Significant Accounting Policies [Text Block] | 3. Summary of significant accounting policies a) Basis of presentation The unaudited condensed consolidated interim financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The unaudited condensed consolidated interim financial information as of September 30, 2018 nine three September 30, 2018 2017 10 December 31, 2017, “2017 10 April 16, 2018. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s condensed consolidated financial position as of September 30, 2018, nine three September 30, 2018 2017, nine September 30, 2018 2017, not b) Going concern The Company incurred operating losses and had negative operating cash flows and may nine three September 30, 2018 US$12.9 US$3.0 US$4.0 US$2.1 nine three September 30, 2017, September 30, 2018, US$5.9 nine September 30, 2018 US$3.7 The Company does not twelve may may not not may one The unaudited condensed consolidated financial statements as of September 30, 2018 September 30, 2018 not may may c) Principles of consolidation The condensed consolidated interim financial statements include the financial statements of all the subsidiaries and VIEs of the Company. All transactions and balances between the Company and its subsidiaries and VIEs have been eliminated upon consolidation. d) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of these condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company continually evaluates these estimates and assumptions based on the most recently available information, historical experience and various other assumptions that the Company believes to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. e) Foreign currency translation The exchange rates used to translate amounts in RMB into US$ for the purposes of preparing the condensed consolidated financial statements are as follows: September 30, 2018 December 31, 2017 Balance sheet items, except for equity accounts 6.8792 6.5342 Nine Months Ended September 30, 2018 2017 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.5196 6.7983 Three Months Ended September 30, 2018 2017 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.7956 6.6676 No f) Revenue recognition On January 1, 2018, 606, January 1, 2018. In accordance with ASC Topic 606, five 1 2 3 4 5 The Company’s contracts with customers do not The Company does not 606 Online advertising placement service/TV advertising service For online advertising placement service contracts and TV advertising service contracts that are established based on a fixed price scheme with the related advertisement placements obligation, the Company provides advertisement placements in specified locations on the Company’s advertising portals for agreed periods and/or place the advertisements onto the Company’s 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 (“over time”). Sales of effective sales lead information For advertising contracts related to purchase of effective sales lead information, revenue is recognized based on a fixed price per sales lead and the quantity of effective sales lead, when information is delivered and accepted by customers (“point in time”). Search engine marketing and data service Revenue from search engine marketing and data services is recognized on a monthly basis based on the direct cost consumed through search engines for providing such services with a premium (“over time”). The Company recognizes the revenue on a gross basis, because the Company determines that it is a principle in the transaction who control the goods or services before they are transferred to the customers. All of the Company’s revenues are generated from the PRC. The following tables present the Company’s revenues disaggregated by products and services and timing of revenue recognition: Nine Months Ended Three Months Ended 2018 2017 2018 2017 US$(’000) US$(’000) US$(’000) US$(’000) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Internet advertising and data service --online advertising placement 6,897 5,920 2,346 1,987 --sales of effective sales lead information 444 1,058 161 245 Search engine marketing and data service 40,380 24,253 14,532 11,266 TV advertising service 91 - - - Others 10 56 3 25 Total revenues 47,822 31,287 17,042 13,523 Nine Months Ended Three Months Ended 2018 2017 2018 2017 US$(’000) US$(’000) US$(’000) US$(’000) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenue recognized over time 47,378 30,229 16,881 13,278 Revenue recognized at a point in time 444 1,058 161 245 Total revenues 47,822 31,287 17,042 13,523 Contract costs For the nine three September 30, 2018, not 606, Contract balances The Company evaluates overall economic conditions, its working capital status and customer specific credit and negotiates the payment terms of a contract with individual customer on a case by case basis in its normal course of business. Advances received from customers related to unsatisfied performance obligations are recoded as contract liabilities (advance from customers), which will be realized as revenues upon the satisfaction of performance obligations through the transfer of related promised goods and services to customers. For contracts without a full or any advance payments required, the Company bills the customers any unpaid contract price immediately upon satisfaction of the related performance obligations when revenue is recognized, and the Company normally receives payment from customers within 90 The Company does not not The Company’s contract liabilities consist of advance from customers related to unsatisfied performance obligations in relation to internet adverting service, search engine marketing service, as well as TV advertising service. All contract liabilities are expected to be recognized as revenue within one nine September 30, 2018: Advance from US$(’000) Balance as of January 1, 2018 3,559 Exchange translation adjustment (178 ) Revenue recognized from beginning contract liability balance (3,281 ) Advances received from customers related to unsatisfied performance obligations 1,932 Balance as of September 30, 2018 (Unaudited) 2,032 For the nine three September 30, 2018, no Transaction price allocated to remaining performance obligation The Company has elected to apply the practical expedient in paragraph ASC Topic 606 10 50 14 not September 30, 2018, one g) Fair value measurement Liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as of September 30, 2018 Fair value measurement at reporting date using As of Quoted Prices Significant Significant US$(’000) US$(’000) US$(’000) US$(’000) Warrant liabilities (Note 20) 826 - - 826 Assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy as of September 30, 2018 Fair value measurement at reporting date using As of Quoted Prices Significant Significant US$(’000) US$(’000) US$(’000) US$(’000) Intangible assets (Note 10) 50 - - 50 The Company performed impairment test on its intangible assets and goodwill as of September 30, 2018 June 30, 2018 US$8.7 US$1.5 nine three September 30, 2018, 3 Valuation technique(s) Unobservable inputs Value of inputs Remaining useful life (years) 7.75 Intangible assets Multi-period Excess Earning Discount rate 24% Contributory asset charge 8.9% - 20% Base projection period (years) 5 Goodwill Discounted Cash Flow Discount rate 20% Terminal growth rate 3.5% h) Recently issued accounting standards In February 2016, No. 2016 02, 842 12 not December 15, 2018, July 2018, No. 2018 11, 842 not 606 January 1, 2019 2018. In February 2018, 2018 02: 220 not December 15, 2018, In June 2018, 2018 07: 718 718 718 718 718 not 1 2 606, December 15, 2018, December 15, 2019, December 15, 2020. no 606. not not not |