Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2016 | |
Document Information [Line Items] | |||
Entity Registrant Name | ChinaNet Online Holdings, Inc. | ||
Entity Central Index Key | 1,376,321 | ||
Trading Symbol | cnet | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 12,265,542 | ||
Entity Public Float | $ 10,263,761 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Current assets: | |||
Cash and cash equivalents | $ 3,035 | $ 5,503 | |
Term deposit | 3,056 | 3,265 | |
Accounts receivable, net | 3,322 | 2,549 | |
Other receivables, net | 89 | 1,910 | |
Prepayment and deposit to suppliers | 4,754 | 5,843 | |
Due from related parties, net | 213 | 41 | |
Other current assets | 6 | 45 | |
Disposal Group, Including Discontinued Operation, Assets, Current | 1,882 | ||
Total current assets | 14,475 | 21,038 | |
Long-term investments | 1,340 | 1,133 | |
Property and equipment, net | 471 | 681 | |
Intangible assets, net | 7,264 | 5,638 | |
Prepayment for purchasing of software technology | 1,024 | ||
Goodwill | 4,970 | 4,396 | |
Deferred tax assets-non current | 1,522 | 1,550 | |
Total Assets | 30,042 | 35,460 | |
Current liabilities: | |||
Short-term bank loan * | [1] | 721 | |
Accounts payable * | [1] | 102 | 95 |
Advances from customers * | [1] | 1,420 | 1,313 |
Accrued payroll and other accruals * | [1] | 685 | 685 |
Guarantee payment and prepayment from investors | 884 | 944 | |
Payable for purchasing of software technology * | [1] | 411 | |
Taxes payable * | [1] | 2,910 | 3,186 |
Other payables * | [1] | 487 | 234 |
Liabilities classified as held for sale * | [1] | 913 | |
Total current liabilities | 7,620 | 7,370 | |
Deferred tax liability-non current * | [1] | 118 | |
Long-term borrowing from a director | 126 | 135 | |
Total Liabilities | 7,746 | 7,623 | |
Commitments and contingencies | 129 | ||
Equity: | |||
Common stock (US$0.001 par value; authorized 50,000,000 shares; issued and outstanding 12,158,542 shares and 11,856,304 shares at December 31, 2016 and 2015, respectively) | 12 | 12 | |
Additional paid-in capital | 29,285 | 26,528 | |
Statutory reserves | 2,607 | 2,607 | |
Retained deficit | (10,362) | (3,870) | |
Accumulated other comprehensive income | 700 | 2,056 | |
Total ChinaNet Online Holdings, Inc.’s stockholders’ equity | 22,242 | 27,333 | |
Noncontrolling interests | 54 | 375 | |
Total equity | 22,296 | 27,708 | |
Total Liabilities and Equity | $ 30,042 | $ 35,460 | |
[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, 2016 | Dec. 31, 2015 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 12,158,542 | 11,856,304 |
Common stock, shares outstanding (in shares) | 12,158,542 | 11,856,304 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | ||
From unrelated parties | $ 34,300,000 | $ 31,522,000 |
From related parties | 450,000 | 743,000 |
Total revenues | 34,750,000 | 32,265,000 |
Cost of revenues | 26,999,000 | 24,655,000 |
Gross profit | 7,751,000 | 7,610,000 |
Operating expenses | ||
Sales and marketing expenses | 4,074,000 | 4,586,000 |
General and administrative expenses | 7,670,000 | 7,498,000 |
Research and development expenses | 1,996,000 | 2,164,000 |
Gain on disposal of a VIE included in total operating expenses | (20,000) | |
Impairment on long-term investments included in total operating expenses | 159,000 | 874,000 |
Goodwill impairment and impairment on fixed assets and intangible assets included in total operating expenses | 1,824,000 | |
Total operating expenses | 13,899,000 | 16,926,000 |
Loss from operations | (6,148,000) | (9,316,000) |
Other income/(expenses) | ||
Interest income | 90,000 | 117,000 |
Interest expense | (13,000) | (47,000) |
Other (expenses)/income | (112,000) | 34,000 |
Total other (expense)/income | (35,000) | 104,000 |
Loss before income tax benefit, equity method investments, noncontrolling interests and discontinued operation | (6,183,000) | (9,212,000) |
Income tax (expense)/benefit | (102,000) | 1,496,000 |
Loss before equity method investments, noncontrolling interests and discontinued operation | (6,285,000) | (7,716,000) |
Share of losses in equity investment affiliates | 2,000 | |
Loss from continuing operation | (6,285,000) | (7,718,000) |
Loss from and on disposal of discontinued operation, net of income tax | (59,000) | (1,465,000) |
Net loss | (6,344,000) | (9,183,000) |
Net (income)/loss attributable to noncontrolling interests from continuing operations | (148,000) | 91,000 |
Net loss attributable to ChinaNet Online Holdings, Inc. | (6,492,000) | (9,092,000) |
Net loss | (6,344,000) | (9,183,000) |
Foreign currency translation loss | (1,377,000) | (1,594,000) |
Comprehensive Loss | (7,721,000) | (10,777,000) |
Comprehensive (income)/loss attributable to noncontrolling interests | (127,000) | 116,000 |
Comprehensive loss attributable to ChinaNet Online Holdings, Inc. | $ (7,848,000) | $ (10,661,000) |
Loss from continuing operations per common share | ||
Basic and diluted (in dollars per share) | $ (0.57) | $ (0.71) |
Loss from discontinued operations per common share | ||
Basic and diluted (in dollars per share) | $ (0.01) | $ (0.14) |
Weighted average number of common shares outstanding: | ||
Basic and diluted (in shares) | 11,357,907 | 10,706,521 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | ||
Net loss | $ (6,344,000) | $ (9,183,000) |
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities | ||
Depreciation and amortization | 1,572,000 | 1,768,000 |
Share-based compensation expenses | 2,309,000 | 2,256,000 |
Provision for Doubtful Accounts | 368,000 | 88,000 |
Share of losses in equity investment affiliates | 2,000 | |
Goodwill impairment and impairment on fixed assets and intangible assets | 3,110,000 | |
Impairment on long-term investments included in total operating expenses | 159,000 | 874,000 |
Loss/(gain) on deconsolidation of VIEs | 9,000 | (20,000) |
Loss on disposal of fixed assets/other long-term assets | 116,000 | 63,000 |
Deferred taxes | 102,000 | (1,558,000) |
Changes in operating assets and liabilities | ||
Accounts receivable | (975,000) | (580,000) |
Other receivables | 1,527,000 | 6,369,000 |
Prepayment and deposit to suppliers | 1,106,000 | 1,476,000 |
Due from related parties | (336,000) | 7,000 |
Other current assets | 38,000 | 13,000 |
Accounts payable | (137,000) | (509,000) |
Advances from customers | (362,000) | 1,152,000 |
Accrued payroll and other accruals | 21,000 | (173,000) |
Other payables | 413,000 | 37,000 |
Increase (Decrease) in Accrued Taxes Payable | 19,000 | 59,000 |
Commitment and contingencies | (126,000) | 135,000 |
Net cash (used in)/provided by operating activities | (563,000) | 5,732,000 |
Cash flows from investing activities | ||
Payment for office equipment and leasehold improvement | (148,000) | (356,000) |
Payment for purchasing of software technology | (1,969,000) | (3,880,000) |
Refund of prepayment for software development contract terminated | 772,000 | |
Long-term investment in cost/equity method investees | (470,000) | (1,163,000) |
Proceeds from disposal of VIEs | 28,000 | |
Cash effect on deconsolidation of a VIE | (17,000) | |
Net cash used in investing activities | (2,576,000) | (4,627,000) |
Cash flows from financing activities | ||
Proceeds from short-term bank loan | 753,000 | |
Repayment of short-term bank loan | (803,000) | |
Repayment of short-term loan to noncontrolling interest of VIE | (312,000) | |
Guarantee payment and prepayment from new investors | 984,000 | |
Net cash provided by/(used in) financing activities | 753,000 | (131,000) |
Change in cash and cash equivalents included in assets classified as held for sale | 177,000 | (189,000) |
Effect of exchange rate fluctuation on cash and cash equivalents | (259,000) | (319,000) |
Net (decrease)/increase in cash and cash equivalents | (2,468,000) | 466,000 |
Cash and cash equivalents at beginning of the year | 5,503,000 | 5,037,000 |
Cash and cash equivalents at end of the year | 3,035,000 | 5,503,000 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | 2,000 | 131,000 |
Interest expense paid | 13,000 | 47,000 |
Non-cash transactions: | ||
Payable for purchasing of software technologies | 411,000 | |
Due to noncontrolling interest of VIE converted to paid-in capital of the VIE | $ 315,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Employees [Member]Common Stock [Member] | Employees [Member]Additional Paid-in Capital [Member] | Employees [Member]Statutory Reserves [Member] | Employees [Member]Retained Earnings [Member] | Employees [Member]AOCI Attributable to Parent [Member] | Employees [Member]Noncontrolling Interest [Member] | Employees [Member] | Management [Member]Common Stock [Member] | Management [Member]Additional Paid-in Capital [Member] | Management [Member]Statutory Reserves [Member] | Management [Member]Retained Earnings [Member] | Management [Member]AOCI Attributable to Parent [Member] | Management [Member]Noncontrolling Interest [Member] | Management [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Statutory Reserves [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance | $ 12 | $ 24,720 | $ 2,607 | $ 5,222 | $ 3,625 | $ (277) | $ 35,909 | ||||||||||||||
Balance (in shares) at Dec. 31, 2014 | 11,612,304 | ||||||||||||||||||||
Balance at Dec. 31, 2014 | $ 12 | 24,720 | 2,607 | 5,222 | 3,625 | (277) | 35,909 | ||||||||||||||
Restricted shares issued for services (in shares) | 244,000 | ||||||||||||||||||||
Restricted shares issued for services | 414 | 414 | |||||||||||||||||||
Share-based compensation related to unvested shares granted to employees | $ 53 | $ 53 | $ 1,560 | $ 1,560 | |||||||||||||||||
Share-based compensation related to common stock purchase options issued to employees and directors | 229 | 229 | |||||||||||||||||||
Share-based compensation related to restricted shares issued to management | $ 53 | $ 53 | 1,560 | 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 | |||||||||||||||||||
Net loss | (9,092) | (91) | (9,183) | ||||||||||||||||||
Foreign currency translation loss | (1,569) | (25) | (1,594) | ||||||||||||||||||
Balance (in shares) at Dec. 31, 2015 | 11,856,304 | ||||||||||||||||||||
Balance at Dec. 31, 2015 | $ 12 | 26,528 | 2,607 | (3,870) | 2,056 | 375 | 27,708 | ||||||||||||||
Balance | 12 | 24,720 | 2,607 | 5,222 | 3,625 | (277) | 27,708 | ||||||||||||||
Balance | $ 12 | 26,528 | 2,607 | (3,870) | 2,056 | 375 | 27,708 | ||||||||||||||
Restricted shares issued for services (in shares) | 36,000 | ||||||||||||||||||||
Restricted shares issued for services | 371 | 371 | |||||||||||||||||||
Share-based compensation related to unvested shares granted to employees | 1,560 | 1,560 | |||||||||||||||||||
Share-based compensation related to common stock purchase options issued to employees and directors | 201 | 201 | |||||||||||||||||||
Share-based compensation related to restricted shares issued to management | $ 1,560 | $ 1,560 | |||||||||||||||||||
Net loss | (6,492) | 148 | (6,344) | ||||||||||||||||||
Foreign currency translation loss | (1,356) | (21) | (1,377) | ||||||||||||||||||
Balance (in shares) at Dec. 31, 2016 | 12,158,542 | ||||||||||||||||||||
Balance at Dec. 31, 2016 | $ 12 | 29,285 | 2,607 | (10,362) | 700 | 54 | 22,296 | ||||||||||||||
Share-based compensation related to unvested shares issued to employees (in shares) | 266,238 | ||||||||||||||||||||
Share-based compensation related to unvested shares issued to employees | 177 | 177 | |||||||||||||||||||
Reverse of goodwill allocated to disposal group attributable to noncontrolling interest | 448 | (448) | |||||||||||||||||||
Balance | 12 | 26,528 | 2,607 | (3,870) | 2,056 | 375 | 22,296 | ||||||||||||||
Balance | $ 12 | $ 29,285 | $ 2,607 | $ (10,362) | $ 700 | $ 54 | $ 22,296 |
Note 1 - Organization and Natur
Note 1 - Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
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 October 2006. June 26, 2009, (O2O) The Company’s wholly owned subsidiary, China Net BVI was incorporated in the British Virgin Islands on August 13, 2007. April 11, 2008, 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% may 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 10. As of December 31, 2016, 51% 10% 10% 51% a 19% 23.18% 25.5% As of December 31, 2016, two four 15% two 19% The Company operated its business primarily in China through its PRC subsidiaries and PRC operating entities, or VIEs as discussed above. On August 18, 2016, one two one (1 2.5) August 19, 2016 two one one 30,395,722 August 19, 2016 12,158,542 1 2.5 |
Note 2 - Variable Interest Enti
Note 2 - Variable Interest Entities | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
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 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 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 may may 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 may may may may may may may 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: 100% may 100% ten may Exclusive Option Agreements: 10, ten Equity Pledge Agreements: one may ten 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% Summarized below is the information related to the consolidated VIEs’ assets and liabilities as of December 31, 2016 2015, As of December 31, 2016 2015 US$(’000) US$(’000) Assets Current assets: Cash and cash equivalents $ 2,915 $ 4,942 Term deposit 3,056 3,265 Accounts receivable, net 3,315 2,492 Other receivables, net 71 1,712 Prepayment and deposit to suppliers 4,710 5,841 Due from related parties, net 197 24 Other current assets - 27 Assets classified as held for sale (1) - 1,882 Total current assets 14,264 20,185 Long-term investments 43 1,113 Property and equipment, net 286 503 Intangible assets, net 5,468 5,630 Prepayment for purchasing of software technology - 1,024 Goodwill 4,970 4,396 Deferred tax assets-non current 1,241 1,249 Total Assets $ 26,272 $ 34,100 Liabilities Current liabilities: Short-term bank loan $ 721 $ - Accounts payable 83 88 Advances from customers 1,388 1,304 Accrued payroll and other accruals 256 309 Due to Control Group 10 11 Payable for purchasing of software technology 411 - Taxes payable 2,480 2,733 Other payables 162 67 Liabilities classified as held for sale (1) - 913 Total current liabilities 5,511 5,425 Deferred tax Liabilities-non current - 118 Total Liabilities $ 5,511 $ 5,543 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, 2016 2015, Year Ended December 31, 2016 2015 US$(’000) US$(’000) Revenues $ 34,643 $ 31,902 Cost of revenues 26,916 24,655 Total operating expenses (including impairment and other losses of long-lived assets and goodwill, impairment loss on long-term investments and gain on deconsolidation of VIEs) 9,167 13,387 Loss from discontinued operations (2) 59 1,465 Net loss before allocation to noncontrolling interests 1,627 6,016 (1) In the fourth 2015, 51% one one www.liansuo.com (“liansuo.com”). At the time when the Company committed a plan to sell liansuo.com, the Company did not consider the sale of liansuo.com is a strategic shift that had (or would have) a major effect on the Company’s operations and financial results, as it was not a significant portion of the Company’s Internet advertising and data service business segment, therefore, not qualifying for presentation as a discontinued operation. As a result, in accordance with ASC Topic 360: December 31, 2015, 360 10 45 9, fourth 2016. 360 10 35 44. February 2017, (2) To focus all the Company’s resources on its core business as described above, in the fourth 2015, 205: |
Note 3 - Summary of Significant
Note 3 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
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, 205. 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% c) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of these consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company continually evaluates these estimates and assumptions based on the most recently available information, historical experience and various other assumptions that the Company believes to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. d) 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, 2016 2015 Balance sheet items, except for equity accounts 6.9370 6.4936 Year Ended December 31, 2016 2015 Items in the statements of income and comprehensive income, and statements of cash flows 6.6423 6.2284 No representation is made that the RMB amounts could have been, or could be converted into US$ at the above rates. e) 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 f) Term deposits Term deposits consist of bank deposits with an original maturity of between three twelve g) Accounts receivable, other receivables, and due from related parties, net Accounts receivable, other receivables and due from related parties 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, other receivables and due from related parties. 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. For the years ended December 31, 2016 2015, US$0.37 US$0.09 h) 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 with ASC Topic 323 20% 50% When the Company’s carrying value in an equity method investee company is reduced to zero, 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 with ASC Topic 325 20: 20% Impairment for long-term investments The Company assesses its long-term investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance and financial position of the investee companies, including current earnings trends and undiscounted cash flows, and other company-specific information. The fair value determination, particularly for investments in privately-held companies, requires significant judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investments and determination of whether any identified impairment is other-than-temporary. The impairment to be recognized is measured by the amount by which the carrying values of the long-term investments exceed the fair value of the long-term investments. For the years ended December 31, 2016 2015, US$0.16 US$0.87 i) 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 (years) 3 Vehicles 5 Office equipment 3 - 5 Electronic devices 5 Depreciation expenses are included in selling expenses, general and administrative expenses and research and development expenses. Leasehold improvements are amortized over the lesser 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. 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. j) 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 of 2 10 Intangible assets other than goodwill acquired through various acquisitions are amortized on a straight-line basis over their expected useful economic lives. Customer Relationship (years) 5 - 9 Non-Compete Agreement 5 - 6 Software Technologies 5 The Company accounted for website development costs in accordance with ASC Topic 350 50, 350 50 December 31, 2016 2015, k) 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 For the year ended December 31, 2015, 3(m), US$101,000 December 31, 2016, For the year ended December 31, 2015, US$169,000 3 12 l) 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 first 805 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. As discussed in Note 2, fourth 2015, December 31, 2015, US$1,117,000 December 31, 2015. As of December 31, 2016, December 31, 2016 2015, 3 14 As also discussed in Note 2, fourth 2015, 350: 20 40, 350 20 40 3 350 20 40 7, first US$914,000 The Company reassesses the status of its disposal group classified as held for sale, basis on which, the Company concluded that its disposal group no longer met all the criteria for the classification as held for sale during the fourth 2016. 360. 3(m), For the years ended December 31, 2016 2015, m) Long-term assets to be disposed of In accordance with ASC Topic 360, For the year ended December 31, 2015, US$172,000 US$1,551,000 In accordance with ASC Topic 360, six (1) (2) (3) (4) one (5) (6) 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 period in which assets and liabilities are classified and disclosed the major classes of assets and liabilities classified as held for sale and other required detailed disclosures in the related note to the financial statements (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 for the year ended December 31, 2015, If at any time, the criteria as discussed above are no longer met, the Company reclassifies a long-lived asset or disposal group previously classified as held for sale to held and used, and measures the long-lived asset or disposal group to be reclassified at the lower of its carrying value and fair value in accordance with ASC 360. December 31, 2016, n) Deconsolidation The Company accounts for deconsolidation of subsidiaries in accordance with ASC Topic 810 In accordance with ASC Topic 810 10 40 5, a. The aggregate of all of the following: 1. 2. 3. b. The carrying amount of the former subsidiary’s assets and liabilities. For the year ended December 31, 2016, US$0.01 December 31, 2015, US$0.02 o) Noncontrolling interest The Company accounts for noncontrolling interest in accordance with ASC Topic 810 10 45, 810 10 45 p) Fair value The Company’s financial instruments primarily consist of cash and cash equivalents, accounts receivable, other receivables, prepayment and deposits, due from related parties, accounts payable, advances from customers, payable for purchasing of software technology, accruals and other payables. The carrying values of these financial instruments approximate fair values due to their short maturities. ASC Topic 820 three may Level 1 Level 2 1 Level 3 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 only when impairment is recognized. The fair value of intangible assets was determined using income approach or cost approach, and the fair value of goodwill was determined using income approach. The following table summarizes the quantitative information about the Company’s Level 3 Valuation technique(s) Unobservable inputs Ranges As of December 31, 2016 Intangible assets Multi-period Excess Earning/Replacement Cost Remaining useful life (years) 1 - 9.5 Discount rate 20% Contributory asset charge 12.9% - 24% Goodwill/ Disposal group Discounted Cash Flow Base projection period (years) 5 Discount rate 20% Terminal growth rate 3.5% As of December 31, 2015 Intangible assets Multi-period Excess Earning Remaining useful life (years) 1 - 7 Discount rate 23.0% Contributory asset charge 12.4% - 28% Decline in EBIT without non-compete agreement 10% Annual customer attrition rate 15% Goodwill/ Disposal group Discounted Cash Flow Base projection period (years) 5 Discount rate 23.0% Terminal growth rate 3.5% q) Revenue recognition The Company's revenue recognition policies are in compliance with ASC Topic 605 605, four 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, precision marketing, data service and other related value added 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 services are provided based on two 605, 45. r) Cost of revenues Cost of revenues primarily includes the cost of media advertising time, internet advertising related resources and other technical services purchased from third s) 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, 2016 2015, US$2,360,000 US$2,353,000, t) 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, 2016 2015 US$1,996,000 US$2,164,000, u) Income taxes The Company follows the guidance of ASC Topic 740 v) Uncertain tax positions The Company follows the guidance of ASC Topic 740 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 five RMB100,000. ten December 31, 2016 2015 December 31, 2016 2015, w) Share-based Compensation The Company accounted for share-based compensation to employees in accordance with ASC Topic 718 x) Comprehensive income The Company accounts for comprehensive income in accordance with ASC Topic 220 y) Earnings (loss) per share Earnings (loss) per share are calculated in accordance with ASC Topic 260, z) Discontinued operations The Company has adopted ASC Topic 205 20 45, 205 20 45 1, may (1) (2) (3) 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 adopted ASC Topic 205 20 45 3 aa) Commitments and contingencies The Company has adopted ASC Topic 450 20, bb) Recent accounting pronouncements In May 2014, 2014 09, 606)” June 2016, 2016 12, December 2016, 2016 20, 606, 2014 09 605 five (1) (2) (3) (4) (5) March April 2016, 2016 08, 606): 2016 10, 606): two 606. two 2014 09 2014 09 December 15, 2017, December 15, 2016, 2017. In February 2016, 2016 02, 842)”. 12 December 15, 2018, first 2019 2016 02 2018. In March 2016, 2016 07, 323): December 15, 2016. In March 2016, 2016 09, 718): December 15, 2016, In August 2016, 2016 15, 230): eight zero eight December 15, 2017, In November 2016, 2016 18, 230): December 15, 2017, In January 2017, 2017 01, 805): (1) (2) two 606. December 15, 2017, In January 2017, 2017 04, 350) 2 2, zero 2 zero first first December 15, 2019. January 1, 2017. Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. |
Note 4 - Term Deposit
Note 4 - Term Deposit | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Term Deposit [Text Block] | 4. Term deposit Term deposit as of December 31, 2016 December 31, 2015 one December 31, 2015 July 7, 2016 July 7, 2017. 2.25% |
Note 5 - Accounts Receivable, N
Note 5 - Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Accounts Receivable Disclosure [Text Block] | 5. Accounts receivable, net As of December 31, 2016 2015 US$(’000) US$(’000) Accounts receivable 6,034 5,619 Allowance for doubtful debts (2,712 ) (3,070 ) Accounts receivable, net 3,322 2,549 All of the accounts receivable are non-interest bearing. Based on the assessment of the collectability of the accounts receivable as of December 31, 2016 2015, US$2,712,000 US$3,070,000 six December 31, 2016, US$38,000 December 31, 2015, US$233,000 For the year ended December 31, 2016, US$0.21 US$0.13 2016 26). |
Note 6 - Other Receivables, Net
Note 6 - Other Receivables, Net | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 6. Other receivables, net As of December 31, 2016 2015 US$(’000) US$(’000) Term deposit interest receivable 34 48 Staff advances for normal business purpose 55 243 TV advertisement deposit and prepayment receivable - 1,157 Overdue deposits 870 1,130 Allowance for doubtful debts (870 ) (668 ) Other receivables, net 89 1,910 TV advertisement deposit and prepayment receivable as of December 31, 2015 one 2014 December 31, 2014. December 31, 2015 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, 2016 2015, US$870,000 US$668,000 December 31, 2016, US$256,000 December 31, 2015, US$145,000 |
Note 7 - Prepayments and Deposi
Note 7 - Prepayments and Deposit to Suppliers | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Prepayments and Deposits to Suppliers Disclosure [Text Block] | 7. Prepayments and deposit to suppliers As of December 31, 2016 2015 US$(’000) US$(’000) Deposits to internet resources providers 1,074 622 Prepayments to internet resources providers 2,874 3,623 Deposits to other service providers 721 1,540 Other deposits and prepayments 85 58 4,754 5,843 The Company purchases internet resources from large internet search engines and technical services from suppliers to attract more internet traffic to its advertising portals and provide value-added services to its clients. Deposits to internet resources providers are paid as contractual deposits to the Company’s resources and services suppliers. As of December 31, 2016 2015, two 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, US$0.75 US$0.75 October 31, 2016 December 2016. December 31, 2017. |
Note 8 - Due From Related Parti
Note 8 - Due From Related Parties | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Due from Related Parties Disclosure [Text Block] | 8. Due from related parties, net As of December 31, 2016 2015 US$(’000) US$(’000) Beijing Saimeiwei Food Equipment Technology Co., Ltd. 31 35 Chuangshi Meiwei (Beijing) International Investment Management Co., Ltd. 150 4 Guohua Shiji (Beijing) Communication Co., Ltd. 175 - Beijing Saturday Education Technology Co., Ltd. 1 2 357 41 Allowance for doubtful debts (144 ) - Due from related parties, net 213 41 Related parties of the Company represented the Company’s direct or indirect unconsolidated investee companies. The Company provides advertising, marketing and data services to these related parties in its normal course of business on the same terms as those provided to its unrelated clients. Due from related parties represented the outstanding receivables for the advertising, marketing and data services that the Company provided to these related parties as of each reporting date. As of December 31, 2016, RMB1.0 US$0.14 RMB1.2 US$0.17 one Based on the assessment of the collectability, the Company recorded approximately US$150,000 December 31, 2016 2015, December 31, 2016 10. |
Note 9 - Assets and Liabilities
Note 9 - Assets and Liabilities Classified as Held for Sale | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 9. Assets and liabilities classified as held for sale As discussed in Note 2, fourth 2015, one 205, December 31, 2015 360. US$914,000 As of December 31, 2015 US$(’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. The Company reassessed the status of its disposal group and concluded that its disposal group no longer met all the criteria for the classification as held for sale in accordance with ASC Topic 360 fourth 2016. December 31, 2016. February 2017, |
Note 10 - Long-term Investments
Note 10 - Long-term Investments | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 10. Long-term investments As of December 31, 2016 2015 US$(’000) US$(’000) Equity method investments: Investment in equity method investees 709 778 Advance to equity method investees 75 80 Impairment on equity method investments (784 ) (838 ) Total equity method investments - 20 Cost method investments: Investment in cost method investees 1,492 1,113 Impairment on cost method investments (152 ) - Total long-term investments 1,340 1,133 Equity method investments As of December 31, 2016 2015, 23.18% 25.5% 2015, two zero December 31, 2015. In 2015, three 40% first 2016, US$7,500 15% Cost method investments As of December 31, 2016, 19% 10% two December 31, 2016: ChinaNet Beijing Chuangshi Guohua ChinaNet Total US$(’000) US$(’000) US$(’000) US$(’000) US$(’000) US$(’000) 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 Investment during the year 8 - - 25 418 451 Impairment on cost method investments (8 ) - (144 ) - - (152 ) Exchange translation adjustment - (1 ) (10 ) (1 ) (60 ) (72 ) Balance as of December 31, 2016 - 16 - 27 1,297 1,340 The Company invested in ChinaNet Korea and Chuangshi Meiwei to provide franchise consulting services for Korean food and beverage brands introduced to China. As the business plan of these two two zero December 31, 2016, US$0.16 December 31, 2016. The Company assessed the fair value of its remaining cost method investments and determined no additional other-than temporary impairment exist as of December 31 2016, 2015. |
Note 11 - Property and Equipmen
Note 11 - Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 11. Property and equipment, net As of December 31, 2016 2015 US$(’000) US$(’000) Leasehold improvement 317 382 Vehicles 763 839 Office equipment 1,371 1,376 Electronic devices 1,096 1,171 Property and equipment, cost 3,547 3,768 Less: accumulated depreciation (2,922 ) (2,922 ) Less: impairment loss on abandoned fixed assets (154 ) (165 ) Property and equipment, net 471 681 Depreciation expenses in the aggregate for the years ended December 31, 2016 2015 US$248,000 US$355,000, As discussed in Note 2, zero, US$172,000 December 31, 2015, |
Note 12 - Intangible Assets, Ne
Note 12 - Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 12. Intangible assets, net As of December 31, 2016 2015 US$(’000) US$(’000) Intangible assets not subject to amortization: Domain name 1,393 1,488 Intangible assets subject to amortization: Contract backlog - 191 Customer relationship 1,920 3,340 Non-compete agreements 1,057 1,321 Software technologies 295 316 Cloud compute software technology 1,338 1,429 Intelligent marketing data service platform 4,655 4,973 Internet safety, information exchange security and data encryption software 1,874 - Cloud video management system 1,369 - Other computer software 113 108 Intangible assets, cost 14,014 13,166 Less: accumulated amortization (4,875 ) (4,845 ) Less: accumulated impairment losses (1,875 ) (2,683 ) Intangible assets, net 7,264 5,638 Amortization expenses in aggregate for the years ended December 31, 2016 2015 US$1,324,000 US$1,413,000, For the year ended December 31, 2016, US$1.57 US$0.93 US$0.64 26). As discussed in Note 2, fourth 2015, zero, US$169,000 December 31, 2015. As part of the internet advertising, marketing and data services restructuring, the Company ceased to use its domain name, www.sooe.cn acquired in 2011, zero, US$1,551,000 December 31, 2015. As discussed in Note 3 December 31, 2016 2015, 3 For the years ended December 31, 2015 US$101,000 December 31, 2016, no Based on the net carrying value of the finite-lived intangible assets recorded, which weighted average remaining useful life was 6.53 December 31, 2016, US$1,192,000 December 31, 2017 US $1,178,000 December 31, 2018 2021. |
Note 13 - Prepayment for Purcha
Note 13 - Prepayment for Purchasing of Software Technology | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Deposits for Purchasing Assets [Text Block] | 13. Prepayment for purchasing of software technology As of December 31, 2015, US$1.02 third fourth 2016 |
Note 14 - Goodwill
Note 14 - Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Goodwill Disclosure [Text Block] | 14. Goodwill Amount US$(’000) Balance as of December 31, 2014 6,772 Goodwill impairment losses for the year (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 Goodwill adjustment due to reclassify disposal group to held and used 914 Exchange translation adjustment (340 ) Balance as of December 31, 2016 4,970 The Company’s goodwill arose from various business combinations consummated in 2011. As discussed in Note 2, US$1,117,000 December 31, 2015. As of December 31, 2015, 3(l), first US$941,000 350 As of December 31, 2016, 3(l), 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 For the years ended December 31, 2016 2015, no |
Note 15 - Short-term Bank Loan
Note 15 - Short-term Bank Loan | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Short-term Debt [Text Block] | 15. Short-term bank loan Short-term bank loan as of December 31, 2016 RMB5.0 US$0.72 one RMB3.0 US$0.43 July 18, 2017, 2.0 US$0.29 October 30, 2017. 5.22% 20% |
Note 16 - Accrued Payroll and O
Note 16 - Accrued Payroll and Other Accruals | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 16. Accrued payroll and other accruals As of December 31, 2016 2015 US$(’000) US$(’000) Accrued payroll and staff welfare 319 345 Accrued operating expenses 366 340 685 685 |
Note 17 - Payable For Purchasin
Note 17 - Payable For Purchasing of Software Technology | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
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, 2016 fourth 2016. 2017. |
Note 18 - Guarantee Payment and
Note 18 - Guarantee Payment and Prepayment from Investors | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Guarantee Payment and Prepayment from New Investors [Text Block] | 18. Guarantee payment and prepayment from investors In May 2015, 10% 15% US$772,000 10% US$112,000 Due to certain restriction stipulated in the “Measures for Overseas Investment Management” issued by the Ministry of Commerce of the PRC (the “MOFCOM”), the Company and its investors experienced difficulties in obtaining approval for the transactions from the MOFCOM. As a result, on May 12, 2016, two 2016. January 1, 2017, 12% December 31, 2017. two 2017. |
Note 19 - Taxation
Note 19 - Taxation | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
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 December 31, 2016, no 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 iii). China Net HK was incorporated in Hong Kong and does not conduct any substantial operations of its own. No no December 31, 2016 no 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%, l In November 2015, 15% November 2018. December 31, 2016 2015, 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 50% 25% 12.5% three 2015, first 2011 2012 August 2013 25% December 31, 2016, 12.5% December 31, 2015. l The applicable income tax rate for other PRC operating entities of the Company is 25% December 31, 2016 2015. l The current EIT law also imposed a 10% 5% For the years ended December 31, 2016 2015, 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% 3%. December 31, 2016 2015, 6%, 3% 12% 14% As of December 31, 2016, 2015, As of December 31, 2016 2015 US$(’000) US$(’000) Turnover tax and surcharge payable 1,147 1,272 Enterprise income tax payable 1,763 1,914 Taxes payable 2,910 3,186 For the year ended December 31, 2016, US$0.10 26). A reconciliation of the income tax (expense)/benefit determined at the U.S. federal corporate income tax rate to the Company’s effective income tax (expense)/benefit is as follows: Year Ended December 31, 2016 2015 US$(’000) US$(’000) Pre-tax loss (6,183 ) (9,212 ) U.S. federal rate 35 % 35 % Income tax benefit computed at U.S. federal rate 2,164 3,224 Reconciling items: Rate differential for domestic earnings (354 ) (647 ) Preferential tax treatments and tax holiday effects (158 ) (16 ) Valuation allowance on deferred tax assets (1,667 ) (1,057 ) Others (87 ) (8 ) Effective income tax (expense)/benefit (102 ) 1,496 For the years ended December 31, 2016 2015, Year Ended December 31, 2016 2015 US$(’000) US$(’000) Current-PRC - (4 ) Deferred-PRC (102 ) 1,500 Income tax (expense)/benefit (102 ) 1,496 The Company’s deferred tax liabilities at December 31, 2016 two Amount US$(’000) Balance as of December 31, 2014 964 Reversal during the year (790 ) Exchange translation adjustment (56 ) Balance as of December 31, 2015 118 Reversal during the year (110 ) Exchange translation adjustment (8 ) Balance as of December 31, 2016 - 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, 2016 2015 US$116,000 US$152,000, US$672,000 December 31, 2016 2015, The Company’s deferred tax assets at December 31, 2016 December 31, 2015 As of December 31, 2016 2015 US$(’000) US$(’000) Tax effect of net operating losses carried forward 9,345 7,921 Bad debts provision 931 932 Valuation allowance (8,754 ) (7,303 ) Total deferred tax assets 1,522 1,550 The net operating losses carried forward incurred by the Company (excluding its PRC operating subsidiaries and VIEs) were approximately US$17,544,000 US$14,903,000 December 31, 2016 2015, 2036. 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$17,939,000 US$15,657,000 December 31, 2016 2015, 2021. US$628,000 US$52,000 December 31, 2016 2015, US$269,000 December 31, 2016 2015, 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 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 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 may may 3 |
Note 20 - Long-term Borrowing F
Note 20 - Long-term Borrowing From a Director | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
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 |
Note 21 - Restricted Net Assets
Note 21 - Restricted Net Assets | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
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% 50% 10% 50% 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, 2016 2015, US$7.8 US$6.7 The current PRC Enterprise Income Tax (“EIT”) Law also imposed a 10% 5% The ability of the Company’s PRC subsidiaries and VIEs to make dividends and other payments to the Company may Foreign currency exchange regulation in China is primarily governed by the following rules: l Foreign Exchange Administration Rules (1996), August 2008, l Administration Rules of the Settlement, Sale and Payment of Foreign Exchange (1996), 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 Foreign 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 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 As of December 31, 2016 2015, US$17.6 US$22.9 US$2.5 US$2.8 December 31, 2016 2015, may may US$7.8 US$6.7 December 31, 2016 2015, |
Note 22 - Related Party Transac
Note 22 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 22. Related party transactions Revenue from related parties: Year Ended December 31, 2016 2015 US$(’000) US$(’000) -Beijing Saturday Education Technology Co., Ltd. 240 298 -Chuangshi Meiwei (Beijing) International Investment Management Co., Ltd. 170 346 -Beijing Saimeiwei Food Equipment Technology Co., Ltd, 36 99 -Guohua Shiji (Beijing) Communication Co., Ltd. 4 - 450 743 Related parties of the Company represented the Company’s direct or indirect unconsolidated investee companies. The Company provides advertising, marketing and data 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, 2016 | |
Notes to Financial Statements | |
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$595,000 US$650,000 December 31, 2016 2015, |
Note 24 - Concentration of Risk
Note 24 - Concentration of Risk | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
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, term deposit, accounts receivable and prepayments and deposits to suppliers. As of December 31, 2016 2015, December 31, 2016 2015, two 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 Concentration of customers Excluding revenues generated from discontinued operation, for the year ended December 31, 2015, two 12% 10% December 31, 2016 2015. As of December 31, 2016, two 22% 14% December 31, 2015, two 17% 24% no 10% December 31, 2016 2015. Concentration of suppliers For the year ended December 31, 2016, two 39% December 31, 2015, two 43% 37% 10% December 31, 2016 2015. |
Note 25 - Commitments and Conti
Note 25 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
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, 2016: Office Rental US$(’000) Year ending December 31, -2017 529 -2018 528 -2019 110 Total 1,167 Excluding rental expenses included in discontinued operation, for the years ended December 31, 2016 2015, US$580,000 US$377,000, In accordance with the contract entered into between the Company and one RMB100 US$14.4 one June 13, 2015. two 50% 50% December 31, 2015, US$0.13 June 12, 2016, two US$0.13 |
Note 26 - Discontinued Operatio
Note 26 - Discontinued Operation | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Discontinued Operations [Text Block] | 26. Discontinued operation As discussed in Note 2, fourth 2015, one June 2016, third December 31, 2016 2015, Year Ended December 31, 2016 2015 US$(’000) US$(’000) Revenues - 272 Cost of revenues - 149 Total operating expenses 50 359 Impairment on intangible assets - 169 Impairment on goodwill - 1,117 Net loss before income tax benefit (50 ) (1,522 ) Income tax benefit - 57 Loss from discontinued operation, net of income tax (50 ) (1,465 ) Loss on disposal of discontinued operation, net of income tax (9 ) - Net loss (59 ) (1,465 ) For the years ended December 31, 2016 2015, US$63,000, no December 31, 2016 2015. |
Note 27 - Segment Reporting
Note 27 - Segment Reporting | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 27. Segment reporting The Company follows ASC Topic 280 For the year ended December 31, 2016 Internet Ad. and TV & Others Inter- Total US$ US$ US$ US$ US$ Revenues 34,750 - - - 34,750 Cost of revenues 26,999 - - - 26,999 Total operating expenses 8,777 468 4,654 (1) - 13,899 Impairment on long-term investments included in total operating expenses - - 159 - 159 Depreciation and amortization expense included in total operating expenses 1,470 2 100 - 1,572 Operating loss (1,026 ) (468 ) (4,654 ) - (6,148 ) Expenditure for long-term assets 2,003 - 114 - 2,117 Net loss from continuing operations (1,154 ) (468 ) (4,663 ) - (6,285 ) Total assets – December 31, 2016 29,520 348 11,882 (11,708 ) 30,042 (1) Including approximately US$2,309,000 For the year ended December 31, 2015 Internet Ad. and TV & Others Inter- Total US$ 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 a 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 long-term 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 continuing 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) US$2,256,000 (2) US$182,000 US$1,882,000 |
Note 28 - Loss Per Share
Note 28 - Loss Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 28. Loss per share Basic and diluted loss per share for each of the periods presented is calculated as follows (All amounts, except number of shares and per share data, are presented in thousands of U.S. dollars): Year Ended December 31, 2016 2015 US$(’000) US$(’000) Net loss attributable to ChinaNet Online Holdings, Inc. from continuing operations (numerator for basic and diluted loss per share from continuing operations) $ (6,433 ) $ (7,627 ) Net loss attributable to ChinaNet Online Holdings, Inc. from discontinued operation (numerator for basic and diluted loss per share from discontinued operation) (59 ) (1,465 ) Weighted average number of common shares outstanding – Basic and diluted 11,357,907 10,706,521 Loss per share -Basic and diluted from continuing operations $ (0.57 ) $ (0.71 ) Loss per share -Basic and diluted from discontinued operation $ (0.01 ) $ (0.14 ) For the year ended December 31, 2016, 835,216 796,657 For the year ended December 31, 2015, 1,063,744 225,023 ** Weighted average number of shares outstanding and per share amounts, number of unvested restricted common stocks and common stock purchase options discussed in the above tables and paragraphs for all period presented have been retroactively restated to reflect the Company’s 1 2.5 August 19, 2016. |
Note 29 - Share-based Compensat
Note 29 - Share-based Compensation Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 29. Share-based compensation expenses The Company granted 40,000 December 31, 2016 2015. US$ 3.00 US $60,000 December 31, 2016 2015, The Company granted 140,000 24 May 1, 2015. US$3.93 December 31, 2016 2015 US$276,000 US$183,000, On December 30, 2014, 1,680,000 613,334 533,333 December 30, 2015 533,333 December 30, 2016. US$2.93 US$ 1,560,000 December 31, 2016 2015, On September 14, 2015, 2015 266,238 third US$2.10 5% December 31, 2016 2015 US$177,000 US$53,000, On September 14, 2015, 2015 5 477,240 US$2.10 159,080 159,080 September 14, 2016 159,080 September 14, 2017. US$1.03 US$1.39 5% December 31, 2016 2015 US$201,000 US$229,000, The Company granted 120,000 12 August 1, 2014. US$1.68 December 31, 2015 US$117,000. On October 9, 2015, 24,000 US$2.25 December 31, 2015 US$54,000. On April 1, 2016, 16,000 two 12 April 1, 2016. US$1.73 December 31, 2016 US$21,000. On November 14, 2016, 12,000 March 2017. US$1.20 December 31, 2016 US$14,000. The Company estimated the fair value of the options granted under its 2015 September 14, 2015 Applicable stock price $2.10 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 $2.10 Value per option $1.03 - $1.39 Applicable stock price is based on the closing bid price of the Company’s common stock on the grant date, after adjustment for the restricted shares granted on the 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 Options issued and outstanding at December 31, 2016 two Option Outstanding Option Exercisable Number of Weighted Weighted Number of Weighted Weighted Balance, December 31, 2014 357,976 6.48 $ 3.02 357,976 6.48 $ 3.02 Granted/Vested 477,240 5 $ 2.10 159,080 5 $ 2.10 Forfeited - - Exercised - - Balance, December 31, 2015 835,216 5.04 $ 2.49 517,056 5.24 $ 2.73 Granted/Vested - 159,080 3.70 $ 2.10 Forfeited - - Exercised - - Balance, December 31, 2016 835,216 4.04 $ 2.49 676,136 4.11 $ 2.59 The aggregate unrecognized share-based compensation expenses as of December 31, 2016 2015 US$544,000 US$2,741,000, **The number of restricted common stocks, common stock purchase options and the related stock price discussed in the above paragraphs and tables for all period presented have been retroactively restated to reflect the Company’s 1 2.5 August 19, 2016. |
Note 30 - Subsequent Event
Note 30 - Subsequent Event | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 30. Subsequent event In January 2017, 75,000 December 31, 2017. In February 2017, 20,000 one In March 2017, 12,000 November 14, 2016, 29. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | c) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of these consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company continually evaluates these estimates and assumptions based on the most recently available information, historical experience and various other assumptions that the Company believes to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. |
Basis of Accounting, Policy [Policy Text Block] | 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, 205. |
Consolidation, Policy [Policy Text Block] | 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% |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | d) 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, 2016 2015 Balance sheet items, except for equity accounts 6.9370 6.4936 Year Ended December 31, 2016 2015 Items in the statements of income and comprehensive income, and statements of cash flows 6.6423 6.2284 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] | e) 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 |
Term Deposits [Policy Text Block] | f) Term deposits Term deposits consist of bank deposits with an original maturity of between three twelve |
Receivables, Policy [Policy Text Block] | g) Accounts receivable, other receivables, and due from related parties, net Accounts receivable, other receivables and due from related parties 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, other receivables and due from related parties. 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. For the years ended December 31, 2016 2015, US$0.37 US$0.09 |
Investment, Policy [Policy Text Block] | h) 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 with ASC Topic 323 20% 50% When the Company’s carrying value in an equity method investee company is reduced to zero, 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 with ASC Topic 325 20: 20% Impairment for long-term investments The Company assesses its long-term investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance and financial position of the investee companies, including current earnings trends and undiscounted cash flows, and other company-specific information. The fair value determination, particularly for investments in privately-held companies, requires significant judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investments and determination of whether any identified impairment is other-than-temporary. The impairment to be recognized is measured by the amount by which the carrying values of the long-term investments exceed the fair value of the long-term investments. For the years ended December 31, 2016 2015, US$0.16 US$0.87 |
Property, Plant and Equipment, Policy [Policy Text Block] | i) 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 (years) 3 Vehicles 5 Office equipment 3 - 5 Electronic devices 5 Depreciation expenses are included in selling expenses, general and administrative expenses and research and development expenses. Leasehold improvements are amortized over the lesser 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. 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] | j) 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 of 2 10 Intangible assets other than goodwill acquired through various acquisitions are amortized on a straight-line basis over their expected useful economic lives. Customer Relationship (years) 5 - 9 Non-Compete Agreement 5 - 6 Software Technologies 5 The Company accounted for website development costs in accordance with ASC Topic 350 50, 350 50 December 31, 2016 2015, |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | k) 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 For the year ended December 31, 2015, 3(m), US$101,000 December 31, 2016, For the year ended December 31, 2015, US$169,000 3 12 |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | l) 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 first 805 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. As discussed in Note 2, fourth 2015, December 31, 2015, US$1,117,000 December 31, 2015. As of December 31, 2016, December 31, 2016 2015, 3 14 As also discussed in Note 2, fourth 2015, 350: 20 40, 350 20 40 3 350 20 40 7, first US$914,000 The Company reassesses the status of its disposal group classified as held for sale, basis on which, the Company concluded that its disposal group no longer met all the criteria for the classification as held for sale during the fourth 2016. 360. 3(m), For the years ended December 31, 2016 2015, |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | m) Long-term assets to be disposed of In accordance with ASC Topic 360, For the year ended December 31, 2015, US$172,000 US$1,551,000 In accordance with ASC Topic 360, six (1) (2) (3) (4) one (5) (6) 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 period in which assets and liabilities are classified and disclosed the major classes of assets and liabilities classified as held for sale and other required detailed disclosures in the related note to the financial statements (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 for the year ended December 31, 2015, If at any time, the criteria as discussed above are no longer met, the Company reclassifies a long-lived asset or disposal group previously classified as held for sale to held and used, and measures the long-lived asset or disposal group to be reclassified at the lower of its carrying value and fair value in accordance with ASC 360. December 31, 2016, |
Deconsolidation [Policy Text Block] | n) Deconsolidation The Company accounts for deconsolidation of subsidiaries in accordance with ASC Topic 810 In accordance with ASC Topic 810 10 40 5, a. The aggregate of all of the following: 1. 2. 3. b. The carrying amount of the former subsidiary’s assets and liabilities. For the year ended December 31, 2016, US$0.01 December 31, 2015, US$0.02 |
Noncontrolling Interest [Policy Text Block] | o) Noncontrolling interest The Company accounts for noncontrolling interest in accordance with ASC Topic 810 10 45, 810 10 45 |
Fair Value Measurement, Policy [Policy Text Block] | p) Fair value The Company’s financial instruments primarily consist of cash and cash equivalents, accounts receivable, other receivables, prepayment and deposits, due from related parties, accounts payable, advances from customers, payable for purchasing of software technology, accruals and other payables. The carrying values of these financial instruments approximate fair values due to their short maturities. ASC Topic 820 three may Level 1 Level 2 1 Level 3 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 only when impairment is recognized. The fair value of intangible assets was determined using income approach or cost approach, and the fair value of goodwill was determined using income approach. The following table summarizes the quantitative information about the Company’s Level 3 Valuation technique(s) Unobservable inputs Ranges As of December 31, 2016 Intangible assets Multi-period Excess Earning/Replacement Cost Remaining useful life (years) 1 - 9.5 Discount rate 20% Contributory asset charge 12.9% - 24% Goodwill/ Disposal group Discounted Cash Flow Base projection period (years) 5 Discount rate 20% Terminal growth rate 3.5% As of December 31, 2015 Intangible assets Multi-period Excess Earning Remaining useful life (years) 1 - 7 Discount rate 23.0% Contributory asset charge 12.4% - 28% Decline in EBIT without non-compete agreement 10% Annual customer attrition rate 15% Goodwill/ Disposal group Discounted Cash Flow Base projection period (years) 5 Discount rate 23.0% Terminal growth rate 3.5% |
Revenue Recognition, Policy [Policy Text Block] | q) Revenue recognition The Company's revenue recognition policies are in compliance with ASC Topic 605 605, four 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, precision marketing, data service and other related value added 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 services are provided based on two 605, 45. |
Cost of Sales, Policy [Policy Text Block] | r) Cost of revenues Cost of revenues primarily includes the cost of media advertising time, internet advertising related resources and other technical services purchased from third |
Advertising Costs, Policy [Policy Text Block] | s) 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, 2016 2015, US$2,360,000 US$2,353,000, |
Research and Development Expense, Policy [Policy Text Block] | t) 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, 2016 2015 US$1,996,000 US$2,164,000, |
Income Tax, Policy [Policy Text Block] | u) Income taxes The Company follows the guidance of ASC Topic 740 |
Income Tax Uncertainties, Policy [Policy Text Block] | v) Uncertain tax positions The Company follows the guidance of ASC Topic 740 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 five RMB100,000. ten December 31, 2016 2015 December 31, 2016 2015, |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | w) Share-based Compensation The Company accounted for share-based compensation to employees in accordance with ASC Topic 718 |
Comprehensive Income, Policy [Policy Text Block] | x) Comprehensive income The Company accounts for comprehensive income in accordance with ASC Topic 220 |
Earnings Per Share, Policy [Policy Text Block] | y) Earnings (loss) per share Earnings (loss) per share are calculated in accordance with ASC Topic 260, |
Discontinued Operations, Policy [Policy Text Block] | z) Discontinued operations The Company has adopted ASC Topic 205 20 45, 205 20 45 1, may (1) (2) (3) 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 adopted ASC Topic 205 20 45 3 |
Commitments and Contingencies, Policy [Policy Text Block] | aa) Commitments and contingencies The Company has adopted ASC Topic 450 20, |
New Accounting Pronouncements, Policy [Policy Text Block] | bb) Recent accounting pronouncements In May 2014, 2014 09, 606)” June 2016, 2016 12, December 2016, 2016 20, 606, 2014 09 605 five (1) (2) (3) (4) (5) March April 2016, 2016 08, 606): 2016 10, 606): two 606. two 2014 09 2014 09 December 15, 2017, December 15, 2016, 2017. In February 2016, 2016 02, 842)”. 12 December 15, 2018, first 2019 2016 02 2018. In March 2016, 2016 07, 323): December 15, 2016. In March 2016, 2016 09, 718): December 15, 2016, In August 2016, 2016 15, 230): eight zero eight December 15, 2017, In November 2016, 2016 18, 230): December 15, 2017, In January 2017, 2017 01, 805): (1) (2) two 606. December 15, 2017, In January 2017, 2017 04, 350) 2 2, zero 2 zero first first December 15, 2019. January 1, 2017. Other accounting pronouncements 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, 2016 | |
Notes Tables | |
Schedule of Variable Interest Entities [Table Text Block] | As of December 31, 2016 2015 US$(’000) US$(’000) Assets Current assets: Cash and cash equivalents $ 2,915 $ 4,942 Term deposit 3,056 3,265 Accounts receivable, net 3,315 2,492 Other receivables, net 71 1,712 Prepayment and deposit to suppliers 4,710 5,841 Due from related parties, net 197 24 Other current assets - 27 Assets classified as held for sale (1) - 1,882 Total current assets 14,264 20,185 Long-term investments 43 1,113 Property and equipment, net 286 503 Intangible assets, net 5,468 5,630 Prepayment for purchasing of software technology - 1,024 Goodwill 4,970 4,396 Deferred tax assets-non current 1,241 1,249 Total Assets $ 26,272 $ 34,100 Liabilities Current liabilities: Short-term bank loan $ 721 $ - Accounts payable 83 88 Advances from customers 1,388 1,304 Accrued payroll and other accruals 256 309 Due to Control Group 10 11 Payable for purchasing of software technology 411 - Taxes payable 2,480 2,733 Other payables 162 67 Liabilities classified as held for sale (1) - 913 Total current liabilities 5,511 5,425 Deferred tax Liabilities-non current - 118 Total Liabilities $ 5,511 $ 5,543 Commitments and contingencies - 129 |
Financial Performance of VIEs [Table Text Block] | Year Ended December 31, 2016 2015 US$(’000) US$(’000) Revenues $ 34,643 $ 31,902 Cost of revenues 26,916 24,655 Total operating expenses (including impairment and other losses of long-lived assets and goodwill, impairment loss on long-term investments and gain on deconsolidation of VIEs) 9,167 13,387 Loss from discontinued operations (2) 59 1,465 Net loss before allocation to noncontrolling interests 1,627 6,016 |
Note 3 - Summary of Significa39
Note 3 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Foreign Currency Exchange Rates [Table Text Block] | As of December 31, 2016 2015 Balance sheet items, except for equity accounts 6.9370 6.4936 Year Ended December 31, 2016 2015 Items in the statements of income and comprehensive income, and statements of cash flows 6.6423 6.2284 |
Property, Plant and Equipment, Useful Life [Table Text Block] | Leasehold improvements (years) 3 Vehicles 5 Office equipment 3 - 5 Electronic devices 5 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Customer Relationship (years) 5 - 9 Non-Compete Agreement 5 - 6 Software Technologies 5 |
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | Valuation technique(s) Unobservable inputs Ranges As of December 31, 2016 Intangible assets Multi-period Excess Earning/Replacement Cost Remaining useful life (years) 1 - 9.5 Discount rate 20% Contributory asset charge 12.9% - 24% Goodwill/ Disposal group Discounted Cash Flow Base projection period (years) 5 Discount rate 20% Terminal growth rate 3.5% As of December 31, 2015 Intangible assets Multi-period Excess Earning Remaining useful life (years) 1 - 7 Discount rate 23.0% Contributory asset charge 12.4% - 28% Decline in EBIT without non-compete agreement 10% Annual customer attrition rate 15% Goodwill/ Disposal group Discounted Cash Flow Base projection period (years) 5 Discount rate 23.0% Terminal growth rate 3.5% |
Note 5 - Accounts Receivable,40
Note 5 - Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Accounts Receivable [Table Text Block] | As of December 31, 2016 2015 US$(’000) US$(’000) Accounts receivable 6,034 5,619 Allowance for doubtful debts (2,712 ) (3,070 ) Accounts receivable, net 3,322 2,549 |
Note 6 - Other Receivables, N41
Note 6 - Other Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Other Receivables [Table Text Block] | As of December 31, 2016 2015 US$(’000) US$(’000) Term deposit interest receivable 34 48 Staff advances for normal business purpose 55 243 TV advertisement deposit and prepayment receivable - 1,157 Overdue deposits 870 1,130 Allowance for doubtful debts (870 ) (668 ) Other receivables, net 89 1,910 |
Note 7 - Prepayments and Depo42
Note 7 - Prepayments and Deposit to Suppliers (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Prepayments and Deposit to Suppliers [Table Text Block] | As of December 31, 2016 2015 US$(’000) US$(’000) Deposits to internet resources providers 1,074 622 Prepayments to internet resources providers 2,874 3,623 Deposits to other service providers 721 1,540 Other deposits and prepayments 85 58 4,754 5,843 |
Note 8 - Due From Related Par43
Note 8 - Due From Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Due From Related Parties [Member] | |
Notes Tables | |
Schedule of Related Party Transactions [Table Text Block] | As of December 31, 2016 2015 US$(’000) US$(’000) Beijing Saimeiwei Food Equipment Technology Co., Ltd. 31 35 Chuangshi Meiwei (Beijing) International Investment Management Co., Ltd. 150 4 Guohua Shiji (Beijing) Communication Co., Ltd. 175 - Beijing Saturday Education Technology Co., Ltd. 1 2 357 41 Allowance for doubtful debts (144 ) - Due from related parties, net 213 41 |
Note 9 - Assets and Liabiliti44
Note 9 - Assets and Liabilities Classified as Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | As of December 31, 2015 US$(’000) Assets classified as held for sale Cash and cash equivalents 181 Accounts receivable, net 53 Other receivables, net 95 Advance to suppliers 366 Property and equipment, net 43 Deferred tax assets 298 Goodwill allocated to the disposal group 914 Inter-co balances elimination (1) (68 ) Total assets classified as held for sale 1,882 Liabilities classified as held for sale Accounts payable 154 Advance from customers 588 Accrued payroll and other accruals 50 Taxes payable 9 Other payables 364 Inter-co balances elimination (1) (252 ) Total liabilities classified as held for sale 913 |
Note 10 - Long-term Investmen45
Note 10 - Long-term Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Investment In and Advance to Equity Investment Affiliates [Table Text Block] | As of December 31, 2016 2015 US$(’000) US$(’000) Equity method investments: Investment in equity method investees 709 778 Advance to equity method investees 75 80 Impairment on equity method investments (784 ) (838 ) Total equity method investments - 20 Cost method investments: Investment in cost method investees 1,492 1,113 Impairment on cost method investments (152 ) - Total long-term investments 1,340 1,133 |
Schedule of Cost Method Investments [Table Text Block] | ChinaNet Beijing Chuangshi Guohua ChinaNet Total US$(’000) US$(’000) US$(’000) US$(’000) US$(’000) US$(’000) Balance as of December 31, 2014 - 18 - - - 18 Investment during the year - - 154 3 939 1,096 Exchange translation adjustment - (1 ) - - - (1 ) Balance as of December 31, 2015 - 17 154 3 939 1,113 Investment during the year 8 - - 25 418 451 Impairment on cost method investments (8 ) - (144 ) - - (152 ) Exchange translation adjustment - (1 ) (10 ) (1 ) (60 ) (72 ) Balance as of December 31, 2016 - 16 - 27 1,297 1,340 |
Note 11 - Property and Equipm46
Note 11 - Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Property and Equipment [Table Text Block] | As of December 31, 2016 2015 US$(’000) US$(’000) Leasehold improvement 317 382 Vehicles 763 839 Office equipment 1,371 1,376 Electronic devices 1,096 1,171 Property and equipment, cost 3,547 3,768 Less: accumulated depreciation (2,922 ) (2,922 ) Less: impairment loss on abandoned fixed assets (154 ) (165 ) Property and equipment, net 471 681 |
Note 12 - Intangible Assets, 47
Note 12 - Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Finite and Indefinite-Lived Intangible Assets [Table Text Block] | As of December 31, 2016 2015 US$(’000) US$(’000) Intangible assets not subject to amortization: Domain name 1,393 1,488 Intangible assets subject to amortization: Contract backlog - 191 Customer relationship 1,920 3,340 Non-compete agreements 1,057 1,321 Software technologies 295 316 Cloud compute software technology 1,338 1,429 Intelligent marketing data service platform 4,655 4,973 Internet safety, information exchange security and data encryption software 1,874 - Cloud video management system 1,369 - Other computer software 113 108 Intangible assets, cost 14,014 13,166 Less: accumulated amortization (4,875 ) (4,845 ) Less: accumulated impairment losses (1,875 ) (2,683 ) Intangible assets, net 7,264 5,638 |
Note 14 - Goodwill (Tables)
Note 14 - Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Amount US$(’000) Balance as of December 31, 2014 6,772 Goodwill impairment losses for the year (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 Goodwill adjustment due to reclassify disposal group to held and used 914 Exchange translation adjustment (340 ) Balance as of December 31, 2016 4,970 |
Note 16 - Accrued Payroll and49
Note 16 - Accrued Payroll and Other Accruals (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | As of December 31, 2016 2015 US$(’000) US$(’000) Accrued payroll and staff welfare 319 345 Accrued operating expenses 366 340 685 685 |
Note 19 - Taxation (Tables)
Note 19 - Taxation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule Of Taxes Payable [Table Text Block] | As of December 31, 2016 2015 US$(’000) US$(’000) Turnover tax and surcharge payable 1,147 1,272 Enterprise income tax payable 1,763 1,914 Taxes payable 2,910 3,186 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, 2016 2015 US$(’000) US$(’000) Pre-tax loss (6,183 ) (9,212 ) U.S. federal rate 35 % 35 % Income tax benefit computed at U.S. federal rate 2,164 3,224 Reconciling items: Rate differential for domestic earnings (354 ) (647 ) Preferential tax treatments and tax holiday effects (158 ) (16 ) Valuation allowance on deferred tax assets (1,667 ) (1,057 ) Others (87 ) (8 ) Effective income tax (expense)/benefit (102 ) 1,496 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, 2016 2015 US$(’000) US$(’000) Current-PRC - (4 ) Deferred-PRC (102 ) 1,500 Income tax (expense)/benefit (102 ) 1,496 |
Schedule Of Deferred Tax Liabilities [Table Text Block] | Amount US$(’000) Balance as of December 31, 2014 964 Reversal during the year (790 ) Exchange translation adjustment (56 ) Balance as of December 31, 2015 118 Reversal during the year (110 ) Exchange translation adjustment (8 ) Balance as of December 31, 2016 - |
Schedule Of Deferred Tax Assets [Table Text Block] | As of December 31, 2016 2015 US$(’000) US$(’000) Tax effect of net operating losses carried forward 9,345 7,921 Bad debts provision 931 932 Valuation allowance (8,754 ) (7,303 ) Total deferred tax assets 1,522 1,550 |
Note 22 - Related Party Trans51
Note 22 - Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Revenue from Related Parties [Member] | |
Notes Tables | |
Schedule of Related Party Transactions [Table Text Block] | Year Ended December 31, 2016 2015 US$(’000) US$(’000) -Beijing Saturday Education Technology Co., Ltd. 240 298 -Chuangshi Meiwei (Beijing) International Investment Management Co., Ltd. 170 346 -Beijing Saimeiwei Food Equipment Technology Co., Ltd, 36 99 -Guohua Shiji (Beijing) Communication Co., Ltd. 4 - 450 743 |
Note 25 - Commitments and Con52
Note 25 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Office Rental US$(’000) Year ending December 31, -2017 529 -2018 528 -2019 110 Total 1,167 |
Note 26 - Discontinued Operat53
Note 26 - Discontinued Operation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Net Loss of Discontinued Operation [Table Text Block] | Year Ended December 31, 2016 2015 US$(’000) US$(’000) Revenues - 272 Cost of revenues - 149 Total operating expenses 50 359 Impairment on intangible assets - 169 Impairment on goodwill - 1,117 Net loss before income tax benefit (50 ) (1,522 ) Income tax benefit - 57 Loss from discontinued operation, net of income tax (50 ) (1,465 ) Loss on disposal of discontinued operation, net of income tax (9 ) - Net loss (59 ) (1,465 ) |
Note 27 - Segment Reporting (Ta
Note 27 - Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Internet Ad. and TV & Others Inter- Total US$ US$ US$ US$ US$ Revenues 34,750 - - - 34,750 Cost of revenues 26,999 - - - 26,999 Total operating expenses 8,777 468 4,654 (1) - 13,899 Impairment on long-term investments included in total operating expenses - - 159 - 159 Depreciation and amortization expense included in total operating expenses 1,470 2 100 - 1,572 Operating loss (1,026 ) (468 ) (4,654 ) - (6,148 ) Expenditure for long-term assets 2,003 - 114 - 2,117 Net loss from continuing operations (1,154 ) (468 ) (4,663 ) - (6,285 ) Total assets – December 31, 2016 29,520 348 11,882 (11,708 ) 30,042 Internet Ad. and 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 a 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 long-term 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 continuing operations (2,769 ) (849 ) (4,100 ) - (7,718 ) Total assets – December 31, 2015 33,727 3,148 17,362 (2) (18,777 ) 35,460 |
Note 28 - Loss Per Share (Table
Note 28 - Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended December 31, 2016 2015 US$(’000) US$(’000) Net loss attributable to ChinaNet Online Holdings, Inc. from continuing operations (numerator for basic and diluted loss per share from continuing operations) $ (6,433 ) $ (7,627 ) Net loss attributable to ChinaNet Online Holdings, Inc. from discontinued operation (numerator for basic and diluted loss per share from discontinued operation) (59 ) (1,465 ) Weighted average number of common shares outstanding – Basic and diluted 11,357,907 10,706,521 Loss per share -Basic and diluted from continuing operations $ (0.57 ) $ (0.71 ) Loss per share -Basic and diluted from discontinued operation $ (0.01 ) $ (0.14 ) |
Note 29 - Share-based Compens56
Note 29 - Share-based Compensation Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Applicable stock price $2.10 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 $2.10 Value per option $1.03 - $1.39 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Option Outstanding Option Exercisable Number of Weighted Weighted Number of Weighted Weighted Balance, December 31, 2014 357,976 6.48 $ 3.02 357,976 6.48 $ 3.02 Granted/Vested 477,240 5 $ 2.10 159,080 5 $ 2.10 Forfeited - - Exercised - - Balance, December 31, 2015 835,216 5.04 $ 2.49 517,056 5.24 $ 2.73 Granted/Vested - 159,080 3.70 $ 2.10 Forfeited - - Exercised - - Balance, December 31, 2016 835,216 4.04 $ 2.49 676,136 4.11 $ 2.59 |
Note 1 - Organization and Nat57
Note 1 - Organization and Nature of Operations (Details Textual) | Aug. 19, 2016shares | Dec. 31, 2016shares | Aug. 18, 2016shares | Dec. 31, 2015shares |
Wholly-owned Investment Holding Companies Incorporated | 2 | |||
Common Stock, Shares, Outstanding | 12,158,542 | 12,158,542 | 30,395,722 | 11,856,304 |
Common Stock, Shares, Issued | 12,158,542 | 12,158,542 | 30,395,722 | 11,856,304 |
Reverse Stock Split [Member] | ||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 2.5 | |||
Shanghai Borongdingsi [Member] | Beijing CNET Online [Member] | ||||
Consolidated Subsidiary Ownership Percentage | 51.00% | |||
Chuangshi Meiwei [Member] | Beijing CNET Online [Member] | ||||
Consolidated Subsidiary Ownership Percentage | 10.00% | |||
Beijing Saturday [Member] | Beijing CNET Online [Member] | ||||
Consolidated Subsidiary Ownership Percentage | 10.00% | |||
Beijing Chuang Fu Tian Xia [Member] | Beijing CNET Online [Member] | ||||
Consolidated Subsidiary Ownership Percentage | 51.00% | |||
Guohua Shiji [Member] | Beijing CNET Online [Member] | ||||
Consolidated Subsidiary Ownership Percentage | 19.00% | |||
Shenzhen Mingshan [Member] | ||||
Equity Method Investment, Ownership Percentage | 23.18% | 23.18% | ||
Shenzhen Mingshan [Member] | Beijing CNET Online [Member] | ||||
Equity Method Investment, Ownership Percentage | 23.18% | |||
Zhao Shang Ke Hubei [Member] | ||||
Equity Method Investment, Ownership Percentage | 25.50% | 25.50% | ||
Zhao Shang Ke Hubei [Member] | Beijing CNET Online [Member] | ||||
Equity Method Investment, Ownership Percentage | 25.50% | |||
ChinaNet Korea [Member] | ||||
Equity Method Investment, Ownership Percentage | 40.00% | |||
Number Of Unaffiliated Investors in Business Entity | 3 | |||
ChinaNet Korea [Member] | ChinaNet Investment BVI [Member] | ||||
Equity Method Investment, Ownership Percentage | 15.00% | |||
Number Of Unaffiliated Investors in Business Entity | 4 | |||
ChinaNet Chuang Tou [Member] | ChinaNet Online PRC [Member] | ||||
Equity Method Investment, Ownership Percentage | 19.00% | |||
Number Of Unaffiliated Investors in Business Entity | 2 | |||
PRC Operating Entities Business Operations, VIE [Member] | ||||
Income Earned, Percentage | 100.00% |
Note 2 - Variable Interest En58
Note 2 - Variable Interest Entities (Details Textual) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Dec. 31, 2016CNY (¥) | |
PRC Operating Entities Business Operations, VIE [Member] | Rise King WFOE [Member] | ||
Exclusive Business Cooperation Agreements, Service Fee Percentage of Net Income of Operating Entity | 100 | |
Exclusive Business Cooperation Agreements, Expiration Period | 10 years | |
Exclusive Option Agreements, Option to Purchase Equity Interests, Price Per Equity Interest in Any Operating Entity | ¥ 10 | |
Exclusive Option Agreements, Expiration Period | 10 years | |
Beijing Chuang Fu Tian Xia [Member] | ||
Variable Interest Entity, Ownership Percentage of VIE Sold During the Period | 51.00% |
Note 2 - Variable Interest En59
Note 2 - Variable Interest Entities - Consolidated VIE's Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash and cash equivalents | $ 3,035 | $ 5,503 | $ 5,037 | |
Term deposit | 3,056 | 3,265 | ||
Accounts receivable, net | 3,322 | 2,549 | ||
Other receivables, net | 89 | 1,910 | ||
Prepayment and Deposit to Suppliers | 4,754 | 5,843 | ||
Due from Related Parties, Current | 213 | 41 | ||
Other current assets | 6 | 45 | ||
Disposal Group, Including Discontinued Operation, Assets, Current | 1,882 | |||
Total current assets | 14,475 | 21,038 | ||
Long-term investments | 1,340 | 1,133 | ||
Property and equipment, net | 471 | 681 | ||
Intangible Assets, Net (Excluding Goodwill) | 7,264 | 5,638 | ||
Prepayment for purchasing of software technology | 1,024 | |||
Goodwill | 4,970 | 4,396 | $ 6,772 | |
Deferred tax assets-non current | 1,522 | 1,550 | ||
Total Assets | 30,042 | 35,460 | ||
Short-term Bank Loans and Notes Payable | [1] | 721 | ||
Accounts payable | [1] | 102 | 95 | |
Advances from customers | [1] | 1,420 | 1,313 | |
Accrued payroll and other accruals | [1] | 685 | 685 | |
Payable for purchasing of software technology * | [1] | 411 | ||
Taxes payable | [1] | 2,910 | 3,186 | |
Other payables | [1] | 487 | 234 | |
Liabilities classified as held for sale | [1] | 913 | ||
Total current liabilities | 7,620 | 7,370 | ||
Deferred tax Liabilities-non current | [1] | 118 | ||
Total Liabilities | 7,746 | 7,623 | ||
Commitments and contingencies | 129 | |||
VIEs [Member] | ||||
Cash and cash equivalents | 2,915 | 4,942 | ||
Term deposit | 3,056 | 3,265 | ||
Accounts receivable, net | 3,315 | 2,492 | ||
Other receivables, net | 71 | 1,712 | ||
Prepayment and Deposit to Suppliers | 4,710 | 5,841 | ||
Due from Related Parties, Current | 197 | 24 | ||
Other current assets | 27 | |||
Disposal Group, Including Discontinued Operation, Assets, Current | [2] | 1,882 | ||
Total current assets | 14,264 | 20,185 | ||
Long-term investments | 43 | 1,113 | ||
Property and equipment, net | 286 | 503 | ||
Intangible Assets, Net (Excluding Goodwill) | 5,468 | 5,630 | ||
Prepayment for purchasing of software technology | 1,024 | |||
Goodwill | 4,970 | 4,396 | ||
Deferred tax assets-non current | 1,241 | 1,249 | ||
Total Assets | 26,272 | 34,100 | ||
Short-term Bank Loans and Notes Payable | 721 | |||
Accounts payable | 83 | 88 | ||
Advances from customers | 1,388 | 1,304 | ||
Accrued payroll and other accruals | 256 | 309 | ||
Due to Control Group | 10 | 11 | ||
Payable for purchasing of software technology * | 411 | |||
Taxes payable | 2,480 | 2,733 | ||
Other payables | 162 | 67 | ||
Liabilities classified as held for sale | [2] | 913 | ||
Total current liabilities | 5,511 | 5,425 | ||
Deferred tax Liabilities-non current | 118 | |||
Total Liabilities | 5,511 | 5,543 | ||
Commitments and contingencies | $ 129 | |||
[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 obtain sufficient working capital to continue the expansion of the Company's core business, which is Internet advertising, precision marketing and the related technical and 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"). At the time when the Company committed a plan to sell liansuo.com, the Company did not consider the sale of liansuo.com is a strategic shift that had (or would have) a major effect on the Company's operations and financial results, as it was not a significant portion of the Company's Internet advertising and data service 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 sheet as of December 31, 2015, but did not included its results of operations in discontinued operations. For financial reporting purpose, the Company reassesses the status of its assets and liabilities classified as held for sale on a quarterly basis in accordance with ASC Topic 360-10-45-9, basis on which, the Company concluded that its disposal group no longer met all the criterial for the classification as held for sale during the fourth quarter of 2016. Therefore, the Company reclassified the assets and liabilities related to the disposal group as held and use in accordance with ASC 360-10-35-44. The Company terminated its plan to sell liansuo.com in February 2017, subsequently. |
Note 2 - Variable Interest En60
Note 2 - Variable Interest Entities - Consolidated VIE's Financial Performance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Revenues | $ 34,300 | $ 31,522 | |
Cost of revenues | 26,999 | 24,655 | |
Total operating expenses (including impairment and other losses of long-lived assets and goodwill, impairment loss on long-term investments and gain on deconsolidation of VIEs) | 13,899 | 16,926 | |
Loss from discontinued operations | (59) | (1,465) | |
Net loss | (6,344) | (9,183) | |
VIEs [Member] | |||
Revenues | 34,643 | 31,902 | |
Cost of revenues | 26,916 | 24,655 | |
Total operating expenses (including impairment and other losses of long-lived assets and goodwill, impairment loss on long-term investments and gain on deconsolidation of VIEs) | 9,167 | 13,387 | |
Loss from discontinued operations | [1] | 59 | 1,465 |
Net loss | $ 1,627 | $ 6,016 | |
[1] | To focus all the Company's resources on its core business as described above, in the fourth quarter of 2015, the Company decided to exit its bank kiosk advertising and offline brand management and sales channel building business segments. 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 would 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 Significa61
Note 3 - Summary of Significant Accounting Policies (Details Textual) | 11 Months Ended | 12 Months Ended | ||
Dec. 13, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2016CNY (¥) | |
Provision for Doubtful Accounts | $ 368,000 | $ 88,000 | ||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 159,000 | 874,000 | ||
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 1,551,000 | ||
Impairment of Intangible Assets, Finite-lived | 0 | |||
Goodwill, Impairment Loss | 1,071,000 | |||
Impairment of Long-Lived Assets to be Disposed of | 172,000 | |||
Deconsolidation Gain or Loss Amount, Including Discountinued Operations | (9,000) | 20,000 | ||
Advertising Expense | 2,360,000 | 2,353,000 | ||
Research and Development Expense | 1,996,000 | 2,164,000 | ||
Statute of Limitations, Special Circumstances, Underpayment of Taxes Threshold | ¥ | ¥ 100,000 | |||
Other than Temporary Impairment Losses, Investments | 0 | |||
Capitalized Computer Software, Amortization | 0 | 0 | ||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 0 | 0 | ||
Unrecognized Tax Benefits | 0 | 0 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 0 | 0 | ||
Brand Management and Sales Channel Building [Member] | ||||
Provision for Doubtful Accounts | 210,000 | |||
Impairment of Intangible Assets, Finite-lived | 169,000 | |||
Goodwill, Impairment Loss | 1,117,000 | |||
Brand Management and Sales Channel Building [Member] | Loss from Discontinued Operation, Net of Income Tax [Member] | ||||
Goodwill, Impairment Loss | 1,117,000 | |||
Internet Ad [Member] | ||||
Goodwill, Impairment Loss | $ 0 | 0 | ||
Goodwill, Gross | 914,000 | |||
Noncompete Agreements [Member] | Internet Ad [Member] | ||||
Impairment of Intangible Assets (Excluding Goodwill) | 101,000 | |||
Impairment of Intangible Assets, Finite-lived | 101,000 | |||
Customer Relationships [Member] | Brand Management and Sales Channel Building [Member] | ||||
Impairment of Intangible Assets, Finite-lived | 169,000 | |||
Customer Relationships [Member] | Brand Management and Sales Channel Building [Member] | Loss from Discontinued Operation, Net of Income Tax [Member] | ||||
Impairment of Intangible Assets, Finite-lived | $ 169,000 | |||
Minimum [Member] | ||||
Maturity of Time Deposits | 90 days | |||
Equity Method Investment, Ownership Percentage | 20.00% | 20.00% | ||
Minimum [Member] | Purchased Software and Software Platform [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 2 years | |||
Minimum [Member] | Noncompete Agreements [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||
Minimum [Member] | Customer Relationships [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||
Maximum [Member] | ||||
Maturity of Time Deposits | 1 year | |||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||
Maximum [Member] | Purchased Software and Software Platform [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||
Maximum [Member] | Noncompete Agreements [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 6 years | |||
Maximum [Member] | Customer Relationships [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 9 years | |||
Shanghai Borongdingsi [Member] | ||||
Consolidated Subsidiary Ownership Percentage | 51.00% | 51.00% |
Note 3 - Summary of Significa62
Note 3 - Summary of Significant Accounting Policies- Exchange Rates Used to Translate Amounts in RMB into US$ (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Items in the statements of income and comprehensive income, and statements of cash flows | 6.6423 | 6.2284 |
Balance Sheet Items, Except Equity Accounts [Member] | ||
Balance sheet items, except for equity accounts | 6.937 | 6.4936 |
Note 3 - Summary of Significa63
Note 3 - Summary of Significant Accounting Policies - Estimated Useful Lives of Property, Plant, and Equipment (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Leasehold Improvements [Member] | |
Property and equipment, useful life (Year) | 3 years |
Vehicles [Member] | |
Property and equipment, useful life (Year) | 5 years |
Office Equipment [Member] | Minimum [Member] | |
Property and equipment, useful life (Year) | 3 years |
Office Equipment [Member] | Maximum [Member] | |
Property and equipment, useful life (Year) | 5 years |
Electronic Devices [Member] | |
Property and equipment, useful life (Year) | 5 years |
Note 3 - Summary of Significa64
Note 3 - Summary of Significant Accounting Policies - Intangible Assets Amortization Schedule (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Customer Relationships [Member] | Minimum [Member] | |
Intangible assets, useful life (Year) | 5 years |
Customer Relationships [Member] | Maximum [Member] | |
Intangible assets, useful life (Year) | 9 years |
Noncompete Agreements [Member] | Minimum [Member] | |
Intangible assets, useful life (Year) | 5 years |
Noncompete Agreements [Member] | Maximum [Member] | |
Intangible assets, useful life (Year) | 6 years |
Software Technologies [Member] | |
Intangible assets, useful life (Year) | 5 years |
Note 3 - Summary of Significa65
Note 3 - Summary of Significant Accounting Policies - Quantitative Information about Level 3 Fair Value Measurements (Details) - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Nonrecurring [Member] | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Intangible Assets [Member] | Multi-period Excess Earning [Member] | ||
Discount rate | 20.00% | 23.00% |
Decline in EBIT without non-compete agreement | 10.00% | |
Annual customer attrition rate | 15.00% | |
Goodwill [Member] | Discounted Cash Flow [Member] | ||
Remaining useful life (Year) | 5 years | 5 years |
Discount rate | 20.00% | 23.00% |
Terminal growth rate | 3.50% | 3.50% |
Minimum [Member] | Intangible Assets [Member] | Multi-period Excess Earning [Member] | ||
Remaining useful life (Year) | 1 year | 1 year |
Contributory asset charge | 12.90% | 12.40% |
Maximum [Member] | Intangible Assets [Member] | Multi-period Excess Earning [Member] | ||
Remaining useful life (Year) | 9 years 182 days | 7 years |
Contributory asset charge | 24.00% | 28.00% |
Note 4 - Term Deposit (Details
Note 4 - Term Deposit (Details Textual) | Dec. 31, 2016 | Dec. 31, 2015 |
Time Deposits, Weighted Average Interest Rate, Maturities Year One | 2.25% | 2.25% |
Note 5 - Accounts Receivable,67
Note 5 - Accounts Receivable, Net (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts Receivable, Current | $ 2,712,000 | $ 3,070,000 |
Provision for Doubtful Accounts | 368,000 | 88,000 |
Brand Management and Sales Channel Building [Member] | ||
Provision for Doubtful Accounts | 210,000 | |
Allowance for Doubtful Accounts Receivable, Period Increase (Decrease) | (130,000) | |
Internet Advertising and TV Advertising [Member] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 2,712,000 | 3,070,000 |
Number of Months Past Due | 180 days | |
Provision for Doubtful Accounts Reversal | $ 38,000 | |
Provision for Doubtful Accounts | $ 233,000 |
Note 5 - Accounts Receivable,68
Note 5 - Accounts Receivable, Net - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts receivable | $ 6,034 | $ 5,619 |
Allowance for doubtful debts | (2,712) | (3,070) |
Accounts receivable, net | $ 3,322 | $ 2,549 |
Note 6 - Other Receivables, N69
Note 6 - Other Receivables, Net (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts Receivable | $ 150,000 | |
Provision for Doubtful Accounts | 368,000 | $ 88,000 |
Internet Advertising And TV Advertising Contractual Deposit [Member] | ||
Allowance for Doubtful Accounts Receivable | 870,000 | 668,000 |
Provision for Doubtful Accounts | $ 256,000 | |
Provision for Doubtful Accounts Reversal | $ 145,000 |
Note 6 - Other Receivables, N70
Note 6 - Other Receivables, Net - Other Receivables, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Term deposit interest receivable | $ 34 | $ 48 |
Allowance for doubtful debts | (870) | (668) |
Other receivables, net | 89 | 1,910 |
Staff Advances [Member] | ||
Other receivables, gross | 55 | 243 |
TV Advertisement Deposit and Prepayment [Member] | ||
Other receivables, gross | 1,157 | |
Overdue Deposits [Member] | ||
Other receivables, gross | $ 870 | $ 1,130 |
Note 7 - Prepayments and Depo71
Note 7 - Prepayments and Deposit to Suppliers (Details Textual) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Number of Largest Internet Resources Suppliers | 2 | 2 |
Prepayment and Deposit to Suppliers | $ 4,754 | $ 5,843 |
Internet Resources Suppliers Prepayment [Member] | ||
Prepayment and Deposit to Suppliers | 750 | |
Advisory Contract for New Investors [Member] | ||
Prepayment and Deposit to Suppliers | $ 750 |
Note 7 - Prepayments and Depo72
Note 7 - Prepayments and Deposit to Suppliers- Prepayments and Deposit to Suppliers (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Prepayment and deposit to suppliers | $ 4,754 | $ 5,843 |
Deposits to TV Ad and Internet Ad Resources Providers [Member] | ||
Prepayment and deposit to suppliers | 1,074 | 622 |
Prepayment to TV Ad and Internet Ad Resources Providers [Member] | ||
Prepayment and deposit to suppliers | 2,874 | 3,623 |
Deposits to Other Service Providers [Member] | ||
Prepayment and deposit to suppliers | 721 | 1,540 |
Other Deposits and Prepayments [Member] | ||
Prepayment and deposit to suppliers | $ 85 | $ 58 |
Note 8 - Due From Related Par73
Note 8 - Due From Related Parties (Details Textual) ¥ in Millions | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015USD ($) |
Due from Related Parties, Current | $ 213,000 | $ 41,000 | |
Allowance for Doubtful Accounts Receivable | 150,000 | ||
Related-party Working Capital Loans [Member] | Chuangshi Meiwei [Member] | |||
Due from Related Parties, Current | 140,000 | ¥ 1 | |
Guohua Shiji [Member] | |||
Due from Related Parties, Current | $ 170,000 | ¥ 1.2 |
Note 8 - Due From Related Par74
Note 8 - Due From Related Parties - Due from Related Parties (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Due from related parties, gross | $ 357 | $ 41 |
Allowance for doubtful debts | (144) | |
Due from related parties, net | 213 | 41 |
Beijing Saimeiwei Food Equipment Technology [Member] | ||
Due from related parties, gross | 31 | 35 |
Chuangshi Meiwei [Member] | ||
Due from related parties, gross | 150 | 4 |
Guohua Shiji [Member] | ||
Due from related parties, gross | 175 | |
Beijing Saturday Education Technology Co., Ltd. [Member] | ||
Due from related parties, gross | $ 1 | $ 2 |
Note 9 - Assets and Liabiliti75
Note 9 - Assets and Liabilities Classified as Held for Sale (Details Textual) | Dec. 31, 2015USD ($) | |
Disposal Group, Including Discontinued Operation, Goodwill, Current | $ 914,000 | [1] |
Beijing Chuang Fu Tian Xia [Member] | Internet Ad [Member] | ||
Disposal Group, Including Discontinued Operation, Goodwill, Current | $ 914,000 | |
[1] | Liansuo.com (the disposal group) is a portion of the Company's internet advertising and data service reporting unit that constitutes abusiness. Goodwill allocated to the disposal group is calculated based on the relative fair value of liansuo.com and the remaining portionof the reporting unit that will be retained. |
Note 9 - Assets and Liabiliti76
Note 9 - Assets and Liabilities Classified as Held for Sale - Assets and Liabilities of Disposal Group (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | [1] | 914 | |
Inter-co balances elimination (1) | [2] | (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) | [2] | (252) | |
Total liabilities classified as held for sale | [3] | $ 913 | |
[1] | Liansuo.com (the disposal group) is a portion of the Company's internet advertising and data service reporting unit that constitutes abusiness. Goodwill allocated to the disposal group is calculated based on the relative fair value of liansuo.com and the remaining portionof the reporting unit that will be retained. | ||
[2] | Inter-company balances are part of the disposal group's assets or liabilities, but were eliminated in deriving the consolidated financial statements. | ||
[3] | 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 - Long-term Investmen77
Note 10 - Long-term Investments (Details Textual) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Equity Method Investments | $ 709,000 | $ 778,000 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 159,000 | 874,000 | |
Cost-method Investments, Other than Temporary Impairment | $ 0 | $ 0 | |
Shenzhen Mingshan [Member] | |||
Equity Method Investment, Ownership Percentage | 23.18% | 23.18% | |
Equity Method Investments | $ 0 | ||
Zhao Shang Ke Hubei [Member] | |||
Equity Method Investment, Ownership Percentage | 25.50% | 25.50% | |
Equity Method Investments | $ 0 | ||
ChinaNet Korea [Member] | |||
Equity Method Investment, Ownership Percentage | 40.00% | ||
Equity Method Investments | $ 0 | ||
Number Of Unaffiliated Investors in Business Entity | 3 | ||
Payments to Acquire Interest in Subsidiaries and Affiliates | $ 7,500 | ||
Cost Method Investment Ownership Percentage | 15.00% | ||
Guohua Shiji [Member] | |||
Cost Method Investment Ownership Percentage | 19.00% | ||
Chuangshi Meiwei [Member] | |||
Equity Method Investments | $ 0 | ||
Cost Method Investment Ownership Percentage | 10.00% |
Note 10 - Long-term Investmen78
Note 10 - Long-term Investments - Summary of Investment in and Advance to Equity Investment Affiliates (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Investment in equity method investees | $ 709 | $ 778 |
Advance to equity method investees | 75 | 80 |
Impairment on equity method investments | (784) | (838) |
Total equity method investments | 20 | |
Investment in cost method investees | 1,492 | 1,113 |
Impairment on cost method investments | (152) | |
Total long-term investments | $ 1,340 | $ 1,133 |
Note 10 - Long-term Investmen79
Note 10 - Long-term Investments - Movement in Cost Method Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cost method investments, balance | $ 1,113 | $ 18 |
Investment during the year | 451 | 1,096 |
Exchange translation adjustment | (72) | (1) |
Cost method investments, balance | 1,340 | 1,113 |
Impairment on cost method investments | (152) | |
ChinaNet Korea [Member] | ||
Cost method investments, balance | ||
Investment during the year | 8 | |
Exchange translation adjustment | ||
Cost method investments, balance | ||
Impairment on cost method investments | (8) | |
Beijing Saturday [Member] | ||
Cost method investments, balance | 17 | 18 |
Investment during the year | ||
Exchange translation adjustment | (1) | (1) |
Cost method investments, balance | 16 | 17 |
Impairment on cost method investments | ||
Chuangshi Meiwei [Member] | ||
Cost method investments, balance | 154 | |
Investment during the year | 154 | |
Exchange translation adjustment | (10) | |
Cost method investments, balance | 154 | |
Impairment on cost method investments | (144) | |
Guohua Shiji [Member] | ||
Cost method investments, balance | 3 | |
Investment during the year | 25 | 3 |
Exchange translation adjustment | (1) | |
Cost method investments, balance | 27 | 3 |
Impairment on cost method investments | ||
ChinaNet Chuang Tou [Member] | ||
Cost method investments, balance | 939 | |
Investment during the year | 418 | 939 |
Exchange translation adjustment | (60) | |
Cost method investments, balance | 1,297 | $ 939 |
Impairment on cost method investments |
Note 11 - Property and Equipm80
Note 11 - Property and Equipment, Net (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Depreciation | $ 248,000 | $ 355,000 |
Bank Kiosk [Member] | ||
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 11 - Property and Equipm81
Note 11 - Property and Equipment, Net - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property and equipment, gross | $ 3,547 | $ 3,768 |
Less: accumulated depreciation | (2,922) | (2,922) |
Less: impairment loss on abandoned fixed assets | (154) | (165) |
Property and equipment, net | 471 | 681 |
Leaseholds and Leasehold Improvements [Member] | ||
Property and equipment, gross | 317 | 382 |
Vehicles [Member] | ||
Property and equipment, gross | 763 | 839 |
Office Equipment [Member] | ||
Property and equipment, gross | 1,371 | 1,376 |
Electronic Devices [Member] | ||
Property and equipment, gross | $ 1,096 | $ 1,171 |
Note 12 - Intangible Assets, 82
Note 12 - Intangible Assets, Net (Details Textual) - USD ($) | 11 Months Ended | 12 Months Ended | |
Dec. 13, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amortization of Intangible Assets | $ 1,324,000 | $ 1,413,000 | |
Intangible Assets, Net (Excluding Goodwill) | 7,264,000 | 5,638,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 4,875,000 | 4,845,000 | |
Accumulated Impairment of Intangible Assets Finite Lived | 1,875,000 | 2,683,000 | |
Impairment of Intangible Assets, Finite-lived | 0 | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 1,192,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,178,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,178,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 1,178,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | $ 1,178,000 | ||
Weighted Average [Member] | |||
Finite-Lived Intangible Asset, Useful Life | 6 years 193 days | ||
Domain Name [Member] | |||
Intangible Assets, Net (Including Goodwill) | 0 | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 1,551,000 | ||
Brand Management and Sales Channel Building [Member] | |||
Impairment of Intangible Assets, Finite-lived | 169,000 | ||
Customer Relationships [Member] | Brand Management and Sales Channel Building [Member] | |||
Impaired Assets to be Disposed of by Method Other than Sale, Carrying Value of Asset | 0 | ||
Impairment of Intangible Assets, Finite-lived | 169,000 | ||
Noncompete Agreements [Member] | Internet Ad [Member] | |||
Impairment of Intangible Assets, Finite-lived | $ 101,000 | ||
VIEs [Member] | |||
Intangible Assets, Net (Excluding Goodwill) | $ 1,570,000 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 930,000 | ||
Accumulated Impairment of Intangible Assets Finite Lived | $ 640,000 |
Note 12 - Intangible Assets, 83
Note 12 - Intangible Assets, Net - Intangible Assets, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-lived intangible assets | $ 14,014 | $ 13,166 |
Less: accumulated amortization | (4,875) | (4,845) |
Less: accumulated impairment losses | (1,875) | (2,683) |
Intangible assets, net | 7,264 | 5,638 |
Contract Backlog [Member] | ||
Finite-lived intangible assets | 191 | |
Customer Relationships [Member] | ||
Finite-lived intangible assets | 1,920 | 3,340 |
Noncompete Agreements [Member] | ||
Finite-lived intangible assets | 1,057 | 1,321 |
Software Technologies [Member] | ||
Finite-lived intangible assets | 295 | 316 |
Cloud-Computing Based Software Platforms [Member] | ||
Finite-lived intangible assets | 1,338 | 1,429 |
Intelligent Marketing Data Service Platform [Member] | ||
Finite-lived intangible assets | 4,655 | 4,973 |
Internet Safety, Information Exchange Security and Data Encryption Software [Member] | ||
Finite-lived intangible assets | 1,874 | |
Computer Software, Cloud Video Management System [Member] | ||
Finite-lived intangible assets | 1,369 | |
Other Computer Software [Member] | ||
Finite-lived intangible assets | 113 | 108 |
Domain Name [Member] | ||
Domain name | $ 1,393 | $ 1,488 |
Note 13 - Prepayment for Purc84
Note 13 - Prepayment for Purchasing of Software Technology (Details Textual) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Payments for Software | $ 1,020 |
Note 14 - Goodwill (Details Tex
Note 14 - Goodwill (Details Textual) - USD ($) | 11 Months Ended | 12 Months Ended | |
Dec. 13, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill, Impairment Loss | $ 1,071,000 | ||
Internet Ad [Member] | |||
Goodwill, Impairment Loss | $ 0 | 0 | |
Brand Management and Sales Channel Building [Member] | |||
Goodwill, Impairment Loss | 1,117,000 | ||
Brand Management and Sales Channel Building [Member] | Loss from Discontinued Operation, Net of Income Tax [Member] | |||
Goodwill, Impairment Loss | 1,117,000 | ||
Liansuo.com [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Internet Ad [Member] | |||
Disposal Group, Including Discontinued Operation, Goodwill | $ 941,000 |
Note 14 - Goodwill - Goodwill (
Note 14 - Goodwill - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Balance | $ 4,396 | $ 6,772 |
Goodwill impairment losses for the year | (1,071) | |
Goodwill allocated to disposal group classified as held for sale | (914) | |
Exchange translation adjustment | (340) | (391) |
Balance | 4,970 | $ 4,396 |
Goodwill adjustment due to reclassify disposal group to held and used | $ 914 |
Note 15 - Short-term Bank Loan
Note 15 - Short-term Bank Loan (Details Textual) $ in Thousands, ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015USD ($) | ||
Short-term Bank Loans and Notes Payable | [1] | $ 721 | ||
VIEs [Member] | ||||
Short-term Bank Loans and Notes Payable | $ 721 | |||
VIEs [Member] | Benchmark Rate of People’s Bank of China [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 20.00% | |||
VIEs [Member] | Loans Payable [Member] | ||||
Short-term Bank Loans and Notes Payable | $ 720 | ¥ 5 | ||
Short-term Debt, Weighted Average Interest Rate | 5.22% | 5.22% | ||
VIEs [Member] | Loan Payable Maturing on July 18, 2017 [Member] | ||||
Short-term Bank Loans and Notes Payable | $ 430 | ¥ 3 | ||
VIEs [Member] | Loan Payable Maturing on October 30, 2017 [Member] | ||||
Short-term Bank Loans and Notes Payable | $ 290 | ¥ 2 | ||
[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 - Accrued Payroll and88
Note 16 - Accrued Payroll and Other Accruals - Accrued Payroll and Other Accruals (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Accrued payroll and other accruals * | [1] | $ 685 | $ 685 |
Accrued Payroll and Staff Welfare [Member] | |||
Accrued payroll and other accruals * | 319 | 345 | |
Accrued Operating Expenses [Member] | |||
Accrued payroll and other accruals * | $ 366 | $ 340 | |
[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 18 - Guarantee Payment a89
Note 18 - Guarantee Payment and Prepayment from Investors (Details Textual) | May 12, 2016 | May 31, 2015USD ($) |
Number of Investors Security Purchase Agreement Terminated | 2 | |
Security Purchase Agreement Termination Failure to Refund Amounts Annualized Interest Rate for Unpaid Amounts | 12.00% | |
Jinrun Fangzhou [Member] | ||
Common Stock Purchase Agreement Guarantee Payments Initial Payment Due Within Five Days Percentage | 10.00% | |
Common Stock Purchase Agreement Guarantee Payment Due Within Thirty Days, Percentage | 15.00% | |
Common Stock Purchase Agreement Guarantee Payment | $ 772,000 | |
Dongsys Innovation [Member] | ||
Common Stock Purchase Agreement Guarantee Payments Initial Payment Due Within Five Days Percentage | 10.00% | |
Common Stock Purchase Agreement Guarantee Payment | $ 112,000 |
Note 19 - Taxation (Details Tex
Note 19 - Taxation (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2012 | Nov. 30, 2015 | |
Income Tax Withholding Rate Pursuant to EIT Law | 10.00% | |||
Increase (Decrease) in Accrued Taxes Payable | $ 19,000 | $ 59,000 | ||
Deferred Tax Liabilities Reversal | (110,000) | (790,000) | ||
Profits Assessable | 0 | |||
Federal Income Tax Expense (Benefit), Continuing Operations | 0 | |||
Other Tax Expense (Benefit) | 0 | |||
Amortization Of Acquired Intangible Assets [Member] | ||||
Deferred Tax Liabilities Reversal | $ 116,000 | 152,000 | ||
Intangible Assets Impairment Loss [Member] | ||||
Deferred Tax Liabilities Reversal | 672,000 | |||
Minimum [Member] | ||||
PRC Value Added Tax Surcharge Rate | 12.00% | |||
Maximum [Member] | ||||
PRC Value Added Tax Surcharge Rate | 14.00% | |||
VIEs [Member] | ||||
Increase (Decrease) in Accrued Taxes Payable | $ (100,000) | |||
Parent Company [Member] | ||||
Operating Loss Carryforwards | 17,544,000 | 14,903,000 | ||
PRC Subsidiary And VIE's [Member] | ||||
Deferred Tax Liabilities Reversal | 269,000 | |||
Operating Loss Carryforwards | 17,939,000 | 15,657,000 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 628,000 | $ 52,000 | ||
PRC [Member] | ||||
PRC Value Added Tax Rate for Modern Service Provided | 6.00% | 6.00% | ||
PRC [Member] | Provision of Modern Services Small Scale Tax Payer [Member] | ||||
PRC Value Added Tax Rate for Modern Service Provided Small Scale Tax Payer | 3.00% | 3.00% | ||
PRC [Member] | Other PRC Operating Entities [Member] | ||||
Applicable Income Tax Rate | 25.00% | 25.00% | ||
PRC [Member] | Business Opportunity Online [Member] | ||||
Applicable Income Tax Rate | 15.00% | 15.00% | ||
PRC [Member] | Business Opportunity Online [Member] | Minimum [Member] | ||||
Enterprise Income Tax Rate In PRC | 15.00% | |||
PRC [Member] | Business Opportunity Online Hubei [Member] | ||||
Applicable Income Tax Rate | 25.00% | 12.50% | ||
Reduction in Applicable EIT Rate | 50.00% | |||
PRC [Member] | Business Opportunity Online Hubei [Member] | Standard Rate [Member] | ||||
Enterprise Income Tax Rate In PRC | 25.00% | |||
PRC [Member] | Business Opportunity Online Hubei [Member] | Preferential EIT Rate [Member] | ||||
Enterprise Income Tax Rate In PRC | 12.50% | |||
Tax Treaty Agreement [Member] | ||||
Income Tax Withholding Rate Pursuant to EIT Law | 5.00% | |||
British Virgin Islands [Member] | ||||
Other Tax Expense (Benefit) | $ 0 | |||
Hong Kong [Member] | ||||
Profits Assessable | 0 | |||
Federal Income Tax Expense (Benefit), Continuing Operations | 0 | |||
Other Tax Expense (Benefit) | $ 0 |
Note 19 - Taxation - Taxes Paya
Note 19 - Taxation - Taxes Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Turnover tax and surcharge payable | $ 1,147 | $ 1,272 | |
Enterprise income tax payable | 1,763 | 1,914 | |
Taxes payable | [1] | $ 2,910 | $ 3,186 |
[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 - Reconcilia
Note 19 - Taxation - Reconciliation of the Income Tax (Expense)/Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Loss before income tax benefit, equity method investments, noncontrolling interests and discontinued operation | $ (6,183) | $ (9,212) |
U.S. federal rate | 35.00% | 35.00% |
Income tax benefit computed at U.S. federal rate | $ 2,164 | $ 3,224 |
Rate differential for domestic earnings | (354) | (647) |
Preferential tax treatments and tax holiday effects | (158) | (16) |
Valuation allowance on deferred tax assets | (1,667) | (1,057) |
Others | (87) | (8) |
Income tax (expense)/benefit | $ (102) | $ 1,496 |
Note 19 - Taxation - Income Tax
Note 19 - Taxation - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Current-PRC | $ (4) | |
Deferred-PRC | (102) | 1,500 |
Income tax (expense)/benefit | $ (102) | $ 1,496 |
Note 19 - Taxation - Deferred T
Note 19 - Taxation - Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Balance | $ 118 | $ 964 |
Reversal during the year | (110) | (790) |
Exchange translation adjustment | (8) | (56) |
Balance | $ 118 |
Note 19 - Taxation - Deferred95
Note 19 - Taxation - Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Tax effect of net operating losses carried forward | $ 9,345 | $ 7,921 |
Bad debts provision | 931 | 932 |
Valuation allowance | (8,754) | (7,303) |
Total deferred tax assets | $ 1,522 | $ 1,550 |
Note 21 - Restricted Net Asse96
Note 21 - Restricted Net Assets (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | $ 7,800 | $ 6,700 |
Withholding Tax Rate Pursuant To EIT Law | 10.00% | |
Preferential Withholding Tax Rate | 5.00% | |
Retained Earnings (Accumulated Deficit) | $ (10,362) | (3,870) |
Statutory Accounting Practices, Retained Earnings Not Available for Dividends | 2,607 | 2,607 |
PRC Subsidiary And VIE's [Member] | ||
Retained Earnings (Accumulated Deficit) | 17,600 | 22,900 |
Statutory Accounting Practices, Retained Earnings Not Available for Dividends | $ 2,500 | $ 2,800 |
WFOE [Member] | ||
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] | ||
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 - Revenue from Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
From related parties | $ 450 | $ 743 |
Beijing Saturday Education Technology Co., Ltd. [Member] | ||
From related parties | 240 | 298 |
Chuangshi Meiwei [Member] | ||
From related parties | 170 | 346 |
Beijing Saimeiwei Food Equipment Technology [Member] | ||
From related parties | 36 | 99 |
Guohua Shiji [Member] | ||
From related parties | $ 4 |
Note 23 - Employee Defined Co98
Note 23 - Employee Defined Contribution Plan (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Plan, Cost Recognized | $ 595,000 | $ 650,000 |
Note 24 - Concentration of Ri99
Note 24 - Concentration of Risk (Details Textual) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Number of Major Customers | 0 | 2 |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer 1 [Member] | ||
Concentration Risk, Percentage | 12.00% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer 2 [Member] | ||
Concentration Risk, Percentage | 12.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Number of Major Customers | 2 | 2 |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer 1 [Member] | ||
Concentration Risk, Percentage | 22.00% | 17.00% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer 2 [Member] | ||
Concentration Risk, Percentage | 14.00% | 24.00% |
Cost Of Sales Total [Member] | Supplier Concentration Risk [Member] | ||
Number of Major Customers | 2 | 2 |
Cost Of Sales Total [Member] | Supplier Concentration Risk [Member] | Supplier 1 [Member] | ||
Concentration Risk, Percentage | 39.00% | 43.00% |
Cost Of Sales Total [Member] | Supplier Concentration Risk [Member] | Supplier 2 [Member] | ||
Concentration Risk, Percentage | 37.00% |
Note 25 - Commitments and Co100
Note 25 - Commitments and Contingencies (Details Textual) ¥ in Billions | Jun. 12, 2016USD ($) | Jun. 13, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 13, 2015CNY (¥) |
Operating Leases, Rent Expense | $ 580,000 | $ 377,000 | |||
Purchase Commitment, Remaining Minimum Amount Committed | $ 14,400,000 | ¥ 0.1 | |||
Percentage of Minimum Consumption Amount | 50.00% | ||||
Probable Cash Compensation Charged by Supplier | $ 130,000 | $ 130,000 |
Note 25 - Commitments and Co101
Note 25 - Commitments and Contingencies - Contractual Obligations (Details) - Office Rental [Member] $ in Thousands | Dec. 31, 2016USD ($) |
(2,017) | $ 529 |
(2,018) | 528 |
(2,019) | 110 |
Total | $ 1,167 |
Note 26 - Discontinued Opera102
Note 26 - Discontinued Operation (Details Textual) - Brand Management and Sales Channel Building [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Capital Expenditure, Discontinued Operations | $ 0 | $ 0 |
Loss from Discontinued Operation, Net of Income Tax [Member] | ||
Depreciation and Amortization, Discontinued Operations | $ 63,000 |
Note 26 - Discontinued Opera103
Note 26 - Discontinued Operation - Major Classes of Line Items Constituting Pre-tax Net Loss and Net Loss of the Discontinued Operation (Details) - USD ($) | 11 Months Ended | 12 Months Ended | |
Dec. 13, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Impairment of Intangible Assets, Finite-lived | $ 0 | ||
Goodwill, Impairment Loss | $ 1,071,000 | ||
Net loss | $ (59,000) | (1,465,000) | |
Brand Management and Sales Channel Building [Member] | |||
Revenues | 272,000 | ||
Cost of revenues | 149,000 | ||
Total operating expenses | 50,000 | 359,000 | |
Impairment of Intangible Assets, Finite-lived | 169,000 | ||
Goodwill, Impairment Loss | 1,117,000 | ||
Net loss before income tax benefit | (50,000) | (1,522,000) | |
Income tax benefit | 57,000 | ||
Loss from discontinued operation, net of income tax | (50,000) | (1,465,000) | |
Loss on disposal of discontinued operation, net of income tax | (9,000) | ||
Net loss | $ (59,000) | $ (1,465,000) |
Note 27 - Segment Reporting (De
Note 27 - Segment Reporting (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Allocated Share-based Compensation Expense | $ 2,309,000 | $ 2,256,000 | |
Disposal Group, Including Discontinued Operation, Assets, Current | $ 1,882,000 | ||
Brand Management and Sales Channel Building [Member] | |||
Disposal Group, Including Discontinued Operation, Assets | $ 182,000 | ||
Disposal Group, Including Discontinued Operation, Assets, Current | $ 1,882,000 |
Note 27 - Segment Reporting - S
Note 27 - Segment Reporting - Summary of Segment Reporting Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Revenues | $ 34,750 | $ 32,265 | |
Cost of revenues | 26,999 | 24,655 | |
Total operating expenses | 13,899 | 16,926 | |
Impairment on long-term investments included in total operating expenses | 159 | 874 | |
Depreciation and amortization expense included in total operating expenses | 1,572 | 1,705 | |
Operating loss | (6,148) | (9,316) | |
Expenditure for long-term assets | 2,117 | 3,464 | |
Net loss from continuing operations | (6,285) | (7,718) | |
Total assets | 30,042 | 35,460 | |
Gain on disposal of a VIE included in total operating expenses | (20) | ||
Goodwill impairment and impairment on fixed assets and intangible assets included in total operating expenses | 1,824 | ||
Operating Segments [Member] | Internet Ad [Member] | |||
Revenues | 31,015 | ||
Cost of revenues | 23,615 | ||
Total operating expenses | 11,545 | ||
Impairment on long-term investments included in total operating expenses | |||
Depreciation and amortization expense included in total operating expenses | 1,539 | ||
Operating loss | (4,145) | ||
Expenditure for long-term assets | 3,308 | ||
Net loss from continuing operations | (2,769) | ||
Total assets | 33,727 | ||
Gain on disposal of a VIE included in total operating expenses | |||
Goodwill impairment and impairment on fixed assets and intangible assets included in total operating expenses | 1,652 | ||
Operating Segments [Member] | TV Ad [Member] | |||
Revenues | 1,250 | ||
Cost of revenues | 1,040 | ||
Total operating expenses | 1,057 | ||
Impairment on long-term investments included in total operating expenses | |||
Depreciation and amortization expense included in total operating expenses | 121 | ||
Operating loss | (847) | ||
Expenditure for long-term assets | |||
Net loss from continuing operations | (849) | ||
Total assets | 3,148 | ||
Gain on disposal of a VIE included in total operating expenses | |||
Goodwill impairment and impairment on fixed assets and intangible assets included in total operating expenses | 172 | ||
Operating Segments [Member] | Others [Member] | |||
Revenues | |||
Cost of revenues | |||
Total operating expenses | [1] | 4,324 | |
Impairment on long-term investments included in total operating expenses | 874 | ||
Depreciation and amortization expense included in total operating expenses | 45 | ||
Operating loss | (4,324) | ||
Expenditure for long-term assets | 156 | ||
Net loss from continuing operations | (4,100) | ||
Total assets | [2] | 17,362 | |
Gain on disposal of a VIE included in total operating expenses | (20) | ||
Goodwill impairment and impairment on fixed assets and intangible assets included in total operating expenses | |||
Intersegment Eliminations [Member] | |||
Revenues | |||
Cost of revenues | |||
Total operating expenses | |||
Impairment on long-term investments included in total operating expenses | |||
Depreciation and amortization expense included in total operating expenses | |||
Operating loss | |||
Expenditure for long-term assets | |||
Net loss from continuing operations | |||
Total assets | (11,708) | (18,777) | |
Gain on disposal of a VIE included in total operating expenses | |||
Goodwill impairment and impairment on fixed assets and intangible assets included in total operating expenses | |||
Internet Ad [Member] | Operating Segments [Member] | |||
Revenues | 34,750 | ||
Cost of revenues | 26,999 | ||
Total operating expenses | 8,777 | ||
Impairment on long-term investments included in total operating expenses | |||
Depreciation and amortization expense included in total operating expenses | 1,470 | ||
Operating loss | (1,026) | ||
Expenditure for long-term assets | 2,003 | ||
Net loss from continuing operations | (1,154) | ||
Total assets | 29,520 | ||
Others [Member] | Operating Segments [Member] | |||
Revenues | |||
Cost of revenues | |||
Total operating expenses | [3] | 4,654 | |
Impairment on long-term investments included in total operating expenses | 159 | ||
Depreciation and amortization expense included in total operating expenses | 100 | ||
Operating loss | (4,654) | ||
Expenditure for long-term assets | 114 | ||
Net loss from continuing operations | (4,663) | ||
Total assets | 11,882 | ||
TV Ad [Member] | Operating Segments [Member] | |||
Total operating expenses | 468 | ||
Impairment on long-term investments included in total operating expenses | |||
Depreciation and amortization expense included in total operating expenses | 2 | ||
Operating loss | (468) | ||
Net loss from continuing operations | (468) | ||
Total assets | $ 348 | ||
[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. | ||
[3] | Including approximately US$2,309,000 share-based compensation expenses. |
Note 28 - Loss Per Share (Detai
Note 28 - Loss Per Share (Details Textual) | Aug. 19, 2016 | Dec. 31, 2016shares | Dec. 31, 2015shares |
Reverse Stock Split [Member] | |||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 2.5 | ||
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 835,216 | 225,023 | |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 796,657 | 1,063,744 |
Note 28 - Loss Per Share - Basi
Note 28 - Loss Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Net loss attributable to ChinaNet Online Holdings, Inc. from continuing operations (numerator for basic and diluted loss per share from continuing operations) | $ (6,433) | $ (7,627) |
Loss from and on disposal of discontinued operation, net of income tax | $ (59) | $ (1,465) |
Weighted average number of common shares outstanding – Basic and diluted (in shares) | 11,357,907 | 10,706,521 |
Loss per share -Basic and diluted from continuing operations (in dollars per share) | $ (0.57) | $ (0.71) |
Loss per share -Basic and diluted from discontinued operation (in dollars per share) | $ (0.01) | $ (0.14) |
Note 29 - Share-based Compen108
Note 29 - Share-based Compensation Expenses (Details Textual) | Nov. 14, 2016USD ($)$ / sharesshares | Aug. 19, 2016 | Apr. 01, 2016USD ($)$ / sharesshares | Oct. 09, 2015USD ($)$ / sharesshares | Sep. 14, 2015$ / sharesshares | May 01, 2015$ / sharesshares | Dec. 30, 2014$ / sharesshares | Aug. 01, 2014$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares |
Share Price | $ / shares | $ 2.10 | |||||||||
Allocated Share-based Compensation Expense | $ | $ 2,309,000 | $ 2,256,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 477,240 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | 544,000 | $ 2,741,000 | ||||||||
Reverse Stock Split [Member] | ||||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 2.5 | |||||||||
Employees and Directors [Member] | The 2015 Omnibus Securities and Incentive Plan [Member] | ||||||||||
Share Price | $ / shares | $ 2.10 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 477,240 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 159,080 | |||||||||
Employees and Directors [Member] | Vesting on September 14, 2016 [Member] | The 2015 Omnibus Securities and Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 159,080 | |||||||||
Employees and Directors [Member] | Vesting on September 14, 2017 [Member] | The 2015 Omnibus Securities and Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 159,080 | |||||||||
Restricted Stock [Member] | Executive Officer [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,680,000 | |||||||||
Share Price | $ / shares | $ 2.93 | |||||||||
Allocated Share-based Compensation Expense | $ | 1,560,000 | 1,560,000 | ||||||||
Restricted Stock [Member] | Executive Officer [Member] | Upon Issuance [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 613,334 | |||||||||
Restricted Stock [Member] | Executive Officer [Member] | This Year [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 533,333 | |||||||||
Restricted Stock [Member] | Executive Officer [Member] | Next Year [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 533,333 | |||||||||
Restricted Stock [Member] | Employees and Directors [Member] | The 2015 Omnibus Securities and Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 266,238 | |||||||||
Share Price | $ / shares | $ 2.10 | |||||||||
Allocated Share-based Compensation Expense | $ | 177,000 | 53,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award Forfeiture Rate | 5.00% | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | |||||||||
Restricted Stock [Member] | Management Consulting Service Provider [Member] | ||||||||||
Share Price | $ / shares | $ 2.25 | |||||||||
Allocated Share-based Compensation Expense | $ | $ 54,000 | |||||||||
Stock Issued During Period, Shares, Issued for Services | 24,000 | |||||||||
Restricted Stock [Member] | Two Marketing Service Providers [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 16,000 | |||||||||
Share Price | $ / shares | $ 1.73 | |||||||||
Allocated Share-based Compensation Expense | $ | $ 21,000 | |||||||||
Restricted Stock [Member] | Financial Advisory Service Provider [Member] | ||||||||||
Share Price | $ / shares | $ 1.20 | |||||||||
Allocated Share-based Compensation Expense | $ | $ 14,000 | |||||||||
Stock Issued During Period, Shares, Issued for Services | 12,000 | |||||||||
Employee Stock Option [Member] | Employees and Directors [Member] | The 2015 Omnibus Securities and Incentive Plan [Member] | ||||||||||
Allocated Share-based Compensation Expense | $ | $ 201,000 | $ 229,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award Forfeiture Rate | 5.00% | |||||||||
Employee Stock Option [Member] | Employees and Directors [Member] | The 2015 Omnibus Securities and Incentive Plan [Member] | Minimum [Member] | ||||||||||
Share Price | $ / shares | $ 1.03 | |||||||||
Employee Stock Option [Member] | Employees and Directors [Member] | The 2015 Omnibus Securities and Incentive Plan [Member] | Maximum [Member] | ||||||||||
Share Price | $ / shares | $ 1.39 | |||||||||
Investor Relations Services Provider [Member] | Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 40,000 | 40,000 | ||||||||
Share Price | $ / shares | $ 3 | $ 3 | ||||||||
Allocated Share-based Compensation Expense | $ | $ 60,000 | $ 60,000 | ||||||||
Management Consulting Service Provider [Member] | Restricted Stock [Member] | ||||||||||
Share Price | $ / shares | $ 3.93 | |||||||||
Allocated Share-based Compensation Expense | $ | $ 276,000 | 183,000 | ||||||||
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued | 140,000 | |||||||||
Management Consulting Service Term | 2 years | |||||||||
Technical Services Provider [Member] | Restricted Stock [Member] | ||||||||||
Share Price | $ / shares | $ 1.68 | |||||||||
Allocated Share-based Compensation Expense | $ | $ 117,000 | |||||||||
Management Consulting Service Term | 1 year | |||||||||
Stock Issued During Period, Shares, Issued for Services | 120,000 |
Note 29 - Share-based Compen109
Note 29 - Share-based Compensation Expenses - Fair Value Assumptions of Options Granted (Details) | Sep. 14, 2015$ / shares |
Applicable stock price (in dollars per share) | $ 2.10 |
Exercise multiple | |
Tenor (Year) | 5 years |
Risk-free interest rate | 1.563% |
Dividend yield | |
Expected volatility | 98.63% |
Employee Stock Option [Member] | |
Exercise price of the option (in dollars per share) | $ 2.10 |
Minimum [Member] | |
Exercise multiple | 2 |
Value per option (in dollars per share) | $ 1.03 |
Maximum [Member] | |
Exercise multiple | 2.5 |
Value per option (in dollars per share) | $ 1.39 |
Note 29 - Share-based Compen110
Note 29 - Share-based Compensation Expenses - Options Issued and Outstanding (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Options outstanding, number of underlying shares (in shares) | 835,216 | 357,976 | |
Options outstanding, weighted average remaining contractual life (Year) | 4 years 14 days | 5 years 14 days | 6 years 175 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 2.49 | $ 3.02 | |
Option exercisable, number of underlying shares (in shares) | 517,056 | 357,976 | |
Option exercisable, weighted average remaining contractual life (Year) | 4 years 40 days | 5 years 87 days | 6 years 175 days |
Option exercisable, weighted average exercise price (in dollars per share) | $ 2.73 | $ 3.02 | |
Options outstanding, granted/vested shares (in shares) | 477,240 | ||
Options outstanding, granted/vested, weighted average remaining contractual life (Year) | 5 years | ||
Options outstanding, granted/vested, weighted average exercise price (in dollars per share) | $ 2.10 | ||
Option exercisable, granted/vested shares (in shares) | 159,080 | 159,080 | |
Option exercisable, granted/vested, weighted average remaining contractual life (Year) | 3 years 255 days | 5 years | |
Option exercisable, granted/vested, weighted average exercise price (in dollars per share) | $ 2.10 | $ 2.10 | |
Options outstanding, number of underlying shares (in shares) | 835,216 | 835,216 | 357,976 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 2.49 | $ 2.49 | $ 3.02 |
Option exercisable, number of underlying shares (in shares) | 676,136 | 517,056 | 357,976 |
Option exercisable, weighted average exercise price (in dollars per share) | $ 2.59 | $ 2.73 | $ 3.02 |
Note 30 - Subsequent Event (Det
Note 30 - Subsequent Event (Details Textual) - Subsequent Event [Member] - shares | 1 Months Ended | ||
Mar. 31, 2017 | Feb. 28, 2017 | Jan. 31, 2017 | |
Stock Issued During Period, Shares, New Issues | 12,000 | ||
Issuance of Restricted Common Stock to Investor Relations Services Provider in Exchange for Services [Member] | |||
Stock Issued During Period, Shares, Issued for Services | 75,000 | ||
Issuance of Restricted Common Stock to an Independent Director as Compensation for Services [Member] | |||
Stock Issued During Period, Shares, Issued for Services | 20,000 |