
Net increase in cash and cash equivalents | 466 | 1,595 |
Cash and cash equivalents at beginning of the year | 5,037 | 3,442 |
Cash and cash equivalents at end of the year | 5,503 | 5,037 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | 131 | 204 |
Interest expense paid | 47 | 52 |
Non-cash transactions: | ||
Payable for purchasing of software technologies | $ 2,826 | |
Due to noncontrolling interest of VIE converted to paid-in capital of the VIE | $ 315 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member]Employees [Member] | Additional Paid-in Capital [Member]Management [Member] | Additional Paid-in Capital [Member] | Statutory Reserves [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Employees [Member] | Management [Member] | Total |
Balance at Dec. 31, 2013 | $ 22 | $ 19,870 | $ 2,602 | $ 18,965 | $ 3,689 | $ (123) | $ 45,025 | ||||
Balance (in Shares) at Dec. 31, 2013 | 22,376,540 | ||||||||||
Restricted shares issued for services | 117 | 117 | |||||||||
Restricted shares issued for services (in Shares) | 190,000 | ||||||||||
Restricted shares issued to management, employees and directors | $ 4 | 4,620 | 4,624 | ||||||||
Restricted shares issued to management, employees and directors (in Shares) | 3,952,113 | ||||||||||
Unvested restricted shares issued to management | $ 3 | (3) | |||||||||
Unvested restricted shares issued to management (in Shares) | 2,666,667 | ||||||||||
Share-based compensation expenses | 99 | 99 | |||||||||
Cancellation of restricted shares due to cessation of employment (in Shares) | (155,190) | ||||||||||
Appropriation of statutory reserves | 5 | (5) | |||||||||
Net loss for the year | (13,738) | (154) | (13,892) | ||||||||
Foreign currency translation adjustment | (64) | (64) | |||||||||
Balance at Dec. 31, 2014 | $ 29 | 24,703 | 2,607 | 5,222 | 3,625 | (277) | 35,909 | ||||
Balance (in Shares) at Dec. 31, 2014 | 29,030,130 | ||||||||||
Restricted shares issued for services | $ 1 | 413 | 414 | ||||||||
Restricted shares issued for services (in Shares) | 610,000 | ||||||||||
Share-based compensation expenses related to restricted common stock | $ 53 | $ 1,560 | $ 53 | $ 1,560 | |||||||
Due to noncontrolling interest of VIE converted to paid-in capital of the VIE | 320 | 320 | |||||||||
Goodwill allocated to disposal group attributable to noncontrolling interest | (448) | 448 | |||||||||
Share-based compensation expenses | 229 | 229 | |||||||||
Net loss for the year | (9,092) | (91) | (9,183) | ||||||||
Foreign currency translation adjustment | (1,569) | (25) | (1,594) | ||||||||
Balance at Dec. 31, 2015 | $ 30 | $ 26,510 | $ 2,607 | $ (3,870) | $ 2,056 | $ 375 | $ 27,708 | ||||
Balance (in Shares) at Dec. 31, 2015 | 29,640,130 |
Note 1 - Organization and Natur
Note 1 - Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Nature of Operations [Text Block] | 1. Organization and nature of operations ChinaNet Online Holdings, 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, 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, online to offline (O2O) sales channel expansion and the related data 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”) (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, 2015, During 2015, the Company incorporated two new wholly-owned investment holding companies, ChinaNet Investment Holding Ltd, a British Virgin Islands company (“ChinaNet Investment BVI”), and ChinaNet Online Holdings Co., Ltd., a PRC company (“ChinaNet Online PRC”). ChinaNet Investment BVI co-incorporated ChinaNet Online Holdings Korea (“ChinaNet Korea”) with three unaffiliated individuals and beneficially own 40% equity interest in ChinaNet Korea. ChinaNet Online PRC co-incorporated ChinaNet Chuang Tou (Shenzhen) Co., Ltd. (“ChinaNet Chuang Tou”) with two unaffiliated individuals and beneficially own 19% equity interest in ChinaNet Chuang Tou. As of the date hereof, there companies are still in its setup period and have not started its operations, respectively. The Company operated its business primarily in China through its PRC subsidiaries and PRC operating entities, or VIEs as discussed above. |
Note 2 - Variable Interest Enti
Note 2 - Variable Interest Entities | 12 Months Ended |
Dec. 31, 2015 | |
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: Exclusive Option Agreements: Equity Pledge Agreements: Irrevocable Powers of Attorney: 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, 2015 and 2014, respectively: As of December 31, 2015 2014 US$(’000) US$(’000) Assets Current assets: Cash and cash equivalents $ 4,942 $ 4,239 Term deposit 3,265 3,465 Accounts receivable, net 2,492 2,407 Other receivables, net 1,712 8,349 Prepayment and deposit to suppliers 5,841 8,091 Due from related parties 24 - Other current assets 27 58 Deferred tax assets-current - 107 Assets classified as held for sale (1) 1,882 - Total current assets 20,185 26,716 Long-term investments 1,113 865 Property and equipment, net 503 869 Intangible assets, net 5,630 9,238 Deposit and prepayment for purchasing of software technology 1,024 850 Goodwill 4,396 6,772 Deferred tax assets-non current 1,249 795 Total Assets 34,100 $ 46,105 Liabilities Current liabilities: Short-term bank loan $ - $ 817 Accounts payable 88 782 Advances from customers 1,304 832 Accrued payroll and other accruals 309 357 Due to Control Group 11 11 Due to noncontrolling interest of VIE - 638 Payable for purchasing of software technology - 2,826 Taxes payable 2,733 2,846 Other payables 67 580 Liabilities classified as held for sale (1) 913 - Total current liabilities 5,425 9,689 Deferred tax Liabilities-non current 118 964 Total Liabilities $ 5,543 $ 10,653 Commitments and contingencies 129 - 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. Summarized below is the information related to the financial performance of the VIEs reported in the Company’s consolidated statements of operations and comprehensive loss for the years ended December 31, 2015 and 2014, respectively: Year Ended December 31, 2015 2014 US$(’000) US$(’000) Revenues $ 31,902 $ 37,241 Cost of revenues 24,655 31,669 Total operating expenses (including impairment and other losses of long-lived assets and goodwill, impairment loss on equity investments and gain on deconsolidation of VIEs) 13,387 13,184 Loss from discontinued operations (2) 1,465 1,471 Net loss before allocation to noncontrolling interests 6,016 8,518 (1) In the fourth quarter of 2015, in order to focus all the Company’s resources on its core business, which is Internet advertising, marketing and the related technical and data services, and to obtain sufficient working capital to continue the expansion of the services distribution channels and to support the development of the data services, the Company decided to sell its 51% equity interest in Beijing Chuang Fu Tia Xia, one of the Company’s operating VIEs, which is primarily engaged in providing Internet advertising and marketing services through one of the Company’s advertising portal, (“liansuo.com”). The Company does not consider the sale of liansuo.com is a strategic shift that has (or will have) a major effect on the Company’s operations and financial results, as it is not a significant portion of the Company’s Internet advertising business segment, therefore, not qualifying for presentation as a discontinued operation. As a result, in accordance with ASC Topic 360: “Property, Plant and Equipment”, the Company classified the assets and liabilities related to the disposal group as held for sale in the consolidated balance sheets as of December 31, 2015 but did not included its results of operations in discontinued operations for all period presented. (2) For the same reason as discussed above, in addition to committed a plan to sell liansuo.com, the Company also decided to exit its bank kiosk advertising and offline brand management and sales channel building business segments, which businesses were operated by the Company through its operating VIEs. The Company does not consider the exit from its bank kiosk advertising business qualifying for presentation as a discontinued operation as its effect on the Company’s operations and financial results was and will be insignificant. Therefore, in accordance with ASC Topic 205: “Presentation of Financial Statements”, the results of operations of brand management and sales channel building were reported in discontinued operations as a separate component in the consolidated statements of operations and comprehensive loss for all periods presented. |
Note 3 - Summary of Significant
Note 3 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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”). As discussed in Note 2, the Company exited its brand management and sales channel building business segment, which qualified for presentation as a discontinued operation in accordance with ASC Topic 205. As a result, the results of operations of this business was reported in discontinued operation as a separate component in the Company’s consolidated statements of operations and comprehensive loss for all periods presented. 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) Comparability due to discontinued operation Certain accounts in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2014 and related notes have been retrospectively adjusted to reflect the effect of reclassification of results of operations reported in discontinued operation as a separate component. See Note 26 for the related detail disclosures. Cash flows from discontinued operation for the years ended December 31, 2015 and 2014 were combined with the cash flows from continuing operations within each of the three categories. d) 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. 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 subsidiaries 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 subsidiaries 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 loss of the consolidated statements of operations and comprehensive loss 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, 2015 2014 Balance sheet items, except for equity accounts 6.4936 6.1190 Year ended December 31, 2015 2014 Items in the statements of income and comprehensive income, and statements of cash flows 6.2284 6.1428 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 operations and comprehensive loss; 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. 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 year ended December 31, 2015, the Company recorded approximately US$0.87 million of impairment loss associated with its equity method investments. For the year ended December 31, 2014, the Company did not recognize any of such loss. j) Property and equipment, net Property and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation is calculated on the straight-line method after taking into account their respective estimated residual values over the following estimated useful lives: Leasehold improvements (in years) 3 Vehicles (in years) 5 Office equipment (in years) 3 - 5 Electronic devices (in years) 5 Depreciation expenses are included in selling expenses, general and administrative expenses and research and development expenses. Leasehold improvements are amortized over the lessor of the lease term or estimated useful life. When property and equipment are retired or otherwise disposed of, resulting gain or loss is included in net income or loss in the period of disposition. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts. 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. Contract Backlog (in years) 0.6 - 0.7 Customer Relationship (in years) 5 - 9 Non-Compete Agreement (in years) 5 - 6 Software Technologies (in years) 5 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, 2015 and 2014, 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 years ended December 31, 2015 and 2014, excluding loss recognized for intangible assets that ceased to be used as discussed in Note 3(n), the Company recorded approximately US$101,000 and US$442,000 impairment loss associated with intangible assets of its internet advertising reporting unit. The Company also recorded approximately US$169,000 and US$547,000 impairment loss in the results of operations of discontinued operation for the years ended 2015 and 2014, respectively, which related to intangible assets of its brand management and sales channel building reporting unit. See Note 3 (q) 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, 2015 and 2014, the Company performed its annual test on goodwill impairment for these two reporting units on December 31, 2015 and 2014, respectively. As discussed in Note 2, the Company exited its brand management and sales channel building business, for the years ended December 31, 2015 and 2014, the Company recorded approximately US$1,117,000 and US$900,000 impairment loss in the results of operations of discontinued operation, respectively, which associated with goodwill of its brand management and sales channel building reporting unit. Full goodwill impairment provision had been provided for goodwill associated with this reporting unit as of December 31, 2015. As also discussed in Note 2, the Company has committed to a plan to sell liansuo.com, which is a portion of the Company’s internet advertising reporting unit that constitutes a business. In accordance with ASC Topic 350: “Intangibles-Goodwill and Others” Subtopic 20-40, goodwill associated with that business unit shall be included in the carrying amount of the business to determine the gain or loss on disposal. In accordance with ASC 350-20-40-3 through ASC 350-20-40-7, the Company first allocated approximately US$914,000 goodwill associated with its internet advertising reporting unit to the carrying value of lianso.com based on the relative fair value of lianso.com and the portion of this reporting unit that will be retained, and then performed goodwill impairment test for goodwill remaining in the portion of the reporting unit to be retained using its adjusted carrying value. For the year ended December 31, 2015, the Company did not record any further impairment loss for goodwill associated with internet advertising reporting unit. For the year ended December 31, 2014, the Company recorded approximately US$3,751,000 impairment loss for goodwill associated with internet advertising reporting unit. See Note 3 (q) 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) Long-term assets to be disposed of In accordance with ASC Topic 360, for a long-lived asset to be disposed of other than by sale, the Company continues to be classified as held and used until it is disposed of. When a long-lived asset ceases to be used, the carrying amount of the asset is written down to its salvage value, if any. For the years ended December 31, 2015, the Company recorded approximately US$172,000 and US$1,551,000 loss associated with fixed assets and intangible assets, respectively, that ceased to be used during the year. For the year ended December 31, 2014, the Company did not recognize any of such loss. In accordance with ASC Topic 360, the Company classifies for a long-lived asset or disposal group to be sold as held for sale in the period in which all six criteria are met: (1) a plan to sell the asset (disposal group) has been committed to by management, who have the authority to approve the action; (2) the asset (disposal group) can be sold in its current condition; (3) an active plan has been initiated to find a buyer; (4) it is probable that the asset (disposal group) will be sold and the sale will be completed within one year and will qualify as a complete sale; (5) the sales price is reasonable relative to the asset’s current fair value and the entity is actively marketing the asset (disposal group); and (6) it is unlikely that the plan to sell the asset will be withdraw or changed significantly. The Company presented assets and liabilities of a disposal group classified as held for sale (but not qualifying for presentation as a discontinued operation) separately in the asset and liability section, respectively, of the balance sheets of the current period and disclosed the major classes of assets and liabilities classified as held for sale and other required detailed disclosures in Note 9. The Company measures a long-lived asset or disposal group classified as held for sale at the lower of its carrying amount or fair value less cost to sell. Long-lived assets classified as held for sale are not depreciated or amortized. The Company did not recognize any expected loss associated with the disposal group classified as held for sale, as the fair value of the disposal group less cost to sell exceeded the carrying amount of the disposal group including goodwill allocated to the disposal group. 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, 2015 and 2014, the Company recorded approximately US$0.02 million and US$0.27 million gain on disposal of its former VIEs, respectively. p) 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/(loss) attributable to the parent and the noncontrolling interest be clearly identified and presented on the face of the consolidated statement of operations and comprehensive income/(loss) 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. q) 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’s intangible assets and goodwill are measured at fair value on a nonrecurring basis and they are recorded at fair value using income approach only when impairment is recognized. 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: Valuation technique(s) Unobservable inputs Ranges As of December 31, 2015 Intangible assets Multi-period Excess Earning Remaining useful life (in years) 1 - 7 Discount rate 23.0% Decline in EBIT without non-compete agreement 10% Annual customer attrition rate 15% Goodwill Discounted Cash Flow Projection year (in years) 5 Discount rate 23.0% Terminal growth rate 3.5% As of December 31, 2014 Intangible assets Multi-period Excess Earning Remaining useful life (in years) 1.17 - 5.17 Discount rate 24.4% - 26.2% Decline in EBIT without non-compete agreement 10% Annual customer attrition rate 15% Goodwill Discounted Cash Flow Projection year (in years) 6 Discount rate 24.4% - 26.2% Terminal growth rate 3.5% r) 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. 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. s) Cost of revenues Cost of revenues primarily includes the cost of media advertising time, internet advertisement related resources and other technical services purchased from third parties and other direct cost associated with providing services. t) Advertising costs Advertising costs for the Company’s own brand building are not includable in cost of revenues, 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. For the years ended December 31, 2015 and 2014, advertising expenses for the Company’s own brand building were approximately US$2,353,000 and US$3,938,000, respectively. u) 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, 2015 and 2014 were approximately US$2,164,000 and US$2,660,000, respectively. v) 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. w) 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 subsidiaries 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, 2015 and 2014 and did not have any significant unrecognized uncertain tax positions as of December 31, 2015 and 2014, respectively. x) 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, net of an estimated forfeiture rate, if applicable, and therefore only recognizes compensation expenses for those equity instruments expected to vest over the requisite service period, or vesting period. Forfeitures are estimated at the time of grant and revised in the subsequent periods if actual forfeitures differ from those estimates. Cost of services received from non-employees is measured at fair value at the earlier of the performance commitment date or the date service is completed and recognized over the period the service is provided. y) 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. z) 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 |
Note 4 - Term Deposit
Note 4 - Term Deposit | 12 Months Ended |
Dec. 31, 2015 | |
Term Deposit [Abstract] | |
Term Deposit [Text Block] | 4. Term deposit Term deposit as of December 31, 2015 and December 31, 2014 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 matured on July 7, 2015 and was extended to July 7, 2016 with an interest rate of 2.925% per annual. |
Note 5 - Accounts Receivable, N
Note 5 - Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Receivable Disclosure [Abstract] | |
Accounts Receivable Disclosure [Text Block] | 5. Accounts receivable, net As of December 31, 2015 2014 US$(’000) US$(’000) Accounts receivable 5,619 5,429 Allowance for doubtful debts (3,070 ) (3,022 ) Accounts receivable, net 2,549 2,407 All of the accounts receivable are non-interest bearing. Based on the assessment of the collectability of the accounts receivable as of December 31, 2015 and 2014, the Company provided approximately US$3,070,000 and US$3,022,000 allowance for doubtful accounts, respectively, which were primarily 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, 2015, approximately US$233,000 allowance for doubtful accounts was provided. For the year ended December 31, 2014, approximately US$1,023,000 allowance for doubtful accounts was reversed. |
Note 6 - Other Receivables, Net
Note 6 - Other Receivables, Net | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 6. Other receivables, net As of December 31, 2015 2014 US$(’000) US$(’000) Short-term loan made for marketing campaign - 65 Term deposit interest receivable 48 56 Staff advances for normal business purpose 243 73 TV advertisement deposit and prepayment receivable 1,157 8,034 Overdue deposits 1,130 1,020 Allowance for doubtful debts (668 ) (856 ) Other receivables, net 1,910 8,392 TV advertisement deposit and prepayment receivable 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. The decrease in this balance was due to collection of the deposit and prepayment for the year ended December 31, 2015. The remaining balance of this deposit and prepayment as of December 31, 2015 has been fully collected in January 2016. 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, 2015 and 2014, the Company provided approximately US$668,000 and US$856,000 allowance for doubtful accounts, respectively, which was related to the deposits of its internet advertising and TV advertising business segment. For the year ended December 31, 2015, approximately US$145,000 allowance for doubtful accounts was reversed due to subsequent collection of a portion of the overdue deposit. For the year ended December 31, 2014, approximately US$163,000 allowance for doubtful accounts was provided. |
Note 7 - Prepayments and Deposi
Note 7 - Prepayments and Deposit to Suppliers | 12 Months Ended |
Dec. 31, 2015 | |
Prepayments And Deposits To Suppliers Disclosure [Abstract] | |
Prepayments And Deposits To Suppliers Disclosure [Text Block] | 7. Prepayments and deposit to suppliers As of December 31, 2015 2014 US$(’000) US$(’000) Deposits to internet resources and TV advertisement providers 622 3,575 Prepayments to internet resources and TV advertisement providers 3,623 4,451 Deposits to other service providers 1,540 - Other deposits and prepayments 58 66 5,843 8,092 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 internet resources and TV advertisement providers are paid as contractual deposits to the Company’s resources and services suppliers. As of December 31, 2015, deposit to internet resources and TV advertisement providers primarily consisted of the contractual deposits of approximately US$0.62 million to two of the Company’s largest internet resources suppliers. The decrease in deposits to internet resources and TV advertisement providers was primarily due to the significant reduction of contractual deposit amount required by the Company’s largest internet resources provider in 2015, as compared to that in 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 revenues when the related services are provided. As of December 31, 2015, prepayment to internet resources and TV advertisement providers was primarily all paid to the Company’s internet resources suppliers. Advanced payment carried forward from prior years related to purchase time slots had been fully utilized as of December 31 2015. Deposits to other service providers consisted of an approximately US$0.70 million deposit to an intermediary service provider, which the Company engaged to facilitate the Company to find, select and negotiate with its internet, TV or other media resource suppliers, and another approximately US$0.70 million deposit for an advisory contract related to finding buyers for liansuo.com and new investors for the Company. |
Note 8 - Long-term Investments
Note 8 - Long-term Investments | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 8. Long-term investments As of December 31, 2015 2014 US$(’000) US$(’000) Equity method investments: Investment in equity method investees 778 806 Advance to equity method investees 80 85 Impairment on equity method investments (838 ) - Total equity method investments 20 891 Cost method investments: Investment in cost method investees 1,113 18 Total long-term investments 1,133 909 Equity method investments As of December 31, 2015, the Company beneficially owned 40%, 23.18% and 25.5% equity interest in ChinaNet Korea, Shenzhen Mingshan and Zhao Shang Ke Hubei, respectively. The Company accounts for its investments in these companies under equity method of accounting. The following table summarizes the movement of the investments in equity method investees for the two years then ended December 31, 2015: ChinaNet Korea Shenzhen Mingshan Zhao Shang Ke Hubei Total US$(’000) US$(’000) US$(’000) US$(’000) 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 Share of losses in equity investment affiliates - (2 ) - (2 ) Investment in equity investment affiliates 20 - - 20 Exchange translation adjustment - (26 ) (25 ) (51 ) Impairment on equity method investments - (433 ) (405 ) (838 ) Balance as of December 31, 2015 20 - - 20 For the years ended December 31, 2015 and 2014, the Company recognized its pro-rata shares of loss in Shenzhen Mingshan of approximately US$2,000 and US$4,000, respectively. For the year ended December 31, 2015, the Company did not recognize any of its pro-rata shares of loss in Zhao Shang Ke Hubei, as the amount was immaterial. For the year ended December 31, 2014, the Company recognized its pro-rata share of income in Zhao Shang Ke Hubei of approximately US$51,000. As of December 31, 2015, based on the facts of the significant decline in level of business activities during 2015, insufficient amount of working capital and the lack of commitment from majority shareholders, these two investment affiliates had become dormant and the possibility of the business recovery is remote. As a result, the Company reduced the carrying value of these investments to zero as of December 31, 2015 by recognizing approximately US$874,000 impairment loss for the year ended December 31, 2015. Cost method investments As of December 31, 2015, the Company beneficially owned a 19% equity interest in ChinaNet Chuang Tou and Guohua Shiji, respectively, and a 10% equity interest in Chuangshi Meiwei and Beijing Saturday, respectively. The Company accounts for its investments in these companies under cost method of accounting. The following table summarizes the movement of the investments in cost method investees for the two years then ended December 31, 2015: Beijing Saturday Chuangshi Meiwei Guohua Shiji ChinaNet Chuang Tou Total US$(’000) US$(’000) US$(’000) US$(’000) US$(’000) Balance as of December 31, 2013 - - - - - Investment during the year 18 - - - - Balance as of December 31, 2014 18 - - - 18 Investment during the year - 154 3 939 1,096 Exchange translation adjustment (1 ) - - - (1 ) Balance as of December 31, 2015 17 154 3 939 1,113 ChinaNet Chuang Tou was incorporated in November 2015, which is currently in its setup period. The Company assessed the fair value of its cost method investments and determined no other-than temporary impairment exist as of December 31 2015, or 2014. |
Note 9 - Assets and Liabilities
Note 9 - Assets and Liabilities Classified as Held for Sale | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 9. Assets and liabilities classified as held for sale As discussed in Note 2, the Company had committed to a plan to sell one of its internet advertising operating VIEs, Beijing Chuang Fu Tian Xia, also known as liansuo.com., in exchange for cash to continue the expansion of its services distribution channels and to support the development of its data services, which did not qualify for presentation as a discontinued operation in accordance with ASC Topic 205, as it is not considered a significant portion of the Company’s internet advertising business segment. The Company expects to consummate the transaction before the end of fiscal 2016 and does not expect to have any continued involvement with the entity after the disposal date. The Company classified the assets and liabilities of the disposal group as held for sale as of December 31, 2015 and presented separately in the asset and liability section, respectively, in accordance with ASC Topic 360. The assets and liabilities held by the disposal group after allocation of an approximately US$914,000 of goodwill from the internet advertising reporting unit based on the relative fair value of the disposal group and the remaining portion of the reporting unit that will be retained are as follows: As of December 31, 2015 US$(’000) Assets classified as held for sale Cash and cash equivalents 181 Accounts receivable, net 53 Other receivables, net 95 Advance to suppliers 366 Property and equipment, net 43 Deferred tax assets 298 Goodwill allocated to the disposal group 914 Inter-co balances elimination (1) (68 ) Total assets classified as held for sale 1,882 Liabilities classified as held for sale Accounts payable 154 Advance from customers 588 Accrued payroll and other accruals 50 Taxes payable 9 Other payables 364 Inter-co balances elimination (1) (252 ) Total liabilities classified as held for sale 913 (1) Inter-company balances are part of the disposal group’s assets or liabilities, but were eliminated in deriving the consolidated financial statements. |
Note 10 - Property and Equipmen
Note 10 - Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 10. Property and equipment, net As of December 31, 2015 2014 US$(’000) US$(’000) Leasehold improvement 382 180 Vehicles 839 890 Office equipment 1,376 1,415 Electronic devices 1,171 1,244 Property and equipment, cost 3,768 3,729 Less: accumulated depreciation (2,922 ) (2,786 ) Less: impairment loss on abandoned fixed assets (165 ) - Property and equipment, net 681 943 Depreciation expenses in the aggregate for the years ended December 31, 2015 and 2014 were approximately US$355,000 and US$385,000, respectively. As discussed in Note 2, the Company exited its bank kiosk advertising business segment, which did not qualify for presentation as a discontinued operation. As a result, the Company reduced the carrying value of its bank kiosk equipment to zero, with a loss of approximately US$172,000 recorded and included in loss from continued operations for the year ended December 31, 2015, as the equipment was ceased to be used and its salvage value was immaterial. |
Note 11 - Intangible Assets, Ne
Note 11 - Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Intangible Assets Disclosure [Text Block] | 11. Intangible assets, net As of December 31, 2015 2014 US$(’000) US$(’000) Intangible assets not subject to amortization: Domain name 1,488 1,579 Intangible assets subject to amortization: Contract backlog 191 202 Customer relationship 3,340 3,545 Non-compete agreements 1,321 1,402 Software technologies 316 335 Cloud compute software technology 1,429 1,517 SMEs intelligent operation and marketing data service applications 4,973 5,277 Other computer software 108 78 Intangible assets, cost 13,166 13,935 Less: accumulated amortization (4,845 ) (3,704 ) Less: accumulated impairment losses (2,683 ) (993 ) Intangible assets, net 5,638 9,238 Amortization expenses in aggregate for the years ended December 31, 2015 and 2014 were approximately US$1,413,000 and US$1,052,000, respectively. As discussed in Note 2, the Company exited its brand management and sales channel building business segment, as a result, the Company reduced the remaining carrying value of customer relationship of this business segment to zero, with a loss of approximately US$169,000 recorded in loss from discontinued operation for the year ended December 31, 2015. For the year ended December 31, 2014, the Company recorded approximately US$547,000 of impairment loss for customer relationship and non-compete agreement of this business segment, which was reclassified and included in loss from discontinued operation for the year ended December 31, 2014, accordingly. As part of the internet advertising and marketing services restructuring, the Company ceased to use its domain name, www .sooe.cn acquired in 2011, which was primarily designed to serve smaller and home office clients. The Company would concentrate its resources and focus on providing comprehensive, integrated and in-depth services to more matured and well-established SME clients. As a result, the Company reduced the remaining carrying value of the domain name to zero, with a loss of approximately US$1,551,000 recorded and included in loss from continued operations for the year ended December 31, 2015. As discussed in Note 3 (q), the Company performed an impairment analysis on its intangible assets as of December 31, 2015 and 2014. The fair value of intangible assets was determined using Multi-period Excess Earning Method (the “MEEM method”). As an application of income approach, the MEEM method is a widely used valuation method. It determines the fair value of the asset as the present value of the cash flows attributable to it. As the 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 to 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 (q) for significant unobservable internally-developed inputs used in the fair value measurement). For the years ended December 31, 2015 and 2014, the Company provided approximately US$101,000 and US$442,000 impairment losses, which were associated with customer relationship and non-compete agreements of its internet advertising business segment. Based on the net carrying value of the finite-lived intangible assets recorded, which weighted average remaining useful life was 6.28 years as of December 31, 2015, and assuming no further subsequent impairment of the underlying intangible assets, the estimated future amortization expenses is approximately US$1,238,000 for the year ended December 31, 2016 and approximately US$765,000 each year for the year ended December 31, 2017 through 2020. |
Note 12 - Deposit for Purchasin
Note 12 - Deposit for Purchasing of Software Technology | 12 Months Ended |
Dec. 31, 2015 | |
Deposits For Purchasing Assets [Abstract] | |
Deposits For Purchasing Assets [Text Block] | 12. Deposit and prepayment for purchasing of software technology The Company entered into a contract to purchase software products related to cloud video management system from an unrelated third party with a total contract amount of RMB9.5 million (approximately US$1.5 million). As of December 31, 2015, the Company has paid in the aggregate of RMB6.65 million (approximately US$1.02 million) in accordance with the payment schedule set forth in the contract. The Company is currently in test trials for this system. The transaction as contemplated under the contract is expected to be consummated in 2016. The amount of US$0.85 million prepayment as of December 31, 2014 was related to a software development contract which has been terminated in November 2015. In accordance with the agreement between the Company and the counter party, the Company agreed to compensate the counter party RMB0.39 million (approximately US$0.06 million), and the remaining balance of the prepayment had been fully refunded to the Company as of December 31, 2015. In November 2015, the Company entered into a contract to engage an unrelated third party to develop software systems related to Internet operation safety, information exchange security and data encryption and management. The total contract amount was RMB13 million (approximately US$2 million). The Company has paid approximately RMB9.1 million (approximately US$1.4 million) during the first fiscal quarter of 2016. The transaction as contemplated under the contract is expected to be consummated in 2016. |
Note 13 - Goodwill
Note 13 - Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Goodwill Disclosure [Text Block] | 13. Goodwill Amount US$(’000) 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 Goodwill impairment losses (1,071 ) Goodwill allocated to disposal group classified as held for sale (914 ) Exchange translation adjustment (391 ) Balance as of December 31, 2015 4,396 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. As discussed in Note 2, the Company exited its brand management and sales channel building business segment, as a result, the Company provided full impairment provision against the remaining carrying value of goodwill attributable to this reporting unit, with a loss of approximately US$1,117,000 recorded in loss from discontinued operation for the year ended December 31, 2015. For the year ended December 31, 2014, the Company recorded approximately US$900,000 of impairment loss associated with goodwill of this reporting unit, which was reclassified and included in loss from discontinued operation for the year ended December 31, 2014, accordingly. As of December 31, 2015, as discussed in Note 3(m), based on the relative fair value of liansuo.com, the disposal group classified as held for sale during the period and the portion of the internet advertising reporting unit that will be retained, the Company first allocated approximately US$941,000 carrying value of goodwill attributable to its internet advertising reporting unit to the disposal group. The Company then performed annual impairment test on goodwill remaining in the portion of the reporting unit to be retained using its adjusted carrying amount in accordance with ASC Topic 350 “Intangibles-Goodwill and Others”. 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 (q) for significant unobservable internally-developed inputs used in the fair value measurement). For the year ended December 31, 2015, the Company did not recognize any further goodwill impairment loss attributable to internet advertising reporting unit. For the years ended December 31, 2014, the Company recorded US$3,751,000 impairment losses associated with goodwill attributable to this reporting unit. |
Note 14 - Short-term Bank Loan
Note 14 - Short-term Bank Loan | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Short-term Debt [Text Block] | 14. Short-term bank loan Short-term bank loan as of December 31, 2014 represented a short-term bank loan of RMB5.0 million (approximately US$0.8 million) borrowed by one of the Company’s VIEs from a major financial institution in China to supplement its short-term working capital needs, which matured on September 29, 2015. The Company repaid this loan in full at maturity with no future extension. |
Note 15 - Accrued Payroll and O
Note 15 - Accrued Payroll and Other Accruals | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 15. Accrued payroll and other accruals As of December 31, 2015 2014 US$(’000) US$(’000) Accrued payroll and staff welfare 345 388 Accrued operating expenses 340 197 685 585 |
Note 16 - Due to Noncontrolling
Note 16 - Due to Noncontrolling Interest of VIE | 12 Months Ended |
Dec. 31, 2015 | |
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, Beijing Chuang Fu Tian Xia, from its noncontrolling interest to supplement the short-term working capital needs of Beijing Chuang Fu Tian Xia. The short-term loan is unsecured, interest free and is payable on demand. In July 2015, as approved by the shareholders of Beijing Chuang Fu Tian Xia, the majority interest shareholder and noncontrolling interest shareholder, on a pro-rata basis, converted RMB2.04 million (approximately US$0.31 million) and RMB1.96 million (approximately US$0.30 million) of its amount due from Beijing Chuang Fu Tian Xia into the registered and paid-in capital of Beijing Chuang Fu Tian Xia, respectively. Accordingly, the registered and paid-in capital of Beijing Chuang Fu Tian Xia increased from RMB1 million (approximately US$0.15 million) to RMB5 million (approximately US$0.77 million). As of December 31, 2015, Beijing Chuang Fu Tian Xia had fully repaid the remaining outstanding amount due to its noncontrolling interest. |
Note 17 - Payable for Purchasin
Note 17 - Payable for Purchasing of Software Technology | 12 Months Ended |
Dec. 31, 2015 | |
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 payment balance for purchasing of the SMEs operation and marketing data service applications, which transaction consummated in December 2014. As of December 31, 2015, the Company has fully settled the balance with the counter party. |
Note 18 - Guarantee Payment and
Note 18 - Guarantee Payment and Prepayment from New Investors | 12 Months Ended |
Dec. 31, 2015 | |
Guarantee Payment And Prepayment From New Investors [Abstract] | |
Guarantee Payment And Prepayment From New Investors [Text Block] | 18. Guarantee payment and prepayment from new investors On May 5, 2015, the Company entered into a Securities Purchase Agreement with Beijing Jinrun Fangzhou Science & Technology Co, Ltd. (“Jinrun Fangzhou”), a public company listed on the National Equities Exchange and Quotations of the PRC (the”NEEQ”), pursuant to which Jinrun Fangzhou agreed to purchase 2,800,000 shares of common stock of the Company for an aggregate purchase price of US$3,500,000. On May 26, 2015, the Company entered into another Securities Purchase Agreement with Dongsys Innovation (Beijing) Technology Development Co., Ltd. (“Dongsys Innovation”), a public company listed on the NEEQ, pursuant to which Dongsys Innovation agreed to purchase 1,000,000 shares of common stock of the Company for an aggregate purchase price of US$1,250,000. In accordance with the Securities Purchase Agreements described above, Jinrun Fangzhou and Dongsys Innovation were required to pay 10% of its respective total purchase price as guarantee payments within five days of the date the agreements were signed, and pay an additional 15% of its respective total purchase price within thirty days of the date of the agreements were signed, and pay the remaining 75% of its respective purchase price at the closing which shall take place on the date mutually agreed to by the parties. As of December 31, 2015, the Company has received the 10% guarantee payment and 15% prepayment in an aggregate amount equal to US$824,000 from Jinrun Fangzhou, and the 10% guarantee payment in an amount equal to US$120,000 from Dongsys Innovation, respectively. As of December 31, 2015, the Company is still in the process of determining the transaction details with the investors. |
Note 19 - Taxation
Note 19 - Taxation | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 19. 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, 2015, 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, 2015 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 subsidiaries 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. l 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. During 2015, Business Opportunity Online reapplied for the qualification as a High and New Technology Enterprise. In November 2015, Business Opportunity Online received the formal certificate as a High and New Technology Enterprise, which enabled the entity to continue to enjoy the favorable statutory tax rate of 15% until November 2018. Therefore, for the years ended December 31, 2015 and 2014, the applicable income tax rate of Business Opportunity Online was both 15%. l 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, 2015 and 2014. After fiscal 2015, the applicable income tax rate for Business Opportunity Online Hubei will be 25% under the current EIT law of PRC. l The applicable income tax rate for other PRC operating entities of the Company is 25% for the years ended December 31, 2015 and 2014. l 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. For the years ended December 31, 2015 and 2014, all of the preferential income tax treatments enjoyed by the Company’s PRC subsidiaries 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 subsidiaries and VIEs operate in. 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 subsidiaries 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, 2015 and 2014, 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 subsidiaries and VIE operate in. As of December 31, 2015 and 2014, taxes payable consists of: As of December 31, 2015 2014 US$(’000) US$(’000) Turnover tax and surcharge payable 1,272 1,173 Enterprise income tax payable 1,914 2,159 3,186 3,332 A reconciliation of the income tax benefit determined at the U.S. federal corporate income tax rate to the Company’s effective income tax benefit is as follows: Year Ended December 31, 2015 2014 US$(’000) US$(’000) Pre-tax loss (9,212 ) (12,946 ) U.S. federal rate 35 % 35 % Income tax benefit computed at U.S. federal rate 3,224 4,531 Reconciling items: Rate differential for domestic earnings (647 ) (762 ) Preferential tax treatments and tax holiday effects (16 ) (176 ) Valuation allowance on deferred tax assets (1,057 ) (2,269 ) Goodwill impairment loss - (938 ) Others (8 ) 92 Effective income tax benefit 1,496 478 For the years ended December 31, 2015 and 2014, the Company’s income tax benefit consisted of: Year Ended December 31, 2015 2014 US$(’000) US$(’000) Current-PRC (4 ) (185 ) Deferred-PRC 1,500 663 Income tax benefit 1,496 478 The Company’s deferred tax liabilities at December 31, 2015 and changes for the two years then ended were as follows: Amount US$(’000) Balance as of December 31, 2013 1,439 Reversal during the year (474 ) Exchange translation adjustment (1 ) Balance as of December 31, 2014 964 Reversal during the year (790 ) Exchange translation adjustment (56 ) Balance as of December 31, 2015 118 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, 2015 and 2014 of approximately US$152,000 and approximately US$225,000, respectively, were due to amortization of the acquired intangible assets. Reversal of approximately US$672,000 and US$247,000 for the years ended December 31, 2015 and 2014, respectively, was related to losses recognized for impairment on intangible assets and equity method investments. The Company’s deferred tax assets at December 31, 2015 and December 31, 2014 were as follows: As of December 31, 2015 2014 US$(’000) US$(’000) Tax effect of net operating losses carried forward 7,921 6,655 Bad debts provision 932 943 Valuation allowance (7,303 ) (6,385 ) Total deferred tax assets 1,550 1,213 As of December 31, 2015 2014 US$(’000) US$(’000) Deferred tax assets reclassified as current asset - 176 Deferred tax assets reclassified as non-current asset 1,550 1,037 Total deferred tax assets 1,550 1,213 The net operating losses carried forward incurred by the Company (excluding its PRC operating subsidiaries and VIEs) were approximately US$14,903,000 and US$12,161,000 at December 31, 2015 and 2014, respectively, which loss carry forwards gradually expire over time, the last of which expires in 2035. 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 subsidiaries and VIEs were approximately US$15,657,000 and US$12,401,000 at December 31, 2015 and 2014, respectively, which loss carry forwards gradually expire over time, the last of which expires in 2020. The related deferred tax assets were calculated based on the respective net operating losses incurred by each of the PRC subsidiaries 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$52,000 and US$590,000 net valuation allowance for the years ended December 31, 2015 and 2014, 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 subsidiaries 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 (w) for the related provisions in accordance with the PRC Tax Administration and Collection Law). |
Note 20 - Long-term Borrowing f
Note 20 - Long-term Borrowing from Director | 12 Months Ended |
Dec. 31, 2015 | |
Long Term Borrowing From Director Disclosure [Abstract] | |
Long Term Borrowing From Director Disclosure [Text Block] | 20. Long-term borrowing from a director Long-term borrowing from a 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 21 - Restricted Net Assets
Note 21 - Restricted Net Assets | 12 Months Ended |
Dec. 31, 2015 | |
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 subsidiaries and VIEs, the Company’s ability to pay dividends is primarily dependent on receiving distributions of funds from its PRC subsidiaries and VIEs. Relevant PRC statutory laws and regulations permit payments of dividends by its PRC subsidiaries 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 subsidiaries 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 subsidiaries and VIEs are restricted in their ability to transfer a portion of their net assets to the Company. As of December 31, 2015 and 2014, net assets restricted in the aggregate, which include paid-in capital and statutory reserve funds of the Company’s PRC subsidiaries and VIEs that are included in the Company’s consolidated net assets, was approximately US$6.7 million and US$7.3 million, respectively. 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. The ability of the Company’s PRC subsidiaries 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: l Foreign Exchange Administration Rules (1996), as amended in August 2008, or the Exchange Rules; l 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, 2015 and 2014, there was approximately US$22.9 million and US$30.8 million retained earnings in the aggregate, respectively, which was generated by the Company’s PRC subsidiaries 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, 2015 and 2014, that may be affected by increased restrictions on currency exchanges in the future and accordingly may further limit the Company’s PRC subsidiaries’ and VIEs’ ability to make dividends or other payments in U.S. dollars to the Company, in addition to the approximately US$6.7 million and US$7.3 million restricted net assets as of December 31, 2015 and December 31, 2014, respectively, as discussed above. |
Note 22 - Related Party Transac
Note 22 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 22. Related party transactions Revenue from related parties: Year Ended December 31, 2015 2014 US$(’000) US$(’000) -Beijing Saturday Education Technology Co., Ltd. 298 91 -Chuangshi Meiwei (Beijing) International Investment Management Co., Ltd. 346 - -Beijing Saimeiwei Food Equipment Technology Co., Ltd, 99 260 -Beijing Fengshangyinli Technology Co., Ltd. - 2 743 353 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. |
Note 23 - Employee Defined Cont
Note 23 - Employee Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2015 | |
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$650,000 and US$574,000 for the years ended December 31, 2015 and 2014, respectively. |
Note 24 - Concentration of Risk
Note 24 - Concentration of Risk | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014, substantially all of the Company’s cash and cash equivalents were held by major financial institutions located in Mainland China, 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 subsidiaries and VIEs to transfer its net assets, which to the Company through loans, advances or cash dividends. Concentration of customers Excluding revenues generated from discontinued operation, for the year ended December 31, 2015, two customers individually accounted for both 12% of the Company’s revenues, respectively. For the year ended December 31, 2014, two customers individually accounted for 28% and 17% of the Company’s revenues, respectively. Except for the aforementioned customers, there was no other single customer who accounted for more than 10% of the Company’s revenues for the years ended December 31, 2015 or 2014. As of December 31, 2015, two customers individually accounted for 24% and 17% of the Company’s accounts receivable, respectively. As of December 31, 2014, two customers individually accounted for 19% and 18% of the Company’s accounts receivable, 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, 2015 or 2014. Concentration of suppliers Excluding cost incurred by discontinued operation, for the year ended December 31, 2015, two suppliers accounted for 43% and 37% of the Company’s cost of revenues, respectively. For the year ended December 31, 2014, two suppliers accounted for 72% and 19% of the Company’s cost of revenues, respectively. Except for the afore-mentioned, there was no other single supplier who accounted for more than 10% of the Company’s cost of revenues for the years ended December 31, 2015 or 2014. |
Note 25 - Commitments and Conti
Note 25 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015: Office Rental US$(’000) Year ending December 31, -2016 237 -2017 110 Total 347 Excluding rental expenses included in discontinued operation, for the years ended December 31, 2015 and 2014, rental expenses under operating leases were approximately US$377,000 and US$478,000, respectively. In May 2015, the Company entered into a contract to purchase software products related to cloud video management system from an unrelated third party with a total contract amount of RMB9.5 million (approximately US$1.5 million). As of December 31, 2015, the Company had paid in the aggregate of RMB6.65 million (approximately US$1.02 million) in accordance with the payment schedule set forth in the contract. The transaction as contemplated under the contract is expected to be consummated in 2016 and the remaining unpaid contract amount is expected to be paid in 2016. In November 2015, the Company entered into a contract to engage an unrelated third party to develop software systems related to Internet operation safety, information exchange security and data encryption and management. The total contract amount was RMB13 million (approximately US$2 million). The Company has paid approximately RMB9.1 million (approximately US$1.4 million) during the first fiscal quarter of 2016. The transaction as contemplated under the contract is expected to be consummated in 2016 and the remaining unpaid contract amount is expected to be paid in 2016. In accordance with the contract entered into between the Company and its largest internet resources supplier, the Company agreed to purchase in the aggregate of RMB100 million (“the minimum consumption amount”) (approximately US$15.4 million) from this supplier for a one-year period commencing on June 13, 2015. In accordance with this contract, if the Company fails to meet the minimum consumption amount, the supplier is allowed to require the Company to retroactively compensate the supplier in cash the difference between the granted discount rate set forth based on the minimum consumption amount and any revised discount rate set forth based on further negotiation between the two parties, if the Company is able to achieve 50% of the minimum consumption amount. If the Company fails to achieve 50% of the minimum consumption amount, the Company is not eligible to enjoy any discount. The Company believed that it could not achieve the minimum consumption amount. After several rounds of negotiation between the Company and this supplier, the supplier has agreed to significantly reduce the minimum consumption amount, and the Company is currently negotiating with this supplier for a more favorite discount rate. Based on the above discussed positive progress achieved, the Company concluded that more likely than not the Company would only be charged for approximately US$0.13 million as compensation for not achieving the original minimum Legal Proceedings On October 26, 2015, Business Opportunity Online, one of the Company’s indirect wholly owned VIEs, filed a civil action against Beijing 58 Information Technology Co., Ltd. (“Beijing 58”) in the Chaoyang District People’s Court of Beijing. Business Opportunity Online is seeking a court order to establish that it owns a 17.5% equity interest in Beijing 58, one of the VIEs owned by 58.com Inc. On January 20, 2016, the Chaoyang District People’s Court of Beijing rendered its ruling that Business Opportunity Online did not own 17.5% equity interest in Beijing 58. On February 15, 2016, Business Opportunity Online filed an appeal of the decision in the Beijing Third Intermediate People’s Court. The Company believes that it is too early and uncertain to assess the potential outcome of this lawsuit. |
Note 26 - Discontinued Operatio
Note 26 - Discontinued Operation | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations [Abstract] | |
Discontinued Operations [Text Block] | 26. Discontinued operation As discussed in Note 2, in order to concentrate all the Company’s resources on its core business, which is Internet advertising, marketing and the related technical and data services, the Company exited its brand management and sales channel building business segment, which qualified for presentation as a discontinued operation. Major classes of line items constituting pre-tax net loss and net loss of the discontinued operation for the years ended December 31, 2015 and 2014, respectively, are as follows: Year Ended December 31, 2015 2014 US$(’000) US$(’000) Revenues 272 931 Cost of revenues 149 603 Total operating expenses 359 527 Impairment on intangible assets 169 547 Impairment on goodwill 1,117 900 Not loss before income tax benefit (1,522 ) (1,646 ) Income tax benefit 57 175 Net loss (1,465 ) (1,471 ) For the years ended December 31, 2015 and 2014, depreciation and amortization expenses included in operating expenses of the discontinued operation was approximately US$63,000 and US$201,000, respectively. There were no significant capital expenditures, operating or investing noncash items incurred in the discontinued operation for the year ended December 31, 2015 or 2014. |
Note 27 - Segment Reporting
Note 27 - Segment Reporting | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 27. Segment reporting The Company follows ASC Topic 280 “Segment Reporting”, which requires that companies disclose segment data based on how management makes decisions about allocating resources to segments and evaluating their performance. Reportable operating segments include components of an entity about which separate financial information is available and which operating results are regularly reviewed by the chief operating decision maker (“CODM”), the Company’s Chief Executive Officer, to make decisions about resources to be allocated to the segment and assess each operating segment’s performance. Previously, the Company had four reportable operating segments, which was Internet adverting, TV advertising, Bank kiosk advertising and Brand management and sales channel building. As discussed in Note 2, the Company exited its bank kiosk advertising and brand management and sale channel building segments, of which brand management and sale channel building segment qualified for presentation as a discontinued operation. See Note 26 for detail disclosures of this discontinued operation for the years ended December 31, 2015 and 2014. Since the revenue, cost, operating expenses, net loss and total assets amounts of the Company’s bank kiosk segment were immaterial, the Company combined the results of operations of bank kiosk segment and other disclosure information with its TV advertising segment for the years ended December 31, 2015 and 2014, respectively, as presented below: For the year ended December 31, 2015 Internet TV & Others Inter- Total US$ US$ US$ US$ US$ Revenues 31,015 1,250 - - 32,265 Cost of revenues 23,615 1,040 - - 24,655 Total operating expenses 11,545 1,057 4,324 (1) - 16,926 Gain on disposal of VIE included in total operating expenses - - (20 ) - (20 ) Goodwill impairment and impairment on fixed assets and intangible assets included in total operating expenses 1,652 172 - - 1,824 Impairment on equity method investments included in total operating expenses - - 874 - 874 Depreciation and amortization expense included in total operating expenses 1,539 121 45 - 1,705 Operating loss (4,145 ) (847 ) (4,324 ) - (9,316 ) Expenditure for long-term assets 3,308 - 156 - 3,464 Net loss from continued operations (2,769 ) (849 ) (4,100 ) - (7,718 ) Total assets – December 31, 2015 33,727 3,148 17,362 (2) (18,777 ) 35,460 (1) Including approximately US$2,256,000 share-based compensation expenses. (2) Including approximately US$182,000 total assets held by brand management and sale channel building segment and US$1,882,000 assets classified as held for sale. For the year ended December 31, 2014 Internet TV & Others Inter- Total US$ US$ US$ US$ US$ Revenues 31,261 6,705 - - 37,966 Cost of revenues 25,645 6,026 - - 31,671 Total operating expenses 12,575 575 6,133 (1) - 19,283 Gain on disposal of VIE included in total operating expenses (266 ) - - - (266 ) Goodwill impairment and impairment on fixed assets and intangible assets included in total operating expenses 4,193 - - - 4,193 Depreciation and amortization expense included in total operating expenses 1,005 154 77 - 1,236 Operating (loss)/income (6,959 ) 104 (6,133 ) - 12,988 Expenditure for long-term assets 1,113 12 - 1,125 Net (loss)/income from continued operations (6,380 ) 47 (6,088 ) - (12,421 ) Total assets – December 31, 2014 43,851 13,524 9,547 (2) (19,492 ) 47,430 (1) Including approximately US$4,840,000 share-based compensation expenses. (2) Including approximately US$2,989,000 total assets held by brand management and sale channel building segment. |
Note 28 - Loss Per Share
Note 28 - Loss Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 28. Loss per share Basic and diluted loss per share for each of the periods presented is calculated as follows (All amounts, except number of shares and per share data, are presented in thousands of U.S. dollars): Year Ended December 31, 2015 2014 US$(’000) US$(’000) Net loss attributable to ChinaNet Online Holdings, Inc. from continued operations (numerator for basic and diluted loss per share from continued operations) $ (7,627 ) $ (12,267 ) Net loss attributable to ChinaNet Online Holdings, Inc. from discontinued operation (numerator for basic and diluted loss per share from discontinued operation) (1,465 ) (1,471 ) Weighted average number of common shares outstanding – Basic 26,765,673 22,414,523 Effect of diluted securities: Unvested restricted common stocks - - Common stock purchase options - - Weighted average number of common shares outstanding – Diluted 26,765,673 22,414,523 Loss per share-Basic and diluted from continued operations $ (0.29 ) $ (0.55 ) Loss per share-Basic and diluted from discontinued operation $ (0.05 ) $ (0.07 ) For the year ended December 31, 2015, the diluted loss per share calculation for continued and discontinued operations did not include a weighted average number of 2,659,361 shares of unvested restricted common stock and a weighted average number of exercisable in-the-money options to purchase up to 562,557 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, 2014, the diluted loss per share calculation for continued and discontinued operations did not include a weighted average number of 14,612 shares of unvested restricted common stock and a weighted average number of exercisable in-the-money options to purchase up to 441,559 shares of the Company’s common stock, respectively, because their effect was anti-dilutive, as the Company incurred a loss for the year for both continued and discontinued operations. |
Note 29 - Share-based Compensat
Note 29 - Share-based Compensation Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 29. Share-based compensation expenses The Company granted 50,000 shares and 40,000 shares of the Company’s restricted common stock to its investor relations services provider, in exchange for its services to the Company for the years ended December 31, 2015 and 2014, respectively. These shares were valued at US$1.20 per share and US$0.84 per share, the closing bid price of the Company’s common stock on the date of grant, respectively. Total compensation expense recognized for the services was US$60,000 and US$33,600 for the years ended December 31, 2015 and 2014, 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. 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 years ended December 31, 2015 and 2014 was approximately US$117,000 and US$84,000, respectively. The Company granted 350,000 shares of the Company’s restricted common stock to a management consulting service provider in exchange for its services to the Company for a 24-month period commencing on May 1, 2015. These shares were valued at US$1.57 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, 2015 was approximately US$183,000. The Company granted 60,000 shares of the Company’s restricted common stock to another management consulting service provider in exchange for its services to the Company. These shares were valued at US$0.90 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, 2015 was approximately US$54,000. On September 14, 2015, under its 2015 Omnibus Securities and Incentive Plan, the Company granted its employees and directors in the aggregate of 665,592 shares of the Company’s restricted common stock, which will be vested on the third anniversary of the date of the grant. These shares were valued at $0.84 per share, the closing bid price of the Company’s common stock on the date of grant. The Company adopted a 5% forfeiture rate for recognition of the related compensation expenses of these unvested shares, total compensation cost recognized for the year ended December 31, 2015 was approximately US$53,000. On December 30, 2014, the Company issued 4,200,000 shares of the Company’s restricted common stock to its executive officers, of which 1,533,333 restricted shares were vested upon issuance, 1,333,333 restricted shares were 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 years ended December 31, 2015 and 2014 was US$1,560,000 and US$1,794,000, respectively. On December 30, 2014, 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 September 14, 2015, under its 2015 Omnibus Securities and Incentive Plan, the Company also granted 5-year common stock purchase options to its employees and directors, in the aggregate, to purchase up to 1,193,100 shares of the Company’s restricted common stock at an exercise price of US$0.84 per share, of which 397,700 options was vested upon the date of grant, 397,700 options will be vested on September 14, 2016 and the remaining 397,700 options will be vested on September 14, 2017. The Company adopted a 5% forfeiture rate for recognition of the related compensation expenses of the unvested part of options, total compensation expenses recognized for these options for the year ended December 31, 2015 was approximately US$229,000. The Company estimated the fair value of these options using the Binomial option-pricing model based on the following assumptions: Applicable stock price $ 0.84 Exercise multiple 2-2.5 Tenor (years) 5.00 Risk-free interest rate 1.563 % Dividend yield - Expected volatility 98.63 % Exercise price of the option $ 0.84 Value per option $0.41-$0.56 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) 5.00 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 respective grant date, after adjustment for the restricted shares granted/cancelled on the respective grant date. Exercise multiple 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 are adopted as the risk-free rate. Annualized historical stock price volatility of the Company from an appropriate index as at the respective 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, 2015 and their movements for the two years then ended are as follows: Option Outstanding Option Exercisable Number of underlying shares Weighted Weighted Number of underlying shares Weighted Weighted 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 ) $ 1.20 (190,500 ) $ 1.20 Expired (54,000 ) $ 5.00 (54,000 ) $ 5.00 Balance, December 31, 2014 894,940 6.48 $ 1.21 894,940 6.48 $ 1.21 Granted/Vested 1,193,100 5 $ 0.84 397.700 5 $ 0.84 Forfeited - - Exercised - - Balance, December 31, 2015 2,088,040 5.04 $ 1.00 1,292,640 5.24 $ 1.09 The aggregate unrecognized share-based compensation expenses as of December 31, 2015 and 2014 is approximately US$2,741,000 and US$3,237,000, respectively. |
Note 30 - Subsequent Events
Note 30 - Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 30. Subsequent event In January 2016, the Company issued 50,000 shares of the Company’s restricted common stock to its investor relations services provider in exchange for its services for the year ended December 31, 2016. These shares were granted in January 2015 and 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 approximately US$60,000 will be recognized for the year ended December 31, 2016. In March 2016, the Company issued 665,592 shares of the Company’s unvested restricted common stock, which was granted in September 2015 under its 2015 Omnibus Securities and Incentive Plan as discussed in Note 29. During the first fiscal quarter of 2016, the Company paid approximately RMB9.1 million (approximately US$1.4 million) in relation to a software development contract entered into in November 2015 as discussed in Note 12. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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”). As discussed in Note 2, the Company exited its brand management and sales channel building business segment, which qualified for presentation as a discontinued operation in accordance with ASC Topic 205. As a result, the results of operations of this business was reported in discontinued operation as a separate component in the Company’s consolidated statements of operations and comprehensive loss for all periods presented. |
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. |
Comparability Due to Discontinued Operation, Policy [Policy Text Block] | Comparability due to discontinued operation Certain accounts in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2014 and related notes have been retrospectively adjusted to reflect the effect of reclassification of results of operations reported in discontinued operation as a separate component. See Note 26 for the related detail disclosures. Cash flows from discontinued operation for the years ended December 31, 2015 and 2014 were combined with the cash flows from continuing operations within each of the three categories. |
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. |
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$”). The functional currency of the Company’s PRC operating subsidiaries and VIEs is Renminbi (“RMB”), and PRC is the primary economic environment in which the Company operates. For financial reporting purposes, the financial statements of the Company’s PRC operating subsidiaries and VIEs, which are prepared using the RMB, are translated into the Company’s reporting currency, the United States Dollar (“U.S. dollar”). Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and stockholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income in stockholders’ equity. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. The resulting exchange differences are included in the determination of net loss of the consolidated statements of operations and comprehensive loss for the respective periods. The exchange rates used to translate amounts in RMB into US$ for the purposes of preparing the consolidated financial statements are as follows: As of December 31, 2015 2014 Balance sheet items, except for equity accounts 6.4936 6.1190 Year ended December 31, 2015 2014 Items in the statements of income and comprehensive income, and statements of cash flows 6.2284 6.1428 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 Deposits, Policy [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 operations and comprehensive loss; 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. 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 year ended December 31, 2015, the Company recorded approximately US$0.87 million of impairment loss associated with its equity method investments. For the year ended December 31, 2014, the Company did not recognize any of such loss. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and equipment, net Property and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation is calculated on the straight-line method after taking into account their respective estimated residual values over the following estimated useful lives: Leasehold improvements (in years) 3 Vehicles (in years) 5 Office equipment (in years) 3 - 5 Electronic devices (in years) 5 Depreciation expenses are included in selling expenses, general and administrative expenses and research and development expenses. Leasehold improvements are amortized over the lessor of the lease term or estimated useful life. When property and equipment are retired or otherwise disposed of, resulting gain or loss is included in net income or loss in the period of disposition. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts. 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. Contract Backlog (in years) 0.6 - 0.7 Customer Relationship (in years) 5 - 9 Non-Compete Agreement (in years) 5 - 6 Software Technologies (in years) 5 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, 2015 and 2014, 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 years ended December 31, 2015 and 2014, excluding loss recognized for intangible assets that ceased to be used as discussed in Note 3(n), the Company recorded approximately US$101,000 and US$442,000 impairment loss associated with intangible assets of its internet advertising reporting unit. The Company also recorded approximately US$169,000 and US$547,000 impairment loss in the results of operations of discontinued operation for the years ended 2015 and 2014, respectively, which related to intangible assets of its brand management and sales channel building reporting unit. See Note 3 (q) 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, 2015 and 2014, the Company performed its annual test on goodwill impairment for these two reporting units on December 31, 2015 and 2014, respectively. As discussed in Note 2, the Company exited its brand management and sales channel building business, for the years ended December 31, 2015 and 2014, the Company recorded approximately US$1,117,000 and US$900,000 impairment loss in the results of operations of discontinued operation, respectively, which associated with goodwill of its brand management and sales channel building reporting unit. Full goodwill impairment provision had been provided for goodwill associated with this reporting unit as of December 31, 2015. As also discussed in Note 2, the Company has committed to a plan to sell liansuo.com, which is a portion of the Company’s internet advertising reporting unit that constitutes a business. In accordance with ASC Topic 350: “Intangibles-Goodwill and Others” Subtopic 20-40, goodwill associated with that business unit shall be included in the carrying amount of the business to determine the gain or loss on disposal. In accordance with ASC 350-20-40-3 through ASC 350-20-40-7, the Company first allocated approximately US$914,000 goodwill associated with its internet advertising reporting unit to the carrying value of lianso.com based on the relative fair value of lianso.com and the portion of this reporting unit that will be retained, and then performed goodwill impairment test for goodwill remaining in the portion of the reporting unit to be retained using its adjusted carrying value. For the year ended December 31, 2015, the Company did not record any further impairment loss for goodwill associated with internet advertising reporting unit. For the year ended December 31, 2014, the Company recorded approximately US$3,751,000 impairment loss for goodwill associated with internet advertising reporting unit. See Note 3 (q) 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. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-term assets to be disposed of In accordance with ASC Topic 360, for a long-lived asset to be disposed of other than by sale, the Company continues to be classified as held and used until it is disposed of. When a long-lived asset ceases to be used, the carrying amount of the asset is written down to its salvage value, if any. For the years ended December 31, 2015, the Company recorded approximately US$172,000 and US$1,551,000 loss associated with fixed assets and intangible assets, respectively, that ceased to be used during the year. For the year ended December 31, 2014, the Company did not recognize any of such loss. In accordance with ASC Topic 360, the Company classifies for a long-lived asset or disposal group to be sold as held for sale in the period in which all six criteria are met: (1) a plan to sell the asset (disposal group) has been committed to by management, who have the authority to approve the action; (2) the asset (disposal group) can be sold in its current condition; (3) an active plan has been initiated to find a buyer; (4) it is probable that the asset (disposal group) will be sold and the sale will be completed within one year and will qualify as a complete sale; (5) the sales price is reasonable relative to the asset’s current fair value and the entity is actively marketing the asset (disposal group); and (6) it is unlikely that the plan to sell the asset will be withdraw or changed significantly. The Company presented assets and liabilities of a disposal group classified as held for sale (but not qualifying for presentation as a discontinued operation) separately in the asset and liability section, respectively, of the balance sheets of the current period and disclosed the major classes of assets and liabilities classified as held for sale and other required detailed disclosures in Note 9. The Company measures a long-lived asset or disposal group classified as held for sale at the lower of its carrying amount or fair value less cost to sell. Long-lived assets classified as held for sale are not depreciated or amortized. The Company did not recognize any expected loss associated with the disposal group classified as held for sale, as the fair value of the disposal group less cost to sell exceeded the carrying amount of the disposal group including goodwill allocated to the disposal group. |
Deconsolidation, Policy [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, 2015 and 2014, the Company recorded approximately US$0.02 million and US$0.27 million gain on disposal of its former VIEs, respectively. |
Non-controlling Interest, Policy [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/(loss) attributable to the parent and the noncontrolling interest be clearly identified and presented on the face of the consolidated statement of operations and comprehensive income/(loss) 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’s intangible assets and goodwill are measured at fair value on a nonrecurring basis and they are recorded at fair value using income approach only when impairment is recognized. 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: Valuation technique(s) Unobservable inputs Ranges As of December 31, 2015 Intangible assets Multi-period Excess Earning Remaining useful life (in years) 1 - 7 Discount rate 23.0% Decline in EBIT without non-compete agreement 10% Annual customer attrition rate 15% Goodwill Discounted Cash Flow Projection year (in years) 5 Discount rate 23.0% Terminal growth rate 3.5% As of December 31, 2014 Intangible assets Multi-period Excess Earning Remaining useful life (in years) 1.17 - 5.17 Discount rate 24.4% - 26.2% Decline in EBIT without non-compete agreement 10% Annual customer attrition rate 15% Goodwill Discounted Cash Flow Projection year (in years) 6 Discount rate 24.4% - 26.2% Terminal growth rate 3.5% |
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. 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 revenues Cost of revenues primarily includes the cost of media advertising time, internet advertisement related resources and other technical services purchased from third parties and other direct cost associated with providing services. |
Advertising Costs, Policy [Policy Text Block] | Advertising costs Advertising costs for the Company’s own brand building are not includable in cost of revenues, 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. For the years ended December 31, 2015 and 2014, advertising expenses for the Company’s own brand building were approximately US$2,353,000 and US$3,938,000, 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, 2015 and 2014 were approximately US$2,164,000 and US$2,660,000, 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 subsidiaries 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, 2015 and 2014 and did not have any significant unrecognized uncertain tax positions as of December 31, 2015 and 2014, 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, net of an estimated forfeiture rate, if applicable, and therefore only recognizes compensation expenses for those equity instruments expected to vest over the requisite service period, or vesting period. Forfeitures are estimated at the time of grant and revised in the subsequent periods if actual forfeitures differ from those estimates. Cost of services received from non-employees is measured at fair value at the earlier of the performance commitment date or the date service is completed and recognized over the period the service is provided. |
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. |
Discontinued Operations, Policy [Policy Text Block] | Discontinued operations The Company has adopted ASC Topic 205 “Presentation of Financial Statements” Subtopic 20-45, in determining whether any of its business component(s) classified as held for sale, disposed of by sale or other than by sale is required to be reported in discontinued operations. In accordance with ASC Topic 205-20-45-1, A discontinued operation may include a component of an entity or a group of components of an entity, or a business or nonprofit activity. A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when any of the following occurs: (1) the component of an entity or group of components of an entity meets the criteria to be classified as held for sale; (2) the component of an entity or group of components of an entity is disposed of by sale; (3) the component of an entity or group of components of an entity is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). For any component classified as held for sale or disposed by sale or other than by sale that qualifying for presentation as a discontinued operation in the period, the Company adopts ASC Topic 205-20-45-3 and reports the results of operations of the discontinued operations (including any gain or loss recognized on the disposal or loss recognized on classification as held for sale of a discontinued operation), less applicable income taxes (benefit), as a separate component in the statement where net income (loss) is reported for current and all prior periods presented. |
Commitments and Contingencies, Policy [Policy Text Block] | Commitments and contingencies The Company has adopted ASC Topic 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 January 2015, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“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. 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. Early adoption is permitted, including adoption in an interim period. 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 August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”. The amendments in this ASU defer the effective date of ASU No. 2014-09 for all entities by one year. ASU No. 2014-09, issued in May 2014, clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and IFRS. Simultaneously, this ASU supersedes the revenue recognition requirements in ASC Topic 605-Revenue Recognition and most industry-specific guidance throughout the Industry Topics of the Codification. The core principle of this ASU requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; (5) recognize revenue when (or as) the entity satisfies a performance obligation. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in this ASU to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of on its consolidated financial position and results of operations upon adopting these amendments. In September 2015, the FASB issued ASU No. 2015-16, “Business Combination (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments”. The amendments in this ASU require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this ASU require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date, i.e., to simplify the accounting for adjustments made to provisional amounts recognized in a business combination, the amendments in this ASU eliminate the requirement to retrospectively account for those adjustments. The amendments in this ASU require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this ASU should be applied prospectively to adjustments to provisional amounts that occur after the effective date of ASU with earlier application permitted for financial statements that have not been issued. 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 November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”. Current GAAP requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. To simplify the presentation of deferred income taxes, the amendments in this ASU require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this ASU apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this ASU. For public business entities, the amendments in this ASU are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The amendments in this ASU may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company will adopt the amendments in this ASU from January 1, 2016. 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 March 2016, the FASB issued ASU No. 2016-07, “Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting”. The amendments in this ASU eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments in this ASU require that an entity that has an available-for sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Earlier application is permitted. No additional disclosures are required at transition. 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 March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”. The amendments in this ASU do not change the core principle of the guidance. The amendments clarify the implementation guidance on principal versus agent considerations. When another party is involved in providing goods or services to a customer, an entity is required to determine whether the nature of its promise is to provide the specified good or service itself (that is, the entity is a principal) or to arrange for that good or service to be provided by the other party (that is, the entity is an agent). When (or as) an entity that is a principal satisfies a performance obligation, the entity recognizes revenue in the gross amount of consideration to which it expects to be entitled in exchange for the specified good or service transferred to the customer. When (or as) an entity that is an agent satisfies a performance obligation, the entity recognizes revenue in the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the specified good or service to be provided by the other party. An entity is a principal if it controls the specified good or service before that good or service is transferred to a customer. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customer. The amendments in this ASU affect the guidance in ASU No. 2014-09, which is not yet effective. The effective date and transition requirements for the amendments in this ASU are the same as the effective date and transition requirements of ASU No. 2014-09, which is deferred by ASU No. 2015-14 by one year. The Company is currently evaluating the impact of on its consolidated financial position and results of operations upon adopting these amendments. In March 2016, the FASB issued ASU No. 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. The amendments in this ASU affected all entities that issue share-based payment awards to their employees. The areas for simplification in this ASU involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. For public business entities, the amendments in this ASU are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. The Company is currently evaluating the impact on its consolidated financial position and results of operations upon adopting these amendments. 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 En38
Note 2 - Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities Disclosure [Abstract] | |
Schedule of Variable Interest Entities [Table Text Block] | As of December 31, 2015 2014 US$(’000) US$(’000) Assets Current assets: Cash and cash equivalents $ 4,942 $ 4,239 Term deposit 3,265 3,465 Accounts receivable, net 2,492 2,407 Other receivables, net 1,712 8,349 Prepayment and deposit to suppliers 5,841 8,091 Due from related parties 24 - Other current assets 27 58 Deferred tax assets-current - 107 Assets classified as held for sale (1) 1,882 - Total current assets 20,185 26,716 Long-term investments 1,113 865 Property and equipment, net 503 869 Intangible assets, net 5,630 9,238 Deposit and prepayment for purchasing of software technology 1,024 850 Goodwill 4,396 6,772 Deferred tax assets-non current 1,249 795 Total Assets 34,100 $ 46,105 Liabilities Current liabilities: Short-term bank loan $ - $ 817 Accounts payable 88 782 Advances from customers 1,304 832 Accrued payroll and other accruals 309 357 Due to Control Group 11 11 Due to noncontrolling interest of VIE - 638 Payable for purchasing of software technology - 2,826 Taxes payable 2,733 2,846 Other payables 67 580 Liabilities classified as held for sale (1) 913 - Total current liabilities 5,425 9,689 Deferred tax Liabilities-non current 118 964 Total Liabilities $ 5,543 $ 10,653 Commitments and contingencies 129 - |
Financial Performance of VIEs [Table Text Block] | Year Ended December 31, 2015 2014 US$(’000) US$(’000) Revenues $ 31,902 $ 37,241 Cost of revenues 24,655 31,669 Total operating expenses (including impairment and other losses of long-lived assets and goodwill, impairment loss on equity investments and gain on deconsolidation of VIEs) 13,387 13,184 Loss from discontinued operations (2) 1,465 1,471 Net loss before allocation to noncontrolling interests 6,016 8,518 |
Note 3 - Summary of Significa39
Note 3 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Foreign Currency Exchange Rates [Table Text Block] | As of December 31, 2015 2014 Balance sheet items, except for equity accounts 6.4936 6.1190 Year ended December 31, 2015 2014 Items in the statements of income and comprehensive income, and statements of cash flows 6.2284 6.1428 |
Property, Plant, and Equipment, Useful Life [Table Text Block] | Leasehold improvements (in years) 3 Vehicles (in years) 5 Office equipment (in years) 3 - 5 Electronic devices (in years) 5 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Contract Backlog (in years) 0.6 - 0.7 Customer Relationship (in years) 5 - 9 Non-Compete Agreement (in years) 5 - 6 Software Technologies (in years) 5 |
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | Valuation technique(s) Unobservable inputs Ranges As of December 31, 2015 Intangible assets Multi-period Excess Earning Remaining useful life (in years) 1 - 7 Discount rate 23.0% Decline in EBIT without non-compete agreement 10% Annual customer attrition rate 15% Goodwill Discounted Cash Flow Projection year (in years) 5 Discount rate 23.0% Terminal growth rate 3.5% As of December 31, 2014 Intangible assets Multi-period Excess Earning Remaining useful life (in years) 1.17 - 5.17 Discount rate 24.4% - 26.2% Decline in EBIT without non-compete agreement 10% Annual customer attrition rate 15% Goodwill Discounted Cash Flow Projection year (in years) 6 Discount rate 24.4% - 26.2% Terminal growth rate 3.5% |
Note 5 - Accounts Receivable,40
Note 5 - Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Receivable Disclosure [Abstract] | |
Schedule Of Accounts Receivable [Table Text Block] | As of December 31, 2015 2014 US$(’000) US$(’000) Accounts receivable 5,619 5,429 Allowance for doubtful debts (3,070 ) (3,022 ) Accounts receivable, net 2,549 2,407 |
Note 6 - Other Receivables, N41
Note 6 - Other Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of Other Receivables [Table Text Block] | As of December 31, 2015 2014 US$(’000) US$(’000) Short-term loan made for marketing campaign - 65 Term deposit interest receivable 48 56 Staff advances for normal business purpose 243 73 TV advertisement deposit and prepayment receivable 1,157 8,034 Overdue deposits 1,130 1,020 Allowance for doubtful debts (668 ) (856 ) Other receivables, net 1,910 8,392 |
Note 7 - Prepayments and Depo42
Note 7 - Prepayments and Deposit to Suppliers (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Prepayments And Deposits To Suppliers Disclosure [Abstract] | |
Schedule Of Prepayments And Deposit To Suppliers [Table Text Block] | As of December 31, 2015 2014 US$(’000) US$(’000) Deposits to internet resources and TV advertisement providers 622 3,575 Prepayments to internet resources and TV advertisement providers 3,623 4,451 Deposits to other service providers 1,540 - Other deposits and prepayments 58 66 5,843 8,092 |
Note 8 - Long-term Investments
Note 8 - Long-term Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Long-term Investments [Table Text Block] | As of December 31, 2015 2014 US$(’000) US$(’000) Equity method investments: Investment in equity method investees 778 806 Advance to equity method investees 80 85 Impairment on equity method investments (838 ) - Total equity method investments 20 891 Cost method investments: Investment in cost method investees 1,113 18 Total long-term investments 1,133 909 |
Equity Method Investments [Table Text Block] | ChinaNet Korea Shenzhen Mingshan Zhao Shang Ke Hubei Total US$(’000) US$(’000) US$(’000) US$(’000) 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 Share of losses in equity investment affiliates - (2 ) - (2 ) Investment in equity investment affiliates 20 - - 20 Exchange translation adjustment - (26 ) (25 ) (51 ) Impairment on equity method investments - (433 ) (405 ) (838 ) Balance as of December 31, 2015 20 - - 20 |
Schedule of Cost Method Investments [Table Text Block] | Beijing Saturday Chuangshi Meiwei Guohua Shiji ChinaNet Chuang Tou Total US$(’000) US$(’000) US$(’000) US$(’000) US$(’000) Balance as of December 31, 2013 - - - - - Investment during the year 18 - - - - Balance as of December 31, 2014 18 - - - 18 Investment during the year - 154 3 939 1,096 Exchange translation adjustment (1 ) - - - (1 ) Balance as of December 31, 2015 17 154 3 939 1,113 |
Note 9 - Assets and Liabiliti44
Note 9 - Assets and Liabilities Classified as Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | As of December 31, 2015 US$(’000) Assets classified as held for sale Cash and cash equivalents 181 Accounts receivable, net 53 Other receivables, net 95 Advance to suppliers 366 Property and equipment, net 43 Deferred tax assets 298 Goodwill allocated to the disposal group 914 Inter-co balances elimination (1) (68 ) Total assets classified as held for sale 1,882 Liabilities classified as held for sale Accounts payable 154 Advance from customers 588 Accrued payroll and other accruals 50 Taxes payable 9 Other payables 364 Inter-co balances elimination (1) (252 ) Total liabilities classified as held for sale 913 |
Note 10 - Property and Equipm45
Note 10 - Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment [Table Text Block] | As of December 31, 2015 2014 US$(’000) US$(’000) Leasehold improvement 382 180 Vehicles 839 890 Office equipment 1,376 1,415 Electronic devices 1,171 1,244 Property and equipment, cost 3,768 3,729 Less: accumulated depreciation (2,922 ) (2,786 ) Less: impairment loss on abandoned fixed assets (165 ) - Property and equipment, net 681 943 |
Note 11 - Intangible Assets, 46
Note 11 - Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Schedule of Finite and Indefinite Lived Intangible Assets [Table Text Block] | As of December 31, 2015 2014 US$(’000) US$(’000) Intangible assets not subject to amortization: Domain name 1,488 1,579 Intangible assets subject to amortization: Contract backlog 191 202 Customer relationship 3,340 3,545 Non-compete agreements 1,321 1,402 Software technologies 316 335 Cloud compute software technology 1,429 1,517 SMEs intelligent operation and marketing data service applications 4,973 5,277 Other computer software 108 78 Intangible assets, cost 13,166 13,935 Less: accumulated amortization (4,845 ) (3,704 ) Less: accumulated impairment losses (2,683 ) (993 ) Intangible assets, net 5,638 9,238 |
Note 13 - Goodwill (Tables)
Note 13 - Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Goodwill [Table Text Block] | Amount US$(’000) Balance as of December 31, 2013 11,450 Goodwill impairment losses (4,668 ) Exchange translation adjustment (10 ) Balance as of December 31, 2014 6,772 Goodwill impairment losses (1,071 ) Goodwill allocated to disposal group classified as held for sale (914 ) Exchange translation adjustment (391 ) Balance as of December 31, 2015 4,396 |
Note 15 - Accrued Payroll and48
Note 15 - Accrued Payroll and Other Accruals (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | As of December 31, 2015 2014 US$(’000) US$(’000) Accrued payroll and staff welfare 345 388 Accrued operating expenses 340 197 685 585 |
Note 19 - Taxation (Tables)
Note 19 - Taxation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Taxes Payable [Table Text Block] | As of December 31, 2015 2014 US$(’000) US$(’000) Turnover tax and surcharge payable 1,272 1,173 Enterprise income tax payable 1,914 2,159 3,186 3,332 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, 2015 2014 US$(’000) US$(’000) Pre-tax loss (9,212 ) (12,946 ) U.S. federal rate 35 % 35 % Income tax benefit computed at U.S. federal rate 3,224 4,531 Reconciling items: Rate differential for domestic earnings (647 ) (762 ) Preferential tax treatments and tax holiday effects (16 ) (176 ) Valuation allowance on deferred tax assets (1,057 ) (2,269 ) Goodwill impairment loss - (938 ) Others (8 ) 92 Effective income tax benefit 1,496 478 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, 2015 2014 US$(’000) US$(’000) Current-PRC (4 ) (185 ) Deferred-PRC 1,500 663 Income tax benefit 1,496 478 |
Schedule of Deferred Tax Liabilities [Table Text Block] | Amount US$(’000) Balance as of December 31, 2013 1,439 Reversal during the year (474 ) Exchange translation adjustment (1 ) Balance as of December 31, 2014 964 Reversal during the year (790 ) Exchange translation adjustment (56 ) Balance as of December 31, 2015 118 |
Schedule of Deferred Tax Assets [Table Text Block] | As of December 31, 2015 2014 US$(’000) US$(’000) Tax effect of net operating losses carried forward 7,921 6,655 Bad debts provision 932 943 Valuation allowance (7,303 ) (6,385 ) Total deferred tax assets 1,550 1,213 |
Schedule of Classification of Deferred Tax Assets [Table Text Block] | As of December 31, 2015 2014 US$(’000) US$(’000) Deferred tax assets reclassified as current asset - 176 Deferred tax assets reclassified as non-current asset 1,550 1,037 Total deferred tax assets 1,550 1,213 |
Note 22 - Related Party Trans50
Note 22 - Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 US$(’000) US$(’000) -Beijing Saturday Education Technology Co., Ltd. 298 91 -Chuangshi Meiwei (Beijing) International Investment Management Co., Ltd. 346 - -Beijing Saimeiwei Food Equipment Technology Co., Ltd, 99 260 -Beijing Fengshangyinli Technology Co., Ltd. - 2 743 353 |
Note 25 - Commitments and Con51
Note 25 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Office Rental US$(’000) Year ending December 31, -2016 237 -2017 110 Total 347 |
Note 26 - Discontinued Operat52
Note 26 - Discontinued Operation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations [Abstract] | |
Net Loss of Discontinued Operation [Table Text Block] | Year Ended December 31, 2015 2014 US$(’000) US$(’000) Revenues 272 931 Cost of revenues 149 603 Total operating expenses 359 527 Impairment on intangible assets 169 547 Impairment on goodwill 1,117 900 Not loss before income tax benefit (1,522 ) (1,646 ) Income tax benefit 57 175 Net loss (1,465 ) (1,471 ) |
Note 27 - Segment Reporting (Ta
Note 27 - Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Internet TV & Others Inter- Total US$ US$ US$ US$ US$ Revenues 31,015 1,250 - - 32,265 Cost of revenues 23,615 1,040 - - 24,655 Total operating expenses 11,545 1,057 4,324 (1) - 16,926 Gain on disposal of VIE included in total operating expenses - - (20 ) - (20 ) Goodwill impairment and impairment on fixed assets and intangible assets included in total operating expenses 1,652 172 - - 1,824 Impairment on equity method investments included in total operating expenses - - 874 - 874 Depreciation and amortization expense included in total operating expenses 1,539 121 45 - 1,705 Operating loss (4,145 ) (847 ) (4,324 ) - (9,316 ) Expenditure for long-term assets 3,308 - 156 - 3,464 Net loss from continued operations (2,769 ) (849 ) (4,100 ) - (7,718 ) Total assets – December 31, 2015 33,727 3,148 17,362 (2) (18,777 ) 35,460 Internet TV & Others Inter- Total US$ US$ US$ US$ US$ Revenues 31,261 6,705 - - 37,966 Cost of revenues 25,645 6,026 - - 31,671 Total operating expenses 12,575 575 6,133 (1) - 19,283 Gain on disposal of VIE included in total operating expenses (266 ) - - - (266 ) Goodwill impairment and impairment on fixed assets and intangible assets included in total operating expenses 4,193 - - - 4,193 Depreciation and amortization expense included in total operating expenses 1,005 154 77 - 1,236 Operating (loss)/income (6,959 ) 104 (6,133 ) - 12,988 Expenditure for long-term assets 1,113 12 - 1,125 Net (loss)/income from continued operations (6,380 ) 47 (6,088 ) - (12,421 ) Total assets – December 31, 2014 43,851 13,524 9,547 (2) (19,492 ) 47,430 |
Note 28 - Loss Per Share (Table
Note 28 - Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended December 31, 2015 2014 US$(’000) US$(’000) Net loss attributable to ChinaNet Online Holdings, Inc. from continued operations (numerator for basic and diluted loss per share from continued operations) $ (7,627 ) $ (12,267 ) Net loss attributable to ChinaNet Online Holdings, Inc. from discontinued operation (numerator for basic and diluted loss per share from discontinued operation) (1,465 ) (1,471 ) Weighted average number of common shares outstanding – Basic 26,765,673 22,414,523 Effect of diluted securities: Unvested restricted common stocks - - Common stock purchase options - - Weighted average number of common shares outstanding – Diluted 26,765,673 22,414,523 Loss per share-Basic and diluted from continued operations $ (0.29 ) $ (0.55 ) Loss per share-Basic and diluted from discontinued operation $ (0.05 ) $ (0.07 ) |
Note 29 - Share-based Compens55
Note 29 - Share-based Compensation Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 $ 0.84 Exercise multiple 2-2.5 Tenor (years) 5.00 Risk-free interest rate 1.563 % Dividend yield - Expected volatility 98.63 % Exercise price of the option $ 0.84 Value per option $0.41-$0.56 Applicable stock price $ 0.908 Exercise multiple 2.5 Tenor (years) 5.00 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 Number of underlying shares Weighted Weighted 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 ) $ 1.20 (190,500 ) $ 1.20 Expired (54,000 ) $ 5.00 (54,000 ) $ 5.00 Balance, December 31, 2014 894,940 6.48 $ 1.21 894,940 6.48 $ 1.21 Granted/Vested 1,193,100 5 $ 0.84 397.700 5 $ 0.84 Forfeited - - Exercised - - Balance, December 31, 2015 2,088,040 5.04 $ 1.00 1,292,640 5.24 $ 1.09 |
Note 1 - Organization and Nat56
Note 1 - Organization and Nature of Operations (Details) | Jun. 26, 2009shares | Dec. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 |
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ||||
Wholly-Owned Investment Holding Companies Incorporated | 2 | |||
China Net BVI [Member] | ||||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ||||
Consolidated Subsidiary Ownership Percentage | 100.00% | |||
PRC Operating Entities Business Operations, VIE [Member] | ||||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ||||
Income Earned Percentage | 100.00% | |||
Shanghai Borongdingsi [Member] | Beijing CNET Online [Member] | ||||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ||||
Consolidated Subsidiary Ownership Percentage | 51.00% | |||
Guohua Shiji [Member] | ||||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ||||
Cost Method Investment, Ownership Percentage | 19.00% | |||
Guohua Shiji [Member] | Beijing CNET Online [Member] | ||||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ||||
Cost Method Investment, Ownership Percentage | 19.00% | |||
Chuangshi Meiwei [Member] | ||||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ||||
Cost Method Investment, Ownership Percentage | 10.00% | |||
Chuangshi Meiwei [Member] | Beijing CNET Online [Member] | ||||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ||||
Cost Method Investment, Ownership Percentage | 10.00% | |||
Chuangshi Meiwei [Member] | ChinaNet Investment BVI [Member] | ||||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 40.00% | |||
Beijing Saturday [Member] | ||||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ||||
Cost Method Investment, Ownership Percentage | 10.00% | |||
Beijing Saturday [Member] | Beijing CNET Online [Member] | ||||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ||||
Cost Method Investment, Ownership Percentage | 10.00% | |||
Beijing Chuang Fu Tian Xia [Member] | Business Opportunity Online [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% | |||
Shenzhen Mingshan [Member] | Business Opportunity Online [Member] | ||||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 23.18% | |||
Zhao Shang Ke Hubei [Member] | ||||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 25.50% | |||
Zhao Shang Ke Hubei [Member] | Business Opportunity Online Hubei [Member] | ||||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 25.50% | |||
ChinaNet Korea [Member] | ||||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 40.00% | |||
ChinaNet Korea [Member] | ChinaNet Investment BVI [Member] | ||||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ||||
Number of Unaffiliated Investors in Business Entity | 3 | |||
ChinaNet Chuang Tou [Member] | ||||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ||||
Cost Method Investment, Ownership Percentage | 19.00% | |||
ChinaNet Chuang Tou [Member] | ChinaNet Online PRC [Member] | ||||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ||||
Cost Method Investment, Ownership Percentage | 19.00% | |||
Number of Unaffiliated Investors in Business Entity | 2 | |||
China Net BVI [Member] | China Net BVI [Member] | ||||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ||||
Shares Issued Pursuant to Share Exchange Agreement (in Shares) | 13,790,800 |
Note 2 - Variable Interest En57
Note 2 - Variable Interest Entities (Details) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2015¥ / shares | Dec. 31, 2015¥ / shares | |
Beijing Chuang Fu Tian Xia [Member] | ||
Note 2 - Variable Interest Entities (Details) [Line Items] | ||
Variable Interest Entity, Ownership Percentage of VIE Sold During the Period | 51.00% | |
Rise King WFOE [Member] | PRC Operating Entities Business Operations, VIE [Member] | ||
Note 2 - Variable Interest Entities (Details) [Line Items] | ||
Exclusive Business Cooperation Agreements, Service Fee, Percentage of Net Income of Operating Entity | 100.00% | |
Exclusive Option Agreements, Option to Purchase Equity Interests, Price Per Equity Interest in Any Operating Entity (in Yuan Renminbi per share) | ¥ 10 | ¥ 10 |
Note 2 - Variable Interest En58
Note 2 - Variable Interest Entities (Details) - Consolidated VIEs’ Assets and Liabilities - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current assets: | ||||
Cash and cash equivalents | $ 5,503 | $ 5,037 | $ 3,442 | |
Term deposit | 3,265 | 3,465 | ||
Accounts receivable, net | 2,549 | 2,407 | ||
Other receivables, net | 1,910 | 8,392 | ||
Prepayment and deposit to suppliers | 5,843 | 8,092 | ||
Due from related parties | 41 | 51 | ||
Other current assets | 45 | 61 | ||
Deferred tax assets-current | 176 | |||
Assets classified as held for sale(1) | 1,882 | |||
Total current assets | 21,038 | 27,681 | ||
Long-term investments | 1,133 | 909 | ||
Property and equipment, net | 681 | 943 | ||
Intangible assets, net | 5,638 | 9,238 | ||
Deposit and prepayment for purchasing of software technology | 1,024 | 850 | ||
Goodwill | 4,396 | 6,772 | $ 11,450 | |
Deferred tax assets-non current | 1,550 | 1,037 | ||
Total Assets | 35,460 | 47,430 | ||
Commitments and contingencies | $ 129 | |||
Current liabilities: | ||||
Short-term bank loan | [1] | 817 | ||
Accounts payable | [1] | $ 95 | 782 | |
Advances from customers | [1] | 1,313 | 832 | |
Accrued payroll and other accruals | [1] | $ 685 | 585 | |
Due to noncontrolling interest of VIE | [1] | 638 | ||
Payable for purchasing of software technology | [1] | 2,826 | ||
Taxes payable | [1] | $ 3,186 | 3,332 | |
Other payables | [1] | 234 | $ 602 | |
Liabilities classified as held for sale(1) | [1] | 913 | ||
Total current liabilities | 7,370 | $ 10,414 | ||
Deferred tax Liabilities-non current | [1] | 118 | 964 | |
Total Liabilities | 7,623 | 11,521 | ||
VIEs [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 4,942 | 4,239 | ||
Term deposit | 3,265 | 3,465 | ||
Accounts receivable, net | 2,492 | 2,407 | ||
Other receivables, net | 1,712 | 8,349 | ||
Prepayment and deposit to suppliers | 5,841 | 8,091 | ||
Due from related parties | 24 | |||
Other current assets | 27 | 58 | ||
Deferred tax assets-current | $ 107 | |||
Assets classified as held for sale(1) | [2] | 1,882 | ||
Total current assets | 20,185 | $ 26,716 | ||
Long-term investments | 1,113 | 865 | ||
Property and equipment, net | 503 | 869 | ||
Intangible assets, net | 5,630 | 9,238 | ||
Deposit and prepayment for purchasing of software technology | 1,024 | 850 | ||
Goodwill | 4,396 | 6,772 | ||
Deferred tax assets-non current | 1,249 | 795 | ||
Total Assets | 34,100 | 46,105 | ||
Commitments and contingencies | 129 | |||
Current liabilities: | ||||
Short-term bank loan | 817 | |||
Accounts payable | 88 | 782 | ||
Advances from customers | 1,304 | 832 | ||
Accrued payroll and other accruals | 309 | 357 | ||
Due to Control Group | 11 | 11 | ||
Due to noncontrolling interest of VIE | 638 | |||
Payable for purchasing of software technology | 2,826 | |||
Taxes payable | 2,733 | 2,846 | ||
Other payables | 67 | $ 580 | ||
Liabilities classified as held for sale(1) | [2] | 913 | ||
Total current liabilities | 5,425 | $ 9,689 | ||
Deferred tax Liabilities-non current | 118 | 964 | ||
Total Liabilities | $ 5,543 | $ 10,653 | ||
[1] | 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 (Note 2). | |||
[2] | In the fourth quarter of 2015, in order to focus all the Company's resources on its core business, which is Internet advertising, marketing and the related technical and data services, and to obtain sufficient working capital to continue the expansion of the services distribution channels and to support the development of the data services, the Company decided to sell its 51% equity interest in Beijing Chuang Fu Tia Xia, one of the Company's operating VIEs, which is primarily engaged in providing Internet advertising and marketing services through one of the Company's advertising portal, www.liansuo.com ("liansuo.com"). The Company does not consider the sale of liansuo.com is a strategic shift that has (or will have) a major effect on the Company's operations and financial results, as it is not a significant portion of the Company's Internet advertising business segment, therefore, not qualifying for presentation as a discontinued operation. As a result, in accordance with ASC Topic 360: "Property, Plant and Equipment", the Company classified the assets andliabilities related to the disposal group as held for sale in the consolidated balance sheets as of December 31, 2015 but did not included its results of operations in discontinued operations for all period presented. |
Note 2 - Variable Interest En59
Note 2 - Variable Interest Entities (Details) - Consolidated VIEs' Financial Performance - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Note 2 - Variable Interest Entities (Details) - Consolidated VIEs' Financial Performance [Line Items] | |||
Revenues | $ 32,265 | $ 37,966 | |
Cost of revenues | 24,655 | 31,671 | |
Total operating expenses (including impairment and other losses of long-lived assets and goodwill, impairment loss on equity investments and gain on deconsolidation of VIEs) | 16,926 | 19,283 | |
Loss from discontinued operations(2) | (1,465) | (1,471) | |
Net loss before allocation to noncontrolling interests | (9,183) | (13,892) | |
VIEs [Member] | |||
Note 2 - Variable Interest Entities (Details) - Consolidated VIEs' Financial Performance [Line Items] | |||
Revenues | 31,902 | 37,241 | |
Cost of revenues | 24,655 | 31,669 | |
Total operating expenses (including impairment and other losses of long-lived assets and goodwill, impairment loss on equity investments and gain on deconsolidation of VIEs) | 13,387 | 13,184 | |
Loss from discontinued operations(2) | [1] | 1,465 | 1,471 |
Net loss before allocation to noncontrolling interests | $ 6,016 | $ 8,518 | |
[1] | For the same reason as discussed above, in addition to committed a plan to sell liansuo.com, the Company also decided to exit its bank kiosk advertising and offline brand management and sales channel building business segments, which businesses were operated by the Company through its operating VIEs. The Company does not consider the exit from its bank kiosk advertising business qualifying for presentation as a discontinued operation as its effect on the Company's operations and financial results was and will be insignificant.Therefore, in accordance with ASC Topic 205: "Presentation of Financial Statements", the results of operations of brand management and sales channel building were reported in discontinued operations as a separate component in the consolidated statements of operations and comprehensive loss for all periods presented. |
Note 3 - Summary of Significa60
Note 3 - Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 3 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Other than Temporary Impairment Losses, Investments | $ 870,000 | $ 0 |
Impairment of Intangible Assets (Excluding Goodwill) | 1,551,000 | |
Impairment of Long-Lived Assets to be Disposed of | 172,000 | |
Deconsolidation, Gain (Loss), Amount | 20,000 | 266,000 |
Advertising Expense | 2,353,000 | 3,938,000 |
Research and Development Expense | 2,164,000 | 2,660,000 |
Statute of Limitations Special Circumstances Underpayment of Taxes Threshold | $ 100,000 | |
Shanghai Borongdingsi [Member] | ||
Note 3 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Consolidated Subsidiary Ownership Percentage | 51.00% | |
Internet Ad [Member] | ||
Note 3 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Impairment of Intangible Assets (Excluding Goodwill) | $ 101,000 | 442,000 |
Goodwill, Impairment Loss | 0 | 3,751,000 |
Goodwill, Gross | 914,000 | |
Brand Management and Sales Channel Building [Member] | ||
Note 3 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Impairment of Intangible Assets, Finite-lived | 169,000 | 547,000 |
Goodwill, Impairment Loss | 1,117,000 | 900,000 |
Brand Management and Sales Channel Building [Member] | Loss from Discontinued Operation, Net of Income Tax [Member] | ||
Note 3 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Goodwill, Impairment Loss | 1,117,000 | 900,000 |
Customer Relationships [Member] | Brand Management and Sales Channel Building [Member] | Loss from Discontinued Operation, Net of Income Tax [Member] | ||
Note 3 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Impairment of Intangible Assets, Finite-lived | 169,000 | |
Customer Relationship and Non-compete Agreements [Member] | Internet Ad [Member] | ||
Note 3 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Impairment of Intangible Assets, Finite-lived | $ 101,000 | 442,000 |
Customer Relationship and Non-compete Agreements [Member] | Brand Management and Sales Channel Building [Member] | Loss from Discontinued Operation, Net of Income Tax [Member] | ||
Note 3 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Impairment of Intangible Assets, Finite-lived | $ 547,000 | |
Minimum [Member] | ||
Note 3 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Maturity of Time Deposits | 3 months | |
Equity Method Investment, Ownership Percentage | 20.00% | |
Maximum [Member] | ||
Note 3 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Maturity of Time Deposits | 12 months | |
Equity Method Investment, Ownership Percentage | 50.00% |
Note 3 - Summary of Significa61
Note 3 - Summary of Significant Accounting Policies (Details) - Exchange Rates Used to Translate Amounts in RMB into US$ | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
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 | 6.4936 | 6.1190 |
Statements of Income, Comprehensive Income and Cash Flows [Member] | ||
Note 3 - Summary of Significant Accounting Policies (Details) - Exchange Rates Used to Translate Amounts in RMB into US$ [Line Items] | ||
Items in the statements of income and comprehensive income, and statements of cash flows | 6.2284 | 6.1428 |
Note 3 - Summary of Significa62
Note 3 - Summary of Significant Accounting Policies (Details) - Estimated Useful Lives of Property, Plant, and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Leasehold Improvements [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 |
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 |
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 |
Minimum [Member] | Office Equipment [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 |
Maximum [Member] | Office Equipment [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 Significa63
Note 3 - Summary of Significant Accounting Policies (Details) - Intangible Assets Amortization Schedule | 12 Months Ended |
Dec. 31, 2015 | |
Software Technologies [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets amortization period | 5 years |
Minimum [Member] | Contract Backlog [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets amortization period | 219 days |
Minimum [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets amortization period | 5 years |
Minimum [Member] | Noncompete Agreements [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets amortization period | 5 years |
Maximum [Member] | Contract Backlog [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets amortization period | 255 days |
Maximum [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets amortization period | 9 years |
Maximum [Member] | Noncompete Agreements [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets amortization period | 6 years |
Note 3 - Summary of Significa64
Note 3 - Summary of Significant Accounting Policies (Details) - Quantitative Information about Level 3 Fair Value Measurements - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Nonrecurring [Member] | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Multi-period Excess Earning [Member] | Intangible Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | 23.00% | |
As of December 31, 2014 | ||
Decline in EBIT without non-compete agreement | 10.00% | 10.00% |
Annual customer attrition rate | 15.00% | 15.00% |
Discounted Cash Flow [Member] | Goodwill [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Remaining useful life | 5 years | 6 years |
Discount rate | 23.00% | |
Terminal growth rate | 3.50% | 3.50% |
Minimum [Member] | Multi-period Excess Earning [Member] | Intangible Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Remaining useful life | 1 year | 1 year 62 days |
Discount rate | 24.40% | |
Minimum [Member] | Discounted Cash Flow [Member] | Goodwill [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | 24.40% | |
Maximum [Member] | Multi-period Excess Earning [Member] | Intangible Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Remaining useful life | 7 years | 5 years 62 days |
Discount rate | 26.20% | |
Maximum [Member] | Discounted Cash Flow [Member] | Goodwill [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | 26.20% |
Note 4 - Term Deposit (Details)
Note 4 - Term Deposit (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
Term Deposit [Abstract] | ||
Time Deposits, Weighted Average Interest Rate, Maturities Year One | 2.925% | 2.925% |
Note 5 - Accounts Receivable,66
Note 5 - Accounts Receivable, Net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 5 - Accounts Receivable, Net (Details) [Line Items] | ||
Provision for Doubtful Accounts | $ 88,000 | $ (861,000) |
Provision for Doubtful Accounts, Reversal | 1,023,000 | |
Internet Advertising and TV Advertising [Member] | ||
Note 5 - Accounts Receivable, Net (Details) [Line Items] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 3,070,000 | $ 3,022,000 |
Number of Months Past Due | 6 months | |
Provision for Doubtful Accounts | $ 233,000 |
Note 5 - Accounts Receivable,67
Note 5 - Accounts Receivable, Net (Details) - Accounts Receivable, Net - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Note 5 - Accounts Receivable, Net (Details) - Accounts Receivable, Net [Line Items] | ||
Accounts receivable | $ 5,619,000 | $ 5,429,000 |
Accounts receivable, net | 2,549,000 | 2,407,000 |
Internet Advertising and TV Advertising [Member] | ||
Note 5 - Accounts Receivable, Net (Details) - Accounts Receivable, Net [Line Items] | ||
Allowance for doubtful debts | $ (3,070,000) | $ (3,022,000) |
Note 6 - Other Receivables, N68
Note 6 - Other Receivables, Net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 6 - Other Receivables, Net (Details) [Line Items] | ||
Provision for Doubtful Accounts | $ 88,000 | $ (861,000) |
Internet Advertising And TV Advertising Contractual Deposit [Member] | ||
Note 6 - Other Receivables, Net (Details) [Line Items] | ||
Allowance for Doubtful Accounts Receivable | 668,000 | 856,000 |
Provision for Doubtful Accounts | $ 163,000 | |
Allowance for Doubtful Accounts [Member] | Internet Advertising And TV Advertising Contractual Deposit [Member] | ||
Note 6 - Other Receivables, Net (Details) [Line Items] | ||
Valuation Allowances and Reserves, Recoveries | $ 145,000 |
Note 6 - Other Receivables, N69
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ||
Allowance for doubtful debts | $ (668) | $ (856) |
Other receivables, net | 1,910 | 8,392 |
Term deposit interest receivable | 48 | 56 |
Short-term Loan Made for Marketing Campaign [Member] | ||
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ||
Other receivables, gross | 0 | 65 |
Staff Advances [Member] | ||
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ||
Other receivables, gross | 243 | 73 |
TV Advertisement Deposit and Prepayment [Member] | ||
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ||
Other receivables, gross | 1,157 | 8,034 |
Overdue Deposits [Member] | ||
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ||
Other receivables, gross | $ 1,130 | $ 1,020 |
Note 7 - Prepayments and Depo70
Note 7 - Prepayments and Deposit to Suppliers (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Note 7 - Prepayments and Deposit to Suppliers (Details) [Line Items] | ||
Prepayment And Deposit To Suppliers | $ 5,843 | $ 8,092 |
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 | $ 620 | |
Internet Resources Suppliers Prepayment [Member] | ||
Note 7 - Prepayments and Deposit to Suppliers (Details) [Line Items] | ||
Prepayment And Deposit To Suppliers | 700 | |
Advisory Contract for New Investors [Member] | ||
Note 7 - Prepayments and Deposit to Suppliers (Details) [Line Items] | ||
Prepayment And Deposit To Suppliers | $ 700 |
Note 7 - Prepayments and Depo71
Note 7 - Prepayments and Deposit to Suppliers (Details) - Prepayments and Deposit to Suppliers - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Note 7 - Prepayments and Deposit to Suppliers (Details) - Prepayments and Deposit to Suppliers [Line Items] | ||
Prepayment and deposit to suppliers | $ 5,843 | $ 8,092 |
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] | ||
Prepayment and deposit to suppliers | 622 | 3,575 |
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] | ||
Prepayment and deposit to suppliers | 3,623 | 4,451 |
Deposits to Other Service Providers [Member] | ||
Note 7 - Prepayments and Deposit to Suppliers (Details) - Prepayments and Deposit to Suppliers [Line Items] | ||
Prepayment and deposit to suppliers | 1,540 | |
Other Deposits and Prepayments [Member] | ||
Note 7 - Prepayments and Deposit to Suppliers (Details) - Prepayments and Deposit to Suppliers [Line Items] | ||
Prepayment and deposit to suppliers | $ 58 | $ 66 |
Note 8 - Long-term Investment72
Note 8 - Long-term Investments (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) | |
Note 8 - Long-term Investments (Details) [Line Items] | |||
Income (Loss) from Equity Method Investments | $ (2,000) | $ 47,000 | |
Equity Method Investments | 778,000 | 806,000 | |
Equity Method Investment, Other than Temporary Impairment | 838,000 | ¥ 874,000 | |
Cost-method Investments, Other than Temporary Impairment | $ 0 | 0 | |
ChinaNet Korea [Member] | |||
Note 8 - Long-term Investments (Details) [Line Items] | |||
Equity Method Investment, Ownership Percentage | 40.00% | ||
Income (Loss) from Equity Method Investments | $ 0 | 0 | |
Equity Method Investment, Other than Temporary Impairment | $ 0 | ||
Shenzhen Mingshan [Member] | |||
Note 8 - Long-term Investments (Details) [Line Items] | |||
Equity Method Investment, Ownership Percentage | 23.18% | ||
Income (Loss) from Equity Method Investments | $ (2,000) | (4,000) | |
Equity Method Investments | 0 | ||
Equity Method Investment, Other than Temporary Impairment | $ 433,000 | ||
Zhao Shang Ke Hubei [Member] | |||
Note 8 - Long-term Investments (Details) [Line Items] | |||
Equity Method Investment, Ownership Percentage | 25.50% | ||
Income (Loss) from Equity Method Investments | $ 0 | $ 51,000 | |
Equity Method Investments | 0 | ||
Equity Method Investment, Other than Temporary Impairment | $ 405,000 | ||
Guohua Shiji [Member] | |||
Note 8 - Long-term Investments (Details) [Line Items] | |||
Cost Method Investment, Ownership Percentage | 19.00% | ||
ChinaNet Chuang Tou [Member] | |||
Note 8 - Long-term Investments (Details) [Line Items] | |||
Cost Method Investment, Ownership Percentage | 19.00% | ||
Chuangshi Meiwei [Member] | |||
Note 8 - Long-term Investments (Details) [Line Items] | |||
Cost Method Investment, Ownership Percentage | 10.00% | ||
Beijing Saturday [Member] | |||
Note 8 - Long-term Investments (Details) [Line Items] | |||
Cost Method Investment, Ownership Percentage | 10.00% |
Note 8 - Long-term Investment73
Note 8 - Long-term Investments (Details) - Summary of Investment in and Advance to Equity Investment Affiliates - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Equity method investments: | |||
Investment in equity method investees | $ 778 | $ 806 | |
Advance to equity method investees | 80 | 85 | |
Impairment on equity method investments | (838) | ||
Total equity method investments | 20 | 891 | $ 845 |
Cost method investments: | |||
Investment in cost method investees | 1,113 | 18 | $ 0 |
Total long-term investments | $ 1,133 | $ 909 |
Note 8 - Long-term Investment74
Note 8 - Long-term Investments (Details) - Movement of Investment in and Advance to Equity Investment Affiliates | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Balance | $ 891,000 | $ 845,000 | |
Share of (loss)/income in equity method investees | (2,000) | 47,000 | |
Investment in equity investment affiliates | 20,000 | ||
Exchange translation adjustment | (51,000) | (1,000) | |
Impairment on equity method investments | (838,000) | ¥ (874,000) | |
Balance | 20,000 | 891,000 | |
ChinaNet Korea [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Balance | 0 | 0 | |
Share of (loss)/income in equity method investees | 0 | 0 | |
Investment in equity investment affiliates | 20,000 | ||
Exchange translation adjustment | 0 | 0 | |
Impairment on equity method investments | 0 | ||
Balance | 20,000 | 0 | |
Shenzhen Mingshan [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Balance | 461,000 | 466,000 | |
Share of (loss)/income in equity method investees | (2,000) | (4,000) | |
Investment in equity investment affiliates | 0 | ||
Exchange translation adjustment | (26,000) | (1,000) | |
Impairment on equity method investments | (433,000) | ||
Balance | 0 | 461,000 | |
Zhao Shang Ke Hubei [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Balance | 430,000 | 379,000 | |
Share of (loss)/income in equity method investees | 0 | 51,000 | |
Investment in equity investment affiliates | 0 | ||
Exchange translation adjustment | (25,000) | 0 | |
Impairment on equity method investments | (405,000) | ||
Balance | $ 0 | $ 430,000 |
Note 8 - Long-term Investment75
Note 8 - Long-term Investments (Details) - Movement in Cost Method Investments - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Cost-method Investments [Line Items] | ||
Cost method investments, balance | $ 18 | $ 0 |
Cost method investments, investment during the year | 1,096 | 0 |
Exchange translation adjustment | (1) | |
Cost method investments, balance | 1,113 | 18 |
Beijing Saturday [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Cost method investments, balance | 18 | 0 |
Cost method investments, investment during the year | 0 | 18 |
Exchange translation adjustment | (1) | |
Cost method investments, balance | 17 | 18 |
Chuangshi Meiwei [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Cost method investments, balance | 0 | 0 |
Cost method investments, investment during the year | 154 | 0 |
Exchange translation adjustment | 0 | |
Cost method investments, balance | 154 | 0 |
Guohua Shiji [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Cost method investments, balance | 0 | 0 |
Cost method investments, investment during the year | 3 | 0 |
Exchange translation adjustment | 0 | |
Cost method investments, balance | 3 | 0 |
ChinaNet Chuang Tou [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Cost method investments, balance | 0 | 0 |
Cost method investments, investment during the year | 939 | 0 |
Exchange translation adjustment | 0 | |
Cost method investments, balance | $ 939 | $ 0 |
Note 9 - Assets and Liabiliti76
Note 9 - Assets and Liabilities Classified as Held for Sale (Details) | Dec. 31, 2015USD ($) |
Note 9 - Assets and Liabilities Classified as Held for Sale (Details) [Line Items] | |
Disposal Group, Including Discontinued Operation, Goodwill, Current | $ 914,000 |
Internet Ad [Member] | Beijing Chuang Fu Tian Xia [Member] | |
Note 9 - Assets and Liabilities Classified as Held for Sale (Details) [Line Items] | |
Disposal Group, Including Discontinued Operation, Goodwill, Current | $ 914,000 |
Note 9 - Assets and Liabiliti77
Note 9 - Assets and Liabilities Classified as Held for Sale (Details) - Assets and Liabilities of Disposal Group - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets classified as held for sale | |||
Cash and cash equivalents | $ 181 | ||
Accounts receivable, net | 53 | ||
Other receivables, net | 95 | ||
Advance to suppliers | 366 | ||
Property and equipment, net | 43 | ||
Deferred tax assets | 298 | ||
Goodwill allocated to the disposal group | 914 | ||
Inter-co balances elimination(1) | [1] | (68) | |
Total assets classified as held for sale | 1,882 | ||
Liabilities classified as held for sale | |||
Accounts payable | 154 | ||
Advance from customers | 588 | ||
Accrued payroll and other accruals | 50 | ||
Taxes payable | 9 | ||
Other payables | 364 | ||
Inter-co balances elimination(1) | [1] | (252) | |
Total liabilities classified as held for sale | [2] | $ 913 | |
[1] | Inter-company balances are part of the disposal group's assets or liabilities, but were eliminated in deriving the consolidated financial statements. | ||
[2] | 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 (Note 2). |
Note 10 - Property and Equipm78
Note 10 - Property and Equipment, Net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 10 - Property and Equipment, Net (Details) [Line Items] | ||
Depreciation | $ 355,000 | $ 385,000 |
Bank Kiosk [Member] | ||
Note 10 - Property and Equipment, Net (Details) [Line Items] | ||
Impaired Assets to be Disposed of by Method Other than Sale, Carrying Value of Asset | 0 | |
Impaired Assets to be Disposed of by Method Other than Sale, Amount of Impairment Loss | $ 172,000 |
Note 10 - Property and Equipm79
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | $ 3,768 | $ 3,729 |
Less: accumulated depreciation | (2,922) | (2,786) |
Less: impairment loss on abandoned fixed assets | (165) | |
Property and equipment, net | 681 | 943 |
Leaseholds and Leasehold Improvements [Member] | ||
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | 382 | 180 |
Vehicles [Member] | ||
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | 839 | 890 |
Office Equipment [Member] | ||
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | 1,376 | 1,415 |
Electronic Devices [Member] | ||
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | $ 1,171 | $ 1,244 |
Note 11 - Intangible Assets, 80
Note 11 - Intangible Assets, Net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 11 - Intangible Assets, Net (Details) [Line Items] | ||
Amortization of Intangible Assets | $ 1,413,000 | $ 1,052,000 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 1,238,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 765,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 765,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 765,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 765,000 | |
Domain Name [Member] | ||
Note 11 - Intangible Assets, Net (Details) [Line Items] | ||
Intangible Assets, Net (Including Goodwill) | 0 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 1,551,000 | |
Brand Management and Sales Channel Building [Member] | ||
Note 11 - Intangible Assets, Net (Details) [Line Items] | ||
Impairment of Intangible Assets, Finite-lived | $ 169,000 | 547,000 |
Weighted Average [Member] | ||
Note 11 - Intangible Assets, Net (Details) [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 6 years 102 days | |
Customer Relationships [Member] | Brand Management and Sales Channel Building [Member] | ||
Note 11 - Intangible Assets, Net (Details) [Line Items] | ||
Impaired Assets to be Disposed of by Method Other than Sale, Carrying Value of Asset | $ 0 | |
Customer Relationships [Member] | Brand Management and Sales Channel Building [Member] | Loss from Discontinued Operation, Net of Income Tax [Member] | ||
Note 11 - Intangible Assets, Net (Details) [Line Items] | ||
Impairment of Intangible Assets, Finite-lived | 169,000 | |
Customer Relationship and Non-compete Agreements [Member] | Internet Ad [Member] | ||
Note 11 - Intangible Assets, Net (Details) [Line Items] | ||
Impairment of Intangible Assets, Finite-lived | $ 101,000 | 442,000 |
Customer Relationship and Non-compete Agreements [Member] | Brand Management and Sales Channel Building [Member] | Loss from Discontinued Operation, Net of Income Tax [Member] | ||
Note 11 - Intangible Assets, Net (Details) [Line Items] | ||
Impairment of Intangible Assets, Finite-lived | $ 547,000 |
Note 11 - Intangible Assets, 81
Note 11 - Intangible Assets, Net (Details) - Intangible Assets, Net - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | $ 13,166 | $ 13,935 |
Less: accumulated amortization | (4,845) | (3,704) |
Less: accumulated impairment losses | (2,683) | (993) |
Intangible assets, net | 5,638 | 9,238 |
Domain Name [Member] | ||
Intangible assets not subject to amortization: | ||
Domain name | 1,488 | 1,579 |
Contract Backlog [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | 191 | 202 |
Customer Relationships [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | 3,340 | 3,545 |
Noncompete Agreements [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | 1,321 | 1,402 |
Software Technologies [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | 316 | 335 |
Cloud-computing Based Software Platforms [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | 1,429 | 1,517 |
SMEs Operation Management Applications [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | 4,973 | 5,277 |
Other Computer Software [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | $ 108 | $ 78 |
Note 12 - Deposit for Purchas82
Note 12 - Deposit for Purchasing of Software Technology (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2016USD ($) | Mar. 31, 2016CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015CNY (¥) | Nov. 30, 2015USD ($) | Nov. 30, 2015CNY (¥) | May. 31, 2015USD ($) | May. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) | |
Note 12 - Deposit for Purchasing of Software Technology (Details) [Line Items] | ||||||||||
Software Technology Contract | $ 2,000 | ¥ 13,000 | ||||||||
Payments for Software | $ 1,020 | ¥ 6,650 | ||||||||
Deposit and Prepayment for Purchasing of Software Technology | 1,024 | $ 850 | ||||||||
SoftwareDevelopmentContractTerminationFee | 60 | ¥ 390 | ||||||||
Subsequent Event [Member] | ||||||||||
Note 12 - Deposit for Purchasing of Software Technology (Details) [Line Items] | ||||||||||
Payments for Software | $ 1,400 | ¥ 9,100 | ||||||||
Computer Software, Intangible Asset [Member] | ||||||||||
Note 12 - Deposit for Purchasing of Software Technology (Details) [Line Items] | ||||||||||
Software Technology Contract | $ 1,500 | ¥ 9,500 | $ 1,500 | ¥ 9,500 |
Note 13 - Goodwill (Details)
Note 13 - Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Internet Ad [Member] | ||
Note 13 - Goodwill (Details) [Line Items] | ||
Goodwill, Impairment Loss | $ 0 | $ 3,751,000 |
Brand Management and Sales Channel Building [Member] | ||
Note 13 - Goodwill (Details) [Line Items] | ||
Goodwill, Impairment Loss | 1,117,000 | 900,000 |
Liansuo.com [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Internet Ad [Member] | ||
Note 13 - Goodwill (Details) [Line Items] | ||
Disposal Group, Including Discontinued Operation, Goodwill | 941,000 | |
Loss from Discontinued Operation, Net of Income Tax [Member] | Brand Management and Sales Channel Building [Member] | ||
Note 13 - Goodwill (Details) [Line Items] | ||
Goodwill, Impairment Loss | $ 1,117,000 | $ 900,000 |
Note 13 - Goodwill (Details) -
Note 13 - Goodwill (Details) - Goodwill - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
US$(’000) | ||
Goodwill balance | $ 6,772 | $ 11,450 |
Goodwill impairment losses | (1,071) | (4,668) |
Goodwill allocated to disposal group classified as held for sale | (914) | |
Exchange translation adjustment | (391) | (10) |
Goodwill balance | $ 4,396 | $ 6,772 |
Note 14 - Short-term Bank Loan
Note 14 - Short-term Bank Loan (Details) $ in Thousands, ¥ in Millions | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2014CNY (¥) | |
Note 14 - Short-term Bank Loan (Details) [Line Items] | ||||
Short-term Bank Loans and Notes Payable | [1] | $ 817 | ||
Variable Interest Entity [Member] | ||||
Note 14 - Short-term Bank Loan (Details) [Line Items] | ||||
Short-term Bank Loans and Notes Payable | $ 800 | ¥ 5 | ||
[1] | 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 (Note 2). |
Note 15 - Accrued Payroll and86
Note 15 - Accrued Payroll and Other Accruals (Details) - Accrued Payroll and Other Accruals - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Note 15 - Accrued Payroll and Other Accruals (Details) - Accrued Payroll and Other Accruals [Line Items] | |||
Accrued payroll and other accruals | [1] | $ 685 | $ 585 |
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 | 345 | 388 | |
Accrued Operating Expenses [Member] | |||
Note 15 - Accrued Payroll and Other Accruals (Details) - Accrued Payroll and Other Accruals [Line Items] | |||
Accrued payroll and other accruals | $ 340 | $ 197 | |
[1] | 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 (Note 2). |
Note 16 - Due to Noncontrolli87
Note 16 - Due to Noncontrolling Interest of VIE (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | |||||||
Jul. 31, 2015USD ($) | Jul. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Jul. 31, 2015CNY (¥) | Jun. 30, 2015USD ($) | Jun. 30, 2015CNY (¥) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Note 16 - Due to Noncontrolling Interest of VIE (Details) [Line Items] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 27,708 | $ 35,909 | $ 45,025 | |||||
Additional Paid-in Capital [Member] | ||||||||
Note 16 - Due to Noncontrolling Interest of VIE (Details) [Line Items] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 26,510 | $ 24,703 | $ 19,870 | |||||
Variable Interest Entity [Member] | Additional Paid-in Capital [Member] | ||||||||
Note 16 - Due to Noncontrolling Interest of VIE (Details) [Line Items] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 770 | ¥ 5,000 | $ 150 | ¥ 1,000 | ||||
Due to Non-controlling Interest, Conversion, Transaction 1 [Member] | Variable Interest Entity [Member] | ||||||||
Note 16 - Due to Noncontrolling Interest of VIE (Details) [Line Items] | ||||||||
Converted Amount, Due to Non-controlling Interest | 310 | ¥ 2,040 | ||||||
Due to Non-controlling Interest, Conversion, Transaction 2 [Member] | Variable Interest Entity [Member] | ||||||||
Note 16 - Due to Noncontrolling Interest of VIE (Details) [Line Items] | ||||||||
Converted Amount, Due to Non-controlling Interest | $ 300 | ¥ 1,960 |
Note 18 - Guarantee Payment a88
Note 18 - Guarantee Payment and Prepayment from New Investors (Details) - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 | May. 26, 2015 | May. 05, 2015 |
Jinrun Fangzhou [Member] | ||||
Note 18 - Guarantee Payment and Prepayment from New Investors (Details) [Line Items] | ||||
Common Stock Purchase Agreement, Shares (in Shares) | 2,800,000 | |||
Common Stock Purchase Agreement, Value | $ 3,500,000 | |||
Common Stock Purchase Agreement, Guarantee Payments Initial Payment Due Within 5 Days, Amount | $ 0.75 | |||
Common Stock Purchase Agreement, Guarantee Payment | $ 824,000 | |||
Dongsys Innovation [Member] | ||||
Note 18 - Guarantee Payment and Prepayment from New Investors (Details) [Line Items] | ||||
Common Stock Purchase Agreement, Shares (in Shares) | 1,000,000 | |||
Common Stock Purchase Agreement, Value | $ 1,250,000 | |||
Common Stock Purchase Agreement, Guarantee Payment | $ 120,000 | |||
Jinrun Fangzhou and Dongsys Innovation [Member] | ||||
Note 18 - Guarantee Payment and Prepayment from New Investors (Details) [Line Items] | ||||
Common Stock Purchase Agreement, Guarantee Payments Initial Payment Due Within Five Days, Percentage | 10.00% | |||
Common Stoch Purchase Agreement, Guarantee Payment Due Within Thirty Days, Percentage | 15.00% |
Note 19 - Taxation (Details)
Note 19 - Taxation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | |
Note 19 - Taxation (Details) [Line Items] | |||
Federal Income Tax Expense (Benefit), Continuing Operations (in Dollars) | $ 0 | ||
Profits, Assessable (in Dollars) | $ 0 | ||
Income Tax Withholding Rate Pursuant to EIT Law | 10.00% | ||
Deferred Tax Liabilities, Reversal (in Dollars) | $ (790,000) | $ (474,000) | |
Parent Company [Member] | |||
Note 19 - Taxation (Details) [Line Items] | |||
Operating Loss Carryforwards (in Dollars) | 14,903,000 | 12,161,000 | |
PRC Subsidiary and VIEs [Member] | |||
Note 19 - Taxation (Details) [Line Items] | |||
Operating Loss Carryforwards (in Dollars) | 15,657,000 | 12,401,000 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount (in Dollars) | 52,000 | 590,000 | |
Amortization of Acquired Intangible Assets [Member] | |||
Note 19 - Taxation (Details) [Line Items] | |||
Deferred Tax Liabilities, Reversal (in Dollars) | 152,000 | 225,000 | |
Intangible Assets Imparimen tLoss [Member] | |||
Note 19 - Taxation (Details) [Line Items] | |||
Deferred Tax Liabilities, Reversal (in Dollars) | 672,000 | $ 247,000 | |
British Virgin Islands [Member] | |||
Note 19 - Taxation (Details) [Line Items] | |||
Other Tax Expense (Benefit) (in Dollars) | 0 | ||
Hong Kong [Member] | |||
Note 19 - Taxation (Details) [Line Items] | |||
Federal Income Tax Expense (Benefit), Continuing Operations (in Dollars) | 0 | ||
Profits, Assessable (in Dollars) | 0 | ||
Other Tax Expense (Benefit) (in Dollars) | $ 0 | ||
PRC [Member] | |||
Note 19 - Taxation (Details) [Line Items] | |||
Enterprise Income Tax Rate in PRC | 25.00% | ||
PRC Value Added Tax Rate for Modern Service Provided | 6.00% | ||
PRC [Member] | Scenario, After Deducting the VAT Paid for the Services from Suppliers [Member] | |||
Note 19 - Taxation (Details) [Line Items] | |||
PRC Value Added Tax Rate for Modern Service Provided | 6.00% | 6.00% | |
PRC [Member] | Scenario Without any Deduction of VAT Paid for the Services from Suppliers [Member] | |||
Note 19 - Taxation (Details) [Line Items] | |||
PRC Value Added Tax Rate for Modern Service Provided Small Scale Tax Payer | 3.00% | 3.00% | |
PRC [Member] | Provision of Modern Services Small Scale Tax Payer [Member] | |||
Note 19 - Taxation (Details) [Line Items] | |||
PRC Value Added Tax Rate for Modern Service Provided Small Scale Tax Payer | 3.00% | ||
PRC [Member] | Business Opportunity Online [Member] | |||
Note 19 - 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 19 - Taxation (Details) [Line Items] | |||
Applicable Income Tax Rate | 12.50% | 12.50% | |
Reduction in Applicable EIT Rate | 50.00% | ||
PRC [Member] | Business Opportunity Online Hubei [Member] | Standard Rate [Member] | |||
Note 19 - Taxation (Details) [Line Items] | |||
Enterprise Income Tax Rate in PRC | 25.00% | ||
PRC [Member] | Business Opportunity Online Hubei [Member] | Preferential EIT Rate [Member] | |||
Note 19 - Taxation (Details) [Line Items] | |||
Enterprise Income Tax Rate in PRC | 12.50% | ||
PRC [Member] | Business Opportunity Online Hubei [Member] | After 2015 [Member] | |||
Note 19 - Taxation (Details) [Line Items] | |||
Enterprise Income Tax Rate in PRC | 25.00% | ||
PRC [Member] | Other PRC Operating Entities [Member] | |||
Note 19 - Taxation (Details) [Line Items] | |||
Applicable Income Tax Rate | 25.00% | ||
Tax Treaty Agreement [Member] | |||
Note 19 - Taxation (Details) [Line Items] | |||
Income Tax Withholding Rate Pursuant to EIT Law | 5.00% | ||
Minimum [Member] | |||
Note 19 - Taxation (Details) [Line Items] | |||
PRC Value Added Tax Surcharge Rate | 12.00% | ||
Minimum [Member] | PRC [Member] | Business Opportunity Online [Member] | |||
Note 19 - Taxation (Details) [Line Items] | |||
Enterprise Income Tax Rate in PRC | 15.00% | ||
Maximum [Member] | |||
Note 19 - Taxation (Details) [Line Items] | |||
PRC Value Added Tax Surcharge Rate | 14.00% |
Note 19 - Taxation (Details) -
Note 19 - Taxation (Details) - Taxes Payable - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Note 19 - Taxation (Details) - Taxes Payable [Line Items] | |||
Taxes payable | [1] | $ 3,186 | $ 3,332 |
Turnover Tax and Surcharge Payable [Member] | |||
Note 19 - Taxation (Details) - Taxes Payable [Line Items] | |||
Taxes payable | 1,272 | 1,173 | |
Enterprise Income Tax Payable [Member] | |||
Note 19 - Taxation (Details) - Taxes Payable [Line Items] | |||
Taxes payable | $ 1,914 | $ 2,159 | |
[1] | 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 (Note 2). |
Note 19 - Taxation (Details) 91
Note 19 - Taxation (Details) - Reconciliation of the Provison for Income Taxes - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of the Provison for Income Taxes [Abstract] | ||
Pre-tax loss | $ (9,212) | $ (12,946) |
U.S. federal rate | 35.00% | 35.00% |
Income tax benefit computed at U.S. federal rate | $ 3,224 | $ 4,531 |
Reconciling items: | ||
Rate differential for domestic earnings | (647) | (762) |
Preferential tax treatments and tax holiday effects | (16) | (176) |
Valuation allowance on deferred tax assets | (1,057) | (2,269) |
Goodwill impairment loss | (938) | |
Others | (8) | 92 |
Effective income tax benefit | $ 1,496 | $ 478 |
Note 19 - Taxation (Details) 92
Note 19 - Taxation (Details) - Income Tax Expense - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Expense [Abstract] | ||
Current-PRC | $ (4) | $ (185) |
Deferred-PRC | 1,500 | 663 |
Income tax benefit | $ 1,496 | $ 478 |
Note 19 - Taxation (Details) 93
Note 19 - Taxation (Details) - Deferred Tax Liabilities - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
US$(’000) | ||
Balance | $ 964 | $ 1,439 |
Reversal during the year | (790) | (474) |
Exchange translation adjustment | (56) | (1) |
Balance | $ 118 | $ 964 |
Note 19 - Taxation (Details) 94
Note 19 - Taxation (Details) - Deferred Tax Assets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets [Abstract] | ||
Tax effect of net operating losses carried forward | $ 7,921 | $ 6,655 |
Bad debts provision | 932 | 943 |
Valuation allowance | (7,303) | (6,385) |
Total deferred tax assets | $ 1,550 | $ 1,213 |
Note 19 - Taxation (Details) 95
Note 19 - Taxation (Details) - Deferred Tax Assets - Reclassification - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets - Reclassification [Abstract] | ||
Deferred tax assets reclassified as current asset | $ 176 | |
Deferred tax assets reclassified as non-current asset | $ 1,550 | 1,037 |
Total deferred tax assets | $ 1,550 | $ 1,213 |
Note 21 - Restricted Net Asse96
Note 21 - Restricted Net Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 21 - Restricted Net Assets (Details) [Line Items] | ||
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries (in Dollars) | $ 6,700 | $ 7,300 |
Withholding Tax Rate Pursuant To EIT Law | 10.00% | |
Preferential Withholding Tax Rate | 5.00% | |
Retained Earnings (Accumulated Deficit) (in Dollars) | $ (3,870) | 5,222 |
Statutory Accounting Practices, Retained Earnings Not Available for Dividends (in Dollars) | 2,607 | 2,607 |
PRC Subsidiary and VIEs [Member] | ||
Note 21 - Restricted Net Assets (Details) [Line Items] | ||
Retained Earnings (Accumulated Deficit) (in Dollars) | $ 22,900 | 30,800 |
Statutory Accounting Practices, Retained Earnings Not Available for Dividends (in Dollars) | $ 2,800 | |
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% |
Note 22 - Related Party Trans97
Note 22 - Related Party Transactions (Details) - Revenue from Related Parties - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||
Related parties | $ 743 | $ 353 |
Beijing Saturday Education Technology Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Related parties | 298 | 91 |
Chuangshi Meiwei [Member] | ||
Related Party Transaction [Line Items] | ||
Related parties | 346 | |
Beijing Saimeiwei Food Equipment Technology [Member] | ||
Related Party Transaction [Line Items] | ||
Related parties | 99 | 260 |
Beijing Fengshangyinli Technology [Member] | ||
Related Party Transaction [Line Items] | ||
Related parties | $ 0 | $ 2 |
Note 23 - Employee Defined Co98
Note 23 - Employee Defined Contribution Plan (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Defined Contribution Plan, Cost Recognized | $ 650,000 | $ 574,000 |
Note 24 - Concentration of Ri99
Note 24 - Concentration of Risk (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Note 24 - Concentration of Risk (Details) [Line Items] | ||
Number of Major Customers | 2 | 2 |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Note 24 - Concentration of Risk (Details) [Line Items] | ||
Number of Major Customers | 2 | 2 |
Cost of Sales, Total [Member] | Supplier Concentration Risk [Member] | ||
Note 24 - Concentration of Risk (Details) [Line Items] | ||
Number of Major Suppliers | 2 | 2 |
Supplier 1 [Member] | Cost of Sales, Total [Member] | Supplier Concentration Risk [Member] | ||
Note 24 - Concentration of Risk (Details) [Line Items] | ||
Concentration Risk, Percentage | 43.00% | 72.00% |
Supplier 2 [Member] | Cost of Sales, Total [Member] | Supplier Concentration Risk [Member] | ||
Note 24 - Concentration of Risk (Details) [Line Items] | ||
Concentration Risk, Percentage | 37.00% | 19.00% |
Customer 2 [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Note 24 - Concentration of Risk (Details) [Line Items] | ||
Concentration Risk, Percentage | 12.00% | 17.00% |
Customer 2 [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Note 24 - Concentration of Risk (Details) [Line Items] | ||
Concentration Risk, Percentage | 17.00% | 18.00% |
Customer 1 [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Note 24 - Concentration of Risk (Details) [Line Items] | ||
Concentration Risk, Percentage | 12.00% | 28.00% |
Customer 1 [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Note 24 - Concentration of Risk (Details) [Line Items] | ||
Concentration Risk, Percentage | 24.00% | 19.00% |
Note 25 - Commitments and Co100
Note 25 - Commitments and Contingencies (Details) ¥ in Thousands | Jan. 26, 2016 | Oct. 26, 2015 | Jun. 13, 2015USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2016CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) | Dec. 31, 2015CNY (¥) | Nov. 30, 2015USD ($) | Nov. 30, 2015CNY (¥) | Jun. 13, 2015CNY (¥) | May. 31, 2015USD ($) | May. 31, 2015CNY (¥) |
Note 25 - Commitments and Contingencies (Details) [Line Items] | ||||||||||||||
Operating Leases, Rent Expense | $ 377,000 | $ 478,000 | ||||||||||||
Software Technology Contract | $ 2,000,000 | ¥ 13,000 | ||||||||||||
Payments for Software | 1,020,000 | ¥ 6,650 | ||||||||||||
Purchase Commitment, Remaining Minimum Amount Committed | $ 15,400,000 | ¥ 100,000 | ||||||||||||
Percentage of Minimum Consumption Amount | 50.00% | |||||||||||||
Probable Cash Compensation Charged by Supplier | 130,000 | |||||||||||||
Pending Litigation [Member] | Business Opportunity Online Vs. Beijing 58 Information Co., Ltd in Chaoyang District People's Court of Beijing [Member] | Business Opportunity Online [Member] | ||||||||||||||
Note 25 - Commitments and Contingencies (Details) [Line Items] | ||||||||||||||
Equity Interest in Question | 17.50% | |||||||||||||
Subsequent Event [Member] | ||||||||||||||
Note 25 - Commitments and Contingencies (Details) [Line Items] | ||||||||||||||
Payments for Software | $ 1,400,000 | ¥ 9,100 | ||||||||||||
Subsequent Event [Member] | Judicial Ruling [Member] | Business Opportunity Online Vs. Beijing 58 Information Co., Ltd in Chaoyang District People's Court of Beijing [Member] | Business Opportunity Online [Member] | ||||||||||||||
Note 25 - Commitments and Contingencies (Details) [Line Items] | ||||||||||||||
Equity Interest in Question | 17.50% | |||||||||||||
Computer Software, Intangible Asset [Member] | ||||||||||||||
Note 25 - Commitments and Contingencies (Details) [Line Items] | ||||||||||||||
Software Technology Contract | $ 1,500,000 | ¥ 9,500 | $ 1,500,000 | ¥ 9,500 |
Note 25 - Commitments and Co101
Note 25 - Commitments and Contingencies (Details) - Contractual Obligations - Office Rental [Member] $ in Thousands | Dec. 31, 2015USD ($) |
Note 25 - Commitments and Contingencies (Details) - Contractual Obligations [Line Items] | |
(2,016) | $ 237 |
(2,017) | 110 |
Total | $ 347 |
Note 26 - Discontinued Opera102
Note 26 - Discontinued Operation (Details) - Brand Management and Sales Channel Building [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 26 - Discontinued Operation (Details) [Line Items] | ||
Capital Expenditure, Discontinued Operations | $ 0 | $ 0 |
Loss from Discontinued Operation, Net of Income Tax [Member] | ||
Note 26 - Discontinued Operation (Details) [Line Items] | ||
Depreciation and Amortization, Discontinued Operations | $ 63,000 | $ 201,000 |
Note 26 - Discontinued Opera103
Note 26 - Discontinued Operation (Details) - Major Classes of Line Items Constituting Pre-tax Net Loss and Net Loss of the Discontinued Operation - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 26 - Discontinued Operation (Details) - Major Classes of Line Items Constituting Pre-tax Net Loss and Net Loss of the Discontinued Operation [Line Items] | ||
Net loss | $ (1,465) | $ (1,471) |
Brand Management and Sales Channel Building [Member] | ||
Note 26 - Discontinued Operation (Details) - Major Classes of Line Items Constituting Pre-tax Net Loss and Net Loss of the Discontinued Operation [Line Items] | ||
Revenues | 272 | 931 |
Cost of revenues | 149 | 603 |
Total operating expenses | 359 | 527 |
Impairment on intangible assets | 169 | 547 |
Impairment on goodwill | 1,117 | 900 |
Not loss before income tax benefit | (1,522) | (1,646) |
Income tax benefit | 57 | 175 |
Net loss | $ (1,465) | $ (1,471) |
Note 27 - Segment Reporting (De
Note 27 - Segment Reporting (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Note 27 - Segment Reporting (Details) [Line Items] | ||
Number of Operating Segments | 4 | |
Allocated Share-based Compensation Expense | $ 2,256,000 | $ 4,840,000 |
Disposal Group, Including Discontinued Operation, Assets, Current | 1,882,000 | |
Brand Management and Sales Channel Building [Member] | ||
Note 27 - Segment Reporting (Details) [Line Items] | ||
Disposal Group, Including Discontinued Operation, Assets | 182,000 | $ 2,989,000 |
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | ||
Note 27 - Segment Reporting (Details) [Line Items] | ||
Disposal Group, Including Discontinued Operation, Assets, Current | $ 1,882,000 |
Note 27 - Segment Reporting 105
Note 27 - Segment Reporting (Details) - Summary of Segment Reporting Information (Unaudited) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) | |||
Segment Reporting Information [Line Items] | |||||
Revenue | $ 32,265 | $ 37,966 | |||
Cost of sales | 24,655 | 31,671 | |||
Total operating expenses | 16,926 | 19,283 | |||
Gain on disposal of VIE included in total operating expenses | (20) | (266) | |||
Goodwill impairment and impairment on fixed assets and intangible assets included in total operating expenses | (1,824) | (4,193) | |||
Impairment on equity method investments included in total operating expenses | (838) | ¥ (874,000) | |||
Depreciation and amortization expense included in total operating expenses | 1,768 | 1,437 | |||
Operating income (loss) | (9,316) | (12,988) | |||
Net (loss)/income from continued operations | (7,718) | (12,421) | |||
Total assets | 35,460 | 47,430 | |||
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 32,265 | 37,966 | |||
Cost of sales | 24,655 | 31,671 | |||
Total operating expenses | 16,926 | 19,283 | |||
Gain on disposal of VIE included in total operating expenses | (20) | (266) | |||
Goodwill impairment and impairment on fixed assets and intangible assets included in total operating expenses | 1,824 | 4,193 | |||
Impairment on equity method investments included in total operating expenses | 874 | ||||
Depreciation and amortization expense included in total operating expenses | 1,705 | 1,236 | |||
Operating income (loss) | (9,316) | 12,988 | |||
Expenditure for long-term assets | 3,464 | 1,125 | |||
Net (loss)/income from continued operations | (7,718) | (12,421) | |||
Total assets | 35,460 | 47,430 | |||
Internet Ad [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 31,015 | 31,261 | |||
Cost of sales | 23,615 | 25,645 | |||
Total operating expenses | 11,545 | 12,575 | |||
Gain on disposal of VIE included in total operating expenses | (266) | ||||
Goodwill impairment and impairment on fixed assets and intangible assets included in total operating expenses | 1,652 | 4,193 | |||
Depreciation and amortization expense included in total operating expenses | 1,539 | 1,005 | |||
Operating income (loss) | (4,145) | (6,959) | |||
Expenditure for long-term assets | 3,308 | 1,113 | |||
Net (loss)/income from continued operations | (2,769) | (6,380) | |||
Total assets | 33,727 | 43,851 | |||
TV Ad [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 1,250 | 6,705 | |||
Cost of sales | 1,040 | 6,026 | |||
Total operating expenses | 1,057 | 575 | |||
Goodwill impairment and impairment on fixed assets and intangible assets included in total operating expenses | 172 | ||||
Depreciation and amortization expense included in total operating expenses | 121 | 154 | |||
Operating income (loss) | (847) | 104 | |||
Net (loss)/income from continued operations | (849) | 47 | |||
Total assets | 3,148 | 13,524 | |||
Others [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total operating expenses | 4,324 | [1] | 6,133 | [2] | |
Gain on disposal of VIE included in total operating expenses | (20) | ||||
Impairment on equity method investments included in total operating expenses | 874 | ||||
Depreciation and amortization expense included in total operating expenses | 45 | 77 | |||
Operating income (loss) | (4,324) | (6,133) | |||
Expenditure for long-term assets | 156 | 12 | |||
Net (loss)/income from continued operations | (4,100) | (6,088) | |||
Total assets | $ 17,362 | [3] | $ 9,547 | [4] | |
[1] | Including approximately US$2,256,000 share-based compensation expenses. | ||||
[2] | Including approximately US$4,840,000 share-based compensation expenses. | ||||
[3] | Including approximately US$182,000 total assets held by brand management and sale channel building segment and US$1,882,000 assets classified as held for sale. | ||||
[4] | Including approximately US$2,989,000 total assets held by brand management and sale channel building segment. |
Note 28 - Loss Per Share (Detai
Note 28 - Loss Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock [Member] | ||
Note 28 - Loss Per Share (Details) [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,659,361 | 14,612 |
Employee Stock Option [Member] | ||
Note 28 - Loss Per Share (Details) [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 562,557 | 441,559 |
Note 28 - Loss Per Share (De107
Note 28 - Loss Per Share (Details) - Basic and Diluted Earnings Per Share - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Basic and Diluted Earnings Per Share [Abstract] | ||
Net loss attributable to ChinaNet Online Holdings, Inc. from continued operations (numerator for basic and diluted loss per share from continued operations) | $ (7,627) | $ (12,267) |
Net loss attributable to ChinaNet Online Holdings, Inc. from discontinued operation (numerator for basic and diluted loss per share from discontinued operation) | $ (1,465) | $ (1,471) |
Weighted average number of common shares outstanding – Basic | 26,765,673 | 22,414,523 |
Effect of diluted securities: | ||
Weighted average number of common shares outstanding – Diluted | 26,765,673 | 22,414,523 |
Loss per share-Basic and diluted from continued operations | $ (0.29) | $ (0.55) |
Loss per share-Basic and diluted from discontinued operation | $ (0.05) | $ (0.07) |
Note 29 - Share-based Compen108
Note 29 - Share-based Compensation Expenses (Details) | Sep. 14, 2015$ / sharesshares | May. 01, 2015$ / sharesshares | Dec. 30, 2014$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Jan. 31, 2015$ / shares |
Note 29 - Share-based Compensation Expenses (Details) [Line Items] | ||||||
Share Price (in Dollars per share) | $ / shares | $ 0.84 | $ 0.908 | $ 1.2 | |||
Allocated Share-based Compensation Expense (in Dollars) | $ | $ 2,256,000 | $ 4,840,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 190,500 | 54,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 1,193,100 | 200,000 | ||||
Number Of Independent Directors | 3 | |||||
Stock Issued During Period, Shares, Share-based Compensation, Forfeited | 155,190 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | $ | $ 2,741,000 | $ 3,237,000 | ||||
Restricted Stock [Member] | Management Consulting Service Provider [Member] | ||||||
Note 29 - Share-based Compensation Expenses (Details) [Line Items] | ||||||
Stock Issued During Period, Shares, Issued for Services | 350,000 | |||||
Management Consulting Service, Term | 24 months | |||||
Restricted Stock [Member] | Management Consulting Service Provider 2 [Member] | ||||||
Note 29 - Share-based Compensation Expenses (Details) [Line Items] | ||||||
Share Price (in Dollars per share) | $ / shares | $ 0.90 | |||||
Allocated Share-based Compensation Expense (in Dollars) | $ | $ 54,000 | |||||
Stock Issued During Period, Shares, Issued for Services | 60,000 | |||||
Restricted Stock [Member] | Executive Officer [Member] | ||||||
Note 29 - Share-based Compensation Expenses (Details) [Line Items] | ||||||
Share Price (in Dollars per share) | $ / shares | $ 1.17 | |||||
Allocated Share-based Compensation Expense (in Dollars) | $ | $ 1,560,000 | 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] | Management, Employees and Directors [Member] | ||||||
Note 29 - Share-based Compensation Expenses (Details) [Line Items] | ||||||
Share Price (in Dollars per share) | $ / shares | $ 1.17 | |||||
Allocated Share-based Compensation Expense (in Dollars) | $ | 2,830,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,418,780 | |||||
Share-based Compensation by Share-based Compensation Award, Equity Instruments Other than Options, Minimum Requirement for Unlocking the Restriction, Common Stock Share Price for Five Consecutive Trading Days (in Dollars per share) | $ / shares | $ 2.50 | |||||
Restricted Stock [Member] | Management Consulting Service Provider [Member] | ||||||
Note 29 - Share-based Compensation Expenses (Details) [Line Items] | ||||||
Share Price (in Dollars per share) | $ / shares | $ 1.57 | |||||
Allocated Share-based Compensation Expense (in Dollars) | $ | $ 183,000 | |||||
Options Issued to Three Directors [Member] | Director [Member] | ||||||
Note 29 - 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, Expiration Period | 5 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 200,000 | |||||
Share-based Compensation Arrangements by Share-based Payment Award Options Exercise Price (in Dollars per share) | $ / shares | $ 1.23 | |||||
Investor Relations Services Provider [Member] | Restricted Stock [Member] | ||||||
Note 29 - Share-based Compensation Expenses (Details) [Line Items] | ||||||
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued | 50,000 | 40,000 | ||||
Share Price (in Dollars per share) | $ / shares | $ 1.20 | $ 0.84 | ||||
Allocated Share-based Compensation Expense (in Dollars) | $ | $ 60,000 | $ 33,600 | ||||
Technical Services Provider [Member] | Restricted Stock [Member] | ||||||
Note 29 - Share-based Compensation Expenses (Details) [Line Items] | ||||||
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued | 300,000 | |||||
Share Price (in Dollars per share) | $ / shares | $ 0.67 | |||||
Allocated Share-based Compensation Expense, Net of Tax (in Dollars) | $ | $ 117,000 | $ 84,000 | ||||
Omnibus Securities and Incentive Plan [Member] | Employees and Directors [Member] | ||||||
Note 29 - Share-based Compensation Expenses (Details) [Line Items] | ||||||
Share Price (in Dollars per share) | $ / shares | $ 0.84 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 1,193,100 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 397,700 | |||||
Omnibus Securities and Incentive Plan [Member] | Restricted Stock [Member] | Employees and Directors [Member] | ||||||
Note 29 - Share-based Compensation Expenses (Details) [Line Items] | ||||||
Share Price (in Dollars per share) | $ / shares | $ 0.84 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 665,592 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Forfeiture Rate | 5.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 53,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | |||||
Omnibus Securities and Incentive Plan [Member] | Employee Stock Option [Member] | Employees and Directors [Member] | ||||||
Note 29 - Share-based Compensation Expenses (Details) [Line Items] | ||||||
Allocated Share-based Compensation Expense (in Dollars) | $ | $ 229,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Forfeiture Rate | 5.00% | |||||
Upon Issuance [Member] | Restricted Stock [Member] | Executive Officer [Member] | ||||||
Note 29 - 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 | |||||
This Year [Member] | Restricted Stock [Member] | Executive Officer [Member] | ||||||
Note 29 - 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 | |||||
Next Year [Member] | Restricted Stock [Member] | Executive Officer [Member] | ||||||
Note 29 - 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 | |||||
Vesting on September 14, 2016 [Member] | Omnibus Securities and Incentive Plan [Member] | Employees and Directors [Member] | ||||||
Note 29 - Share-based Compensation Expenses (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 397,700 | |||||
Vesting on September 14, 2017 [Member] | Omnibus Securities and Incentive Plan [Member] | Employees and Directors [Member] | ||||||
Note 29 - Share-based Compensation Expenses (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 397,700 |
Note 29 - Share-based Compen109
Note 29 - Share-based Compensation Expenses (Details) - Fair Value Assumptions of Options Granted | 12 Months Ended | ||
Dec. 31, 2015$ / shares | Dec. 31, 2014$ / shares | Jan. 31, 2015$ / shares | |
Note 29 - Share-based Compensation Expenses (Details) - Fair Value Assumptions of Options Granted [Line Items] | |||
Applicable stock price | $ 0.84 | $ 0.908 | $ 1.2 |
Exercise multiple | 2.5 | ||
Tenor | 5 years | 5 years | |
Risk-free interest rate | 1.563% | 1.67% | |
Expected volatility | 98.63% | 98.68% | |
Value per option | $ 0.495 | ||
Employee Stock Option [Member] | |||
Note 29 - Share-based Compensation Expenses (Details) - Fair Value Assumptions of Options Granted [Line Items] | |||
Exercise price of the option | $ 0.84 | $ 1.23 | |
Minimum [Member] | |||
Note 29 - Share-based Compensation Expenses (Details) - Fair Value Assumptions of Options Granted [Line Items] | |||
Exercise multiple | 2 | ||
Value per option | $ 0.41 | ||
Maximum [Member] | |||
Note 29 - Share-based Compensation Expenses (Details) - Fair Value Assumptions of Options Granted [Line Items] | |||
Exercise multiple | 2.5 | ||
Value per option | $ 0.56 |
Note 29 - Share-based Compen110
Note 29 - Share-based Compensation Expenses (Details) - Options Issued and Outstanding - $ / shares | Dec. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Options Issued and Outstanding [Abstract] | ||||
Options Outstanding | 2,088,040 | 894,940 | 939,440 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 14 days | 6 years 175 days | 7 years 186 days | |
Options Outstanding, Weighted Average Exercise Price | $ 1 | $ 1.21 | $ 1.42 | |
Options Exercisable | 1,292,640 | 894,940 | 939,440 | |
Options Exercisable, Weighted Average Remaining Contractual Life | 5 years 87 days | 6 years 175 days | 7 years 186 days | |
Options Exercisable, Weighted Average Exercise Price | $ 1.09 | $ 1.21 | $ 1.42 | |
Granted/Vested | 1,193,100 | 200,000 | ||
Granted/Vested | 5 years | 5 years | ||
Granted/Vested | $ 0.84 | $ 1.23 | ||
Granted/Vested | 397.700 | 200,000 | ||
Granted/Vested | 5 years | 5 years | ||
Granted/Vested | $ 0.84 | $ 1.23 | ||
Cancelled/Forfeited | (190,500) | |||
Cancelled/Forfeited | $ 1.20 | |||
Cancelled/Forfeited | (190,500) | |||
Cancelled/Forfeited | $ 1.20 | |||
Expired | (190,500) | (54,000) | ||
Expired | $ 5 | |||
Expired | (54,000) | |||
Expired | $ 5 |
Note 30 - Subsequent Events (De
Note 30 - Subsequent Events (Details) $ / shares in Units, ¥ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2016shares | Jan. 31, 2016shares | Mar. 31, 2016USD ($) | Mar. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2015CNY (¥) | Dec. 31, 2014USD ($)$ / shares | Sep. 14, 2015$ / shares | Jan. 31, 2015$ / shares | |
Note 30 - Subsequent Events (Details) [Line Items] | ||||||||||
Share Price | $ 0.84 | $ 0.908 | $ 1.2 | |||||||
Allocated Share-based Compensation Expense | $ | $ 2,256,000 | $ 4,840,000 | ||||||||
Payments for Software | $ 1,020,000 | ¥ 6,650 | ||||||||
Subsequent Event [Member] | ||||||||||
Note 30 - Subsequent Events (Details) [Line Items] | ||||||||||
Payments for Software | $ 1,400,000 | ¥ 9,100 | ||||||||
Omnibus Securities and Incentive Plan [Member] | Employees and Directors [Member] | ||||||||||
Note 30 - Subsequent Events (Details) [Line Items] | ||||||||||
Share Price | $ 0.84 | |||||||||
Omnibus Securities and Incentive Plan [Member] | Restricted Stock [Member] | Employees and Directors [Member] | ||||||||||
Note 30 - Subsequent Events (Details) [Line Items] | ||||||||||
Share Price | $ 0.84 | |||||||||
Omnibus Securities and Incentive Plan [Member] | Restricted Stock [Member] | Subsequent Event [Member] | Employees and Directors [Member] | ||||||||||
Note 30 - Subsequent Events (Details) [Line Items] | ||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | shares | 665,592 | |||||||||
Issuance of Restricted Common Stock to Investor Relations Services Provider in Exchange for Services [Member] | Scenario, Forecast [Member] | ||||||||||
Note 30 - Subsequent Events (Details) [Line Items] | ||||||||||
Allocated Share-based Compensation Expense | $ | $ 60,000 | |||||||||
Issuance of Restricted Common Stock to Investor Relations Services Provider in Exchange for Services [Member] | Subsequent Event [Member] | ||||||||||
Note 30 - Subsequent Events (Details) [Line Items] | ||||||||||
Stock Issued During Period, Shares, Issued for Services | shares | 50,000 |