Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | FALSE |
Document Period End Date | 31-Dec-14 |
Entity Registrant Name | AIRMEDIA GROUP INC. |
Entity Central Index Key | 1413745 |
Current Fiscal Year End Date | -19 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2014 |
Entity Common Stock, Shares Outstanding | 119,942,413 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $67,437 | $59,652 |
Restricted cash | 14,395 | 10,366 |
Short-term investment | 17,729 | 42,949 |
Accounts receivable, net of allowance for doubtful accounts of $7,221 and $12,392 as of December 31, 2013 and 2014, respectively | 84,993 | 107,529 |
Notes receivable | 2,673 | 1,901 |
Prepaid concession fees | 31,035 | 29,307 |
Other current assets | 25,620 | 20,437 |
Amount due from related parties | 3,322 | 187 |
Deferred tax assets - current | 1,585 | 2,776 |
Assets held for sale | 1,087 | |
Total current assets | 249,876 | 275,104 |
Property and equipment, net | 50,329 | 36,084 |
Prepaid equipment costs | 45,176 | 49,415 |
Long-term investments | 9,049 | 7,829 |
Long-term deposits | 20,300 | 20,497 |
Deferred tax assets - non-current | 13,932 | 11,755 |
Acquired intangible assets, net | 807 | 1,446 |
Other non-current assets | 6,128 | 661 |
TOTAL ASSETS | 395,597 | 402,791 |
Current liabilities: | ||
Short-term loan (including short-term loan of the consolidated variable interest entities without recourse to AirMedia Group Inc. nil and nil as of December 31, 2013 and 2014, respectively) | 3,000 | |
Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to AirMedia Group Inc. $75,182 and $88,430 as of December 31, 2013 and 2014, respectively) | 94,933 | 81,157 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated variable interest entities without recourse to AirMedia Group Inc. $8,016 and $9,629 as of December 31, 2013 and 2014, respectively) | 11,498 | 10,883 |
Deferred revenue (including deferred revenue of the consolidated variable interest entities without recourse to AirMedia Group Inc. $17,374 and $13,517 as of December 31, 2013 and 2014, respectively) | 13,523 | 17,380 |
Income tax payable (including income tax payable of the consolidated variable interest entities without recourse to AirMedia Group Inc. $455 and $963 as of December 31, 2013 and 2014, respectively) | 1,522 | 1,667 |
Amounts due to related parties (including amounts due to related parties of the consolidated variable interest entities without recourse to AirMedia Group Inc. nil and $790 as of December 31, 2013 and 2014, respectively) | 790 | |
Total current liabilities | 125,266 | 111,087 |
Non-current liabilities: | ||
Other non-current liabilities (including other non-current liabilities of the consolidated variable interest entities without recourse to AirMedia Group Inc. nil and $1,257 as of December 31, 2013 and 2014, respectively) | 1,257 | |
Deferred tax liabilities - non-current (including deferred tax liabilities - non-current of the consolidated variable interest entities without recourse to AirMedia Group Inc. $361 and $202 as of December 31, 2013 and 2014, respectively) | 202 | 361 |
Total liabilities | 126,725 | 111,448 |
Commitments and contingencies (Note 25 and Note 26) | ||
Equity | ||
Ordinary shares ($0.001 par value; 900,000,000 shares authorized in 2013 and 2014; 127,662,057 shares and 127,662,057 shares issued as of December 31, 2013 and 2014, respectively; 119,134,135 shares and 119,942,413 shares outstanding as of December 31, 2013 and 2014, respectively) | 128 | 128 |
Additional paid-in capital | 323,167 | 313,912 |
Treasury stock (8,527,922 and 7,719,644 shares as of December 31, 2013 and 2014, respectively) | -9,236 | -9,860 |
Statutory reserves | 11,381 | 10,968 |
Accumulated deficits | -110,519 | -84,411 |
Accumulated other comprehensive income | 33,815 | 40,229 |
Total AirMedia Group Inc.'s shareholders' equity | 248,736 | 270,966 |
Non-controlling interests | 20,136 | 20,377 |
Total equity | 268,872 | 291,343 |
TOTAL LIABILITIES AND EQUITY | $395,597 | $402,791 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Short-term loan | $3,000 | |
Accounts receivable, allowance for doubtful accounts | 12,392 | 7,221 |
Accounts payable | 94,933 | 81,157 |
Accrued expenses and other current liabilities | 11,498 | 10,883 |
Deferred revenue | 13,523 | 17,380 |
Income tax payable | 1,522 | 1,667 |
Amount due to related parties | 790 | |
Other non-current liabilities | 1,257 | |
Non-current deferred tax liability | 202 | 361 |
Common stock, par value per share | $0.00 | $0.00 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 127,662,057 | 127,662,057 |
Common stock, shares outstanding | 119,942,413 | 119,134,135 |
Treasury stock, shares | 7,719,644 | 8,527,922 |
The consolidated variable interest entities without recourse to Air Media Group Inc. [Member] | ||
Short-term loan | ||
Accounts payable | 88,430 | 75,182 |
Accrued expenses and other current liabilities | 9,629 | 8,016 |
Deferred revenue | 13,517 | 17,374 |
Income tax payable | 963 | 455 |
Amount due to related parties | 790 | |
Other non-current liabilities | 1,257 | |
Non-current deferred tax liability | $202 | $361 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||||||
Revenues | $255,871 | $276,516 | $292,965 | |||
Business tax and other sales tax | -3,390 | -4,250 | -6,223 | |||
Net revenues | 252,481 | 272,266 | 286,742 | |||
Less: Cost of revenues | 235,835 | 244,673 | 250,606 | |||
Gross profit | 16,646 | 27,593 | 36,136 | |||
Operating expenses: | ||||||
Selling and marketing (including share-based compensation of $859, nil and $144 in 2012, 2013 and 2014, respectively) | 25,067 | 20,069 | 17,995 | |||
General and administrative (including share-based compensation of $2,643, $1,251 and $1,215 in 2012, 2013 and 2014, respectively) | 26,337 | 25,723 | 21,842 | |||
Impairment of intangible assets | 9,583 | |||||
Impairment of goodwill | 20,611 | |||||
Total operating expenses | 51,404 | 45,792 | 70,031 | |||
Loss from operations | -34,758 | -18,199 | -33,895 | |||
Interest income | 1,340 | 1,213 | 1,355 | |||
Other income, net | 2,214 | 3,822 | 2,770 | |||
Loss before income taxes and share of loss on equity method investments | -31,204 | -13,164 | -29,770 | |||
Income tax (expenses)/benefits | -430 | 1,713 | -2,493 | |||
Loss before share of income/(loss) on equity method investments | -31,634 | -11,451 | -32,263 | |||
Share of income/(loss) on equity method investments | -192 | -69 | 22 | |||
Net loss | -31,826 | -11,520 | -32,241 | |||
Less: Net income/(loss) attributable to non-controlling interests | -6,131 | -894 | 487 | |||
Net loss attributable to AirMedia Group Inc.'s shareholders | ($25,695) | ($10,626) | ($32,728) | |||
Net loss attributable to AirMedia Group Inc.'s shareholders per ordinary share - basic | ($0.22) | ($0.09) | ($0.26) | |||
Net loss attributable to AirMedia Group Inc.'s shareholders per ordinary share - diluted | ($0.22) | ($0.09) | ($0.26) | |||
Weighted average shares used in calculating net loss per ordinary share - basic | 119,304,773 | 120,386,635 | 124,269,245 | |||
Weighted average shares used in calculating net loss per ordinary share - diluted | 119,304,773 | [1] | 120,386,635 | [1] | 124,269,245 | [1] |
[1] | The effect of options was excluded from the computation of diluted loss per share for the years ended December 31, 2012, 2013 and 2014, respectively, as the effect would be anti-dilutive. |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Selling and Marketing Expense [Member] | |||
Share-based compensation | $144 | $859 | |
General and Administrative Expense [Member] | |||
Share-based compensation | $1,215 | $1,251 | $2,643 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS [Abstract] | |||
Net loss | ($31,826) | ($11,520) | ($32,241) |
Other comprehensive income, net of tax: | |||
Change in cumulative foreign currency translation adjustment | -6,874 | 7,582 | 2,144 |
Comprehensive loss | -38,700 | -3,938 | -30,097 |
Less: comprehensive income/ (loss) attributable to non-controlling interest | -6,591 | -593 | 417 |
Comprehensive loss attributable to AirMedia Group Inc.'s shareholders | ($32,109) | ($3,345) | ($30,514) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Ordinary shares [Member] | Ordinary shares [Member] | Additional paid-in capital [Member] | Treasury stock [Member] | Statutory reserves [Member] | Accumulated deficits [Member] | Accumulated other comprehensive income [Member] | Total AirMedia Group Inc.'s shareholders' equity [Member] | Non-controlling interests [Member] |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Beginning Balance at Dec. 31, 2011 | $270,058 | $128 | $275,150 | ($3,775) | $8,049 | ($38,138) | $30,734 | $272,148 | ($2,090) | |
Beginning Balance, shares at Dec. 31, 2011 | 125,247,597 | |||||||||
Ordinary shares issued for share based compensation, shares | 137,166 | |||||||||
Ordinary shares issued for share based compensation | 161 | 161 | 161 | |||||||
Share repurchase as treasury stock, shares | -3,272,278 | |||||||||
Share repurchase as treasury stock | -3,421 | -3,421 | -3,421 | |||||||
Provision for statutory reserve | 2,095 | -2,095 | ||||||||
Share-based compensation | 3,502 | 3,502 | 3,502 | |||||||
Foreign currency translation adjustment | 2,144 | 2,214 | 2,214 | -70 | ||||||
Net loss | -32,241 | -32,728 | -32,728 | 487 | ||||||
Profit distribution to non-controlling interest | -768 | -768 | ||||||||
Ending Balance at Dec. 31, 2012 | 239,435 | 128 | 278,652 | -7,035 | 10,144 | -72,961 | 32,948 | 241,876 | -2,441 | |
Ending Balance, shares at Dec. 31, 2012 | 122,112,485 | |||||||||
Ordinary shares issued for share based compensation, shares | 18,400 | |||||||||
Ordinary shares issued for share based compensation | 21 | 21 | 21 | |||||||
Share repurchase as treasury stock, shares | -2,996,750 | |||||||||
Share repurchase as treasury stock | -2,846 | -2,846 | -2,846 | |||||||
Provision for statutory reserve | 824 | -824 | ||||||||
Share-based compensation | 1,251 | 1,251 | 1,251 | |||||||
Foreign currency translation adjustment | 7,582 | 7,281 | 7,281 | 301 | ||||||
Net loss | -11,520 | -10,626 | -10,626 | -894 | ||||||
Capital contribution from non-controlling interests | 60,209 | 39,825 | 39,825 | 20,384 | ||||||
Acquisition of non-controlling interests | -2,789 | -5,816 | -5,816 | 3,027 | ||||||
Ending Balance at Dec. 31, 2013 | 291,343 | 128 | 313,912 | -9,860 | 10,968 | -84,411 | 40,229 | 270,966 | 20,377 | |
Ending Balance, shares at Dec. 31, 2013 | 119,134,135 | |||||||||
Ordinary shares issued for share based compensation, shares | 808,278 | |||||||||
Ordinary shares issued for share based compensation | 624 | 624 | 624 | |||||||
Provision for statutory reserve | 413 | -413 | ||||||||
Share-based compensation | 1,359 | 1,359 | 1,359 | |||||||
Foreign currency translation adjustment | -6,874 | -6,414 | -6,414 | -460 | ||||||
Net loss | -31,826 | -25,695 | -25,695 | -6,131 | ||||||
Disposal of equity interests of AM Film and AM Lianhe to non-controlling interest | 3,088 | 1,433 | 1,433 | 1,655 | ||||||
Profit distribution to non-controlling interest | -83 | -83 | ||||||||
Capital contribution from non-controlling interests | 11,241 | 6,463 | 6,463 | 4,778 | ||||||
Ending Balance at Dec. 31, 2014 | $268,872 | $128 | $323,167 | ($9,236) | $11,381 | ($110,519) | $33,815 | $248,736 | $20,136 | |
Ending Balance, shares at Dec. 31, 2014 | 119,942,413 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | ($31,826) | ($11,520) | ($32,241) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Allowance for doubtful accounts | 5,623 | 2,439 | 1,242 |
Depreciation and amortization | 14,531 | 21,862 | 24,033 |
Share-based compensation | 1,359 | 1,251 | 3,502 |
Share of (loss)/income on equity method investments | 192 | 69 | -22 |
Loss on disposal of property and equipment | 395 | 964 | 1,192 |
Impairment loss of loan receivable from a third party | 1,562 | ||
Gain on sale/maturity of short-term investments | -857 | -1,888 | -2,023 |
Impairment of intangible assets | 9,583 | ||
Impairment of goodwill | 20,611 | ||
Changes in assets and liabilities | |||
Accounts receivable | 14,156 | -9,147 | -8,609 |
Notes receivable | -823 | -1,874 | |
Prepaid concession fees | -2,454 | -7,830 | 2,358 |
Other current assets | -3,476 | -3,945 | -3,147 |
Long-term deposits | -301 | 2,425 | -7,033 |
Other non-current assets | -6,072 | -651 | |
Amount due from related parties | -1,536 | 1,144 | -1,148 |
Accounts payable | 10,558 | 12,083 | 8,269 |
Accrued expenses and other current liabilities | 1,718 | 217 | -1,397 |
Deferred revenue | -3,454 | -2,716 | 6,586 |
Amount due to related parties | 794 | -454 | |
Deferred tax assets (liabilities), net | -1,499 | -3,972 | -1,831 |
Income tax payable | -106 | 518 | 305 |
Other non-current liabilities | 1,264 | ||
Net cash provided by (used in) operating activities | -1,814 | 537 | 20,230 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment | -12,363 | -13,096 | -9,287 |
Prepaid equipment costs | -11,224 | -56,996 | |
Proceeds from disposal of property and equipment | 28 | 30 | 127 |
Net amount received (paid) upon settlement of short-term investment | 25,274 | 4,769 | -42,464 |
Dividend received from equity method investee | 242 | 686 | |
Restricted cash | -4,306 | -2,076 | -1,580 |
Capital injection in AM Guangying | -1,629 | -4,112 | -2,223 |
Proceeds from equity exchange for Xinghe Union (net of cash acquired of $527) | 527 | ||
Disposal of 51% equity interests in AM Jiaming (net of cash disposed of $1,094) | -1,094 | ||
Loan to a related party | -1,612 | ||
Loan receivable from a third party | 329 | -1,579 | |
Net cash used in investing activities | -6,157 | -70,466 | -57,006 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Cash paid for treasury stock | -2,846 | -3,421 | |
Proceeds from options exercised | 624 | 21 | 161 |
Cash received from short-term loan | 3,000 | ||
Capital contribution from non-controlling interests | 11,241 | 59,438 | |
Proceeds from disposal of equity interests of AM Lianhe | 1,958 | ||
Acquisition of non-controlling interests | -1,627 | ||
Dividend paid to non-controlling interests | -675 | ||
Net cash (used in) provided by financing activities | 16,823 | 54,311 | -3,260 |
Effect of exchange rate changes | -1,067 | 1,636 | 936 |
Net (decrease)/increase in cash | 7,785 | -13,982 | -39,100 |
Cash and cash equivalents, at beginning of year | 59,652 | 73,634 | 112,734 |
Cash and cash equivalents, at end of year | 67,437 | 59,652 | 73,634 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Income tax paid | 2,066 | 2,728 | 4,016 |
Interests paid for short-term loan | 75 | ||
Fair value of property, equipment and other assets acquired in exchange of advertising services rendered and subsidiary's equity transferred | 11,083 | 50,305 | 1,987 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: | |||
Payable for purchase of property and equipment | 8,526 | 3,561 | 5,679 |
Dividend payable to non-controlling interests | 73 | 663 | |
Receivable for disposal of equity interests of AM Film and AM Lianhe | 1,118 | ||
Receivable for disposal of 51% equity in AM Jiaming | $53 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
CONSOLIDATED STATEMENTS OF CASH FLOWS [Abstract] | |
Proceeds from equity exchange for Xinghe Union, cash acquired | $527 |
Disposal of 51% equity interests in AM Jiaming, cash disposed | $1,094 |
ORGANIZATION_AND_PRINCIPAL_ACT
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES [Abstract] | |||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1 | ORGANIZATION AND PRINCIPAL ACTIVITIES | |||||||||||
Introduction of the Group | |||||||||||||
AirMedia Group Inc. ("AirMedia" or the "Company") was incorporated in the Cayman Islands on April 12, 2007. | |||||||||||||
AirMedia, its subsidiaries, its variable interest entities ("VIEs") and VIEs' subsidiaries (collectively the "Group") operate its out-of-home advertising network, primarily air travel advertising network, in the People's Republic of China (the "PRC"). | |||||||||||||
As of December 31, 2014, details of the Company's subsidiaries, VIEs and VIEs' subsidiaries are as follows: | |||||||||||||
Date of | Percentage | ||||||||||||
incorporation/ | Place of | of legal | |||||||||||
Name | acquisition | incorporation | ownership | ||||||||||
Intermediate Holding Company: | |||||||||||||
Broad Cosmos Enterprises Ltd. | 26-Jun-06 | British Virgin Islands ("BVI") | 100% | ||||||||||
AirMedia International Limited ("AM International") | 14-Jul-07 | BVI | 100% | ||||||||||
AirMedia (China) Limited ("AM China") | 5-Aug-05 | Hong Kong | 100% | ||||||||||
Excel Lead International Limited ("Excel Lead") | 1-Aug-08 | BVI | 100% | ||||||||||
Glorious Star Investment Limited ("Glorious Star") | 1-Aug-08 | Hong Kong | 100% | ||||||||||
Subsidiaries: | |||||||||||||
AirMedia Technology (Beijing) Co., Ltd. ("AM Technology") | 19-Sep-05 | the PRC | 100% | ||||||||||
Shenzhen AirMedia Information Technology Co., Ltd. | 6-Jun-06 | the PRC | 100% | ||||||||||
("Shenzhen AM") | |||||||||||||
Xi'an AirMedia Chuangyi Technology Co., Ltd. ("Xi'an AM") | 31-Dec-07 | the PRC | 100% | ||||||||||
VIEs: | |||||||||||||
Beijing Shengshi Lianhe Advertising Co., Ltd. ("Shengshi Lianhe") | 7-Aug-05 | the PRC | N/A | ||||||||||
AirMedia Group Co., Ltd. | 22-Nov-05 | the PRC | N/A | ||||||||||
(Formerly Beijing AirMedia Advertising Co., Ltd.) | |||||||||||||
("AM Advertising") | |||||||||||||
Beijing AirMedia Jiaming Advertising Co., Ltd. | 1-Jan-07 | the PRC | N/A | ||||||||||
(Formerly Beijing AirMedia UC Advertising Co., Ltd.) | |||||||||||||
("Jiaming Advertising") | |||||||||||||
Beijing Yuehang Digital Media Advertising Co., Ltd. | 16-Jan-08 | the PRC | N/A | ||||||||||
("AM Yuehang") | |||||||||||||
Date of | Percentage | ||||||||||||
incorporation/ | Place of | of legal | |||||||||||
Name | acquisition | incorporation | ownership | ||||||||||
VIEs' subsidiaries: | |||||||||||||
AirTV United Media & Culture Co., Ltd. ("AirTV United") | 10-Oct-06 | the PRC | N/A | ||||||||||
Beijing AirMedia Film & TV Culture Co., Ltd. ("AM Film") | 13-Sep-07 | the PRC | N/A | ||||||||||
Flying Dragon Media Advertising Co., Ltd. ("Flying Dragon") | 1-Aug-08 | the PRC | N/A | ||||||||||
Wenzhou AirMedia Advertising Co., Ltd. ("AM Wenzhou") | 17-Oct-08 | the PRC | N/A | ||||||||||
Beijing AirMedia Lianhe Advertising Co., Ltd. | 10-Mar-09 | the PRC | N/A | ||||||||||
(Formerly Beijing Weimei Lianhe Advertising Co., Ltd.) | |||||||||||||
("AM Lianhe") | |||||||||||||
Hainan Jinhui Guangming Media Advertising Co., Ltd. | 23-Jun-09 | the PRC | N/A | ||||||||||
("Hainan Jinhui") | |||||||||||||
Beijing AirMedia Advertising Co., Ltd. | 7-Jul-09 | the PRC | N/A | ||||||||||
(Formerly Beijing AirMedia Jinshi Advertising Co., Ltd.) | |||||||||||||
("AM Jinshi") | |||||||||||||
Tianjin AirMedia Jinshi Advertising Co., Ltd. ("TJ Jinshi") | 8-Sep-09 | the PRC | N/A | ||||||||||
AirMedia City (Beijing) Outdoor Advertising Co., Ltd. | |||||||||||||
("AM Outdoor") | 1-Jan-10 | the PRC | N/A | ||||||||||
Beijing Dongding Gongyi Advertising Co., Ltd. ("Dongding") | 1-Feb-10 | the PRC | N/A | ||||||||||
Beijing GreatView Media Advertising Co., Ltd. | |||||||||||||
(Formerly Beijing Weimei Shengjing Media | |||||||||||||
Advertising Co., Ltd.) ("GreatView Media") | 28-Apr-11 | the PRC | N/A | ||||||||||
Beijing AirMedia Jinsheng Advertising Co., Ltd. ("AM Jinsheng") | 28-Apr-11 | the PRC | N/A | ||||||||||
Guangzhou Meizheng Advertising Co., Ltd. | |||||||||||||
("Guangzhou Meizheng") | 17-May-13 | the PRC | N/A | ||||||||||
Beijing AirMedia Tianyi Advertising Co., Ltd. ("AM Tianyi") | 25-Sep-13 | the PRC | N/A | ||||||||||
Beijing Xinghe Union Media Co., Ltd. ("Xinghe Union") | 28-Feb-14 | the PRC | N/A | ||||||||||
The VIE arrangements | |||||||||||||
Chinese regulations currently limit foreign ownership of companies that provide advertising services, including out-of-home television advertising services. Since December 30, 2005, foreign investors have been permitted to own directly 100% interest in PRC advertising companies if the foreign investor has at least three years of direct operations of advertising business outside of the PRC. | |||||||||||||
One of the Company's subsidiary, AM China, the 100% shareholder of AM Technology, Shenzhen AM, and Xi'an AM, has been engaged in the advertising business in Hong Kong since September 2008. Since it has operated as an advertising business for more than three years, AM China and its subsidiaries may apply for the required licenses to provide advertising services in China. | |||||||||||||
The Group conducts substantially all of its activities through VIEs, i.e. Shengshi Lianhe, AM Advertising, Jiaming Advertising and AM Yuehang, and the VIEs' subsidiaries. The VIEs have entered into the following series of agreements with AM Technology: | |||||||||||||
• | Technology support and service agreement: AM Technology provides exclusive technology support and consulting services to the VIEs and in return, the VIEs are required to pay AM Technology service fees. The VIEs pay to AM Technology annual service fees in the amount that guarantee that the VIEs can achieve, after deducting such service fees payable to AM Technology, a net cost-plus rate of no less than 0.5% in the case of AM Advertising, Shengshi Lianhe and Jiaming Advertising, or 1.0% in the case of AM Yuehang, which final rate should be determined by AM Technology. The "net cost-plus rate" refers to the operating profit as a percentage of total costs and expenses of a certain entity. The technology support and service agreements are effective for ten years and such term is automatically renewed upon its expiry unless either party informs the other party of its intention of no extension at least twenty days prior to the expiration of the agreements. | ||||||||||||
• | Technology development agreement: VIEs exclusively engaged AM Technology to provide technology development services. AM Technology owns the intellectual property rights developed in the performance of these agreements. The VIEs pay to AM Technology annual service fees in the amount that guarantee that the VIEs can achieve, after deducting such service fees payable to AM Technology, a net cost-plus rate of no less than 0.5% in the case of AM Advertising, Shengshi Lianhe and Jiaming Advertising, which final rate should be determined by AM Technology. The "net cost-plus rate" refers to the operating profit as a percentage of total costs and expenses of a certain entity. The technology development agreements are effective for ten years and such terms is automatically renewed upon its expiry unless either party informs the other party of its intention of no extension at least twenty days prior to the expiration of the agreements. | ||||||||||||
• | Call option agreement: Under the call option agreements, the shareholders of VIEs irrevocably grant AM Technology, or its designated third party, an exclusive option to purchase from the VIEs' shareholders, to the extent permitted under PRC law, all the equity interests in the VIEs, as the case may be, for the minimum amount of consideration permitted by the applicable law without any other conditions. In addition, AM Technology will act as guarantor of VIEs in all operation related contracts, agreements and transactions and commit to provide loans to support the business development needs of VIEs or when the VIEs are suffering operating difficulties provided that the relevant VIEs' shareholders satisfy the terms and conditions in the call option agreements. Based on PRC law to provide an effective guarantee, a guarantor needs to execute a specific written agreement with the beneficiary of the guarantee. As AM Technology has not entered into any written guarantee agreements with any third party beneficiaries to guarantee the VIEs' performance obligations to these third parties, none of these third parties can demand performance from AM Technology as a guarantor of the VIEs' performance obligations. The absence of the written guarantee agreement did not obviate the Group's conclusion that it is the primary beneficiary of the VIEs and in turn should consolidate the VIEs. The term of call option agreement shall be terminated after AM Technology exercises the call option over all VIEs' equity pursuant to the provisions of the agreements. | ||||||||||||
• | Equity pledge agreement: Under the equity pledge agreements, the shareholders of the VIEs pledged all of their equity interests, including the right to receive declared dividends, in the VIEs to AM Technology to guarantee VIEs' performance of its obligations under the technology support and service agreement and the technology development agreement. The agreement is effective for as long as the technology support and service agreements and technology development agreement are effective. | ||||||||||||
• | Authorization letter: Each shareholder of the VIEs has executed an authorization letter to authorize AM Technology to exercise certain of its rights, including voting rights, the rights to enter into legal documents and the rights to transfer any or all of its equity interest in the VIEs. Such authorization letters will remain effective during the operating periods of the VIEs. The authorization is effective unless the relevant call option agreements which the VIEs entered into terminated. | ||||||||||||
Through the above contractual arrangements, AM Technology has obtained 100% of shareholders' voting interest in the VIEs, has the right to receive all dividends declared and paid by the VIEs and can receive substantially all of the net income of the VIEs through the technical support and service fees. Accordingly, the Group has consolidated the VIEs because, through AM Technology, it has (1) the power to direct the activities of the VIEs that most significantly affect its economic performance and (2) the right to receive substantially all of the benefits that could be potentially significant to the VIEs. | |||||||||||||
Risks in relation to the VIE structure | |||||||||||||
The Group believes that the VIE arrangements are in compliance with PRC law and are legally enforceable. The shareholders of the VIEs are also shareholders of the Group and therefore have no current interest in seeking to act contrary to the contractual arrangements. However, uncertainties in the PRC legal system could limit the Group's ability to enforce these contractual arrangements and if the shareholders of the VIEs were to reduce their interest in the Group, their interests may diverge from that of the Group and that may potentially increase the risk that they would seek to act contrary to the contractual terms, for example by influencing the VIEs not to pay the service fees when required to do so. | |||||||||||||
The Group's ability to control the VIEs also depends on the authorization letters that AM Technology has to vote on all matters requiring shareholder approval in the VIEs. As noted above, the Group believes the rights granted by the authorization letters is legally enforceable but may not be as effective as direct equity ownership. | |||||||||||||
In addition, if the legal structure and contractual arrangements were found to be in violation of any existing PRC laws and regulations, the PRC government could: | |||||||||||||
• | revoking the business and operating licenses of the Group's PRC subsidiaries and affiliates; | ||||||||||||
• | discontinuing or restricting the Group's PRC subsidiaries' and affiliates' operations; | ||||||||||||
• | imposing conditions or requirements with which the Group or its PRC subsidiaries and affiliates may not be able to comply; or | ||||||||||||
• | requiring the Group or its PRC subsidiaries and affiliates to restructure the relevant ownership structure or operations; | ||||||||||||
The imposition of any of these penalties may result in a material and adverse effect on the Group's ability to conduct the Group's business. In addition, if the imposition of any of these penalties causes the Group to lose the rights to direct the activities of the VIEs and its subsidiaries or the right to receive their economic benefits, the Group would no longer be able to consolidate the VIEs. The Group does not believe that any penalties imposed or actions taken by the PRC Government would result in the liquidation of the Group, AM Technology, or the VIEs. | |||||||||||||
Certain shareholders of VIEs are also beneficial owners or directors of the Company. In addition, certain beneficial owners and directors of the Company are also directors or officers of VIEs. Their interests as beneficial owners of VIEs may differ from the interests of the Company as a whole. The Company cannot be certain that if conflicts of interest arise, these parties will act in the best interests of the Company or that conflicts of interests will be resolved in the Company's favor. Currently, the Company does not have existing arrangements to address potential conflicts of interest these parties may encounter in their capacity as beneficial owners of VIEs, on the one hand, and as beneficial owners of the Company, on the other hand. The Company believes the shareholders of VIEs will not act contrary to any of the contractual arrangements and the exclusive purchase right contract provides the Company with a mechanism to remove them as shareholders of VIEs should they act to the detriment of the Company. If any conflict of interest or dispute between the Company and the shareholders of VIEs arises and the Company is unable to resolve it, the Company would have to rely on legal proceedings in the PRC. Such legal proceedings could result in disruption of its business; moreover, there is substantial uncertainty as to the ultimate outcome of any such legal proceedings. | |||||||||||||
The following financial statement information for AirMedia's VIEs were included in the accompanying consolidated financial statements, presented net of intercompany eliminations, as of and for the years ended December 31: | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2014 | ||||||||||||
Total current assets | $ | 208,255 | $ | 186,320 | |||||||||
Total non-current assets | 108,677 | 128,601 | |||||||||||
Total assets | 316,932 | 314,921 | |||||||||||
Total current liabilities | 101,027 | 113,329 | |||||||||||
Total non-current liabilities | 361 | 1,459 | |||||||||||
Total liabilities | $ | 101,388 | $ | 114,788 | |||||||||
For the years ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Net revenues | $ | 286,641 | $ | 271,536 | $ | 252,477 | |||||||
Net loss | (31,771 | ) | (13,552 | ) | (27,508 | ) | |||||||
Net cash (used in) provided by operating activities | (8,587 | ) | 8,132 | 1,532 | |||||||||
Net cash used in investing activities | (7,700 | ) | (70,653 | ) | (23,908 | ) | |||||||
Net cash provided by financing activities | - | 58,763 | 13,199 | ||||||||||
The VIEs contributed an aggregate of 100%, 99.7% and 100% of the consolidated net revenues for the years ended December 31, 2012, 2013 and 2014, respectively. As of December 31, 2013 and 2014, the VIEs accounted for an aggregate of 78.7% and 79.6%, respectively, of the consolidated total assets, and 91.0% and 90.6%, respectively, of the consolidated total liabilities. The assets not associated with the VIEs primarily consist of cash and cash equivalent, short-term investments and property and equipment. | |||||||||||||
There are no consolidated VIEs' assets that are collateral for the VIEs' obligations and can only be used to settle the VIEs' obligations. There are no creditors (or beneficial interest holders) of the VIEs that have recourse to the general credit of the Company or any of its consolidated subsidiaries. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests, which require the Company or its subsidiaries to provide financial support to the VIEs. However, if the VIEs ever need financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to its VIEs through loans to the shareholder of the VIEs or entrustment loans to the VIEs. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
(a) | Basis of presentation | ||||||||||||
The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America ("US GAAP"). | |||||||||||||
(b) | Basis of consolidation | ||||||||||||
The consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIEs and its VIEs' subsidiaries. All inter-company transactions and balances have been eliminated upon consolidation. | |||||||||||||
(c) | Use of estimates | ||||||||||||
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses in the financial statements and accompanying notes, including allowance for doubtful accounts, the useful lives of property and equipment and intangible assets, impairment of long-term investments, impairment of goodwill, impairment of long-lived assets, share-based compensation and valuation allowance for deferred tax assets. Actual results could differ from those estimates. | |||||||||||||
(d) | Significant risks and uncertainties | ||||||||||||
The Group participates in a dynamic industry and believes that changes in any of the following areas could have a material adverse effect on the Group's future financial position, results of operations, or cash flows: the Group's limited operating history; advances and trends in new technologies and industry standards; competition from other competitors; regulatory or other PRC related factors; risks associated with the Group's ability to attract and retain employees necessary to support its growth; risks associated with the Group's growth strategies; and general risks associated with the advertising industry. | |||||||||||||
(e) | Fair value | ||||||||||||
Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. | |||||||||||||
Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: | |||||||||||||
Level 1 | |||||||||||||
Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | |||||||||||||
Level 2 | |||||||||||||
Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | |||||||||||||
Level 3 | |||||||||||||
Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | |||||||||||||
(f) | Fair value of financial instruments | ||||||||||||
The Group's financial instruments include cash, restricted cash, accounts receivable, notes receivable, short-term investment, amounts due from related parties, assets held for sale, short-term loan, accounts payable, and amounts due to related parties. The Group did not have any other financial assets and liabilities or nonfinancial assets and liabilities that are measured at fair value on recurring basis as of December 31, 2013 and 2014. | |||||||||||||
The Group's financial assets and liabilities measured at fair value on a non-recurring basis include assets held for sale based on level 1 the quoted market price in an active market, assets based on level 2 inputs in connection with equity share exchange transaction and acquired assets and liabilities based on level 3 inputs in connection with business combinations. | |||||||||||||
(g) | Cash and cash equivalents | ||||||||||||
Cash and cash equivalents consist of cash on hand and highly liquid deposits which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. | |||||||||||||
(h) | Restricted cash | ||||||||||||
Restricted cash represents the bank deposits in escrow accounts as the performance security for certain concession right agreements. | |||||||||||||
(i) | Short-term investment | ||||||||||||
Short-term investments comprise marketable debt securities, which are classified as held-to-maturity as the Group has the positive intent and ability to hold the securities to maturity. All of the Group's held-to-maturity securities are stated at their amortized costs and classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year. | |||||||||||||
The Group reviews its short-term investments for other-than-temporary impairment based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its short-term investments. If the cost of an investment exceeds the investment's fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than the cost, and the Group's intent and ability to hold the investment, in determining if impairment is needed. | |||||||||||||
(j) | Assets held for sale | ||||||||||||
The Group considers property, plant and equipment to be assets held for sale when all of the following criteria are met: i) a formal commitment to a plan to sell a property was made and exercised; ii) the property is available for sale in its present condition; iii) actions required to complete the sale of the property have been initiated; iv) sale of the property is probable and the Group expects the completed sale will occur within one year; v) the property is actively being marketed for sale at a price that is reasonable given its current market value; and vi) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Upon designation as assets held for sale, the Group records each property at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and the Group ceases depreciation. | |||||||||||||
(k) | Property and equipment | ||||||||||||
Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated on a straight-line basis over the following estimated useful lives: | |||||||||||||
Digital display network equipment | 5 years | ||||||||||||
Gas station display network equipment | 5 years | ||||||||||||
Furniture and fixture | 5 years | ||||||||||||
Computer and office equipment | 3-5 years | ||||||||||||
Vehicle | 5 years | ||||||||||||
Software | 5 years | ||||||||||||
Property | 50 years | ||||||||||||
Leasehold improvement | Shorter of the term of the lease | ||||||||||||
or the estimated useful lives of the assets | |||||||||||||
(l) | Impairment of long-lived assets and intangible assets with definite life | ||||||||||||
The Group evaluates the recoverability of its long-lived assets, including intangible assets with definite life, whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the excess of carrying amount over the fair value of the assets. | |||||||||||||
(m) | Impairment of goodwill | ||||||||||||
The Group annually, or more frequently if the Group believes indicators of impairment exist, reviews the carrying value of goodwill to determine whether impairment may exist. | |||||||||||||
Specifically, goodwill impairment is determined using a two-step process. The first step compares the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of the affected reporting unit's goodwill to the carrying value of that goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. Estimating fair value is performed by utilizing various valuation techniques, with the primary technique being a discounted cash flow. | |||||||||||||
The Group has four reporting units: the advertising media in air travel areas, the advertising media in gas station, the outdoor advertising media and the fire station advertising media. The Group performs its annual impairment tests on December 31 of each year. | |||||||||||||
(n) | Long-term investments | ||||||||||||
Equity method investments | |||||||||||||
Investee companies over which the Company has the ability to exercise significant influence, but does not have a controlling interest are accounted for using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock of the investee between 20% and 50%, and other factors, such as representation on the investee's Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. | |||||||||||||
Cost method investments | |||||||||||||
For investments in an investee over which the Group does not have significant influence, the Group carries the investment at cost and recognizes income as any dividends declared from distribution of investee's earnings. The Group reviews the cost method investments for impairment whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable. An impairment loss is recognized in earnings equal to the difference between the investment's carrying amount and its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value of the investment would then become the new cost basis of the investment. | |||||||||||||
(o) | Acquired intangible assets | ||||||||||||
Acquired intangible assets with definite lives are carried at cost less accumulated amortization. Customer relationships intangible asset is amortized using the estimated attrition pattern of the acquired customers. Amortization of other definite-lived intangible assets is computed using the straight-line method over the following estimated economic lives: | |||||||||||||
TV program license | 20 years | ||||||||||||
Audio-vision programming & broadcasting qualification | 19.5 years | ||||||||||||
Customer relationships | 3-3.4 years | ||||||||||||
Contract backlog | 1.2-3 years | ||||||||||||
Concession agreements | 3.8-10 years | ||||||||||||
Non-compete agreements | 4.4 years | ||||||||||||
(p) | Revenue recognition | ||||||||||||
The Group's revenues are derived from selling advertising time slots on the Group's advertising networks, primarily air travel advertising network. For the years ended December 31, 2012, 2013 and 2014, the advertising revenues were generated from digital frames in airports, digital TV screens in airports, digital TV screens on airlines, traditional media in airports, gas station media network and other media. | |||||||||||||
The Group typically signs standard contracts with its advertising customers, who require the Group to run the advertiser's advertisements on the Group's network in specified locations for a period of time. The Group recognizes advertising revenues ratably over the performance period for which the advertisements are displayed, so long as collection of the fees remains probable. | |||||||||||||
The Group also wholesales the advertising platforms such as scrolling light boxes and billboards in the gas stations located in some major cities, except Beijing, Shanghai and Shenzhen, to advertising agents, and signs fixed fee contracts with the agents for a specified period. The revenue is recognized on a straight-line basis over the specified period. | |||||||||||||
Deferred revenue | |||||||||||||
Prepayments from customers for advertising service are deferred and recognized as revenue when the advertising services are rendered. | |||||||||||||
Nonmonetary exchanges | |||||||||||||
The Group occasionally exchanges advertising time slots and locations with other entities for assets or services, such as equipment and other assets. The amount of assets and revenue recognized is based on the fair value of the advertising provided or the fair value of the transferred assets, whichever is more readily determinable. The amounts of revenues recognized for nonmonetary transactions were $1,287, $656 and $1,699 for the years ended December 31, 2012, 2013 and 2014, respectively. No direct costs are attributable to the revenues. | |||||||||||||
(q) | Value Added Tax ("VAT") | ||||||||||||
The Company's PRC subsidiaries are subject to value-added tax at a rate of 6% on revenues from advertising services and paid after deducting input VAT on purchases. The net VAT balance between input VAT and output VAT is reflected in the account under input VAT receivable or other taxes payable. | |||||||||||||
In July 2012, the Ministry of Finance and the State Administration of Taxation jointly issued a circular regarding the pilot collection of VAT in lieu of business tax in certain areas and industries in the PRC, including Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Also a circular issued in May 2013 provided that such VAT pilot program is rolled out nationwide since August 2013. Since then, certain subsidiaries and VIEs became subject to VAT at the rates of 6% or 3%, on certain service revenues which were previously subject to business tax. For the years ended December 31, 2012, 2013 and 2014, gross revenue is presented net of $8,785, $21,524 and $19,279 of VAT, respectively. | |||||||||||||
(r) | Business tax and other sale related taxes | ||||||||||||
The Group's PRC subsidiaries and VIEs are subject to business tax and other sale related taxes at the rate of 8.5% on revenues other than those subject to VAT after deduction of certain costs of revenues permitted by the PRC tax laws. | |||||||||||||
(s) | Concession fees | ||||||||||||
The Group enters concession right agreements with vendors such as airports, airlines and a petroleum company, under which the Group obtains the right to use the spaces or equipment of the vendors to display the advertisements. The concession right agreements are treated as operating lease arrangements. | |||||||||||||
Fees under concession right agreements are usually due every three, six or twelve months. Payments made are recorded as current assets and current liabilities according to the respective payment terms. Most of the concession fees with airports and airlines are fixed with escalation, which means fixed increase over each year of the agreements. The total concession fee under the concession right agreements with airports and airlines is charged to the consolidated statements of operations on a straight-line basis over the agreement periods, which is generally between three and five years. | |||||||||||||
The fee structure of the concession right agreement with the petroleum company is based on the actual number of developed gas stations and associated standard annual concession fee for each developed gas station. Each gas station has its specific lease term starting from the time when it is actually put into operation. The calculation of rental payments is based on how many months the gas stations are actually put into operation during the year and the standard annual concession fee determined based on the location of the gas station. Accordingly, each gas station is treated as a separate lease and rental payments are recognized on a straight-line basis over its lease term. The amount of annual concession fee to-be-paid is determined by an actual incurred concession fee or a fixed minimum payment, if any, based on negotiation with the petroleum company. | |||||||||||||
(t) | Agency fees | ||||||||||||
The Group pays fees to advertising agencies based on certain percentage of revenues made through the advertising agencies upon receipt of payment from advertisers. The agency fees are charged to cost of revenues in the consolidated statements of operations ratably over the period in which the advertising is displayed. Prepaid and accrued agency fees are recorded as current assets and current liabilities according to relative timing of payments made and advertising service provided. From time to time, the Group and certain advertising agencies may renegotiate and mutually agree, as permitted by applicable laws, to reduce existing agency fee liabilities as calculated under the terms of existing contracts. Such reductions in the accrued agency fees are recorded as a reduction in cost of sales in the period the renegotiations are finalized. During the years ended December 31, 2012, 2013 and 2014, reversals in cost of sales as a result of renegotiated agency fees amounted to $6,407, $3,329 and $1,433, respectively. | |||||||||||||
(u) | Operating leases | ||||||||||||
Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating lease. Payments made under operating leases are charged to the consolidated statements of operations on a straight-line basis over the lease periods. | |||||||||||||
(v) | Advertising costs | ||||||||||||
The Group expenses advertising costs as incurred. Total advertising expenses were $767, $1,039 and $2,309 for the years ended December 31, 2012, 2013 and 2014, respectively, and have been included as part of selling and marketing expenses. | |||||||||||||
(w) | Foreign currency translation | ||||||||||||
The functional and reporting currency of the Company and the Company's subsidiaries domiciled in BVI and Hong Kong are the United States dollar ("U.S. dollar"). The financial records of the Company's other subsidiaries, VIEs and VIEs' subsidiaries located in the PRC are maintained in their local currency, the Renminbi ("RMB"), which are the functional currency of these entities. | |||||||||||||
Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into functional currency at the applicable rates of exchange prevailing when the transactions occurred. Transaction gains and losses are recognized in the statements of operations. | |||||||||||||
The Group's entities with functional currency of RMB translate their operating results and financial position into the U.S. dollar, the Company's reporting currency. Assets and liabilities are translated using the exchange rates in effect on the balance sheet date. Revenues, expenses, gains and losses are translated using the average rate for the year. Retained earnings and equity are translated using the historical rate. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income. | |||||||||||||
(x) | Income taxes | ||||||||||||
Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net operating loss carry forwards and credits, by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws and regulations applicable to the Group as enacted by the relevant tax authorities. | |||||||||||||
The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than not to be sustained upon audit by the relevant tax authorities. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Additionally, the Group classifies the interest and penalties, if any, as a component of the income tax position. | |||||||||||||
(y) | Share-based payments | ||||||||||||
Share-based payment transactions with employees are measured based on the grant date fair value of the equity instrument issued, and recognized as compensation expenses over the requisite service periods based on a straight-line method, with a corresponding impact reflected in additional paid-in capital. | |||||||||||||
Share-based payment transactions with non-employees are measured based on the fair value of the options as of each reporting date through the measurement date, with a corresponding impact reflected in additional paid-in capital. | |||||||||||||
(z) | Comprehensive loss | ||||||||||||
Comprehensive loss includes net loss and foreign currency translation adjustments and is presented net of tax, the tax effect is nil for the three years ended December 31, 2014 in the consolidated statements of comprehensive loss. | |||||||||||||
(aa) | Allowance of doubtful accounts | ||||||||||||
The Group conducts credit evaluations of clients and generally do not require collateral or other security from clients. The Group establishes an allowance for doubtful accounts based upon estimates, historical experience and other factors surrounding the credit risk of specific clients and utilizes both specific identification and a general reserve to calculate allowance for doubtful accounts. The amount of receivables ultimately not collected by the Group has generally been consistent with expectations and the allowance established for doubtful accounts. If the frequency and amount of customer defaults change due to the clients' financial condition or general economic conditions, the allowance for uncollectible accounts may require adjustment. As a result, the Group continuously monitors outstanding receivables and adjusts allowances for accounts where collection may be in doubt. | |||||||||||||
(bb) | Concentration of credit risk | ||||||||||||
Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of cash and accounts receivable. The Group places their cash with financial institutions with high-credit rating and quality in China. | |||||||||||||
The Group conducts credit evaluations of customers and generally do not require collateral or other security from their customers. The Group establishes an allowance for doubtful accounts primarily based upon the age of the receivables and factors relevant to determining the credit risk of specific customers. The amount of receivables ultimately not collected by the Group has generally been consistent with management's expectations and the allowance established for doubtful accounts. | |||||||||||||
Customers accounting for 10% or more of total revenues are: | |||||||||||||
Customer | For the years ended December 31, | ||||||||||||
2012 | 2013 | 2014 | |||||||||||
A | 11.2 | % | 6.7 | % | 0.5 | % | |||||||
Customers accounting for 10% or more of accounts receivable are: | |||||||||||||
Customer | As of December 31, | ||||||||||||
2013 | 2014 | ||||||||||||
B | 10.4 | % | 7.2 | % | |||||||||
(cc) | Net loss per share | ||||||||||||
Basic net loss per share are computed by dividing net loss attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted net loss reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. Potential common shares in the diluted net loss per share computation are excluded in periods of losses from continuing operations, as their effect would be anti-dilutive. | |||||||||||||
(dd) | Government subsidies | ||||||||||||
The Group primarily receives tax refund and development supporting bonus from tax bureau and local government without any condition or restriction. The government subsidies are recorded in other income on the consolidated statements of operations in the period in which the amounts of such subsidies are received. The recognized government subsidies as other income are $210, $1,395 and $817 for the years ended December 31, 2012, 2013 and 2014, respectively. | |||||||||||||
(ee) | Recent issued accounting standards adopted | ||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new pronouncement which affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This Accounting Standards Update (“ASU”) will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (e.g., assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles—Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this ASU. | |||||||||||||
The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: | |||||||||||||
• | Step 1: Identify the contract(s) with a customer. | ||||||||||||
• | Step 2: Identify the performance obligations in the contract. | ||||||||||||
• | Step 3: Determine the transaction price. | ||||||||||||
• | Step 4: Allocate the transaction price to the performance obligations in the contract. | ||||||||||||
• | Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. | ||||||||||||
For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. | |||||||||||||
An entity should apply the amendments in this ASU using one of the following two methods: | |||||||||||||
1 | Retrospectively to each prior reporting period presented and the entity may elect any of the following practical expedients: | ||||||||||||
• | For completed contracts, an entity need not restate contracts that begin and end within the same annual reporting period. | ||||||||||||
• | For completed contracts that have variable consideration, an entity may use the transaction price at the date the contract was completed rather than estimating variable consideration amounts in the comparative reporting periods. | ||||||||||||
• | For all reporting periods presented before the date of initial application, an entity need not disclose the amount of the transaction price allocated to remaining performance obligations and an explanation of when the entity expects to recognize that amount as revenue. | ||||||||||||
2 | Retrospectively with the cumulative effect of initially applying this ASU recognized at the date of initial application. If an entity elects this transition method it also should provide the additional disclosures in reporting periods that include the date of initial application of: | ||||||||||||
• | The amount by which each financial statement line item is affected in the current reporting period by the application of this ASU as compared to the guidance that was in effect before the change. | ||||||||||||
• | An explanation of the reasons for significant changes. | ||||||||||||
The Group is in the process of evaluating the impact of adoption of this guidance on its consolidated financial statements. | |||||||||||||
(ff) | Recent issued accounting standards not yet adopted | ||||||||||||
In April, 2014, the FASB issued ASU 2014-08, which amends the definition of a discontinued operation in ASC 205-20 and requires entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued-operations criteria. The new guidance eliminates the second and third criteria of discontinued operation in ASC 205-20-45-1 and instead requires discontinued-operations treatment for disposals of a component or group of components that represents a strategic shift that has or will have a major impact on an entity's operations or financial results. The ASU also expands the scope of ASC 205-20 to disposals of equity method investments and businesses that, upon initial acquisition, qualify as held for sale. | |||||||||||||
The ASU also requires entities to reclassify assets and liabilities of a discontinued operation for all comparative periods presented in the statement of financial position. | |||||||||||||
Regarding the statement of cash flows, an entity must disclose, in all periods presented, either (1) operating and investing cash flows or (2) depreciation and amortization, capital expenditures, and significant operating and investing noncash items related to the discontinued operation. | |||||||||||||
The ASU is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014. Early adoption is permitted. The Group does not expect the adoption of this guidance will have a significant effect on its consolidated financial statements. | |||||||||||||
In June 2014, the FASB issued a new pronouncement which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation – Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. | |||||||||||||
The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Group does not expect the adoption of this guidance will have a significant effect on its consolidated financial statements. | |||||||||||||
In August, 2014, the FASB issued a new pronouncement which provides guidance on determining when and how reporting entities must disclose going-concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date of issuance of the entity's financial statements. Further, an entity must provide certain disclosures if there is “substantial doubt about the entity's ability to continue as a going concern." The new standard is effective for fiscal years ending after December 15, 2016. | |||||||||||||
The Group does not expect the adoption of this guidance will have a significant effect on its consolidated financial statements. |
SEGMENT_INFORMATION_AND_REVENU
SEGMENT INFORMATION AND REVENUE ANALYSIS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SEGMENT INFORMATION AND REVENUE ANALYSIS [Abstract] | |||||||||||||
SEGMENT INFORMATION AND REVENUE ANALYSIS | 3 | SEGMENT INFORMATION AND REVENUE ANALYSIS | |||||||||||
The Group is mainly engaged in selling advertising time slots on their network, primarily air travel advertising network, throughout PRC. | |||||||||||||
The Group chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group; hence, the Group has only one operating segment. The Group has internal reporting that does not distinguish between markets or segments. | |||||||||||||
Geographic information | |||||||||||||
The Group primarily operates in the PRC and substantially all of the Group's long-lived assets are located in the PRC. | |||||||||||||
Revenue by service categories | |||||||||||||
For the years ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Revenues: | |||||||||||||
Air Travel Media Network: | |||||||||||||
Digital frames in airports | $ | 137,342 | $ | 152,346 | $ | 138,527 | |||||||
Digital TV screens in airports | 13,731 | 14,110 | 13,286 | ||||||||||
Digital TV screens on airplanes | 26,612 | 16,160 | 16,212 | ||||||||||
Traditional media in airports | 83,478 | 64,845 | 56,723 | ||||||||||
Other revenues in air travel | 7,346 | 9,183 | 6,395 | ||||||||||
Gas Station Media Network | 14,217 | 12,726 | 11,164 | ||||||||||
Other Media | 10,239 | 7,146 | 13,564 | ||||||||||
$ | 292,965 | $ | 276,516 | $ | 255,871 |
SHORTTERM_INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended | |
Dec. 31, 2014 | ||
SHORT-TERM INVESTMENTS [Abstract] | ||
SHORT-TERM INVESTMENTS | 4 | SHORT-TERM INVESTMENTS |
Short-term investments consist of various fixed-income financial products purchased from Chinese banks and trusts and are classified as held-to-maturity securities and carried at amortized costs. The maturity dates range from 13 days to less than one year, with interest rates ranging from 2.3% to 8.0%. The held-to-maturity securities are subject to penalty for early withdrawal before their maturity. The carrying amount of the held-to-maturity securities of $42,949 and $17,729 as of December 31, 2013 and 2014, respectively, approximated their fair values due to its credit ratings and its short-term nature, all of which have a maturity date within one-year. |
LONGTERM_INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
LONG-TERM INVESTMENTS [Abstract] | |||||||||||||||||
LONG-TERM INVESTMENTS | 5 | LONG-TERM INVESTMENTS | |||||||||||||||
(a) | Equity method investments | ||||||||||||||||
The Group had the following equity method investments: | |||||||||||||||||
As of December 31, | |||||||||||||||||
2013 | 2014 | ||||||||||||||||
Name of company | Percentage | Amount | Percentage | Amount | |||||||||||||
% | % | ||||||||||||||||
Beijing Eastern Media Corporation, Ltd. ("BEMC") (1) | 49 | $ | 1,743 | 49 | $ | 1,545 | |||||||||||
Beijing Shibo Movie Technology Co., Ltd. ("Shibo Movie") (2) | 50 | 455 | - | - | |||||||||||||
Beijing Xinghe Union Media Co., Ltd. ("Xinghe Union") (2) | 50 | 370 | 90 | - | |||||||||||||
Guangxi Dingyuan Media Ltd. ("Guangxi Dingyuan") (3) | 40 | 718 | 40 | 753 | |||||||||||||
Zhejiang AirMedia Guangying Film Production Co., Ltd. ("AM Guangying") (4) | 48 | 1,652 | 38 | 3,219 | |||||||||||||
Beijing Yunxing Chuangrong Investment Fund Management Co., Ltd. ("Yunxing Chuangrong") (5) | 50 | 2,478 | 50 | 2,340 | |||||||||||||
Beijing AirMedia Jiaming Film & TV Culture Co., Ltd. ("AM Jiaming") (6) | - | - | 49 | - | |||||||||||||
Qingdao Airport AirMedia Advertising Co., Ltd. ("Qingdao AM") (7) | - | - | 49 | 790 | |||||||||||||
Beijing AirMedia Jiacheng Advertising Co., Ltd. ("Jiacheng Advertising") (8) | - | - | 30 | - | |||||||||||||
$ | 7,416 | $ | 8,647 | ||||||||||||||
-1 | In March 2008, the Group entered into a definitive agreement with China Eastern Media Corporation, Ltd., a subsidiary of China Eastern Group and China Eastern Airlines Corporation Limited operating the media resources of China Eastern Group, to establish a joint venture, BEMC. BEMC was incorporated on March 18, 2008 in the PRC with China Eastern Media Corporation and the Group holding 51% and 49% equity interest, respectively. BEMC obtained concession rights of certain media resources from China Eastern Group, including the digital TV screens on airplanes of China Eastern Airlines, and paid concession fees to its shareholders as consideration. The total paid-in capital of BEMC was $2,119, which was contributed by both parties proportionately. In September 2013 and December 2014, BEMC distributed dividend of $1,401 and $495, respectively, in which $686 and $242, respectively were distributed and paid to the Group. | ||||||||||||||||
The investment was accounted for using the equity method of accounting as the Group has the ability to exercise significant influence to the operation of BEMC. | |||||||||||||||||
-2 | On February 15, 2012 and March 13, 2012, the Group and Beijing N-S Digital TV Co., Ltd. ("N-S Digital TV") established two joint ventures, Shibo Movie and Xinghe Union, respectively. The registered capital of Shibo Movie and Xinghe Union was $1,558 each. The Group and N-S Digital TV each contributed $794, representing 50% of the equity interest in each Shibo Movie and Xinghe Union. Shibo Movie is engaged in movie technology development and consulting services, and Xinghe Union is engaged in movie and TV series investment and publishing, advertisement design and production. These joint ventures were established pursuant to a framework agreement entered into with Beijing Super TV Co., Ltd. ("Super TV") in June 2011 and the supplemental agreement entered into with Super TV and N-S Digital TV in January 2012. | ||||||||||||||||
In September 2013, the Group entered into an equity swap agreement with N-S Digital TV under which the Group exchanged its 50% equity interests in Shibo Movie for the 50% equity interests in Xinghe Union. Pursuant to the agreement, the equity transaction is considered as completed substantially on February 28, 2014. The Group derecognized the equity method investments in both Xinghe Union and Shibo Movie with an investment loss of $164 recognized in the transaction. | |||||||||||||||||
As a result, Xinghe Union became a subsidiary and was consolidated in the Group after the transaction date. | |||||||||||||||||
-3 | In April 2012, The Group entered into an agreement with Asiaray Advertising Media Ltd. ("Asiaray") and Guangxi Civil Aviation Development Co., Ltd. ("Guangxi Civil Aviation") to establish a joint venture, Guangxi Dingyuan. Guangxi Dingyuan was incorporated on April 18, 2012 with total contributed capital of $1,605, of which 20%, 40% and 40% of that amount was contributed by Guangxi Civil Aviation, Asiaray and the Group, respectively. Guangxi Dingyuan exclusively operates various media resources in four airports in China's Guangxi province. | ||||||||||||||||
The investment was accounted for using the equity method of accounting as the Group has the ability to exercise significant influence to the operation of Guangxi Dingyuan. | |||||||||||||||||
-4 | In December 2013, the Group entered into an agreement with Zhejiang Tianguang Diying Production Co., Ltd. to establish a joint venture, AM Guangying. AM Guangying was incorporated on December 25, 2013 with total contributed capital of $1,871, of which 52% and 48% of that amount was contributed by Zhejiang Tianguang Diying Production Co., Ltd. and the Group, respectively. In March 2014, the Group participated a capital call at $1,629 without any change of its equity interest. As a result, the total contributed capital by the Group was $2,520 as of December 31, 2014. AM Guangying is mainly engaged in film production. | ||||||||||||||||
The investment was accounted for using the equity method of accounting as the Group has the ability to exercise significant influence to the operation of AM Guangying. | |||||||||||||||||
-5 | In December 2013, the Group entered into an agreement with Hainan Airlines Culture Co., Ltd. ("Hainan Airlines") to establish a joint venture, Yunxing Chuangrong. Yunxing Chuangrong was registered on December 17, 2013 with total contributed capital of $4,956. The Group and Hainan Airlines each contributed $2,478, representing 50% of the equity interest. Yunxing Chuangrong is established for its operation in the in-flight internet business. | ||||||||||||||||
The investment was accounted for using the equity method of accounting as the Group has the ability to exercise significant influence to the operation of Yunxing Chuangrong. | |||||||||||||||||
-6 | In June 2014, the Group sold 51% equity interests in AM Jiaming to an individual with consideration of $53. The disposal gain of $19 was recognized in the year ended December 31, 2014. AM Jiaming was changed from a wholly-owned subsidiary to a 49% equity method investee of the Group. | ||||||||||||||||
The investment was accounted for using the equity method of accounting as the Group has the ability to exercise significant influence to the operation of AM Jiaming. After sharing the Company's share of loss, the carrying value of the long-term investment in AM Jiaming was decreased to il as of December 31, 2014. | |||||||||||||||||
-7 | In December 2014, the Group entered into an agreement with Qingdao International Airport Group Co., Ltd. ("Qingdao Airport") to establish a joint venture, Qingdao AM. Qingdao AM was registered on December 25, 2014 with total committed capital contribution of $1,607. The Group and Qingdao Airport each committed to contribute $788 and $819, respectively, representing 49% and 51% of the equity interest of Qingdao AM. The Group paid the whole capital injection of $788 to Qingdao AM in January 2015. Qingdao AM exclusively operates various media resources in Qingdao International Airport. | ||||||||||||||||
The investment was accounted for using the equity method of accounting as the Group has the ability to exercise significant influence to the operation of Qingdao AM. | |||||||||||||||||
-8 | In December 2014, the Group entered into an agreement with Beijing East Culture Media Co., Ltd. ("East Jiacheng") to establish a joint venture, Jiacheng Advertising. Jiacheng Advertising was registered on December 12, 2014 with total committed capital contribution of $4,849. The Group and East Jiacheng each committed to contribute $1,455 and $3,394, respectively, representing 30% and 70% of the equity interest of Jiaming Advertising. As of December 31, 2014, the Group did not pay any capital into Jiacheng Advertising. The capital contribution shall be paid within 50 years which is permitted under current PRC laws. Jiacheng Advertising mainly operates digital TV media resources. | ||||||||||||||||
The investment was accounted for using the equity method of accounting as the Group has the ability to exercise the significant influence to the operation of Jiacheng Advertising. | |||||||||||||||||
(b) | Cost method investment | ||||||||||||||||
In June 2010, the Group invested $367 for 20% of equity interest in Zhangshangtong Air Service (Beijing) Co., Ltd. ("Zhangshangtong"), a company established in the PRC that is mainly engaged in air tickets agency services. |
ACCOUNTS_RECEIVABLE_NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
ACCOUNTS RECEIVABLE, NET [Abstract] | |||||||||||||||||||||
ACCOUNTS RECEIVABLE, NET | 6 | ACCOUNTS RECEIVABLE, NET | |||||||||||||||||||
Accounts receivable, net, consists of the following: | |||||||||||||||||||||
As of December 31, | |||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||
Billed receivable | $ | 64,031 | $ | 44,528 | |||||||||||||||||
Unbilled receivable | 50,719 | 52,857 | |||||||||||||||||||
Accounts receivable, gross | 114,750 | 97,385 | |||||||||||||||||||
Less: Allowance for doubtful accounts | (7,221 | ) | (12,392 | ) | |||||||||||||||||
Accounts receivable, net | $ | 107,529 | $ | 84,993 | |||||||||||||||||
Unbilled receivable represents amounts earned under the advertising contracts in progress but not billable at the respective balance sheet dates. These amounts become billable according to the contract term. The Group anticipates that the majority of such unbilled amounts will be billed and collected within twelve months of the balance sheet date. | |||||||||||||||||||||
Movement of allowance for doubtful accounts is as follows: | |||||||||||||||||||||
Balance at | Balance at | ||||||||||||||||||||
beginning | Charge to | Exchange | end of the | ||||||||||||||||||
of the year | expenses | Write off | adjustment | year | |||||||||||||||||
2012 | $ | 3,288 | 1,242 | 34 | 45 | $ | 4,609 | ||||||||||||||
2013 | $ | 4,609 | 2,439 | - | 173 | $ | 7,221 | ||||||||||||||
2014 | $ | 7,221 | 5,623 | (247 | ) | (205 | ) | $ | 12,392 |
OTHER_CURRENT_ASSETS
OTHER CURRENT ASSETS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
OTHER CURRENT ASSETS [Abstract] | |||||||||
OTHER CURRENT ASSETS | 7 | OTHER CURRENT ASSETS | |||||||
Other current assets consist of the following: | |||||||||
As of December 31, | |||||||||
2013 | 2014 | ||||||||
Input VAT receivable | $ | 12,800 | $ | 16,692 | |||||
Prepaid selling and marketing fees(i) | - | 2,625 | |||||||
Advances to employees | 428 | 1,235 | |||||||
Short-term deposits | 449 | 1,142 | |||||||
Prepaid agency fees | 538 | 579 | |||||||
Prepaid income tax | 684 | 473 | |||||||
Prepaid individual income tax | - | 451 | |||||||
Other assets from nonmonetary transactions | 182 | 467 | |||||||
Receivables from ADS depositary | - | 463 | |||||||
Interest receivable | 422 | 267 | |||||||
Investment in films and TV Series(ii) | 3,634 | - | |||||||
Other prepaid expenses | 1,300 | 1,226 | |||||||
$ | 20,437 | $ | 25,620 | ||||||
(i) | Prepaid selling and marketing fees represents the prepayments for promotion of the Group's digital frame media in airports. | ||||||||
(ii) | Investment in films and TV Series represents the amount invested in films and TV Series produced by other companies, which are expected to receive investment returns within one year. Please see Note 9 for details. |
ASSETS_HELD_FOR_SALE
ASSETS HELD FOR SALE | 12 Months Ended | |
Dec. 31, 2014 | ||
ASSETS HELD FOR SALE [Abstract] | ||
ASSETS HELD FOR SALE | 8 | ASSETS HELD FOR SALE |
On January 13, 2015, the Group entered into an agreement with Beijing Tianyi Culture Development Co., Ltd., a third party, to sell 81% equity interest in AM Jinsheng as well as related property, plant and equipment for a consideration of $1,227, which operates the Group's TV-attached digital frames business (Note 28). As part of the transaction, the property, plant and equipment at net carrying value of $1,087 will be transferred, which has been classified as assets held for sale as of December 31, 2014. No impairment was recorded for the assets held for sale. |
OTHER_NONCURRENT_ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended | |
Dec. 31, 2014 | ||
OTHER NON-CURRENT ASSETS [Abstract] | ||
OTHER NON-CURRENT ASSETS | 9 | OTHER NON-CURRENT ASSETS |
The Group invests in films and TV Series, which are produced by other third parties, and shares profit of the invested films and TV Series based on its investment as a percentage of the total investment for a film or TV Series. | ||
Amounts related to the investments in films and TV Series that are expected to receive investment returns within one year after year end are recorded as other current assets (Note 7), otherwise are recorded as other non-current assets. The investments of $661 and $6,128 were recorded as other non-current assets for the years ended December 31, 2013 and 2014, respectively. | ||
The Group also entered into agreements with other investors to invest together on certain film or TV Series, which are produced by third parties, and share the profit of the invested films and TV Series proportionally based on their investments. The Group received the investment from other investors, and recorded it as other non-current liabilities amounted to $1,257 as of December 31, 2014 due to the long-term of expected investment returns. | ||
LONGTERM_DEPOSITS
LONG-TERM DEPOSITS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
LONG-TERM DEPOSITS [Abstract] | |||||||||
LONG-TERM DEPOSITS | 10 | LONG-TERM DEPOSITS | |||||||
Long term deposits consist of the following: | |||||||||
As of December 31, | |||||||||
2013 | 2014 | ||||||||
Concession fee deposits | $ | 19,780 | $ | 19,544 | |||||
Office rental deposits | 717 | 756 | |||||||
$ | 20,497 | $ | 20,300 | ||||||
Concession fee deposits normally have terms of three to five years and are refundable at the end of the concession terms. Office rental deposits normally have terms of two to three years and are refundable at the end of the lease term. | |||||||||
The long term deposits are not within the scope of the accounting guidance regarding interests on receivables and payables, because they are intended to provide security for the counterparty to the concession rights or office rental agreements. Therefore, the deposits are recorded at costs. |
ACQUIRED_INTANGIBLE_ASSETS_NET
ACQUIRED INTANGIBLE ASSETS, NET | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
ACQUIRED INTANGIBLE ASSETS, NET [Abstract] | |||||||||||||||||||||||||||||||||
ACQUIRED INTANGIBLE ASSETS, NET | 11 | ACQUIRED INTANGIBLE ASSETS, NET | |||||||||||||||||||||||||||||||
Acquired intangible assets, net, consist of the following: | |||||||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||||||||||
Gross | Net | Gross | Net | ||||||||||||||||||||||||||||||
carrying | Accumulated | Accumulated | carrying | carrying | Accumulated | Accumulated | carrying | ||||||||||||||||||||||||||
amount | amortization | impairment | amount | amount | amortization | impairment | amount | ||||||||||||||||||||||||||
TV program license | $ | 6,372 | $ | (1,903 | ) | $ | (4,469 | ) | $ | - | $ | 6,217 | $ | (1,857 | ) | $ | (4,360 | ) | $ | - | |||||||||||||
Audio-vision programming and broadcasting qualification | 229 | (39 | ) | (190 | ) | - | 224 | (38 | ) | (186 | ) | - | |||||||||||||||||||||
Customer relationships | 1,553 | (1,490 | ) | (63 | ) | - | 1,516 | (1,454 | ) | (62 | ) | - | |||||||||||||||||||||
Contract backlog | 2,035 | (2,003 | ) | (32 | ) | - | 1,986 | (1,955 | ) | (31 | ) | - | |||||||||||||||||||||
Concession agreements | 17,337 | (10,633 | ) | (5,258 | ) | 1,446 | 11,932 | (6,625 | ) | (4,500 | ) | 807 | |||||||||||||||||||||
Non-compete agreements | 194 | (184 | ) | (10 | ) | - | 190 | (180 | ) | (10 | ) | - | |||||||||||||||||||||
$ | 27,720 | $ | (16,252 | ) | $ | (10,022 | ) | $ | 1,446 | $ | 22,065 | $ | (12,109 | ) | $ | (9,149 | ) | $ | 807 | ||||||||||||||
The Group incurred impairment losses of $9,583, nil and nil on definite-lived intangible assets for the years ended December 31, 2012, 2013 and 2014, respectively. As the actual and expected sales and profits were below previously forecasted figures for fire station, air travel and outdoor advertising media, the carrying amounts of the definite-lived intangible assets exceeded the estimated future discounted cash flows associated with such assets. Accordingly, the amount of impairment expense recognized is equal to this excess. | |||||||||||||||||||||||||||||||||
The amortization expenses for the years ended December 31, 2012, 2013 and 2014 were $2,635, $836 and $606, respectively. During fiscal years 2015, 2016, 2017, 2018 and thereafter, the Group expects to record amortization expenses for definite-lived intangible assets of $274, $273, $130 and $130, respectively. |
GOODWILL
GOODWILL | 12 Months Ended | ||
Dec. 31, 2014 | |||
GOODWILL [Abstract] | |||
GOODWILL | 12 | GOODWILL | |
The Group has four reporting units: the advertising media in air travel areas, the advertising media in gas station, the outdoor advertising media and the fire station advertising media. Applying discounted cash flows for its 2012 annual impairment test, the estimated fair value of the fire station reporting unit was below the carrying amount of its net assets. The fair value of the air travel areas and outdoor advertising media reporting unit, as estimated using the income approach applying a discounted cash flows for its 2012 annual impairment test, was below the carrying amount of its net assets, and as such, the Group impaired all goodwill related to air travel areas reporting unit and outdoor media advertising media reporting unit and recorded an impairment loss of $20,611, nil and nil for the years ended December 31, 2012, 2013 and 2014, respectively. | |||
PROPERTY_AND_EQUIPMENT_NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
PROPERTY AND EQUIPMENT, NET [Abstract] | |||||||||
PROPERTY AND EQUIPMENT, NET | 13 | PROPERTY AND EQUIPMENT, NET | |||||||
Property and equipment, net, consist of the following: | |||||||||
As of December 31, | |||||||||
2013 | 2014 | ||||||||
Digital display network equipment | $ | 90,053 | $ | 79,348 | |||||
Gas station display network equipment | 10,686 | 23,261 | |||||||
Software | 10,656 | 10,952 | |||||||
Property | 4,368 | 6,194 | |||||||
Computer and office equipment | 2,999 | 3,627 | |||||||
Vehicle | 1,406 | 1,465 | |||||||
Leasehold improvement | 1,365 | 1,317 | |||||||
Furniture and fixture | 882 | 883 | |||||||
122,415 | 127,047 | ||||||||
Less: accumulated depreciation | (86,331 | ) | (76,718 | ) | |||||
$ | 36,084 | $ | 50,329 | ||||||
Depreciation expenses recorded for the years ended December 31, 2012, 2013 and 2014 were $21,398, $21,026 and $13,925, respectively. |
PREPAID_EQUIPMENT_COST
PREPAID EQUIPMENT COST | 12 Months Ended | ||
Dec. 31, 2014 | |||
Prepaid Equipment Cost [Abstract] | |||
PREPAID EQUIPMENT COST | 14 | PREPAID EQUIPMENT COST | |
On May 12, 2013, the Group entered into an agreement with Elec-Tech International Co., Ltd. ("Elec-Tech") to exchange the equity interests of GreatView Media, one of the VIE's subsidiaries, with LED screens from Elec-Tech, pursuant to which Elec-Tech would invest $104,000 in total (equivalent to RMB640 million) to purchase approximately 21.27% of the equity interest of GreatView Media, in exchange, GreatView Media undertook to exclusively use the equal amounts of such injections to purchase LED screens from Elec-Tech or its subsidiaries. The Group considered this transaction a nonmonetary transaction. The Group measured the fair value of equity interests surrendered based on the fair value of LED screens received, which is more clearly determinable. The details of fair value measurement are disclosed in Note 20. The Group would not recognize any gain or loss from this transaction. | |||
As of December 31, 2013 and 2014, Elec-Tech had injected total $57,217 and $68,458 into GreatView Media, of which $56,113 and $67,015 were recorded as additional paid-in capital respectively. The Group has purchased 1,000 and 1,200 sets of LED screens in total from Elec-Tech, amounting to $49,415 and $58,182 for its gas station media business. as of December 31, 2013 and 2014, respectively. As of December 31, 2014, the Group has installed and accepted 263 sets of LED screens amounting to $12,680. |
ACCRUED_EXPENSES_AND_OTHER_CUR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 15 | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||||||
Accrued expenses and other current liabilities consist of the follows: | |||||||||
As of December 31, | |||||||||
2013 | 2014 | ||||||||
Accrued payroll and welfare | $ | 4,469 | $ | 3,693 | |||||
Other tax payable | 2,942 | 3,013 | |||||||
Accrued staff disbursement | 1,103 | 1,812 | |||||||
Deposit payable | 1,203 | 1,228 | |||||||
Other liabilities | 666 | 673 | |||||||
Accrued professional fees | 388 | 583 | |||||||
Accrued selling and marketing fees | - | 423 | |||||||
Dividends payable to non-controlling interests holder | - | 73 | |||||||
Deferred income from ADS depositary | 112 | - | |||||||
$ | 10,883 | $ | 11,498 |
SHORTTERM_LOAN
SHORT-TERM LOAN | 12 Months Ended | |
Dec. 31, 2014 | ||
SHORT-TERM LOAN [Abstract] | ||
SHORT-TERM LOAN | 16 | SHORT-TERM LOAN |
In January 2014, the Group entered into a short-term loan agreement with Bank of Ping'An for a loan of $1,800 from January 8, 2014 to January 7, 2015 with an annual interest rate of 2.89%. | ||
In March 2014, the Group entered into a short-term loan agreement with Bank of Ping'An for another loan of $1,200 from March 31, 2014 to March 30, 2015 with an annual interest rate of 2.86%. | ||
The interest expenses for the loans were $77 for the year ended December 31, 2014. As of March 31, 2015, both of the loans and interest expense were fully repaid. | ||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
INCOME TAXES [Abstract] | |||||||||||||
INCOME TAXES | 17 | INCOME TAXES | |||||||||||
AirMedia is a tax-exempted company incorporated in the Cayman Islands. | |||||||||||||
Broad Cosmos and Excel Lead are tax-exempted company incorporated in the British Virgin Islands. | |||||||||||||
AM China and Glorious Star did not have any assessable profits arising in or derived from Hong Kong for the years ended December 31, 2012, 2013 and 2014, and accordingly no provision for Hong Kong Profits Tax was made in these years. | |||||||||||||
The Group's subsidiaries in the PRC are all subject to PRC Enterprise Income Tax ("EIT") on the taxable income in accordance with the relevant PRC income tax laws and regulations. The EIT rate for the Group's operating in PRC was 25% with the following exceptions. | |||||||||||||
AM Technology qualified for the High and New -Tech Enterprise ("HNTE") status that would allow for a reduced 15% tax rate under EIT Law since year 2006. AM Technology was subject to an EIT rate of 15% in 2012, 2013 and 2014, and is expected to be subject to an EIT rate of 15% as long as it maintains its status as a HNTE. | |||||||||||||
Shenzhen AM is subject to EIT on the taxable income at the gradual rate, which is 24% in 2011 and 25% in 2012 and thereafter, according to transitional rules of the New EIT Law. Since Shenzhen AM is also qualified as a "manufacturing foreign-invested enterprise" incorporated prior to the effectiveness of the New EIT Law, it is further entitled to the EIT rates of 12.5% for the year 2012. For the year 2013 and thereafter, it is subject to an EIT rate of 25%. | |||||||||||||
Xi'an AM qualified as a "Software Enterprise" in August 2008 by Technology Information Bureau of Shaanxi province, and therefore is entitled to a two-year exemption from the EIT commencing from its first profitable year and a 50% deduction of 25% EIT rate for the succeeding three years, with approved by the relevant tax authorities. As Xi'an AM first made profit in 2009, it was exempted from EIT in 2009 and 2010, and enjoys the preferential income tax rate of 12.5% from 2011 to 2013, In 2014, Xi'an AM qualified as HNTE and entitled to an EIT rate of 15% for the year 2014 is expected to be subject to an EIT rate of 15% as long as it maintains its status as a HNTE. | |||||||||||||
Income tax (expenses) /benefits are as follows: | |||||||||||||
For the years ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Income tax (expenses)/benefits: | |||||||||||||
Current | $ | (4,324 | ) | $ | (2,250 | ) | $ | (1,921 | ) | ||||
Deferred | 1,831 | 3,963 | 1,491 | ||||||||||
Total | $ | (2,493 | ) | $ | 1,713 | $ | (430 | ) | |||||
The principal components of the Group's deferred income tax assets and liabilities are as follows: | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2014 | ||||||||||||
Deferred tax assets: | |||||||||||||
Current | |||||||||||||
Allowance for doubtful accounts | $ | 2,003 | $ | 3,375 | |||||||||
Accrued payroll | 1,046 | 870 | |||||||||||
Employee education fee excess | 24 | - | |||||||||||
Valuation allowance | (297 | ) | (2,660 | ) | |||||||||
Deferred tax assets - current | 2,776 | 1,585 | |||||||||||
Non-current | |||||||||||||
Depreciation of property and equipment | 622 | 517 | |||||||||||
Amortization of intangible assets and concession fees | 5,476 | 4,870 | |||||||||||
Net operating loss carry forwards | 13,231 | 17,825 | |||||||||||
Valuation allowance | (7,575 | ) | (9,280 | ) | |||||||||
Deferred tax assets - non-current | 11,754 | 13,932 | |||||||||||
Total deferred tax assets | 14,530 | 15,517 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Non-current | |||||||||||||
Acquired intangible assets | 361 | 202 | |||||||||||
Total deferred tax liabilities | $ | 361 | $ | 202 | |||||||||
The valuation allowance provided as of December 31, 2014 relates to the deferred tax assets generated by AM advertising, AM Technology, Shenzhen AM, Xi'an AM, Shengshi Lianhe, Jiaming Advertising, AM Yuehang, AM Film, AM Jinshi, AM Lianhe, AM Wenzhou, TJ Jinshi, Dongding, AM Outdoor, GreatView Media, AM Jinsheng, Guangzhou Meizheng and AM Tianyi, and was recognized based on the Group's estimates of the future taxable income of these entities, because the Group believes that either it is more likely than not that the deferred tax assets for these entities will not be realized as it does not expect to generate sufficient taxable income in future, or the amount involved is not significant. The Group's subsidiaries in the PRC had total net operating loss carry forwards of $75,647 as of December 31, 2014. The net operating loss carry forwards for the PRC subsidiaries will expire on various dates through year 2019. | |||||||||||||
Reconciliation between the provision for income taxes computed by applying the PRC EIT rate of 25% to income before income taxes and the actual provision of income taxes is as follows: | |||||||||||||
For the years ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Net loss before provision for income taxes | $ | (29,770 | ) | $ | (13,164 | ) | $ | (31,204 | ) | ||||
PRC statutory tax rate | 25 | % | 25 | % | 25 | % | |||||||
Income tax at statutory tax rate | (7,443 | ) | (3,291 | ) | (7,801 | ) | |||||||
Expenses not deductible for tax purposes: | |||||||||||||
Entertainment expenses exceeded the tax limit | 315 | 321 | 299 | ||||||||||
Goodwill impairment | 5,153 | - | - | ||||||||||
Tax effect of tax losses not recognized | 2,791 | 346 | 10 | ||||||||||
Tax effect of deductible temporary difference not recognized | 1,425 | 1,972 | 1,831 | ||||||||||
Changes in valuation allowance | (471 | ) | (571 | ) | 4,068 | ||||||||
Effect of preferential tax rates granted to PRC entities | (675 | ) | (1,079 | ) | 1,209 | ||||||||
Effect of income tax rate difference in other jurisdictions | 1,398 | 589 | 814 | ||||||||||
Income tax expenses/ (benefits) | $ | 2,493 | $ | (1,713 | ) | $ | 430 | ||||||
Effective tax rates | (8.4 | )% | 13 | % | (1.4 | )% | |||||||
If the Group's subsidiaries, VIEs and VIEs' subsidiaries in the PRC were not in a tax holiday period in the years ended December 31, 2012, 2013 and 2014, the impact to net loss per share amounts would be as follows: | |||||||||||||
For the years ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Increase/(decrease) in income tax expenses | $ | 675 | $ | 1,079 | $ | (1,209 | ) | ||||||
Increase/(decrease) in net loss per ordinary share-basic | 0.01 | 0.01 | (0.01 | ) | |||||||||
Increase/(decrease) in net loss per ordinary share-diluted | 0.01 | 0.01 | (0.01 | ) | |||||||||
The Group did not identify significant unrecognized tax benefits for the years ended December 31, 2012, 2013 and 2014. The Group did not incur any interest and penalties related to potential underpaid income tax expenses for the years ended December 31, 2012, 2013 and 2014. | |||||||||||||
Since the commencement of operations in August 2005, only AM Technology and Shenzhen AM have been subjected to a tax examination by the relevant PRC tax authorities. The Group's subsidiaries, VIEs and VIEs' subsidiaries remain subject to tax examinations at the tax authority's discretion. | |||||||||||||
Uncertainties exist with respect to how the current income tax law in the PRC applies to the Group's overall operations, and more specifically, with regard to tax residency status. New EIT Law includes a provision specifying that legal entities organized outside of China will be considered residents for Chinese income tax purposes if the place of effective management or control is within China. The Implementation Rules to the New EIT Law provide that non-resident legal entities will be considered China residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting, properties, etc., occurs within China. Additional guidance is expected to be released by the Chinese government in the near future that may clarify how to apply this standard to tax payers. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Group does not believe that its legal entities organized outside of China should be treated as residents for New EIT Law purposes. If the PRC tax authorities subsequently determine that the Company and its subsidiaries registered outside the PRC should be deemed resident enterprises, the Company and its subsidiaries registered outside the PRC will be subject to the PRC income tax at a rate of 25%. | |||||||||||||
Under applicable accounting principles, a deferred tax liability should be recorded for taxable temporary differences attributable to the excess of financial report over tax basis, including those differences attributable to a more than 50% interest in a subsidiary. However, the Company's subsidiaries located in the PRC had been in loss position and had accumulated deficit as of December 31, 2012, 2013 and 2014, and the tax basis for the investment was greater than the carrying value of this investment. A deferred tax asset should be recognized for this temporary difference only if it is apparent that the temporary difference will reverse in the foreseeable future. Absent of evidence of a reversal in the foreseeable future, no deferred tax asset for such temporary difference was recorded. | |||||||||||||
Aggregate undistributed earnings of the Company's subsidiaries located in the PRC that are available for distribution to the Company are considered to be indefinitely reinvested and accordingly, no provision has been made for the Chinese dividend withholding taxes that would be payable upon the distribution of those amounts to the Company. The Chinese tax authorities have also clarified that distributions made out of pre January 1, 2008 retained earnings will not be subject to the withholding tax. |
NET_LOSS_PER_SHARE
NET LOSS PER SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
NET LOSS PER SHARE [Abstract] | |||||||||||||
NET LOSS PER SHARE | 18 | NET LOSS PER SHARE | |||||||||||
The calculation of the net loss per share is as follows: | |||||||||||||
For the years ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Net loss attributable to AirMedia Group Inc.'s ordinary shareholders (numerator) | $ | (32,728 | ) | $ | (10,626 | ) | $ | (25,695 | ) | ||||
Shares (denominator): | |||||||||||||
Weighted average ordinary shares outstanding used | |||||||||||||
in computing net loss per ordinary share - basic | 124,269,245 | 120,386,635 | 119,304,773 | ||||||||||
Weighted average ordinary shares outstanding used | |||||||||||||
in computing net loss per ordinary share - diluted (i) | 124,269,245 | 120,386,635 | 119,304,773 | ||||||||||
Net loss per ordinary share-basic | $ | (0.26 | ) | $ | (0.09 | ) | $ | (0.22 | ) | ||||
Net loss per ordinary share-diluted | (0.26 | ) | (0.09 | ) | (0.22 | ) | |||||||
(i) | The effect of options was excluded from the computation of diluted loss per share for the years ended December 31, 2012, 2013 and 2014, respectively, as the effect would be anti-dilutive. |
SHARE_BASED_PAYMENTS
SHARE BASED PAYMENTS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
SHARE BASED PAYMENTS [Abstract] | |||||||||||||||||||||
SHARE BASED PAYMENTS | 19 | SHARE BASED PAYMENTS | |||||||||||||||||||
2007 Share incentive plan | |||||||||||||||||||||
On July 2, 2007, the Board of Directors adopted the 2007 share incentive plan (the "2007 Option Plan"), which allows the Group to grant options to its employees and directors to purchase up to 12,000,000 ordinary shares of the Company subject to vesting requirement. | |||||||||||||||||||||
On December 29, 2008, the Board of Directors amended 2007 Option Plan to allow the Group to grant options to its employees and directors to purchase up to 17,000,000 ordinary shares. | |||||||||||||||||||||
On September 1, 2012, the Board of Directors approved to grant options to the employees under 2007 Share Incentive Plan to purchase an aggregate of 1,857,538 ordinary shares of the Company, at an exercise price of $0.72 per ordinary share. One twelfth of the options will vest each quarter from September 4, 2012. The expiration date will be 5 years from the grant date. | |||||||||||||||||||||
On October 10, 2012, the Board of Directors approved the Company to extend the expiration date of the options granted on July 2, 2007, November 29, 2007 and July 10, 2009 to November 29, 2015. Modified awards are viewed as an exchange of the original award for a new award. The fair value of the stock options, which was $0.33 per share as of the modification date, was estimated using the Black-Scholes model. The incremental compensation cost of the modified award was $449, which was recognized as share-based compensation expenses for the year ended December 31, 2012. | |||||||||||||||||||||
On April 15, 2014, the Board of Directors approved to extend the expiration dates of the options granted on November 29, 2007 and July 10, 2009 from April 28, 2014 to April 28, 2016. Modified awards are viewed as an exchange of the original award for a new award. The fair value of the stock options, which was $0.21 and $0.21 per share respectively, as of the modification dates, was estimated using the Black-Scholes model. The incremental compensation cost of the modified award were $4 and $4, respectively, which were recognized as share-based compensation expenses for the year ended December 31, 2014. | |||||||||||||||||||||
On May 31, 2014, the former CFO resigned and the Board of Directors approved the amendment of his share option agreement. On the date of resignation, 575,440 unvested options were cancelled and the expiration date of 1,282,098 vested options was modified from September 3, 2017 to May 31, 2016. The fair value of the stock options, which was $0.43 per share as of the modification date, was estimated using the Black-Scholes model. The incremental compensation cost of the modified award was $201, which was recognized as share-based compensation expenses for the year ended December 31, 2014. | |||||||||||||||||||||
On June 9, 2014, the Board of Directors approved to extend the expiration date of the options granted on July 10, 2009 from July 11, 2014 to July 11, 2016. Modified awards are viewed as an exchange of the original award for a new award. The fair value were $0.22 and $0.12 per share for the stock options whose exercise price were $1.15 and $1.57 per share respectively, as of the modification date, was estimated using the Black-Scholes model. The incremental compensation costs of the modified award were $686 and $5, respectively, which were recognized as share-based compensation expenses for the year ended December 31, 2014. | |||||||||||||||||||||
On June 9, 2014, Board of Directors of the Group approved to extend the expiration date of the options granted on November 1, 2012 from November 11, 2014 to November 11, 2016. Modified award is viewed as an exchange of the original award for a new award. The fair value of the stock options, which was $0.25 per share as of the modification date, was estimated using the Black-Scholes model. The incremental compensation cost of the modified award was $4, which was recognized as share-based compensation expenses for the year ended December 31, 2014. | |||||||||||||||||||||
2011 Share incentive plan | |||||||||||||||||||||
On March 18, 2011, the Board of Directors adopted 2011 Share Incentive Plan (the "2011 Option Plan"), which allows the Group to grant options to its employees and directors to purchase up to 2,000,000 ordinary shares of the Company subject to vesting requirement. | |||||||||||||||||||||
On March 22, 2011, the Board of Directors granted options to Group's employees to purchase an aggregate of 2,180,000 ordinary shares of the Company under 2007 Option Plan and 2011 Option Plan, at an exercise price of $2.3 per share. The contractual term of the options was 5 or 10 years. One twelfth of these options will vest each quarter through March 22, 2014. Subsequently on June 7, 2011, the Board of Directors approved to modify the exercise price of these stock options to $1.57 per share. The fair value of these options at the modification date was estimated to be $0.75 per option. The incremental share based compensation costs of the re-priced options was $314 to be recognized over the remaining service period through March 22, 2014. | |||||||||||||||||||||
On August 23, 2011, the Board of Directors approved the adjustment of the exercise price of certain stock options that were granted on July 2, 2007, July 20, 2007, November 29, 2007, July 10, 2009 and March 22, 2011, which were subsequently modified from $1.57 per share to $1.15 per share. The fair value of the options on the modification date was $0.21, $0.22, $0.26, $0.39 and $0.53 per share, respectively, calculated using the Black-Scholes model. The incremental compensation cost of the re-priced options was $1,259, of which $950 was recognized on the modification date, and the remainder to be recognized over the remaining service period. | |||||||||||||||||||||
In September 2012, the former CFO of the Group resigned. Of the 600,000 options granted to her on March 22, 2011, 300,000 were vested through her date of resignation. In conjunction with her resignation, she signed a supplementary agreement with the Group that granted her 100,000 immediately exercisable options and 200,000 options that would vest through September 22, 2013. During the vesting period, she would provide consulting service as a consultant. For the 100,000 immediately exercisable options, a measurement date was reached upon grant and the Group immediately recognized $35 share-based compensation expenses. For the 200,000 options that vested through September 22, 2013, the Group recognized expense based on the fair value of the options as of each reporting date through the measurement date. For the years ended December 31, 2012, 2013 and 2014, the Group recognized $19, $59 and nil share-based compensation expense for these options, respectively. | |||||||||||||||||||||
2012 Share incentive plan | |||||||||||||||||||||
On November 30, 2012, the Board of Directors adopted 2012 Share Incentive Plan (the "2012 Option Plan"), which allows the Group to grant options to its employees and directors to purchase up to 6,000,000 ordinary shares of the Company subject to vesting requirement. | |||||||||||||||||||||
On November 1 and November 30, 2012, the Group granted 20,000 options to a consultant under the 2007 Option Plan and 60,000 options under the 2012 Option Plan to purchase the Company's ordinary shares at an exercise price of $1.11 per share. 20,000 share options were vested immediately and one-third of the 60,000 share options vested on February 1, May 1 and August 1, 2013, respectively. | |||||||||||||||||||||
On June 1 and August 1, 2014, the Group granted 2,376,620 options and 140,000 options to its employees under the 2012 Option Plan to purchase the Company's ordinary shares at an exercise price of $1.025 and $1.045 per share, respectively. One twelfth of these options will vest each quarter through June 1, 2017 and August 1, 2017, respectively. The expiration date will be 5 years from the grant dates. | |||||||||||||||||||||
On October 13, 2014, an employee terminated his employment with the Group but continued to provide service as a nonemployee consultant, 50,000 options granted to him on August 1, 2014 were not modified in connection with the change in status, but future service is still necessary to earn the award. The compensation cost was measured as if the options were newly granted at the date of the change of status. The incremental share-based compensation expense for the year ended December 31, 2014 was not material. | |||||||||||||||||||||
The following summary of stock option activities under the 2007, 2011 and 2012 Share Incentive Plans as of December 31, 2014, reflective of all modifications is presented below: | |||||||||||||||||||||
Outstanding Options | |||||||||||||||||||||
Weighted average | Weighted average | Weighted average | Aggregate | ||||||||||||||||||
Number of | exercise price | grant-date | remaining | intrinsic | |||||||||||||||||
options | per option | fair value | contractual terms | value | |||||||||||||||||
Outstanding at January 1, 2014 | 14,655,530 | $ | 1.14 | $ | 1.27 | ||||||||||||||||
Granted | 2,516,620 | 1.03 | 0.49 | ||||||||||||||||||
Exercised | (808,278 | ) | 0.78 | 0.48 | |||||||||||||||||
Forfeited | (1,510,108 | ) | 1.12 | 0.95 | |||||||||||||||||
Outstanding at December 31, 2014 | 14,853,764 | $ | 1.15 | $ | 1.18 | 2.69 | 2,337 | ||||||||||||||
Options vested and expected to vest as of December 31, 2014 | 14,647,462 | $ | 1.15 | $ | 1.19 | 2.67 | 2,285 | ||||||||||||||
Options exercisable as of December 31, 2014 | 12,744,914 | $ | 1.17 | $ | 1.29 | 2.41 | 1,802 | ||||||||||||||
The total intrinsic value of options exercised during the years ended December 31, 2012, 2013 and 2014 were $66, $3 and $442, respectively. The total fair value of options vested during the years ended December 31, 2012, 2013 and 2014 were $3,503, $1,476 and $357, respectively. | |||||||||||||||||||||
The Group recorded share-based compensation of $3,502, $1,251 and $1,359 for the years ended December 31, 2012, 2013 and 2014, respectively. There was $908 of total unrecognized compensation expense related to unvested share options granted as of December 31, 2014. The expense is expected to be recognized over a weighted-average period of 2.43 years on a straight-line basis. | |||||||||||||||||||||
The fair value of each option granted was estimated on the date of grant/modification using the Black-Scholes option pricing model with the following assumptions used for grants during the applicable period. | |||||||||||||||||||||
For the years ended December 31, | |||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||
Risk-free interest rate of return | 0.12%-0.34% | 0.12%-1.10% | 0.10%-1.07% | ||||||||||||||||||
Expected term | 0.07-3.19 years | 0.33-4.42 years | 1.00-3.32 years | ||||||||||||||||||
Volatility | 67.57%-94.43% | 64.75%-94.43% | 63.10%-67.06% | ||||||||||||||||||
Dividend yield | - | - | - | ||||||||||||||||||
-1 | Volatility | ||||||||||||||||||||
The volatility of the underlying ordinary shares during the life of the options was estimated based on the historical stock price volatility of the Company's ordinary shares and listed shares of comparable companies over a period comparable to the expected term of the options. From March 2011, the volatility was estimated based on the historical volatility of the Company's share price as the Company has accumulated sufficient history of stock price for a period comparable to the expected term of the options. | |||||||||||||||||||||
-2 | Risk-free rate | ||||||||||||||||||||
Risk-free rate is based on yield of US Treasury bill as of valuation date with maturity date close to the expected term of the options. | |||||||||||||||||||||
-3 | Expected term | ||||||||||||||||||||
The expected term is estimated based on a consideration of factors including the original contractual term and the vesting term. | |||||||||||||||||||||
-4 | Dividend yield | ||||||||||||||||||||
The dividend yield was estimated by the Group based on its expected dividend policy over the expected term of the options. The Group has no plan to pay any dividend in the foreseeable future. Therefore, the Group considers the dividend yield to be zero. | |||||||||||||||||||||
-5 | Exercise price | ||||||||||||||||||||
The exercise price of the options was determined by the Group's Board of Directors. | |||||||||||||||||||||
-6 | Fair value of underlying ordinary shares | ||||||||||||||||||||
The closing market price of the ordinary shares of the Company as of the grant/modification date was used as the fair value of the ordinary shares on that date. |
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended | |
Dec. 31, 2014 | ||
FAIR VALUE MEASUREMENT [Abstract] | ||
FAIR VALUE MEASUREMENT | 20 | FAIR VALUE MEASUREMENT |
Measured on recurring basis | ||
The Group measured its financial assets and liabilities, including cash, restricted cash, accounts receivable, short-term investment, amounts due from related parties, short-term loans, accounts payable, and amounts due to related parties on a recurring basis as of December 31, 2013 and 2014. | ||
Cash, restricted cash and short-term investment are classified within Level 1 of the fair value hierarchy because they are valued based on the quoted market price in an active market. The carrying amounts of accounts receivable, amounts due from related parties, accounts payable and amounts due to related parties approximate their fair values due to their short-term maturity. | ||
Measured on non-recurring basis | ||
The Group measured the intangible assets at fair value on a nonrecurring basis as results of the impairment loss of $9,583 was recognized in 2012, as set forth in Note 11. The fair value was determined using models with significant unobservable inputs (Level 3 inputs), primarily the management projection on the discounted future cash flow and the discount rate. | ||
The Group measured the goodwill at fair value on a nonrecurring basis when it is annually evaluated or whenever events or changes in circumstances indicate that carrying amount of a reporting unit exceeds its fair value as a result of the impairment assessments (Note 12). The fair value was determined using models with significant unobservable inputs (Level 3 inputs), primarily the management projection on the discounted future cash flow and the discount rate. An impairment loss of $20,611 was recognized for the year ended December 31, 2012. | ||
The Group measured the assets held for sale at fair value on a nonrecurring basis based on level 1 the quoted market price in an active market. No impairment was recorded for year ended December 31, 2014. | ||
The Group measured the prepaid equipment cost exchanged with Elec-tech at fair value on a nonrecurring basis as result of the unit price of each LED screen of $58 as set forth in Note 14. For the years ended December 31, 2013 and 2014, the Group evaluated the fair value of the LED screens when the exchange transaction incurred. The fair value was determined using market approach (sales comparison method) with quoted price for similar assets in active market (Level 2 inputs). |
SHARE_REPURCHASE_PLAN
SHARE REPURCHASE PLAN | 12 Months Ended | |
Dec. 31, 2014 | ||
SHARE REPURCHASE PLAN [Abstract] | ||
SHARE REPURCHASE PLAN | 21 | SHARE REPURCHASE PLAN |
On March 21, 2011, the Board of Directors authorized the Company to repurchase up to $20 million of its own outstanding ADSs within two years from March 21, 2011. On September 26, 2012, the Board of Directors approved to increase the amount of the share repurchase program to $40 million of its own outstanding ADS and to extend the termination date of the share repurchase program to March 20, 2014. | ||
Up to December 31, 2014, the Company had repurchased an aggregate of 6,532,429 ADSs from the open market for a total consideration of $17.4 million, of which 2,190,685 ADSs had been cancelled and 4,341,744 ADSs were recorded as treasury stock. |
MAINLAND_CHINA_CONTRIBUTION_PL
MAINLAND CHINA CONTRIBUTION PLAN | 12 Months Ended | ||
Dec. 31, 2014 | |||
MAINLAND CHINA CONTRIBUTION PLAN [Abstract] | |||
MAINLAND CHINA CONTRIBUTION PLAN | 22 | MAINLAND CHINA CONTRIBUTION PLAN | |
Full time employees of the Group in the PRC participate in a government-mandated multiemployer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. PRC labour regulations require the Group to accrue for these benefits based on certain percentages of the employees' income. The total contribution for such employee benefits were $3,425, $4,412 and $5,145 for the years ended December 31, 2012, 2013 and 2014, respectively. |
STATUTORY_RESERVES
STATUTORY RESERVES | 12 Months Ended | ||
Dec. 31, 2014 | |||
STATUTORY RESERVES [Abstract] | |||
STATUTORY RESERVES | 23 | STATUTORY RESERVES | |
As stipulated by the relevant law and regulations in the PRC, the Group's subsidiaries, VIEs and VIEs' subsidiaries in the PRC are required to maintain non-distributable statutory surplus reserve. Appropriations to the statutory surplus reserve are required to be made at not less than 10% of profit after taxes as reported in the subsidiaries' statutory financial statements prepared under the PRC GAAP. Once appropriated, these amounts are not available for future distribution to owners or shareholders. Once the general reserve is accumulated to 50% of the subsidiaries' registered capital, the subsidiaries can choose not to provide more reserves. The statutory reserve may be applied against prior year losses, if any, and may be used for general business expansion and production and increase in registered capital of the subsidiaries. The Group allocated $824 and $413 to statutory reserves during the years ended December 31, 2013 and 2014, respectively. The statutory reserves cannot be transferred to the Company in the form of loans or advances and are not distributable as cash dividends except in the event of liquidation. |
RESTRICTED_NET_ASSETS
RESTRICTED NET ASSETS | 12 Months Ended | ||
Dec. 31, 2014 | |||
RESTRICTED NET ASSETS [Abstract] | |||
RESTRICTED NET ASSETS | 24 | RESTRICTED NET ASSETS | |
Relevant PRC laws and regulations restrict the WFOEs, VIEs and VIEs' subsidiaries from transferring a portion of their net assets, equivalent to the balance of their statutory reserves and their paid-in-capital, to the Group in the form of loans, advances or cash dividends. Relevant PRC statutory laws and regulations restrict the payments of dividends by the Group's PRC subsidiaries and VIEs and VIEs' subsidiaries from their respective retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. | |||
As of December 31, 2014, the balance of restricted net assets was $357,674, of which $158,704 was attributed to the paid-in-capital and statutory reserves of the VIEs and VIEs' subsidiaries, and $198,970 was attributed to the paid in capital and statutory reserves of WFOE, respectively. Under applicable PRC laws, loans from PRC companies to their offshore affiliated entities require governmental approval, and advances by PRC companies to their offshore affiliated entities must be supported by bona fide business transactions. |
COMMITMENTS
COMMITMENTS | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
COMMITMENTS [Abstract] | |||||
COMMITMENTS | 25 | COMMITMENTS | |||
(a) | Operating leases | ||||
The Group has entered into operating lease agreements principally for its office spaces in the PRC. These leases expire through 2018 and are renewable upon negotiation. Rental expenses under operating leases for the years ended December 31, 2012, 2013 and 2014 were $2,668, $3,312 and $3,985, respectively. | |||||
Future minimum rental lease payments under non-cancellable operating leases agreements were as follows: | |||||
Year | |||||
2015 | $ | 2,357 | |||
2016 | 50 | ||||
2017 | 10 | ||||
2018 | 6 | ||||
$ | 2,423 | ||||
(b) | Concession fees | ||||
The Group has entered into concession right agreements with vendors, such as airports, airlines and a petroleum company. The contract terms of such concession rights are usually three to five years. The concession rights expire through 2029 and are renewable upon negotiation. Concession fees charged into statements of operations for the years ended December 31, 2012, 2013 and 2014 were $177,996, $180,990 and $175,696, respectively. | |||||
Future minimum concession fee payments under non-cancellable concession right agreements were as follows: | |||||
Year | |||||
2015 | $ | 166,761 | |||
2016 | 77,640 | ||||
2017 | 52,093 | ||||
2018 | 33,843 | ||||
2019 | 21,654 | ||||
2020 and thereafter | 34,228 | ||||
$ | 386,219 | ||||
(c) | Capital commitments | ||||
The Group has entered into purchase agreements with vendors for media equipment in airports and gas stations and a property. The minimum purchase payments under non-cancellable purchase agreements were $42,455 and $275 for the years ending December 31, 2015 and 2016 and thereafter. | |||||
(d) | Other commitments | ||||
In December 2014, the Group has entered into an agreement with East Jiacheng to commit to contribute capital of $1,455 into Jiacheng Advertising, a joint venture invested by the Group and East Jiacheng. As of December 31, 2014, the Group had not paid any capital yet, which shall pay within 50 years which is permitted under by the current PRC laws. |
CONTINGENT_LIABILITIES
CONTINGENT LIABILITIES | 12 Months Ended | ||
Dec. 31, 2014 | |||
CONTINGENT LIABILITIES [Abstract] | |||
CONTINGENT LIABILITIES | 26 | CONTINGENT LIABILITIES | |
(a) | Outdoor advertisement registration certificate | ||
On May 22, 2006, the State Administration for Industry and Commerce, or the SAIC, a governmental authority in the PRC, amended the Provisions on the Registration Administration of Outdoor Advertisements, or the new outdoor advertisement provisions. Pursuant to the amended outdoor advertisement provisions, advertisements placed inside or outside of the "departure halls" of airports are treated as outdoor advertisements and must be registered in accordance with the local SAIC by "advertising distributors". To ensure that the Group's airport operations comply with the applicable PRC laws and regulations, the Group is in the process of making inquiries with the local SAICs in the cities in which the Group has operations or intends to operate with respect to the application for an advertising registration certificate. However, the local SAICs with whom the Group consulted have expressed different views on whether the advertisements shown on the Group's digital TV screens should be regarded as outdoor advertisements and how to register those advertisements. As of the date of these consolidated financial statements, the Group has registered and received outdoor advertising licenses for our advertisements in Beijing Capital International Airport, Shanghai Pudong International Airport, Shanghai Hongqiao Airport, and Shenyang Taoxian International Airport, and Changchun Longjia International Airport, and registrations have been approved by the SAIC offices in four other cities and provinces where the Group has operations for advertisements in the airports of those regions. Some local SAICs need more time to consider the implementation of the new outdoor advertising provisions and some SAICs do not require the Group to register. The Group intends to register with the relevant SAICs if the Group is required to do so, but the Group cannot assure that the Group will obtain the registration certificate in compliance with the new outdoor advertisement provisions due to the uncertainty in the implementation and enforcement of the regulations promulgated by the SAIC. If the requisite registration is not obtained, the relevant local SAICs may require the Group to forfeit advertising income earned, impose administrative fines of up to $5. They may also require the Group to discontinue advertisements at airports where the requisite advertising registration is not obtained, which may result in a breach of one or more of the Group's agreements with the Group's advertising clients and materially and adversely affect the Group's business and results of operations. As of December 31, 2014, the Group did not record a provision for this matter as management believes the possibility of adverse outcome of the matter is remote and any liability it may incur would not have a material adverse effect on its consolidated financial statements. However, it is not possible for the Group to predict the ultimate outcome and the possible range of the potential impact of failure to obtain such disclosed registrations and approvals primarily due to the lack of relevant data and information in the market in this industry in the past. | |||
(b) | Approval for non-advertising content | ||
A majority of the digital frames and digital TV screens in the Group's network include programs that consist of both advertising content and non-advertising content. On December 6, 2007, the State Administration of Radio, Film or Television, or the SARFT, a governmental authority in the PRC, issued the Circular regarding Strengthening the Management of Public Audio-Video in Automobiles, Buildings and Other Public Areas, or the SARFT Circular. According to the SARFT Circular, displaying audio-video programs such as television news, films and television shows, sports, technology and entertainment through public audio-video systems located in automobiles, buildings, airports, bus or train stations, shops, banks and hospitals and other outdoor public systems must be approved by the SARFT. The Group intends to obtain the requisite approval of the SARFT for the Group's non-advertising content, but the Group cannot assure that the Group will obtain such approval in compliance with this new SARFT Circular, or at all. In January 2014, the Group entered into a strategic alliance with China Radio International Oriental Network (Beijing) Co., Ltd ("CRION"), which manages the internet TV business of China International Broadcasting Network, to operate the CIBN-AirMedia channel for broadcast network TV programs to air travelers in China. According to the terms of the cooperation arrangement with CRION, during the cooperation period from March 28, 2014 to March 27, 2024, CRION shall obtain and, from time to time, be responsible for obtaining any approval, license and consent regarding the regulation of broadcasting and television from relevant authorities. | |||
There is no assurance that CRION will be able to obtain or maintain the requisite approval or the Group will be able to renew the contract with CRION when they expire. If the requisite approval is not obtained, the Group will be required to eliminate non-advertising content from the programs included in the Group's digital frames and digital TV screens and advertisers may find the Group's network less attractive and be unwilling to purchase advertising time slots on the Group's network. As of December 31, 2014, the Group did not record a provision for this matter as management believes the possibility of adverse outcome of the matter is remote and any liability it may incur would not have a material adverse effect on its consolidated financial statements. However, it is not possible for the Group to predict the ultimate outcome and the possible range of the potential impact of failure to obtain such disclosed registrations and approvals primarily due to the lack of relevant data and information in the market in this industry in the past. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
RELATED PARTY TRANSACTIONS [Abstract] | |||||||||||||||
RELATED PARTY TRANSACTIONS | 27 | RELATED PARTY TRANSACTIONS | |||||||||||||
(a) | Details of outstanding balances with the Group's related parties as of December 31, 2013 and 2014 were as follows: | ||||||||||||||
Amount due from related parties: | |||||||||||||||
Name of related parties | Relationship | As of December 31, | |||||||||||||
2013 | 2014 | ||||||||||||||
BEMC (1) | Equity method investment of the Group | $ | 187 | $ | 157 | ||||||||||
Jiacheng Advertising (2) | Equity method investment of the Group | - | 19 | ||||||||||||
Guangxi Dingyuan (3) | Equity method investment of the Group | - | 401 | ||||||||||||
AM Jiaming (4) | Equity method investment of the Group | - | 1,627 | ||||||||||||
Dingsheng Ruizhi (Beijing) Investment Consulting Co., Ltd. ("Dingsheng Ruizhi") (5) | Invested by management members of the Group | - | 322 | ||||||||||||
Beijing Dayun Culture Communication Co., Ltd ("Dayun Culture") (5) | Invested by management members of the Group | - | 796 | ||||||||||||
$ | 187 | $ | 3,322 | ||||||||||||
-1 | The amounts due from BEMC represents the uncollected advertising revenues earned from BEMC as of December 31, 2013 and 2014, respectively. | ||||||||||||||
-2 | The amounts due from Jiacheng Advertising represents the amount of digital TV on airplanes concession fee receivable as of December 31, 2014. | ||||||||||||||
-3 | The amounts due from Guangxi Dingyuan represents the amount of a deposit on concession fee receivable from Guangxi Dingyuan as of December 31, 2014. | ||||||||||||||
-4 | The amounts due from AM Jiaming includes a short-term loan to AM Jiaming amounted to $1,612 and related interest receivable of $15 as of December 31, 2014. | ||||||||||||||
-5 | The amounts due from Dingsheng Ruizhi and Dayun Culture represent the unreceived consideration of $322 and $796 for selling the 20% and 20% of equity interests in AM Film and AM Lianhe, respectively, as of December 31, 2014. | ||||||||||||||
(b) | Details of outstanding balances with the Group's related parties as of December 31, 2013 and 2014 were as follows: | ||||||||||||||
Amount due to a related party: | |||||||||||||||
Name of related parties | Relationship | As of December 31, | |||||||||||||
2013 | 2014 | ||||||||||||||
Qingdao AM | Equity method investment of the Group | $ | - | $ | 790 | ||||||||||
$ | - | $ | 790 | ||||||||||||
The amount due to Qingdao AM represents the capital contribution commitment of $790 to Qingdao AM as of December 31, 2014, which was paid in January 2015. | |||||||||||||||
(c) | Details of related party transactions occurred for the years ended December 31, 2012, 2013 and 2014 were as follows: | ||||||||||||||
Revenues earned from: | |||||||||||||||
For the years ended December 31 | |||||||||||||||
Name of related parties | Relationship | 2012 | 2013 | 2014 | |||||||||||
BEMC | Equity method investment of the Group | $ | 1,852 | $ | 681 | $ | - | ||||||||
Jiacheng Advertising | Equity method investment of the Group | - | - | 20 | |||||||||||
$ | 1,852 | $ | 681 | $ | 20 | ||||||||||
Concession cost purchased from: | |||||||||||||||
For the years ended December 31 | |||||||||||||||
Name of related parties | Relationship | 2012 | 2013 | 2014 | |||||||||||
Guangxi Dingyuan | Equity method investment of the Group | $ | - | $ | - | $ | 233 | ||||||||
$ | - | $ | - | $ | 233 | ||||||||||
Loan to a related party: | |||||||||||||||
For the years ended December 31 | |||||||||||||||
Name of related parties | Relationship | 2012 | 2013 | 2014 | |||||||||||
AM Jiaming(i) | Equity method investment of the Group | $ | - | $ | - | $ | 1,612 | ||||||||
$ | - | $ | - | $ | 1,612 | ||||||||||
(i) | In May 2014 and June 2014, the Group provide two loans to AM Jiaming, with amount of $806 and $806, respectively, at an annual interest rate equal to the bank lending rate over the same period, i.e. 6% for 2014. The loans will be due five days after the issuance of a written notice from the Group. No prepayment was received from AM Jiaming as of December 31, 2014. | ||||||||||||||
Equity transaction with related parties: | |||||||||||||||
For the years ended December 31 | |||||||||||||||
Name of related parties | Relationship | 2012 | 2013 | 2014 | |||||||||||
Dingsheng Ruizhi(ii) | Invested by management members of the Group | $ | - | $ | - | $ | 322 | ||||||||
Dayun Cluture(iii) | Invested by management members of the Group | - | - | 2,766 | |||||||||||
$ | - | $ | - | $ | 3,088 | ||||||||||
(ii) | In June 2014, the Group sold 20% equity interests in AM Film, a wholly-owned subsidiary, to Dingsheng Ruizhi with consideration of $322. After the transaction, the Group held 80% equity interests and remained the control over AM Film. | ||||||||||||||
(iii) | In August 2014, the Group sold 20% equity interests in AM Lianhe , a wholly-owned subsidiary, to Dayun Culture, with consideration of $2,766. After the transaction, the Group held 80% equity interests and remained the control over AM Lianhe. | ||||||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended | ||
Dec. 31, 2014 | |||
SUBSEQUENT EVENTS [Abstract] | |||
SUBSEQUENT EVENTS | 28 | SUBSEQUENT EVENTS | |
(a) | Disposal of TV-attached digital frames product line | ||
On January 13, 2015, the Group entered into an agreement with Beijing Tianyi Culture Development Co. Ltd., a third party, to sell 81% equity interests in AM Jinsheng as well as related property, plants and equipment for a cash consideration of $1,227. After the disposal, the Group held 19% equity interests in AM Jinsheng. In relation to the agreement, as of December 31, 2014, the Group classified the relevant property, plants and equipment expected to be transferred as assets held for sale (Note 8). The loss on the transaction has not been material. | |||
(b) | Acquisition of Guangzhou Xinyu Advertising Co., Ltd. | ||
On February 2, 2015, Guangzhou Meizheng acquired 100% equity interests of Guangzhou Xinyu Advertising Co., Ltd. (“Guangzhou Xinyu”) at a total cash consideration of $2,418 for its concession rights on Beijing railway D-prefaced bullet trains. The Group was still in the process of evaluating the fair value of the assets acquired. | |||
(c) | Disposal of 5% equity interest of AM Advertising | ||
On April 7, 2015, the Group entered into an agreement with Shenzhen Liantronics Co., Ltd., a third party, to sell 5% equity interest in AM Advertising, which was one of the VIEs of the Group, for a cash consideration of $24,186. | |||
(d) | Investment in Qingdao Jinshi Zhixin Investment Center (Limited Partnership) | ||
On February 2, 2015, the Group entered into an agreement with Qingdao Jinshi Zhixin Investment Center (Limited Partnership) (“Jinshi Zhixin”) to invest $8,066 in Jinshi Zhixin, as a limited partner. Jinshi Zhixin is engaged in investment activities in various industries. |
ADDITIONAL_INFORMATIONFINANCIA
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I FINANCIAL INFORMATION OF PARENT COMPANY | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I FINANCIAL INFORMATION OF PARENT COMPANY [Abstract] | |||||||||||||||||||||||||||||
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I FINANCIAL INFORMATION OF PARENT COMPANY | AIRMEDIA GROUP INC. | ||||||||||||||||||||||||||||
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I | |||||||||||||||||||||||||||||
FINANCIAL INFORMATION OF PARENT COMPANY | |||||||||||||||||||||||||||||
BALANCE SHEETS | |||||||||||||||||||||||||||||
(In U.S. dollars in thousands, except share related data) | |||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Current assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 14 | $ | 2,029 | |||||||||||||||||||||||||
Amount due from subsidiaries | 181,245 | 178,347 | |||||||||||||||||||||||||||
Other current assets | 335 | 556 | |||||||||||||||||||||||||||
Total current assets | 181,594 | 180,932 | |||||||||||||||||||||||||||
Non-current assets | |||||||||||||||||||||||||||||
Investment in subsidiaries | 93,416 | 71,023 | |||||||||||||||||||||||||||
TOTAL ASSETS | 275,010 | 251,955 | |||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Current liabilities | |||||||||||||||||||||||||||||
Amount due to subsidiaries | 3,652 | 3,135 | |||||||||||||||||||||||||||
Accrued expenses and other current liabilities | 392 | 84 | |||||||||||||||||||||||||||
Total liabilities | 4,044 | 3,219 | |||||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||||||
Ordinary Shares ($0.001 par value; 900,000,000 shares authorized in 2013 and 2014; 127,662,057 shares and 127,662,057 shares issued as of December 31, 2013 and 2014, respectively; 119,134,135 shares and 119,942,413 shares outstanding as of December 31, 2013 and 2014, respectively) | 128 | 128 | |||||||||||||||||||||||||||
Additional paid in capital | 313,912 | 323,167 | |||||||||||||||||||||||||||
Treasury stock (8,527,922 and 7,719,644 shares as of December 31, 2013 and 2014, respectively) | (9,860 | ) | (9,236 | ) | |||||||||||||||||||||||||
Accumulated deficits | (73,443 | ) | (99,138 | ) | |||||||||||||||||||||||||
Accumulated other comprehensive income | 40,229 | 33,815 | |||||||||||||||||||||||||||
Total equity | 270,966 | 248,736 | |||||||||||||||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 275,010 | $ | 251,955 | |||||||||||||||||||||||||
AIRMEDIA GROUP INC. | |||||||||||||||||||||||||||||
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I | |||||||||||||||||||||||||||||
FINANCIAL INFORMATION OF PARENT COMPANY | |||||||||||||||||||||||||||||
STATEMENTS OF OPERATIONS | |||||||||||||||||||||||||||||
(In U.S. dollars in thousands) | |||||||||||||||||||||||||||||
For the years ended December 31, | |||||||||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Selling and marketing | $ | (859 | ) | $ | - | $ | (144 | ) | |||||||||||||||||||||
General and administrative | (3,282 | ) | (2,239 | ) | (1,676 | ) | |||||||||||||||||||||||
Total operating expenses | (4,141 | ) | (2,239 | ) | (1,820 | ) | |||||||||||||||||||||||
Investment loss in subsidiaries | (28,587 | ) | (8,387 | ) | (23,875 | ) | |||||||||||||||||||||||
Net loss attributable to holders of ordinary shares | $ | (32,728 | ) | $ | (10,626 | ) | $ | (25,695 | ) | ||||||||||||||||||||
AIRMEDIA GROUP INC. | |||||||||||||||||||||||||||||
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I | |||||||||||||||||||||||||||||
FINANCIAL INFORMATION OF PARENT COMPANY | |||||||||||||||||||||||||||||
STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) | |||||||||||||||||||||||||||||
(In U.S. dollars in thousands) | |||||||||||||||||||||||||||||
For the years ended December 31, | |||||||||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||||||||
Net loss | $ | (32,728 | ) | $ | (10,626 | ) | $ | (25,695 | ) | ||||||||||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||||||||||
Change in cumulative foreign currency translation adjustment | 2,214 | 7,281 | (6,414 | ) | |||||||||||||||||||||||||
Comprehensive income loss attributable to Parent Company | $ | (30,514 | ) | $ | (3,345 | ) | $ | (32,109 | ) | ||||||||||||||||||||
AIRMEDIA GROUP INC. | |||||||||||||||||||||||||||||
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I | |||||||||||||||||||||||||||||
FINANCIAL INFORMATION OF PARENT COMPANY | |||||||||||||||||||||||||||||
STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||||||||||||||
(In U.S. dollars in thousands, except share related data) | |||||||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||||||
other | |||||||||||||||||||||||||||||
Ordinary shares | Additional | Treasury | Accumulated | comprehensive | Total | ||||||||||||||||||||||||
Shares | Amount | paid in capital | stock | deficits | income | equity | |||||||||||||||||||||||
Balance as of January 1, 2012 | 125,247,597 | $ | 128 | $ | 275,150 | $ | (3,775 | ) | $ | (30,089 | ) | $ | 30,734 | $ | 272,148 | ||||||||||||||
Ordinary shares issued for share based compensation | 137,166 | - | - | 161 | - | - | 161 | ||||||||||||||||||||||
Share repurchase as treasury stock | (3,272,278 | ) | - | - | (3,421 | ) | - | - | (3,421 | ) | |||||||||||||||||||
Share-based compensation | - | - | 3,502 | - | - | - | 3,502 | ||||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | - | 2,214 | 2,214 | ||||||||||||||||||||||
Net loss | - | - | - | - | (32,728 | ) | - | (32,728 | ) | ||||||||||||||||||||
Balance as of December 31, 2012 | 122,112,485 | $ | 128 | $ | 278,652 | $ | (7,035 | ) | $ | (62,817 | ) | $ | 32,948 | $ | 241,876 | ||||||||||||||
Ordinary shares issued for share based compensation | 18,400 | - | - | 21 | - | - | 21 | ||||||||||||||||||||||
Share repurchase as treasury stock | (2,996,750 | ) | - | - | (2,846 | ) | - | - | (2,846 | ) | |||||||||||||||||||
Share-based compensation | - | - | 1,251 | - | - | - | 1,251 | ||||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | - | 7,281 | 7,281 | ||||||||||||||||||||||
Capital contribution from non-controlling interests | - | - | 39,825 | - | - | - | 39,825 | ||||||||||||||||||||||
Acquisition of non-controlling interests | - | - | (5,816 | ) | - | - | - | (5,816 | ) | ||||||||||||||||||||
Net loss | - | - | - | - | (10,626 | ) | - | (10,626 | ) | ||||||||||||||||||||
Balance as of December 31, 2013 | 119,134,135 | $ | 128 | $ | 313,912 | $ | (9,860 | ) | $ | (73,443 | ) | $ | 40,229 | $ | 270,966 | ||||||||||||||
Ordinary shares issued for share based compensation | 808,278 | - | - | 624 | - | - | 624 | ||||||||||||||||||||||
Share-based compensation | - | - | 1,359 | - | - | - | 1,359 | ||||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | - | (6,414 | ) | (6,414 | ) | ||||||||||||||||||||
Capital contribution from non-controlling interests | - | - | 6,463 | - | - | - | 6,463 | ||||||||||||||||||||||
Disposal of equity interests of AM Film and AM Lianhe | - | - | 1,433 | - | - | - | 1,433 | ||||||||||||||||||||||
Net loss | - | - | - | - | (25,695 | ) | - | (25,695 | ) | ||||||||||||||||||||
Balance as of December 31, 2014 | 119,942,413 | $ | 128 | $ | 323,167 | $ | (9,236 | ) | $ | (99,138 | ) | $ | 33,815 | $ | 248,736 | ||||||||||||||
AIRMEDIA GROUP INC. | |||||||||||||||||||||||||||||
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I | |||||||||||||||||||||||||||||
FINANCIAL INFORMATION OF PARENT COMPANY | |||||||||||||||||||||||||||||
STATEMENTS OF CASH FLOWS | |||||||||||||||||||||||||||||
(In U.S. dollars in thousands) | |||||||||||||||||||||||||||||
For the years ended December 31, | |||||||||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||||||||||||
Net loss | $ | (32,728 | ) | $ | (10,626 | ) | $ | (25,695 | ) | ||||||||||||||||||||
Investment loss in subsidiaries | 28,587 | 8,387 | 23,875 | ||||||||||||||||||||||||||
Share-based compensation | 3,502 | 1,251 | 1,359 | ||||||||||||||||||||||||||
CHANGES IN WORKING CAPITAL ACCOUNTS | |||||||||||||||||||||||||||||
Other current assets | (597 | ) | 444 | (221 | ) | ||||||||||||||||||||||||
Accounts payable | (40 | ) | - | - | |||||||||||||||||||||||||
Accrued expenses and other current liabilities | (421 | ) | (3 | ) | (308 | ) | |||||||||||||||||||||||
Amount due to subsidiaries | 265 | 3,231 | (517 | ) | |||||||||||||||||||||||||
Amount due from subsidiaries | 2,497 | (41 | ) | 2,898 | |||||||||||||||||||||||||
Net cash provided by operating activities | 1,065 | 2,643 | 1,391 | ||||||||||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||||||||||||
Cash paid for treasury stock | (3,421 | ) | (2,846 | ) | - | ||||||||||||||||||||||||
Proceeds from exercises of stock options | 161 | 21 | 624 | ||||||||||||||||||||||||||
Net cash (used in) provided by financing activities | (3,260 | ) | (2,825 | ) | 624 | ||||||||||||||||||||||||
Net (decrease)/increase in cash | (2,195 | ) | (182 | ) | 2,015 | ||||||||||||||||||||||||
Cash, at beginning of year | 2,391 | 196 | 14 | ||||||||||||||||||||||||||
Cash, at end of year | $ | 196 | $ | 14 | $ | 2,029 | |||||||||||||||||||||||
AIRMEDIA GROUP INC. | |||||||||||||||||||||||||||||
NOTES TO ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I | |||||||||||||||||||||||||||||
FINANCIAL INFORMATION OF PARENT COMPANY | |||||||||||||||||||||||||||||
(In U.S. dollars in thousands) | |||||||||||||||||||||||||||||
Notes: | |||||||||||||||||||||||||||||
1 | BASIS FOR PREPARATION | ||||||||||||||||||||||||||||
The condensed financial information of the parent company, AirMedia Group Inc., only has been prepared using the same accounting policies as set out in the Group's consolidated financial statements except that the parent company has used equity method to account for its investment in its subsidiaries, AM Technology, Shenzhen AM, Xi'an AM and Glorious Star, and its VIEs, Shengshi Lianhe, AM Advertising, Jiaming Advertising and AM Yuehang, and VIEs' subsidiaries, AirTV United, AM Film, Flying Dragon, AM Wenzhou, AM Lianhe, Hainan Jinhui, AM Jinshi, TJ Jinshi, Dongding, AM Outdoor, GreatView Media, AM Jinsheng, GZ Meizheng, AM Tianyi and Xinghe Union. | |||||||||||||||||||||||||||||
2 | INVESTMENTS IN SUBSIDIARIES AND VARIABLE INTEREST ENTITIES | ||||||||||||||||||||||||||||
The Company, its subsidiaries, its VIEs and VIEs' subsidiaries are included in the consolidated financial statements where the inter-company balances and transactions are eliminated upon consolidation. For the purpose of the Company's stand-alone financial statements, its investments in subsidiaries, VIEs and VIEs' subsidiaries are reported using the equity method of accounting. The Company's share of income and losses from its subsidiaries, VIEs and VIEs' subsidiaries is reported as earnings from subsidiaries, VIEs and VIEs' subsidiaries in the accompanying condensed financial information of parent company. | |||||||||||||||||||||||||||||
3 | INCOME TAXES | ||||||||||||||||||||||||||||
The Company is a tax exempted company incorporated in the Cayman Islands. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||
Basis of presentation | (a) | Basis of presentation | |||||||||||
The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America ("US GAAP"). | |||||||||||||
Basis of consolidation | (b) | Basis of consolidation | |||||||||||
The consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIEs and its VIEs' subsidiaries. All inter-company transactions and balances have been eliminated upon consolidation. | |||||||||||||
Use of estimates | (c) | Use of estimates | |||||||||||
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses in the financial statements and accompanying notes, including allowance for doubtful accounts, the useful lives of property and equipment and intangible assets, impairment of long-term investments, impairment of goodwill, impairment of long-lived assets, share-based compensation and valuation allowance for deferred tax assets. Actual results could differ from those estimates. | |||||||||||||
Significant risks and uncertainties | (d) | Significant risks and uncertainties | |||||||||||
The Group participates in a dynamic industry and believes that changes in any of the following areas could have a material adverse effect on the Group's future financial position, results of operations, or cash flows: the Group's limited operating history; advances and trends in new technologies and industry standards; competition from other competitors; regulatory or other PRC related factors; risks associated with the Group's ability to attract and retain employees necessary to support its growth; risks associated with the Group's growth strategies; and general risks associated with the advertising industry. | |||||||||||||
Fair value | (e) | Fair value | |||||||||||
Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. | |||||||||||||
Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: | |||||||||||||
Level 1 | |||||||||||||
Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | |||||||||||||
Level 2 | |||||||||||||
Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | |||||||||||||
Level 3 | |||||||||||||
Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | |||||||||||||
Fair value of financial instruments | (f) | Fair value of financial instruments | |||||||||||
The Group's financial instruments include cash, restricted cash, accounts receivable, notes receivable, short-term investment, amounts due from related parties, assets held for sale, short-term loan, accounts payable, and amounts due to related parties. The Group did not have any other financial assets and liabilities or nonfinancial assets and liabilities that are measured at fair value on recurring basis as of December 31, 2013 and 2014. | |||||||||||||
The Group's financial assets and liabilities measured at fair value on a non-recurring basis include assets held for sale based on level 1 the quoted market price in an active market, assets based on level 2 inputs in connection with equity share exchange transaction and acquired assets and liabilities based on level 3 inputs in connection with business combinations. | |||||||||||||
Cash and cash equivalents | (g) | Cash and cash equivalents | |||||||||||
Cash and cash equivalents consist of cash on hand and highly liquid deposits which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. | |||||||||||||
Restricted cash | (h) | Restricted cash | |||||||||||
Restricted cash represents the bank deposits in escrow accounts as the performance security for certain concession right agreements. | |||||||||||||
Short-term investment | (i) | Short-term investment | |||||||||||
Short-term investments comprise marketable debt securities, which are classified as held-to-maturity as the Group has the positive intent and ability to hold the securities to maturity. All of the Group's held-to-maturity securities are stated at their amortized costs and classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year. | |||||||||||||
The Group reviews its short-term investments for other-than-temporary impairment based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its short-term investments. If the cost of an investment exceeds the investment's fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than the cost, and the Group's intent and ability to hold the investment, in determining if impairment is needed. | |||||||||||||
Assets held for sale | (j) | Assets held for sale | |||||||||||
The Group considers property, plant and equipment to be assets held for sale when all of the following criteria are met: i) a formal commitment to a plan to sell a property was made and exercised; ii) the property is available for sale in its present condition; iii) actions required to complete the sale of the property have been initiated; iv) sale of the property is probable and the Group expects the completed sale will occur within one year; v) the property is actively being marketed for sale at a price that is reasonable given its current market value; and vi) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Upon designation as assets held for sale, the Group records each property at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and the Group ceases depreciation. | |||||||||||||
Property and equipment | (k) | Property and equipment | |||||||||||
Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated on a straight-line basis over the following estimated useful lives: | |||||||||||||
Digital display network equipment | 5 years | ||||||||||||
Gas station display network equipment | 5 years | ||||||||||||
Furniture and fixture | 5 years | ||||||||||||
Computer and office equipment | 3-5 years | ||||||||||||
Vehicle | 5 years | ||||||||||||
Software | 5 years | ||||||||||||
Property | 50 years | ||||||||||||
Leasehold improvement | Shorter of the term of the lease | ||||||||||||
or the estimated useful lives of the assets | |||||||||||||
Impairment of long-lived assets and intangible assets with definite life | (l) | Impairment of long-lived assets and intangible assets with definite life | |||||||||||
The Group evaluates the recoverability of its long-lived assets, including intangible assets with definite life, whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the excess of carrying amount over the fair value of the assets. | |||||||||||||
Impairment of goodwill | (m) | Impairment of goodwill | |||||||||||
The Group annually, or more frequently if the Group believes indicators of impairment exist, reviews the carrying value of goodwill to determine whether impairment may exist. | |||||||||||||
Specifically, goodwill impairment is determined using a two-step process. The first step compares the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of the affected reporting unit's goodwill to the carrying value of that goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. Estimating fair value is performed by utilizing various valuation techniques, with the primary technique being a discounted cash flow. | |||||||||||||
The Group has four reporting units: the advertising media in air travel areas, the advertising media in gas station, the outdoor advertising media and the fire station advertising media. The Group performs its annual impairment tests on December 31 of each year. | |||||||||||||
Long-term investments | (n) | Long-term investments | |||||||||||
Equity method investments | |||||||||||||
Investee companies over which the Company has the ability to exercise significant influence, but does not have a controlling interest are accounted for using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock of the investee between 20% and 50%, and other factors, such as representation on the investee's Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. | |||||||||||||
Cost method investments | |||||||||||||
For investments in an investee over which the Group does not have significant influence, the Group carries the investment at cost and recognizes income as any dividends declared from distribution of investee's earnings. The Group reviews the cost method investments for impairment whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable. An impairment loss is recognized in earnings equal to the difference between the investment's carrying amount and its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value of the investment would then become the new cost basis of the investment. | |||||||||||||
Acquired intangible assets | (o) | Acquired intangible assets | |||||||||||
Acquired intangible assets with definite lives are carried at cost less accumulated amortization. Customer relationships intangible asset is amortized using the estimated attrition pattern of the acquired customers. Amortization of other definite-lived intangible assets is computed using the straight-line method over the following estimated economic lives: | |||||||||||||
TV program license | 20 years | ||||||||||||
Audio-vision programming & broadcasting qualification | 19.5 years | ||||||||||||
Customer relationships | 3-3.4 years | ||||||||||||
Contract backlog | 1.2-3 years | ||||||||||||
Concession agreements | 3.8-10 years | ||||||||||||
Non-compete agreements | 4.4 years | ||||||||||||
Revenue recognition | (p) | Revenue recognition | |||||||||||
The Group's revenues are derived from selling advertising time slots on the Group's advertising networks, primarily air travel advertising network. For the years ended December 31, 2012, 2013 and 2014, the advertising revenues were generated from digital frames in airports, digital TV screens in airports, digital TV screens on airlines, traditional media in airports, gas station media network and other media. | |||||||||||||
The Group typically signs standard contracts with its advertising customers, who require the Group to run the advertiser's advertisements on the Group's network in specified locations for a period of time. The Group recognizes advertising revenues ratably over the performance period for which the advertisements are displayed, so long as collection of the fees remains probable. | |||||||||||||
The Group also wholesales the advertising platforms such as scrolling light boxes and billboards in the gas stations located in some major cities, except Beijing, Shanghai and Shenzhen, to advertising agents, and signs fixed fee contracts with the agents for a specified period. The revenue is recognized on a straight-line basis over the specified period. | |||||||||||||
Deferred revenue | |||||||||||||
Prepayments from customers for advertising service are deferred and recognized as revenue when the advertising services are rendered. | |||||||||||||
Nonmonetary exchanges | |||||||||||||
The Group occasionally exchanges advertising time slots and locations with other entities for assets or services, such as equipment and other assets. The amount of assets and revenue recognized is based on the fair value of the advertising provided or the fair value of the transferred assets, whichever is more readily determinable. The amounts of revenues recognized for nonmonetary transactions were $1,287, $656 and $1,699 for the years ended December 31, 2012, 2013 and 2014, respectively. No direct costs are attributable to the revenues. | |||||||||||||
Value Added Tax ("VAT") | (q) | Value Added Tax ("VAT") | |||||||||||
The Company's PRC subsidiaries are subject to value-added tax at a rate of 6% on revenues from advertising services and paid after deducting input VAT on purchases. The net VAT balance between input VAT and output VAT is reflected in the account under input VAT receivable or other taxes payable. | |||||||||||||
In July 2012, the Ministry of Finance and the State Administration of Taxation jointly issued a circular regarding the pilot collection of VAT in lieu of business tax in certain areas and industries in the PRC, including Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Also a circular issued in May 2013 provided that such VAT pilot program is rolled out nationwide since August 2013. Since then, certain subsidiaries and VIEs became subject to VAT at the rates of 6% or 3%, on certain service revenues which were previously subject to business tax. For the years ended December 31, 2012, 2013 and 2014, gross revenue is presented net of $8,785, $21,524 and $19,279 of VAT, respectively. | |||||||||||||
Business tax and other sale related taxes | (r) | Business tax and other sale related taxes | |||||||||||
The Group's PRC subsidiaries and VIEs are subject to business tax and other sale related taxes at the rate of 8.5% on revenues other than those subject to VAT after deduction of certain costs of revenues permitted by the PRC tax laws. | |||||||||||||
Concession fees | (s) | Concession fees | |||||||||||
The Group enters concession right agreements with vendors such as airports, airlines and a petroleum company, under which the Group obtains the right to use the spaces or equipment of the vendors to display the advertisements. The concession right agreements are treated as operating lease arrangements. | |||||||||||||
Fees under concession right agreements are usually due every three, six or twelve months. Payments made are recorded as current assets and current liabilities according to the respective payment terms. Most of the concession fees with airports and airlines are fixed with escalation, which means fixed increase over each year of the agreements. The total concession fee under the concession right agreements with airports and airlines is charged to the consolidated statements of operations on a straight-line basis over the agreement periods, which is generally between three and five years. | |||||||||||||
The fee structure of the concession right agreement with the petroleum company is based on the actual number of developed gas stations and associated standard annual concession fee for each developed gas station. Each gas station has its specific lease term starting from the time when it is actually put into operation. The calculation of rental payments is based on how many months the gas stations are actually put into operation during the year and the standard annual concession fee determined based on the location of the gas station. Accordingly, each gas station is treated as a separate lease and rental payments are recognized on a straight-line basis over its lease term. The amount of annual concession fee to-be-paid is determined by an actual incurred concession fee or a fixed minimum payment, if any, based on negotiation with the petroleum company. | |||||||||||||
Agency fees | (t) | Agency fees | |||||||||||
The Group pays fees to advertising agencies based on certain percentage of revenues made through the advertising agencies upon receipt of payment from advertisers. The agency fees are charged to cost of revenues in the consolidated statements of operations ratably over the period in which the advertising is displayed. Prepaid and accrued agency fees are recorded as current assets and current liabilities according to relative timing of payments made and advertising service provided. From time to time, the Group and certain advertising agencies may renegotiate and mutually agree, as permitted by applicable laws, to reduce existing agency fee liabilities as calculated under the terms of existing contracts. Such reductions in the accrued agency fees are recorded as a reduction in cost of sales in the period the renegotiations are finalized. During the years ended December 31, 2012, 2013 and 2014, reversals in cost of sales as a result of renegotiated agency fees amounted to $6,407, $3,329 and $1,433, respectively. | |||||||||||||
Operating leases | (u) | Operating leases | |||||||||||
Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating lease. Payments made under operating leases are charged to the consolidated statements of operations on a straight-line basis over the lease periods. | |||||||||||||
Advertising costs | (v) | Advertising costs | |||||||||||
The Group expenses advertising costs as incurred. Total advertising expenses were $767, $1,039 and $2,309 for the years ended December 31, 2012, 2013 and 2014, respectively, and have been included as part of selling and marketing expenses. | |||||||||||||
Foreign currency translation | (w) | Foreign currency translation | |||||||||||
The functional and reporting currency of the Company and the Company's subsidiaries domiciled in BVI and Hong Kong are the United States dollar ("U.S. dollar"). The financial records of the Company's other subsidiaries, VIEs and VIEs' subsidiaries located in the PRC are maintained in their local currency, the Renminbi ("RMB"), which are the functional currency of these entities. | |||||||||||||
Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into functional currency at the applicable rates of exchange prevailing when the transactions occurred. Transaction gains and losses are recognized in the statements of operations. | |||||||||||||
The Group's entities with functional currency of RMB translate their operating results and financial position into the U.S. dollar, the Company's reporting currency. Assets and liabilities are translated using the exchange rates in effect on the balance sheet date. Revenues, expenses, gains and losses are translated using the average rate for the year. Retained earnings and equity are translated using the historical rate. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income. | |||||||||||||
Income taxes | (x) | Income taxes | |||||||||||
Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net operating loss carry forwards and credits, by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws and regulations applicable to the Group as enacted by the relevant tax authorities. | |||||||||||||
The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than not to be sustained upon audit by the relevant tax authorities. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Additionally, the Group classifies the interest and penalties, if any, as a component of the income tax position. | |||||||||||||
Share-based payments | (y) | Share-based payments | |||||||||||
Share-based payment transactions with employees are measured based on the grant date fair value of the equity instrument issued, and recognized as compensation expenses over the requisite service periods based on a straight-line method, with a corresponding impact reflected in additional paid-in capital. | |||||||||||||
Share-based payment transactions with non-employees are measured based on the fair value of the options as of each reporting date through the measurement date, with a corresponding impact reflected in additional paid-in capital. | |||||||||||||
Comprehensive loss | (z) | Comprehensive loss | |||||||||||
Comprehensive loss includes net loss and foreign currency translation adjustments and is presented net of tax, the tax effect is nil for the three years ended December 31, 2014 in the consolidated statements of comprehensive loss. | |||||||||||||
Allowance of doubtful accounts | (aa) | Allowance of doubtful accounts | |||||||||||
The Group conducts credit evaluations of clients and generally do not require collateral or other security from clients. The Group establishes an allowance for doubtful accounts based upon estimates, historical experience and other factors surrounding the credit risk of specific clients and utilizes both specific identification and a general reserve to calculate allowance for doubtful accounts. The amount of receivables ultimately not collected by the Group has generally been consistent with expectations and the allowance established for doubtful accounts. If the frequency and amount of customer defaults change due to the clients' financial condition or general economic conditions, the allowance for uncollectible accounts may require adjustment. As a result, the Group continuously monitors outstanding receivables and adjusts allowances for accounts where collection may be in doubt. | |||||||||||||
Concentration of credit risk | (bb) | Concentration of credit risk | |||||||||||
Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of cash and accounts receivable. The Group places their cash with financial institutions with high-credit rating and quality in China. | |||||||||||||
The Group conducts credit evaluations of customers and generally do not require collateral or other security from their customers. The Group establishes an allowance for doubtful accounts primarily based upon the age of the receivables and factors relevant to determining the credit risk of specific customers. The amount of receivables ultimately not collected by the Group has generally been consistent with management's expectations and the allowance established for doubtful accounts. | |||||||||||||
Customers accounting for 10% or more of total revenues are: | |||||||||||||
Customer | For the years ended December 31, | ||||||||||||
2012 | 2013 | 2014 | |||||||||||
A | 11.2 | % | 6.7 | % | 0.5 | % | |||||||
Net loss per share | (cc) | Net loss per share | |||||||||||
Basic net loss per share are computed by dividing net loss attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted net loss reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. Potential common shares in the diluted net loss per share computation are excluded in periods of losses from continuing operations, as their effect would be anti-dilutive. | |||||||||||||
Government subsidies | (dd) | Government subsidies | |||||||||||
The Group primarily receives tax refund and development supporting bonus from tax bureau and local government without any condition or restriction. The government subsidies are recorded in other income on the consolidated statements of operations in the period in which the amounts of such subsidies are received. The recognized government subsidies as other income are $210, $1,395 and $817 for the years ended December 31, 2012, 2013 and 2014, respectively. | |||||||||||||
Recent issued accounting standards adopted | (ee) | Recent issued accounting standards adopted | |||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new pronouncement which affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). This Accounting Standards Update (“ASU”) will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (e.g., assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles—Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this ASU. | |||||||||||||
The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: | |||||||||||||
• | Step 1: Identify the contract(s) with a customer. | ||||||||||||
• | Step 2: Identify the performance obligations in the contract. | ||||||||||||
• | Step 3: Determine the transaction price. | ||||||||||||
• | Step 4: Allocate the transaction price to the performance obligations in the contract. | ||||||||||||
• | Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. | ||||||||||||
For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. | |||||||||||||
An entity should apply the amendments in this ASU using one of the following two methods: | |||||||||||||
1 | Retrospectively to each prior reporting period presented and the entity may elect any of the following practical expedients: | ||||||||||||
• | For completed contracts, an entity need not restate contracts that begin and end within the same annual reporting period. | ||||||||||||
• | For completed contracts that have variable consideration, an entity may use the transaction price at the date the contract was completed rather than estimating variable consideration amounts in the comparative reporting periods. | ||||||||||||
• | For all reporting periods presented before the date of initial application, an entity need not disclose the amount of the transaction price allocated to remaining performance obligations and an explanation of when the entity expects to recognize that amount as revenue. | ||||||||||||
2 | Retrospectively with the cumulative effect of initially applying this ASU recognized at the date of initial application. If an entity elects this transition method it also should provide the additional disclosures in reporting periods that include the date of initial application of: | ||||||||||||
• | The amount by which each financial statement line item is affected in the current reporting period by the application of this ASU as compared to the guidance that was in effect before the change. | ||||||||||||
• | An explanation of the reasons for significant changes. | ||||||||||||
Recent issued accounting standards not yet adopted | (ff) | Recent issued accounting standards not yet adopted | |||||||||||
In April, 2014, the FASB issued ASU 2014-08, which amends the definition of a discontinued operation in ASC 205-20 and requires entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued-operations criteria. The new guidance eliminates the second and third criteria of discontinued operation in ASC 205-20-45-1 and instead requires discontinued-operations treatment for disposals of a component or group of components that represents a strategic shift that has or will have a major impact on an entity's operations or financial results. The ASU also expands the scope of ASC 205-20 to disposals of equity method investments and businesses that, upon initial acquisition, qualify as held for sale. | |||||||||||||
The ASU also requires entities to reclassify assets and liabilities of a discontinued operation for all comparative periods presented in the statement of financial position. | |||||||||||||
Regarding the statement of cash flows, an entity must disclose, in all periods presented, either (1) operating and investing cash flows or (2) depreciation and amortization, capital expenditures, and significant operating and investing noncash items related to the discontinued operation. | |||||||||||||
The ASU is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014. Early adoption is permitted. The Group does not expect the adoption of this guidance will have a significant effect on its consolidated financial statements. | |||||||||||||
In June 2014, the FASB issued a new pronouncement which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation – Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. | |||||||||||||
The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Group does not expect the adoption of this guidance will have a significant effect on its consolidated financial statements. | |||||||||||||
In August, 2014, the FASB issued a new pronouncement which provides guidance on determining when and how reporting entities must disclose going-concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date of issuance of the entity's financial statements. Further, an entity must provide certain disclosures if there is “substantial doubt about the entity's ability to continue as a going concern." The new standard is effective for fiscal years ending after December 15, 2016. | |||||||||||||
The Group does not expect the adoption of this guidance will have a significant effect on its consolidated financial statements. |
ORGANIZATION_AND_PRINCIPAL_ACT1
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||
Schedule of Company's Subsidiaries and VIE's | Date of | Percentage | |||||||||||
incorporation/ | Place of | of legal | |||||||||||
Name | acquisition | incorporation | ownership | ||||||||||
Intermediate Holding Company: | |||||||||||||
Broad Cosmos Enterprises Ltd. | 26-Jun-06 | British Virgin Islands ("BVI") | 100% | ||||||||||
AirMedia International Limited ("AM International") | 14-Jul-07 | BVI | 100% | ||||||||||
AirMedia (China) Limited ("AM China") | 5-Aug-05 | Hong Kong | 100% | ||||||||||
Excel Lead International Limited ("Excel Lead") | 1-Aug-08 | BVI | 100% | ||||||||||
Glorious Star Investment Limited ("Glorious Star") | 1-Aug-08 | Hong Kong | 100% | ||||||||||
Subsidiaries: | |||||||||||||
AirMedia Technology (Beijing) Co., Ltd. ("AM Technology") | 19-Sep-05 | the PRC | 100% | ||||||||||
Shenzhen AirMedia Information Technology Co., Ltd. | 6-Jun-06 | the PRC | 100% | ||||||||||
("Shenzhen AM") | |||||||||||||
Xi'an AirMedia Chuangyi Technology Co., Ltd. ("Xi'an AM") | 31-Dec-07 | the PRC | 100% | ||||||||||
VIEs: | |||||||||||||
Beijing Shengshi Lianhe Advertising Co., Ltd. ("Shengshi Lianhe") | 7-Aug-05 | the PRC | N/A | ||||||||||
AirMedia Group Co., Ltd. | 22-Nov-05 | the PRC | N/A | ||||||||||
(Formerly Beijing AirMedia Advertising Co., Ltd.) | |||||||||||||
("AM Advertising") | |||||||||||||
Beijing AirMedia Jiaming Advertising Co., Ltd. | 1-Jan-07 | the PRC | N/A | ||||||||||
(Formerly Beijing AirMedia UC Advertising Co., Ltd.) | |||||||||||||
("Jiaming Advertising") | |||||||||||||
Beijing Yuehang Digital Media Advertising Co., Ltd. | 16-Jan-08 | the PRC | N/A | ||||||||||
("AM Yuehang") | |||||||||||||
Date of | Percentage | ||||||||||||
incorporation/ | Place of | of legal | |||||||||||
Name | acquisition | incorporation | ownership | ||||||||||
VIEs' subsidiaries: | |||||||||||||
AirTV United Media & Culture Co., Ltd. ("AirTV United") | 10-Oct-06 | the PRC | N/A | ||||||||||
Beijing AirMedia Film & TV Culture Co., Ltd. ("AM Film") | 13-Sep-07 | the PRC | N/A | ||||||||||
Flying Dragon Media Advertising Co., Ltd. ("Flying Dragon") | 1-Aug-08 | the PRC | N/A | ||||||||||
Wenzhou AirMedia Advertising Co., Ltd. ("AM Wenzhou") | 17-Oct-08 | the PRC | N/A | ||||||||||
Beijing AirMedia Lianhe Advertising Co., Ltd. | 10-Mar-09 | the PRC | N/A | ||||||||||
(Formerly Beijing Weimei Lianhe Advertising Co., Ltd.) | |||||||||||||
("AM Lianhe") | |||||||||||||
Hainan Jinhui Guangming Media Advertising Co., Ltd. | 23-Jun-09 | the PRC | N/A | ||||||||||
("Hainan Jinhui") | |||||||||||||
Beijing AirMedia Advertising Co., Ltd. | 7-Jul-09 | the PRC | N/A | ||||||||||
(Formerly Beijing AirMedia Jinshi Advertising Co., Ltd.) | |||||||||||||
("AM Jinshi") | |||||||||||||
Tianjin AirMedia Jinshi Advertising Co., Ltd. ("TJ Jinshi") | 8-Sep-09 | the PRC | N/A | ||||||||||
AirMedia City (Beijing) Outdoor Advertising Co., Ltd. | |||||||||||||
("AM Outdoor") | 1-Jan-10 | the PRC | N/A | ||||||||||
Beijing Dongding Gongyi Advertising Co., Ltd. ("Dongding") | 1-Feb-10 | the PRC | N/A | ||||||||||
Beijing GreatView Media Advertising Co., Ltd. | |||||||||||||
(Formerly Beijing Weimei Shengjing Media | |||||||||||||
Advertising Co., Ltd.) ("GreatView Media") | 28-Apr-11 | the PRC | N/A | ||||||||||
Beijing AirMedia Jinsheng Advertising Co., Ltd. ("AM Jinsheng") | 28-Apr-11 | the PRC | N/A | ||||||||||
Guangzhou Meizheng Advertising Co., Ltd. | |||||||||||||
("Guangzhou Meizheng") | 17-May-13 | the PRC | N/A | ||||||||||
Beijing AirMedia Tianyi Advertising Co., Ltd. ("AM Tianyi") | 25-Sep-13 | the PRC | N/A | ||||||||||
Beijing Xinghe Union Media Co., Ltd. ("Xinghe Union") | 28-Feb-14 | the PRC | N/A | ||||||||||
AirMedia's VIEs [Member] | |||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||
Schedule of VIE's Balance Sheet Amounts | As of December 31, | ||||||||||||
2013 | 2014 | ||||||||||||
Total current assets | $ | 208,255 | $ | 186,320 | |||||||||
Total non-current assets | 108,677 | 128,601 | |||||||||||
Total assets | 316,932 | 314,921 | |||||||||||
Total current liabilities | 101,027 | 113,329 | |||||||||||
Total non-current liabilities | 361 | 1,459 | |||||||||||
Total liabilities | $ | 101,388 | $ | 114,788 | |||||||||
Schedule of VIE's Income Statement Amounts | For the years ended December 31, | ||||||||||||
2012 | 2013 | 2014 | |||||||||||
Net revenues | $ | 286,641 | $ | 271,536 | $ | 252,477 | |||||||
Net loss | (31,771 | ) | (13,552 | ) | (27,508 | ) | |||||||
Net cash (used in) provided by operating activities | (8,587 | ) | 8,132 | 1,532 | |||||||||
Net cash used in investing activities | (7,700 | ) | (70,653 | ) | (23,908 | ) | |||||||
Net cash provided by financing activities | - | 58,763 | 13,199 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||
Schedule of Estimated Useful Lives of Property and Equipment, Net | Digital display network equipment | 5 years | |||||||||||
Gas station display network equipment | 5 years | ||||||||||||
Furniture and fixture | 5 years | ||||||||||||
Computer and office equipment | 3-5 years | ||||||||||||
Vehicle | 5 years | ||||||||||||
Software | 5 years | ||||||||||||
Property | 50 years | ||||||||||||
Leasehold improvement | Shorter of the term of the lease | ||||||||||||
or the estimated useful lives of the assets | |||||||||||||
Schedule of Estimated Economic Lives of Intangible Assets | TV program license | 20 years | |||||||||||
Audio-vision programming & broadcasting qualification | 19.5 years | ||||||||||||
Customer relationships | 3-3.4 years | ||||||||||||
Contract backlog | 1.2-3 years | ||||||||||||
Concession agreements | 3.8-10 years | ||||||||||||
Non-compete agreements | 4.4 years | ||||||||||||
Schedule of Revenue and Accounts Receivable of Major Customers | Customer | For the years ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||||
A | 11.2 | % | 6.7 | % | 0.5 | % | |||||||
Customer | As of December 31, | ||||||||||||
2013 | 2014 | ||||||||||||
B | 10.4 | % | 7.2 | % |
SEGMENT_INFORMATION_AND_REVENU1
SEGMENT INFORMATION AND REVENUE ANALYSIS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SEGMENT INFORMATION AND REVENUE ANALYSIS [Abstract] | |||||||||||||
Schedule of Revenues by Service Categories | For the years ended December 31, | ||||||||||||
2012 | 2013 | 2014 | |||||||||||
Revenues: | |||||||||||||
Air Travel Media Network: | |||||||||||||
Digital frames in airports | $ | 137,342 | $ | 152,346 | $ | 138,527 | |||||||
Digital TV screens in airports | 13,731 | 14,110 | 13,286 | ||||||||||
Digital TV screens on airplanes | 26,612 | 16,160 | 16,212 | ||||||||||
Traditional media in airports | 83,478 | 64,845 | 56,723 | ||||||||||
Other revenues in air travel | 7,346 | 9,183 | 6,395 | ||||||||||
Gas Station Media Network | 14,217 | 12,726 | 11,164 | ||||||||||
Other Media | 10,239 | 7,146 | 13,564 | ||||||||||
$ | 292,965 | $ | 276,516 | $ | 255,871 |
LONGTERM_INVESTMENTS_Tables
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||
Schedule of Equity Method Investments | As of December 31, | ||||||||||||||||
2013 | 2014 | ||||||||||||||||
Name of company | Percentage | Amount | Percentage | Amount | |||||||||||||
% | % | ||||||||||||||||
Beijing Eastern Media Corporation, Ltd. ("BEMC") (1) | 49 | $ | 1,743 | 49 | $ | 1,545 | |||||||||||
Beijing Shibo Movie Technology Co., Ltd. ("Shibo Movie") (2) | 50 | 455 | - | - | |||||||||||||
Beijing Xinghe Union Media Co., Ltd. ("Xinghe Union") (2) | 50 | 370 | 90 | - | |||||||||||||
Guangxi Dingyuan Media Ltd. ("Guangxi Dingyuan") (3) | 40 | 718 | 40 | 753 | |||||||||||||
Zhejiang AirMedia Guangying Film Production Co., Ltd. ("AM Guangying") (4) | 48 | 1,652 | 38 | 3,219 | |||||||||||||
Beijing Yunxing Chuangrong Investment Fund Management Co., Ltd. ("Yunxing Chuangrong") (5) | 50 | 2,478 | 50 | 2,340 | |||||||||||||
Beijing AirMedia Jiaming Film & TV Culture Co., Ltd. ("AM Jiaming") (6) | - | - | 49 | - | |||||||||||||
Qingdao Airport AirMedia Advertising Co., Ltd. ("Qingdao AM") (7) | - | - | 49 | 790 | |||||||||||||
Beijing AirMedia Jiacheng Advertising Co., Ltd. ("Jiacheng Advertising") (8) | - | - | 30 | - | |||||||||||||
$ | 7,416 | $ | 8,647 | ||||||||||||||
-1 | In March 2008, the Group entered into a definitive agreement with China Eastern Media Corporation, Ltd., a subsidiary of China Eastern Group and China Eastern Airlines Corporation Limited operating the media resources of China Eastern Group, to establish a joint venture, BEMC. BEMC was incorporated on March 18, 2008 in the PRC with China Eastern Media Corporation and the Group holding 51% and 49% equity interest, respectively. BEMC obtained concession rights of certain media resources from China Eastern Group, including the digital TV screens on airplanes of China Eastern Airlines, and paid concession fees to its shareholders as consideration. The total paid-in capital of BEMC was $2,119, which was contributed by both parties proportionately. In September 2013 and December 2014, BEMC distributed dividend of $1,401 and $495, respectively, in which $686 and $242, respectively were distributed and paid to the Group. | ||||||||||||||||
The investment was accounted for using the equity method of accounting as the Group has the ability to exercise significant influence to the operation of BEMC. | |||||||||||||||||
-2 | On February 15, 2012 and March 13, 2012, the Group and Beijing N-S Digital TV Co., Ltd. ("N-S Digital TV") established two joint ventures, Shibo Movie and Xinghe Union, respectively. The registered capital of Shibo Movie and Xinghe Union was $1,558 each. The Group and N-S Digital TV each contributed $794, representing 50% of the equity interest in each Shibo Movie and Xinghe Union. Shibo Movie is engaged in movie technology development and consulting services, and Xinghe Union is engaged in movie and TV series investment and publishing, advertisement design and production. These joint ventures were established pursuant to a framework agreement entered into with Beijing Super TV Co., Ltd. ("Super TV") in June 2011 and the supplemental agreement entered into with Super TV and N-S Digital TV in January 2012. | ||||||||||||||||
In September 2013, the Group entered into an equity swap agreement with N-S Digital TV under which the Group exchanged its 50% equity interests in Shibo Movie for the 50% equity interests in Xinghe Union. Pursuant to the agreement, the equity transaction is considered as completed substantially on February 28, 2014. The Group derecognized the equity method investments in both Xinghe Union and Shibo Movie with an investment loss of $164 recognized in the transaction. | |||||||||||||||||
As a result, Xinghe Union became a subsidiary and was consolidated in the Group after the transaction date. | |||||||||||||||||
-3 | In April 2012, The Group entered into an agreement with Asiaray Advertising Media Ltd. ("Asiaray") and Guangxi Civil Aviation Development Co., Ltd. ("Guangxi Civil Aviation") to establish a joint venture, Guangxi Dingyuan. Guangxi Dingyuan was incorporated on April 18, 2012 with total contributed capital of $1,605, of which 20%, 40% and 40% of that amount was contributed by Guangxi Civil Aviation, Asiaray and the Group, respectively. Guangxi Dingyuan exclusively operates various media resources in four airports in China's Guangxi province. | ||||||||||||||||
The investment was accounted for using the equity method of accounting as the Group has the ability to exercise significant influence to the operation of Guangxi Dingyuan. | |||||||||||||||||
-4 | In December 2013, the Group entered into an agreement with Zhejiang Tianguang Diying Production Co., Ltd. to establish a joint venture, AM Guangying. AM Guangying was incorporated on December 25, 2013 with total contributed capital of $1,871, of which 52% and 48% of that amount was contributed by Zhejiang Tianguang Diying Production Co., Ltd. and the Group, respectively. In March 2014, the Group participated a capital call at $1,629 without any change of its equity interest. As a result, the total contributed capital by the Group was $2,520 as of December 31, 2014. AM Guangying is mainly engaged in film production. | ||||||||||||||||
The investment was accounted for using the equity method of accounting as the Group has the ability to exercise significant influence to the operation of AM Guangying. | |||||||||||||||||
-5 | In December 2013, the Group entered into an agreement with Hainan Airlines Culture Co., Ltd. ("Hainan Airlines") to establish a joint venture, Yunxing Chuangrong. Yunxing Chuangrong was registered on December 17, 2013 with total contributed capital of $4,956. The Group and Hainan Airlines each contributed $2,478, representing 50% of the equity interest. Yunxing Chuangrong is established for its operation in the in-flight internet business. | ||||||||||||||||
The investment was accounted for using the equity method of accounting as the Group has the ability to exercise significant influence to the operation of Yunxing Chuangrong. | |||||||||||||||||
-6 | In June 2014, the Group sold 51% equity interests in AM Jiaming to an individual with consideration of $53. The disposal gain of $19 was recognized in the year ended December 31, 2014. AM Jiaming was changed from a wholly-owned subsidiary to a 49% equity method investee of the Group. | ||||||||||||||||
The investment was accounted for using the equity method of accounting as the Group has the ability to exercise significant influence to the operation of AM Jiaming. After sharing the Company's share of loss, the carrying value of the long-term investment in AM Jiaming was decreased to il as of December 31, 2014. | |||||||||||||||||
-7 | In December 2014, the Group entered into an agreement with Qingdao International Airport Group Co., Ltd. ("Qingdao Airport") to establish a joint venture, Qingdao AM. Qingdao AM was registered on December 25, 2014 with total committed capital contribution of $1,607. The Group and Qingdao Airport each committed to contribute $788 and $819, respectively, representing 49% and 51% of the equity interest of Qingdao AM. The Group paid the whole capital injection of $788 to Qingdao AM in January 2015. Qingdao AM exclusively operates various media resources in Qingdao International Airport. | ||||||||||||||||
The investment was accounted for using the equity method of accounting as the Group has the ability to exercise significant influence to the operation of Qingdao AM. | |||||||||||||||||
-8 | In December 2014, the Group entered into an agreement with Beijing East Culture Media Co., Ltd. ("East Jiacheng") to establish a joint venture, Jiacheng Advertising. Jiacheng Advertising was registered on December 12, 2014 with total committed capital contribution of $4,849. The Group and East Jiacheng each committed to contribute $1,455 and $3,394, respectively, representing 30% and 70% of the equity interest of Jiaming Advertising. As of December 31, 2014, the Group did not pay any capital into Jiacheng Advertising. The capital contribution shall be paid within 50 years which is permitted under current PRC laws. Jiacheng Advertising mainly operates digital TV media resources. | ||||||||||||||||
The investment was accounted for using the equity method of accounting as the Group has the ability to exercise the significant influence to the operation of Jiacheng Advertising. |
ACCOUNTS_RECEIVABLE_NET_Tables
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
ACCOUNTS RECEIVABLE, NET [Abstract] | |||||||||||||||||||||
Schedule of Accounts Receivable, Net | As of December 31, | ||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||
Billed receivable | $ | 64,031 | $ | 44,528 | |||||||||||||||||
Unbilled receivable | 50,719 | 52,857 | |||||||||||||||||||
Accounts receivable, gross | 114,750 | 97,385 | |||||||||||||||||||
Less: Allowance for doubtful accounts | (7,221 | ) | (12,392 | ) | |||||||||||||||||
Accounts receivable, net | $ | 107,529 | $ | 84,993 | |||||||||||||||||
Schedule of Allowance for Doubtful Accounts | Balance at | Balance at | |||||||||||||||||||
beginning | Charge to | Exchange | end of the | ||||||||||||||||||
of the year | expenses | Write off | adjustment | year | |||||||||||||||||
2012 | $ | 3,288 | 1,242 | 34 | 45 | $ | 4,609 | ||||||||||||||
2013 | $ | 4,609 | 2,439 | - | 173 | $ | 7,221 | ||||||||||||||
2014 | $ | 7,221 | 5,623 | (247 | ) | (205 | ) | $ | 12,392 |
OTHER_CURRENT_ASSETS_Tables
OTHER CURRENT ASSETS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
OTHER CURRENT ASSETS [Abstract] | |||||||||
Schedule of Other Current Assets | As of December 31, | ||||||||
2013 | 2014 | ||||||||
Input VAT receivable | $ | 12,800 | $ | 16,692 | |||||
Prepaid selling and marketing fees(i) | - | 2,625 | |||||||
Advances to employees | 428 | 1,235 | |||||||
Short-term deposits | 449 | 1,142 | |||||||
Prepaid agency fees | 538 | 579 | |||||||
Prepaid income tax | 684 | 473 | |||||||
Prepaid individual income tax | - | 451 | |||||||
Other assets from nonmonetary transactions | 182 | 467 | |||||||
Receivables from ADS depositary | - | 463 | |||||||
Interest receivable | 422 | 267 | |||||||
Investment in films and TV Series(ii) | 3,634 | - | |||||||
Other prepaid expenses | 1,300 | 1,226 | |||||||
$ | 20,437 | $ | 25,620 | ||||||
(i) | Prepaid selling and marketing fees represents the prepayments for promotion of the Group's digital frame media in airports. | ||||||||
(ii) | Investment in films and TV Series represents the amount invested in films and TV Series produced by other companies, which are expected to receive investment returns within one year. Please see Note 9 for details. |
LONGTERM_DEPOSITS_Tables
LONG-TERM DEPOSITS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
LONG-TERM DEPOSITS [Abstract] | |||||||||
Schedule of Long Term Deposits | As of December 31, | ||||||||
2013 | 2014 | ||||||||
Concession fee deposits | $ | 19,780 | $ | 19,544 | |||||
Office rental deposits | 717 | 756 | |||||||
$ | 20,497 | $ | 20,300 |
ACQUIRED_INTANGIBLE_ASSETS_NET1
ACQUIRED INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
ACQUIRED INTANGIBLE ASSETS, NET [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Acquired Intangible Assets, Net | As of December 31, | ||||||||||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||||||||||
Gross | Net | Gross | Net | ||||||||||||||||||||||||||||||
carrying | Accumulated | Accumulated | carrying | carrying | Accumulated | Accumulated | carrying | ||||||||||||||||||||||||||
amount | amortization | impairment | amount | amount | amortization | impairment | amount | ||||||||||||||||||||||||||
TV program license | $ | 6,372 | $ | (1,903 | ) | $ | (4,469 | ) | $ | - | $ | 6,217 | $ | (1,857 | ) | $ | (4,360 | ) | $ | - | |||||||||||||
Audio-vision programming and broadcasting qualification | 229 | (39 | ) | (190 | ) | - | 224 | (38 | ) | (186 | ) | - | |||||||||||||||||||||
Customer relationships | 1,553 | (1,490 | ) | (63 | ) | - | 1,516 | (1,454 | ) | (62 | ) | - | |||||||||||||||||||||
Contract backlog | 2,035 | (2,003 | ) | (32 | ) | - | 1,986 | (1,955 | ) | (31 | ) | - | |||||||||||||||||||||
Concession agreements | 17,337 | (10,633 | ) | (5,258 | ) | 1,446 | 11,932 | (6,625 | ) | (4,500 | ) | 807 | |||||||||||||||||||||
Non-compete agreements | 194 | (184 | ) | (10 | ) | - | 190 | (180 | ) | (10 | ) | - | |||||||||||||||||||||
$ | 27,720 | $ | (16,252 | ) | $ | (10,022 | ) | $ | 1,446 | $ | 22,065 | $ | (12,109 | ) | $ | (9,149 | ) | $ | 807 |
PROPERTY_AND_EQUIPMENT_NET_Tab
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
PROPERTY AND EQUIPMENT, NET [Abstract] | |||||||||
Schedule of Property and Equipment, Net | As of December 31, | ||||||||
2013 | 2014 | ||||||||
Digital display network equipment | $ | 90,053 | $ | 79,348 | |||||
Gas station display network equipment | 10,686 | 23,261 | |||||||
Software | 10,656 | 10,952 | |||||||
Property | 4,368 | 6,194 | |||||||
Computer and office equipment | 2,999 | 3,627 | |||||||
Vehicle | 1,406 | 1,465 | |||||||
Leasehold improvement | 1,365 | 1,317 | |||||||
Furniture and fixture | 882 | 883 | |||||||
122,415 | 127,047 | ||||||||
Less: accumulated depreciation | (86,331 | ) | (76,718 | ) | |||||
$ | 36,084 | $ | 50,329 |
ACCRUED_EXPENSES_AND_OTHER_CUR1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |||||||||
Schedule of Accrued Expenses and Other Current Liabilities | As of December 31, | ||||||||
2013 | 2014 | ||||||||
Accrued payroll and welfare | $ | 4,469 | $ | 3,693 | |||||
Other tax payable | 2,942 | 3,013 | |||||||
Accrued staff disbursement | 1,103 | 1,812 | |||||||
Deposit payable | 1,203 | 1,228 | |||||||
Other liabilities | 666 | 673 | |||||||
Accrued professional fees | 388 | 583 | |||||||
Accrued selling and marketing fees | - | 423 | |||||||
Dividends payable to non-controlling interests holder | - | 73 | |||||||
Deferred income from ADS depositary | 112 | - | |||||||
$ | 10,883 | $ | 11,498 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
INCOME TAXES [Abstract] | |||||||||||||
Schedule of Income Tax (Expenses)/Benefits | For the years ended December 31, | ||||||||||||
2012 | 2013 | 2014 | |||||||||||
Income tax (expenses)/benefits: | |||||||||||||
Current | $ | (4,324 | ) | $ | (2,250 | ) | $ | (1,921 | ) | ||||
Deferred | 1,831 | 3,963 | 1,491 | ||||||||||
Total | $ | (2,493 | ) | $ | 1,713 | $ | (430 | ) | |||||
Schedule of Deferred Income Tax Assets and Liabilities | As of December 31, | ||||||||||||
2013 | 2014 | ||||||||||||
Deferred tax assets: | |||||||||||||
Current | |||||||||||||
Allowance for doubtful accounts | $ | 2,003 | $ | 3,375 | |||||||||
Accrued payroll | 1,046 | 870 | |||||||||||
Employee education fee excess | 24 | - | |||||||||||
Valuation allowance | (297 | ) | (2,660 | ) | |||||||||
Deferred tax assets - current | 2,776 | 1,585 | |||||||||||
Non-current | |||||||||||||
Depreciation of property and equipment | 622 | 517 | |||||||||||
Amortization of intangible assets and concession fees | 5,476 | 4,870 | |||||||||||
Net operating loss carry forwards | 13,231 | 17,825 | |||||||||||
Valuation allowance | (7,575 | ) | (9,280 | ) | |||||||||
Deferred tax assets - non-current | 11,754 | 13,932 | |||||||||||
Total deferred tax assets | 14,530 | 15,517 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Non-current | |||||||||||||
Acquired intangible assets | 361 | 202 | |||||||||||
Total deferred tax liabilities | $ | 361 | $ | 202 | |||||||||
Schedule of Effective Income Tax Rate Reconciliation | For the years ended December 31, | ||||||||||||
2012 | 2013 | 2014 | |||||||||||
Net loss before provision for income taxes | $ | (29,770 | ) | $ | (13,164 | ) | $ | (31,204 | ) | ||||
PRC statutory tax rate | 25 | % | 25 | % | 25 | % | |||||||
Income tax at statutory tax rate | (7,443 | ) | (3,291 | ) | (7,801 | ) | |||||||
Expenses not deductible for tax purposes: | |||||||||||||
Entertainment expenses exceeded the tax limit | 315 | 321 | 299 | ||||||||||
Goodwill impairment | 5,153 | - | - | ||||||||||
Tax effect of tax losses not recognized | 2,791 | 346 | 10 | ||||||||||
Tax effect of deductible temporary difference not recognized | 1,425 | 1,972 | 1,831 | ||||||||||
Changes in valuation allowance | (471 | ) | (571 | ) | 4,068 | ||||||||
Effect of preferential tax rates granted to PRC entities | (675 | ) | (1,079 | ) | 1,209 | ||||||||
Effect of income tax rate difference in other jurisdictions | 1,398 | 589 | 814 | ||||||||||
Income tax expenses/ (benefits) | $ | 2,493 | $ | (1,713 | ) | $ | 430 | ||||||
Effective tax rates | (8.4 | )% | 13 | % | (1.4 | )% | |||||||
Schedule of Tax Holiday Impact on Earnings Per Share Basic and Diluted | For the years ended December 31, | ||||||||||||
2012 | 2013 | 2014 | |||||||||||
Increase/(decrease) in income tax expenses | $ | 675 | $ | 1,079 | $ | (1,209 | ) | ||||||
Increase/(decrease) in net loss per ordinary share-basic | 0.01 | 0.01 | (0.01 | ) | |||||||||
Increase/(decrease) in net loss per ordinary share-diluted | 0.01 | 0.01 | (0.01 | ) |
NET_LOSS_PER_SHARE_Tables
NET LOSS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
NET LOSS PER SHARE [Abstract] | |||||||||||||
Schedule of the Calculation of Net Loss per Share | For the years ended December 31, | ||||||||||||
2012 | 2013 | 2014 | |||||||||||
Net loss attributable to AirMedia Group Inc.'s ordinary shareholders (numerator) | $ | (32,728 | ) | $ | (10,626 | ) | $ | (25,695 | ) | ||||
Shares (denominator): | |||||||||||||
Weighted average ordinary shares outstanding used | |||||||||||||
in computing net loss per ordinary share - basic | 124,269,245 | 120,386,635 | 119,304,773 | ||||||||||
Weighted average ordinary shares outstanding used | |||||||||||||
in computing net loss per ordinary share - diluted (i) | 124,269,245 | 120,386,635 | 119,304,773 | ||||||||||
Net loss per ordinary share-basic | $ | (0.26 | ) | $ | (0.09 | ) | $ | (0.22 | ) | ||||
Net loss per ordinary share-diluted | (0.26 | ) | (0.09 | ) | (0.22 | ) | |||||||
(i) | The effect of options was excluded from the computation of diluted loss per share for the years ended December 31, 2012, 2013 and 2014, respectively, as the effect would be anti-dilutive. |
SHARE_BASED_PAYMENTS_Tables
SHARE BASED PAYMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
SHARE BASED PAYMENTS [Abstract] | |||||||||||||||||||||
Schedule of Stock Option Activities | Outstanding Options | ||||||||||||||||||||
Weighted average | Weighted average | Weighted average | Aggregate | ||||||||||||||||||
Number of | exercise price | grant-date | remaining | intrinsic | |||||||||||||||||
options | per option | fair value | contractual terms | value | |||||||||||||||||
Outstanding at January 1, 2014 | 14,655,530 | $ | 1.14 | $ | 1.27 | ||||||||||||||||
Granted | 2,516,620 | 1.03 | 0.49 | ||||||||||||||||||
Exercised | (808,278 | ) | 0.78 | 0.48 | |||||||||||||||||
Forfeited | (1,510,108 | ) | 1.12 | 0.95 | |||||||||||||||||
Outstanding at December 31, 2014 | 14,853,764 | $ | 1.15 | $ | 1.18 | 2.69 | 2,337 | ||||||||||||||
Options vested and expected to vest as of December 31, 2014 | 14,647,462 | $ | 1.15 | $ | 1.19 | 2.67 | 2,285 | ||||||||||||||
Options exercisable as of December 31, 2014 | 12,744,914 | $ | 1.17 | $ | 1.29 | 2.41 | 1,802 | ||||||||||||||
Schedule of Stock Option Assumptions | For the years ended December 31, | ||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||
Risk-free interest rate of return | 0.12%-0.34% | 0.12%-1.10% | 0.10%-1.07% | ||||||||||||||||||
Expected term | 0.07-3.19 years | 0.33-4.42 years | 1.00-3.32 years | ||||||||||||||||||
Volatility | 67.57%-94.43% | 64.75%-94.43% | 63.10%-67.06% | ||||||||||||||||||
Dividend yield | - | - | - |
COMMITMENTS_Tables
COMMITMENTS (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
COMMITMENTS [Abstract] | |||||
Schedule of Future Minimum Payments Under Operating Leases | Year | ||||
2015 | $ | 2,357 | |||
2016 | 50 | ||||
2017 | 10 | ||||
2018 | 6 | ||||
$ | 2,423 | ||||
Schedule of Future Minimum Concession Fee Payments | Year | ||||
2015 | $ | 166,761 | |||
2016 | 77,640 | ||||
2017 | 52,093 | ||||
2018 | 33,843 | ||||
2019 | 21,654 | ||||
2020 and thereafter | 34,228 | ||||
$ | 386,219 |
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
RELATED PARTY TRANSACTIONS [Abstract] | |||||||||||||||
Schedule of Amount Due From/To Related Parties | Name of related parties | Relationship | As of December 31, | ||||||||||||
2013 | 2014 | ||||||||||||||
BEMC (1) | Equity method investment of the Group | $ | 187 | $ | 157 | ||||||||||
Jiacheng Advertising (2) | Equity method investment of the Group | - | 19 | ||||||||||||
Guangxi Dingyuan (3) | Equity method investment of the Group | - | 401 | ||||||||||||
AM Jiaming (4) | Equity method investment of the Group | - | 1,627 | ||||||||||||
Dingsheng Ruizhi (Beijing) Investment Consulting Co., Ltd. ("Dingsheng Ruizhi") (5) | Invested by management members of the Group | - | 322 | ||||||||||||
Beijing Dayun Culture Communication Co., Ltd ("Dayun Culture") (5) | Invested by management members of the Group | - | 796 | ||||||||||||
$ | 187 | $ | 3,322 | ||||||||||||
-1 | The amounts due from BEMC represents the uncollected advertising revenues earned from BEMC as of December 31, 2013 and 2014, respectively. | ||||||||||||||
-2 | The amounts due from Jiacheng Advertising represents the amount of digital TV on airplanes concession fee receivable as of December 31, 2014. | ||||||||||||||
-3 | The amounts due from Guangxi Dingyuan represents the amount of a deposit on concession fee receivable from Guangxi Dingyuan as of December 31, 2014. | ||||||||||||||
-4 | The amounts due from AM Jiaming includes a short-term loan to AM Jiaming amounted to $1,612 and related interest receivable of $15 as of December 31, 2014. | ||||||||||||||
-5 | The amounts due from Dingsheng Ruizhi and Dayun Culture represent the unreceived consideration of $322 and $796 for selling the 20% and 20% of equity interests in AM Film and AM Lianhe, respectively, as of December 31, 2014. | ||||||||||||||
Name of related parties | Relationship | As of December 31, | |||||||||||||
2013 | 2014 | ||||||||||||||
Qingdao AM | Equity method investment of the Group | $ | - | $ | 790 | ||||||||||
$ | - | $ | 790 | ||||||||||||
Schedule of Revenue Earned | For the years ended December 31 | ||||||||||||||
Name of related parties | Relationship | 2012 | 2013 | 2014 | |||||||||||
BEMC | Equity method investment of the Group | $ | 1,852 | $ | 681 | $ | - | ||||||||
Jiacheng Advertising | Equity method investment of the Group | - | - | 20 | |||||||||||
$ | 1,852 | $ | 681 | $ | 20 | ||||||||||
Schedule of Concession Cost Purchased | For the years ended December 31 | ||||||||||||||
Name of related parties | Relationship | 2012 | 2013 | 2014 | |||||||||||
Guangxi Dingyuan | Equity method investment of the Group | $ | - | $ | - | $ | 233 | ||||||||
$ | - | $ | - | $ | 233 | ||||||||||
Schedule of Loan to a Related Party | For the years ended December 31 | ||||||||||||||
Name of related parties | Relationship | 2012 | 2013 | 2014 | |||||||||||
AM Jiaming(i) | Equity method investment of the Group | $ | - | $ | - | $ | 1,612 | ||||||||
$ | - | $ | - | $ | 1,612 | ||||||||||
(i) | In May 2014 and June 2014, the Group provide two loans to AM Jiaming, with amount of $806 and $806, respectively, at an annual interest rate equal to the bank lending rate over the same period, i.e. 6% for 2014. The loans will be due five days after the issuance of a written notice from the Group. No prepayment was received from AM Jiaming as of December 31, 2014. | ||||||||||||||
Schedule of Equity Transactions with Related Party | For the years ended December 31 | ||||||||||||||
Name of related parties | Relationship | 2012 | 2013 | 2014 | |||||||||||
Dingsheng Ruizhi(ii) | Invested by management members of the Group | $ | - | $ | - | $ | 322 | ||||||||
Dayun Cluture(iii) | Invested by management members of the Group | - | - | 2,766 | |||||||||||
$ | - | $ | - | $ | 3,088 | ||||||||||
(ii) | In June 2014, the Group sold 20% equity interests in AM Film, a wholly-owned subsidiary, to Dingsheng Ruizhi with consideration of $322. After the transaction, the Group held 80% equity interests and remained the control over AM Film. | ||||||||||||||
(iii) | In August 2014, the Group sold 20% equity interests in AM Lianhe , a wholly-owned subsidiary, to Dayun Culture, with consideration of $2,766. After the transaction, the Group held 80% equity interests and remained the control over AM Lianhe. |
ADDITIONAL_INFORMATIONFINANCIA1
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I FINANCIAL INFORMATION OF PARENT COMPANY (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I FINANCIAL INFORMATION OF PARENT COMPANY [Abstract] | |||||||||||||||||||||||||||||
Schedule of Parent's Condensed Balance Sheets | As of December 31, | ||||||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Current assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 14 | $ | 2,029 | |||||||||||||||||||||||||
Amount due from subsidiaries | 181,245 | 178,347 | |||||||||||||||||||||||||||
Other current assets | 335 | 556 | |||||||||||||||||||||||||||
Total current assets | 181,594 | 180,932 | |||||||||||||||||||||||||||
Non-current assets | |||||||||||||||||||||||||||||
Investment in subsidiaries | 93,416 | 71,023 | |||||||||||||||||||||||||||
TOTAL ASSETS | 275,010 | 251,955 | |||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Current liabilities | |||||||||||||||||||||||||||||
Amount due to subsidiaries | 3,652 | 3,135 | |||||||||||||||||||||||||||
Accrued expenses and other current liabilities | 392 | 84 | |||||||||||||||||||||||||||
Total liabilities | 4,044 | 3,219 | |||||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||||||
Ordinary Shares ($0.001 par value; 900,000,000 shares authorized in 2013 and 2014; 127,662,057 shares and 127,662,057 shares issued as of December 31, 2013 and 2014, respectively; 119,134,135 shares and 119,942,413 shares outstanding as of December 31, 2013 and 2014, respectively) | 128 | 128 | |||||||||||||||||||||||||||
Additional paid in capital | 313,912 | 323,167 | |||||||||||||||||||||||||||
Treasury stock (8,527,922 and 7,719,644 shares as of December 31, 2013 and 2014, respectively) | (9,860 | ) | (9,236 | ) | |||||||||||||||||||||||||
Accumulated deficits | (73,443 | ) | (99,138 | ) | |||||||||||||||||||||||||
Accumulated other comprehensive income | 40,229 | 33,815 | |||||||||||||||||||||||||||
Total equity | 270,966 | 248,736 | |||||||||||||||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 275,010 | $ | 251,955 | |||||||||||||||||||||||||
Schedule of Parent's Condensed Statements of Operations | For the years ended December 31, | ||||||||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Selling and marketing | $ | (859 | ) | $ | - | $ | (144 | ) | |||||||||||||||||||||
General and administrative | (3,282 | ) | (2,239 | ) | (1,676 | ) | |||||||||||||||||||||||
Total operating expenses | (4,141 | ) | (2,239 | ) | (1,820 | ) | |||||||||||||||||||||||
Investment loss in subsidiaries | (28,587 | ) | (8,387 | ) | (23,875 | ) | |||||||||||||||||||||||
Net loss attributable to holders of ordinary shares | $ | (32,728 | ) | $ | (10,626 | ) | $ | (25,695 | ) | ||||||||||||||||||||
Schedule of Parents' Condensed Statements of Comprehensive Income/Loss | For the years ended December 31, | ||||||||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||||||||
Net loss | $ | (32,728 | ) | $ | (10,626 | ) | $ | (25,695 | ) | ||||||||||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||||||||||
Change in cumulative foreign currency translation adjustment | 2,214 | 7,281 | (6,414 | ) | |||||||||||||||||||||||||
Comprehensive income loss attributable to Parent Company | $ | (30,514 | ) | $ | (3,345 | ) | $ | (32,109 | ) | ||||||||||||||||||||
Schedule of Parent's Condensed Statements of Changes in Equity | Accumulated | ||||||||||||||||||||||||||||
other | |||||||||||||||||||||||||||||
Ordinary shares | Additional | Treasury | Accumulated | comprehensive | Total | ||||||||||||||||||||||||
Shares | Amount | paid in capital | stock | deficits | income | equity | |||||||||||||||||||||||
Balance as of January 1, 2012 | 125,247,597 | $ | 128 | $ | 275,150 | $ | (3,775 | ) | $ | (30,089 | ) | $ | 30,734 | $ | 272,148 | ||||||||||||||
Ordinary shares issued for share based compensation | 137,166 | - | - | 161 | - | - | 161 | ||||||||||||||||||||||
Share repurchase as treasury stock | (3,272,278 | ) | - | - | (3,421 | ) | - | - | (3,421 | ) | |||||||||||||||||||
Share-based compensation | - | - | 3,502 | - | - | - | 3,502 | ||||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | - | 2,214 | 2,214 | ||||||||||||||||||||||
Net loss | - | - | - | - | (32,728 | ) | - | (32,728 | ) | ||||||||||||||||||||
Balance as of December 31, 2012 | 122,112,485 | $ | 128 | $ | 278,652 | $ | (7,035 | ) | $ | (62,817 | ) | $ | 32,948 | $ | 241,876 | ||||||||||||||
Ordinary shares issued for share based compensation | 18,400 | - | - | 21 | - | - | 21 | ||||||||||||||||||||||
Share repurchase as treasury stock | (2,996,750 | ) | - | - | (2,846 | ) | - | - | (2,846 | ) | |||||||||||||||||||
Share-based compensation | - | - | 1,251 | - | - | - | 1,251 | ||||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | - | 7,281 | 7,281 | ||||||||||||||||||||||
Capital contribution from non-controlling interests | - | - | 39,825 | - | - | - | 39,825 | ||||||||||||||||||||||
Acquisition of non-controlling interests | - | - | (5,816 | ) | - | - | - | (5,816 | ) | ||||||||||||||||||||
Net loss | - | - | - | - | (10,626 | ) | - | (10,626 | ) | ||||||||||||||||||||
Balance as of December 31, 2013 | 119,134,135 | $ | 128 | $ | 313,912 | $ | (9,860 | ) | $ | (73,443 | ) | $ | 40,229 | $ | 270,966 | ||||||||||||||
Ordinary shares issued for share based compensation | 808,278 | - | - | 624 | - | - | 624 | ||||||||||||||||||||||
Share-based compensation | - | - | 1,359 | - | - | - | 1,359 | ||||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | - | (6,414 | ) | (6,414 | ) | ||||||||||||||||||||
Capital contribution from non-controlling interests | - | - | 6,463 | - | - | - | 6,463 | ||||||||||||||||||||||
Disposal of equity interests of AM Film and AM Lianhe | - | - | 1,433 | - | - | - | 1,433 | ||||||||||||||||||||||
Net loss | - | - | - | - | (25,695 | ) | - | (25,695 | ) | ||||||||||||||||||||
Balance as of December 31, 2014 | 119,942,413 | $ | 128 | $ | 323,167 | $ | (9,236 | ) | $ | (99,138 | ) | $ | 33,815 | $ | 248,736 | ||||||||||||||
Schedule of Parent's Condensed Statements of Cash Flows | For the years ended December 31, | ||||||||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||||||||||||
Net loss | $ | (32,728 | ) | $ | (10,626 | ) | $ | (25,695 | ) | ||||||||||||||||||||
Investment loss in subsidiaries | 28,587 | 8,387 | 23,875 | ||||||||||||||||||||||||||
Share-based compensation | 3,502 | 1,251 | 1,359 | ||||||||||||||||||||||||||
CHANGES IN WORKING CAPITAL ACCOUNTS | |||||||||||||||||||||||||||||
Other current assets | (597 | ) | 444 | (221 | ) | ||||||||||||||||||||||||
Accounts payable | (40 | ) | - | - | |||||||||||||||||||||||||
Accrued expenses and other current liabilities | (421 | ) | (3 | ) | (308 | ) | |||||||||||||||||||||||
Amount due to subsidiaries | 265 | 3,231 | (517 | ) | |||||||||||||||||||||||||
Amount due from subsidiaries | 2,497 | (41 | ) | 2,898 | |||||||||||||||||||||||||
Net cash provided by operating activities | 1,065 | 2,643 | 1,391 | ||||||||||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||||||||||||
Cash paid for treasury stock | (3,421 | ) | (2,846 | ) | - | ||||||||||||||||||||||||
Proceeds from exercises of stock options | 161 | 21 | 624 | ||||||||||||||||||||||||||
Net cash (used in) provided by financing activities | (3,260 | ) | (2,825 | ) | 624 | ||||||||||||||||||||||||
Net (decrease)/increase in cash | (2,195 | ) | (182 | ) | 2,015 | ||||||||||||||||||||||||
Cash, at beginning of year | 2,391 | 196 | 14 | ||||||||||||||||||||||||||
Cash, at end of year | $ | 196 | $ | 14 | $ | 2,029 |
ORGANIZATION_AND_PRINCIPAL_ACT2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Schedule of Companies Subsidiaries and VIE's) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Broad Cosmos Enterprises Ltd. [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 26-Jun-06 |
Place of incorporation | British Virgin Islands ("BVI") |
Percentage of economic ownership | 100.00% |
AirMedia International Limited ("AM International") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 14-Jul-07 |
Place of incorporation | BVI |
Percentage of economic ownership | 100.00% |
AirMedia (China) Limited ("AM China") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 5-Aug-05 |
Place of incorporation | Hong Kong |
Percentage of economic ownership | 100.00% |
Excel Lead International Limited ("Excel Lead") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 1-Aug-08 |
Place of incorporation | BVI |
Percentage of economic ownership | 100.00% |
Glorious Star Investment Limited ("Glorious Star") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 1-Aug-08 |
Place of incorporation | Hong Kong |
Percentage of economic ownership | 100.00% |
AirMedia Technology (Beijing) Co., Ltd. ("AM Technology") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 19-Sep-05 |
Place of incorporation | PRC |
Percentage of economic ownership | 100.00% |
Shenzhen AirMedia Information Technology Co., Ltd. ("Shenzhen AM") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 6-Jun-06 |
Place of incorporation | PRC |
Percentage of economic ownership | 100.00% |
Xi'an AirMedia Chuangyi Technology Co., Ltd. ("Xi'an AM") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 31-Dec-07 |
Place of incorporation | PRC |
Percentage of economic ownership | 100.00% |
Beijing Shengshi Lianhe Advertising Co., Ltd. ("Shengshi Lianhe") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 7-Aug-05 |
Place of incorporation | PRC |
Percentage of economic ownership | |
AirMedia Group Co., Ltd. (Formerly Beijing AirMedia Advertising Co., Ltd.) ("AM Advertising") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 22-Nov-05 |
Place of incorporation | PRC |
Percentage of economic ownership | |
Beijing AirMedia Jiaming Advertising Co., Ltd. (Jiaming) [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 1-Jan-07 |
Place of incorporation | PRC |
Percentage of economic ownership | |
Beijing Yuehang Digital Media Advertising Co., Ltd. ("AM Yuehang") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 16-Jan-08 |
Place of incorporation | PRC |
Percentage of economic ownership | |
AirTV United Media & Culture Co., Ltd. ("AirTV United") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 10-Oct-06 |
Place of incorporation | PRC |
Percentage of economic ownership | |
Beijing AirMedia Film & TV Culture Co., Ltd. ("AM Film") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 13-Sep-07 |
Place of incorporation | PRC |
Percentage of economic ownership | |
Flying Dragon Media Advertising Co., Ltd. ("Flying Dragon") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 1-Aug-08 |
Place of incorporation | PRC |
Percentage of economic ownership | |
Wenzhou AirMedia Advertising Co., Ltd. ("AM Wenzhou") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 17-Oct-08 |
Place of incorporation | PRC |
Percentage of economic ownership | |
Beijing Air Media Lianhe Advertising Co Ltd [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 10-Mar-09 |
Place of incorporation | PRC |
Percentage of economic ownership | |
Hainan Jinhui Guangming Media Advertising Co., Ltd. ("Hainan Jinhui") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 23-Jun-09 |
Place of incorporation | PRC |
Percentage of economic ownership | |
Beijing AirMedia Advertising Co., Ltd. (Formerly Beijing AirMedia Jinshi Advertising Co., Ltd.) ("AM Jinshi") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 7-Jul-09 |
Place of incorporation | PRC |
Percentage of economic ownership | |
Tianjin AirMedia Jinshi Advertising Co., Ltd. ("TJ Jinshi") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 8-Sep-09 |
Place of incorporation | PRC |
Percentage of economic ownership | |
AirMedia City (Beijing) Outdoor Advertising Co., Ltd. ("AM Outdoor") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 1-Jan-10 |
Place of incorporation | PRC |
Percentage of economic ownership | |
Beijing Dongding Gongyi Advertising Co., Ltd. ("Dongding") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 1-Feb-10 |
Place of incorporation | PRC |
Percentage of economic ownership | |
Beijing GreatView Media Advertising Co., Ltd. (Formerly Beijing Weimei Shengjing Media Advertising Co., Ltd.) ("GreatView Media") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 28-Apr-11 |
Place of incorporation | PRC |
Percentage of economic ownership | |
Beijing AirMedia Jinsheng Advertising Co., Ltd. ("AM Jinsheng") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 28-Apr-11 |
Place of incorporation | PRC |
Percentage of economic ownership | |
Guangzhou Meizheng Advertising Co., Ltd. ("Guangzhou Meizheng") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 17-May-13 |
Place of incorporation | PRC |
Percentage of economic ownership | |
Beijing AirMedia Tianyi Advertising Co., Ltd. ("AM Tianyi") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 25-Sep-13 |
Place of incorporation | PRC |
Percentage of economic ownership | |
Beijing Xinghe Union Media Co., Ltd. ("Xinghe Union") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | 28-Feb-14 |
Place of incorporation | PRC |
Percentage of economic ownership |
ORGANIZATION_AND_PRINCIPAL_ACT3
ORGANIZATION AND PRINCIPAL ACTIVITIES (Schedule of VIE's Consolidated Balance Sheets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ||
Total current assets | $249,876 | $275,104 |
TOTAL ASSETS | 395,597 | 402,791 |
Total current liabilities | 125,266 | 111,087 |
Total liabilities | 126,725 | 111,448 |
AirMedia's VIEs [Member] | ||
Variable Interest Entity [Line Items] | ||
Total current assets | 186,320 | 208,255 |
Total non-current assets | 128,601 | 108,677 |
TOTAL ASSETS | 314,921 | 316,932 |
Total current liabilities | 113,329 | 101,027 |
Total non-current liabilities | 1,459 | 361 |
Total liabilities | $114,788 | $101,388 |
ORGANIZATION_AND_PRINCIPAL_ACT4
ORGANIZATION AND PRINCIPAL ACTIVITIES (Schedule of VIE's Consolidated Statement of Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Variable Interest Entity [Line Items] | |||
Net revenues | $252,481 | $272,266 | $286,742 |
Net loss | -31,826 | -11,520 | -32,241 |
Net cash (used in) provided by operating activities | -1,814 | 537 | 20,230 |
Net cash used in investing activities | -6,157 | -70,466 | -57,006 |
Net cash provided by financing activities | 16,823 | 54,311 | -3,260 |
Percentage of VIE's net revenue as of consolidated net revenues | 100.00% | 99.70% | 100.00% |
Percentage of VIE's total assets as of consolidated total assets | 79.60% | 78.70% | |
Percentage of VIE's total liabilities as of consolidated total liabilities | 90.60% | 91.00% | |
AirMedia's VIEs [Member] | |||
Variable Interest Entity [Line Items] | |||
Net revenues | 252,477 | 271,536 | 286,641 |
Net loss | -27,508 | -13,552 | -31,771 |
Net cash (used in) provided by operating activities | 1,532 | 8,132 | -8,587 |
Net cash used in investing activities | -23,908 | -70,653 | -7,700 |
Net cash provided by financing activities | $13,199 | $58,763 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Significant Accounting Policies [Line Items] | |||
Revenue from nonmonetary transactions | $1,699 | $656 | $1,287 |
Sales related tax, percentage of total revenue | 8.50% | ||
VAT rate | 6.00% | ||
VAT, gross revenue | 19,279 | 21,524 | 8,785 |
Agency fee reversal | 1,433 | 3,329 | 6,407 |
Advertising expenses | 2,309 | 1,039 | 767 |
Government subsidies | $817 | $1,395 | $210 |
Revenues [Member] | Customer A [Member] | |||
Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 0.50% | 6.70% | 11.20% |
Accounts Receivable [Member] | Customer B [Member] | |||
Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 7.20% | 10.40% | |
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
VAT rate | 3.00% | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
VAT rate | 6.00% | ||
Concession Fees [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 3 years | ||
Concession Fees [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 5 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Estimated Useful Lives of Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Digital display network equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Gas station display network equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture and fixture [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Computer and office equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Computer and office equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Vehicle [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Property [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 50 years |
Leasehold improvement [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Shorter of the term of the lease or the estimated useful lives of the assets |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Estimated Economic Lives of Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
TV program license [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 20 years |
Audio-vision programming and broadcasting qualification [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 19 years 6 months |
Customer relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 3 years |
Customer relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 3 years 4 months 24 days |
Contract backlog [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 1 year 2 months 12 days |
Contract backlog [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 3 years |
Concession agreements [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 3 years 9 months 18 days |
Concession agreements [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 10 years |
Non-compete agreements [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 4 years 4 months 24 days |
SEGMENT_INFORMATION_AND_REVENU2
SEGMENT INFORMATION AND REVENUE ANALYSIS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Products and Services [Line Items] | |||
Gross revenues | $255,871 | $276,516 | $292,965 |
Digital frames in airports [Member] | |||
Products and Services [Line Items] | |||
Gross revenues | 138,527 | 152,346 | 137,342 |
Digital TV screens in airports [Member] | |||
Products and Services [Line Items] | |||
Gross revenues | 13,286 | 14,110 | 13,731 |
Digital TV screens on airplanes [Member] | |||
Products and Services [Line Items] | |||
Gross revenues | 16,212 | 16,160 | 26,612 |
Traditional media in airports [Member] | |||
Products and Services [Line Items] | |||
Gross revenues | 56,723 | 64,845 | 83,478 |
Other revenues in air travel [Member] | |||
Products and Services [Line Items] | |||
Gross revenues | 6,395 | 9,183 | 7,346 |
Gas Station Media Network [Member] | |||
Products and Services [Line Items] | |||
Gross revenues | 11,164 | 12,726 | 14,217 |
Other Media [Member] | |||
Products and Services [Line Items] | |||
Gross revenues | $13,564 | $7,146 | $10,239 |
SHORTTERM_INVESTMENTS_Details
SHORT-TERM INVESTMENTS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Investments [Line Items] | ||
Short-term investment | $17,729 | $42,949 |
Minimum [Member] | ||
Schedule of Investments [Line Items] | ||
Annual rate | 2.30% | |
Maximum [Member] | ||
Schedule of Investments [Line Items] | ||
Annual rate | 8.00% |
LONGTERM_INVESTMENTS_Narrative
LONG-TERM INVESTMENTS (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 13 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2014 | Jun. 30, 2014 | Feb. 15, 2012 | Feb. 28, 2014 | Dec. 17, 2013 | Jan. 31, 2015 | Dec. 12, 2014 | Mar. 18, 2008 | Mar. 13, 2012 | Apr. 18, 2012 | Dec. 25, 2013 | Dec. 25, 2014 | Jun. 30, 2010 | ||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Capital injection | $1,629 | $4,112 | $2,223 | ||||||||||||||||||||
Dividend received from equity method investee | 242 | 686 | |||||||||||||||||||||
BEMC [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 49.00% | [1] | 49.00% | [1] | 49.00% | [1] | 49.00% | [1] | |||||||||||||||
Registered capital | 2,119 | ||||||||||||||||||||||
Dividend received from equity method investee | 495 | 1,401 | |||||||||||||||||||||
Shibo Movie [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | [2] | 50.00% | [2] | [2] | [2] | ||||||||||||||||||
Registered capital | 1,558 | ||||||||||||||||||||||
Xinghe Union [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 50.00% | [2] | |||||||||||||||||||||
Registered capital | 1,558 | ||||||||||||||||||||||
Guangxi Dingyuan [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 40.00% | [3] | 40.00% | [3] | 40.00% | [3] | 40.00% | [3] | |||||||||||||||
Registered capital | 1,605 | ||||||||||||||||||||||
AM Guangying [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 38.00% | [4] | 48.00% | [4] | 38.00% | [4] | 38.00% | [4] | |||||||||||||||
Capital injection | 1,629 | ||||||||||||||||||||||
Registered capital | 1,871 | ||||||||||||||||||||||
Capital contribution | 2,520 | ||||||||||||||||||||||
Yunxing Chuangrong [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 50.00% | [5] | 50.00% | [5] | 50.00% | [5] | 50.00% | [5] | |||||||||||||||
Registered capital | 4,956 | ||||||||||||||||||||||
AM Jiaming [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 49.00% | [6] | [6] | 49.00% | [6] | 49.00% | [6] | ||||||||||||||||
Ownership transferred | 51.00% | ||||||||||||||||||||||
Equity Method Investment, Net Sales Proceeds | 53 | ||||||||||||||||||||||
Gain on disposal of interest | 19 | ||||||||||||||||||||||
Qingdao AM [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 49.00% | [7] | [7] | 49.00% | [7] | 49.00% | [7] | ||||||||||||||||
Registered capital | 1,607 | ||||||||||||||||||||||
Beijing Air Media Jiacheng Advertising Co Ltd [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 30.00% | [8] | [8] | 30.00% | [8] | 30.00% | [8] | ||||||||||||||||
Registered capital | 4,849 | ||||||||||||||||||||||
China Eastern Media Corporation [Member] | BEMC [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 51.00% | ||||||||||||||||||||||
Beijing NS Digital TV Co [Member] | Shibo Movie [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 50.00% | ||||||||||||||||||||||
Capital contribution | 794 | ||||||||||||||||||||||
Asiaray [Member] | Guangxi Dingyuan [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 40.00% | ||||||||||||||||||||||
Guangxi Civil Aviation [Member] | Guangxi Dingyuan [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 20.00% | ||||||||||||||||||||||
Zhejiang Tianguang Diying Production Co., Ltd. [Member] | AM Guangying [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 52.00% | ||||||||||||||||||||||
Qingdao International Airport Group Co [Member] | Qingdao AM [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 51.00% | ||||||||||||||||||||||
Registered capital | 819 | ||||||||||||||||||||||
Beijing East Jiacheng Culture Media Co., Ltd [Member] | Beijing Air Media Jiacheng Advertising Co Ltd [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 70.00% | ||||||||||||||||||||||
Registered capital | 3,394 | ||||||||||||||||||||||
The Group [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Investment loss | -164 | ||||||||||||||||||||||
The Group [Member] | BEMC [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 49.00% | ||||||||||||||||||||||
Dividend received from equity method investee | 242 | 686 | |||||||||||||||||||||
The Group [Member] | Guangxi Dingyuan [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 40.00% | ||||||||||||||||||||||
The Group [Member] | AM Guangying [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 48.00% | ||||||||||||||||||||||
The Group [Member] | Yunxing Chuangrong [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 50.00% | ||||||||||||||||||||||
Capital contribution | 2,478 | ||||||||||||||||||||||
The Group [Member] | Qingdao AM [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 49.00% | ||||||||||||||||||||||
Registered capital | 788 | ||||||||||||||||||||||
The Group [Member] | Qingdao AM [Member] | Subsequent Event [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Capital injection | 788 | ||||||||||||||||||||||
The Group [Member] | Beijing Air Media Jiacheng Advertising Co Ltd [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Ownership percentage | 30.00% | ||||||||||||||||||||||
Registered capital | 1,455 | 1,455 | 1,455 | 1,455 | |||||||||||||||||||
Period of capital contribution | 50 years | ||||||||||||||||||||||
The Group [Member] | Zhangshangtong [Member] | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Cash consideration of cost method investment | $367 | ||||||||||||||||||||||
Ownership percentage, cost method | 20.00% | ||||||||||||||||||||||
[1] | In March 2008, the Group entered into a definitive agreement with China Eastern Media Corporation, Ltd., a subsidiary of China Eastern Group and China Eastern Airlines Corporation Limited operating the media resources of China Eastern Group, to establish a joint venture, BEMC. BEMC was incorporated on March 18, 2008 in the PRC with China Eastern Media Corporation and the Group holding 51% and 49% equity interest, respectively. BEMC obtained concession rights of certain media resources from China Eastern Group, including the digital TV screens on airplanes of China Eastern Airlines, and paid concession fees to its shareholders as consideration. The total paid-in capital of BEMC was $2,119, which was contributed by both parties proportionately. In September 2013 and December 2014, BEMC distributed dividend of $1,401 and $495, respectively, in which $686 and $242, respectively were distributed and paid to the Group. | ||||||||||||||||||||||
[2] | On February 15, 2012 and March 13, 2012, the Group and Beijing N-S Digital TV Co., Ltd. ("N-S Digital TV") established two joint ventures, Shibo Movie and Xinghe Union, respectively. The registered capital of Shibo Movie and Xinghe Union was $1,558 each. The Group and N-S Digital TV each contributed $794, representing 50% of the equity interest in each Shibo Movie and Xinghe Union. Shibo Movie is engaged in movie technology development and consulting services, and Xinghe Union is engaged in movie and TV series investment and publishing, advertisement design and production. These joint ventures were established pursuant to a framework agreement entered into with Beijing Super TV Co., Ltd. ("Super TV") in June 2011 and the supplemental agreement entered into with Super TV and N-S Digital TV in January 2012. | ||||||||||||||||||||||
[3] | In April 2012, The Group entered into an agreement with Asiaray Advertising Media Ltd. ("Asiaray") and Guangxi Civil Aviation Development Co., Ltd. ("Guangxi Civil Aviation") to establish a joint venture, Guangxi Dingyuan. Guangxi Dingyuan was incorporated on April 18, 2012 with total contributed capital of $1,605, of which 20%, 40% and 40% of that amount was contributed by Guangxi Civil Aviation, Asiaray and the Group, respectively. Guangxi Dingyuan exclusively operates various media resources in four airports in China's Guangxi province. | ||||||||||||||||||||||
[4] | In December 2013, the Group entered into an agreement with Zhejiang Tianguang Diying Production Co., Ltd. to establish a joint venture, AM Guangying. AM Guangying was incorporated on December 25, 2013 with total contributed capital of $1,871, of which 52% and 48% of that amount was contributed by Zhejiang Tianguang Diying Production Co., Ltd. and the Group, respectively. In March 2014, the Group participated a capital call at $1,629 without any change of its equity interest. As a result, the total contributed capital by the Group was $2,520 as of December 31, 2014. AM Guangying is mainly engaged in film production. | ||||||||||||||||||||||
[5] | In December 2013, the Group entered into an agreement with Hainan Airlines Culture Co., Ltd. ("Hainan Airlines") to establish a joint venture, Yunxing Chuangrong. Yunxing Chuangrong was registered on December 17, 2013 with total contributed capital of $4,956. The Group and Hainan Airlines each contributed $2,478, representing 50% of the equity interest. Yunxing Chuangrong is established for its operation in the in-flight internet business. | ||||||||||||||||||||||
[6] | In June 2014, the Group sold 51% equity interests in AM Jiaming to an individual with consideration of $53. The disposal gain of $19 was recognized in the year ended December 31, 2014. AM Jiaming was changed from a wholly-owned subsidiary to a 49% equity method investee of the Group. | ||||||||||||||||||||||
[7] | In December 2014, the Group entered into an agreement with Qingdao International Airport Group Co., Ltd. ("Qingdao Airport") to establish a joint venture, Qingdao AM. Qingdao AM was registered on December 25, 2014 with total committed capital contribution of $1,607. The Group and Qingdao Airport each committed to contribute $788 and $819, respectively, representing 49% and 51% of the equity interest of Qingdao AM. The Group paid the whole capital injection of $788 to Qingdao AM in January 2015. Qingdao AM exclusively operates various media resources in Qingdao International Airport. | ||||||||||||||||||||||
[8] | In December 2014, the Group entered into an agreement with Beijing East Culture Media Co., Ltd. ("East Jiacheng") to establish a joint venture, Jiacheng Advertising. Jiacheng Advertising was registered on December 12, 2014 with total committed capital contribution of $4,849. The Group and East Jiacheng each committed to contribute $1,455 and $3,394, respectively, representing 30% and 70% of the equity interest of Jiaming Advertising. As of December 31, 2014, the Group did not pay any capital into Jiacheng Advertising. The capital contribution shall be paid within 50 years which is permitted under current PRC laws. Jiacheng Advertising mainly operates digital TV media resources. |
LONGTERM_INVESTMENTS_Schedule_
LONG-TERM INVESTMENTS (Schedule of Equity Method Investments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Amount | $8,647 | $7,416 | ||
BEMC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 49.00% | [1] | 49.00% | [1] |
Amount | 1,545 | [1] | 1,743 | [1] |
Shibo Movie [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | [2] | 50.00% | [2] | |
Amount | [2] | 455 | [2] | |
Xinghe Union [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% | [2] | ||
Ownership percentage | 90.00% | [2] | ||
Amount | [2] | 370 | [2] | |
Guangxi Dingyuan [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 40.00% | [3] | 40.00% | [3] |
Amount | 753 | [3] | 718 | [3] |
AM Guangying [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 38.00% | [4] | 48.00% | [4] |
Amount | 3,219 | [4] | 1,652 | [4] |
Yunxing Chuangrong [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% | [5] | 50.00% | [5] |
Amount | 2,340 | [5] | 2,478 | [5] |
AM Jiaming [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 49.00% | [6] | [6] | |
Amount | [6] | [6] | ||
Qingdao AM [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 49.00% | [7] | [7] | |
Amount | 790 | [7] | [7] | |
Jiacheng Advertising [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 30.00% | [8] | [8] | |
Amount | [8] | [8] | ||
[1] | In March 2008, the Group entered into a definitive agreement with China Eastern Media Corporation, Ltd., a subsidiary of China Eastern Group and China Eastern Airlines Corporation Limited operating the media resources of China Eastern Group, to establish a joint venture, BEMC. BEMC was incorporated on March 18, 2008 in the PRC with China Eastern Media Corporation and the Group holding 51% and 49% equity interest, respectively. BEMC obtained concession rights of certain media resources from China Eastern Group, including the digital TV screens on airplanes of China Eastern Airlines, and paid concession fees to its shareholders as consideration. The total paid-in capital of BEMC was $2,119, which was contributed by both parties proportionately. In September 2013 and December 2014, BEMC distributed dividend of $1,401 and $495, respectively, in which $686 and $242, respectively were distributed and paid to the Group. | |||
[2] | On February 15, 2012 and March 13, 2012, the Group and Beijing N-S Digital TV Co., Ltd. ("N-S Digital TV") established two joint ventures, Shibo Movie and Xinghe Union, respectively. The registered capital of Shibo Movie and Xinghe Union was $1,558 each. The Group and N-S Digital TV each contributed $794, representing 50% of the equity interest in each Shibo Movie and Xinghe Union. Shibo Movie is engaged in movie technology development and consulting services, and Xinghe Union is engaged in movie and TV series investment and publishing, advertisement design and production. These joint ventures were established pursuant to a framework agreement entered into with Beijing Super TV Co., Ltd. ("Super TV") in June 2011 and the supplemental agreement entered into with Super TV and N-S Digital TV in January 2012. | |||
[3] | In April 2012, The Group entered into an agreement with Asiaray Advertising Media Ltd. ("Asiaray") and Guangxi Civil Aviation Development Co., Ltd. ("Guangxi Civil Aviation") to establish a joint venture, Guangxi Dingyuan. Guangxi Dingyuan was incorporated on April 18, 2012 with total contributed capital of $1,605, of which 20%, 40% and 40% of that amount was contributed by Guangxi Civil Aviation, Asiaray and the Group, respectively. Guangxi Dingyuan exclusively operates various media resources in four airports in China's Guangxi province. | |||
[4] | In December 2013, the Group entered into an agreement with Zhejiang Tianguang Diying Production Co., Ltd. to establish a joint venture, AM Guangying. AM Guangying was incorporated on December 25, 2013 with total contributed capital of $1,871, of which 52% and 48% of that amount was contributed by Zhejiang Tianguang Diying Production Co., Ltd. and the Group, respectively. In March 2014, the Group participated a capital call at $1,629 without any change of its equity interest. As a result, the total contributed capital by the Group was $2,520 as of December 31, 2014. AM Guangying is mainly engaged in film production. | |||
[5] | In December 2013, the Group entered into an agreement with Hainan Airlines Culture Co., Ltd. ("Hainan Airlines") to establish a joint venture, Yunxing Chuangrong. Yunxing Chuangrong was registered on December 17, 2013 with total contributed capital of $4,956. The Group and Hainan Airlines each contributed $2,478, representing 50% of the equity interest. Yunxing Chuangrong is established for its operation in the in-flight internet business. | |||
[6] | In June 2014, the Group sold 51% equity interests in AM Jiaming to an individual with consideration of $53. The disposal gain of $19 was recognized in the year ended December 31, 2014. AM Jiaming was changed from a wholly-owned subsidiary to a 49% equity method investee of the Group. | |||
[7] | In December 2014, the Group entered into an agreement with Qingdao International Airport Group Co., Ltd. ("Qingdao Airport") to establish a joint venture, Qingdao AM. Qingdao AM was registered on December 25, 2014 with total committed capital contribution of $1,607. The Group and Qingdao Airport each committed to contribute $788 and $819, respectively, representing 49% and 51% of the equity interest of Qingdao AM. The Group paid the whole capital injection of $788 to Qingdao AM in January 2015. Qingdao AM exclusively operates various media resources in Qingdao International Airport. | |||
[8] | In December 2014, the Group entered into an agreement with Beijing East Culture Media Co., Ltd. ("East Jiacheng") to establish a joint venture, Jiacheng Advertising. Jiacheng Advertising was registered on December 12, 2014 with total committed capital contribution of $4,849. The Group and East Jiacheng each committed to contribute $1,455 and $3,394, respectively, representing 30% and 70% of the equity interest of Jiaming Advertising. As of December 31, 2014, the Group did not pay any capital into Jiacheng Advertising. The capital contribution shall be paid within 50 years which is permitted under current PRC laws. Jiacheng Advertising mainly operates digital TV media resources. |
ACCOUNTS_RECEIVABLE_NET_Schedu
ACCOUNTS RECEIVABLE, NET (Schedule of Accounts Receivable, Net) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
ACCOUNTS RECEIVABLE, NET [Abstract] | ||||
Billed receivable | $44,528 | $64,031 | ||
Unbilled receivable | 52,857 | 50,719 | ||
Accounts receivable, gross | 97,385 | 114,750 | ||
Less: Allowance for doubtful accounts | -12,392 | -7,221 | -4,609 | -3,288 |
Accounts receivable, net | $84,993 | $107,529 |
ACCOUNTS_RECEIVABLE_NET_Schedu1
ACCOUNTS RECEIVABLE, NET (Schedule of Allowance for Doubtful Accounts) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ACCOUNTS RECEIVABLE, NET [Abstract] | |||
Balance at beginning of the year | $7,221 | $4,609 | $3,288 |
Charge to expenses | 5,623 | 2,439 | 1,242 |
Write off | -247 | 34 | |
Exchange adjustment | -205 | 173 | 45 |
Balance at end of the year | $12,392 | $7,221 | $4,609 |
OTHER_CURRENT_ASSETS_Details
OTHER CURRENT ASSETS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
OTHER CURRENT ASSETS [Abstract] | ||||
Input VAT receivable | $16,692 | $12,800 | ||
Prepaid selling and marketing fees | 2,625 | [1] | [1] | |
Advances to employees | 1,235 | 428 | ||
Short-term deposits | 1,142 | 449 | ||
Prepaid agency fees | 579 | 538 | ||
Prepaid income tax | 473 | 684 | ||
Prepaid individual income tax | 451 | |||
Other assets from nonmonetary transactions | 467 | 182 | ||
Receivables from ADS depositary | 463 | |||
Interest receivable | 267 | 422 | ||
Investment in films and TV Series | [2] | 3,634 | [2] | |
Other prepaid expenses | 1,226 | 1,300 | ||
Total other current assets | $25,620 | $20,437 | ||
[1] | Prepaid selling and marketing fees represents the prepayments for promotion of the Group's digital frame media in airports. | |||
[2] | Investment in films and TV Series represents the amount invested in films and TV Series produced by other companies, which are expected to receive investment returns within one year. Please see Note 9 for details. |
ASSETS_HELD_FOR_SALE_Narrative
ASSETS HELD FOR SALE (Narrative) (Details) (USD $) | 0 Months Ended | |
In Thousands, unless otherwise specified | Jan. 13, 2015 | Dec. 31, 2014 |
Assets held for sale [Line items] | ||
Amount of cash consideration | $1,227 | |
Property, plant and equipment held for sale | 1,087 | |
Beijing AirMedia Jinsheng Advertising Co., Ltd. ("AM Jinsheng") [Member] | Tianyi Culture [Member] | Subsequent event [Member] | ||
Assets held for sale [Line items] | ||
Percentage of economic ownership to be sold | 81.00% | |
Amount of cash consideration | $1,227 |
OTHER_NONCURRENT_ASSETS_Detail
OTHER NON-CURRENT ASSETS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
OTHER NON-CURRENT ASSETS [Abstract] | ||
Other non-current assets | $6,128 | $661 |
Other non-current liabilities | $1,257 |
LONGTERM_DEPOSITS_Details
LONG-TERM DEPOSITS (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Long Term Deposits [Line Items] | ||
Concession fee deposits | 19,544 | $19,780 |
Office rental deposits | 756 | 717 |
Total long-term deposits | 20,300 | $20,497 |
Minimum [Member] | ||
Long Term Deposits [Line Items] | ||
Concession fee deposit term | 3 years | |
Office rental deposits, term | 2 years | |
Maximum [Member] | ||
Long Term Deposits [Line Items] | ||
Concession fee deposit term | 5 years | |
Office rental deposits, term | 3 years |
ACQUIRED_INTANGIBLE_ASSETS_NET2
ACQUIRED INTANGIBLE ASSETS, NET (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $22,065 | $27,720 | |
Accumulated Amortization | -12,109 | -16,252 | |
Accumulated impairment | -9,149 | -10,022 | |
Net carrying amount | 807 | 1,446 | |
Impairment of intangible assets | 9,583 | ||
Amortization expense | 606 | 836 | 2,635 |
2015 | 274 | ||
2016 | 273 | ||
2017 | 130 | ||
2018 | 130 | ||
thereafter | |||
TV program license [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 6,217 | 6,372 | |
Accumulated Amortization | -1,857 | -1,903 | |
Accumulated impairment | -4,360 | -4,469 | |
Net carrying amount | |||
Audio-vision programming and broadcasting qualification [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 224 | 229 | |
Accumulated Amortization | -38 | -39 | |
Accumulated impairment | -186 | -190 | |
Net carrying amount | |||
Customer relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 1,516 | 1,553 | |
Accumulated Amortization | -1,454 | -1,490 | |
Accumulated impairment | -62 | -63 | |
Net carrying amount | |||
Contract backlog [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 1,986 | 2,035 | |
Accumulated Amortization | -1,955 | -2,003 | |
Accumulated impairment | -31 | -32 | |
Net carrying amount | |||
Concession agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 11,932 | 17,337 | |
Accumulated Amortization | -6,625 | -10,633 | |
Accumulated impairment | -4,500 | -5,258 | |
Net carrying amount | 807 | 1,446 | |
Non-compete agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 190 | 194 | |
Accumulated Amortization | -180 | -184 | |
Accumulated impairment | -10 | -10 | |
Net carrying amount |
GOODWILL_Details
GOODWILL (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
item | |||
GOODWILL [Abstract] | |||
Number of reporting units | 4 | ||
Impairment of goodwill | $20,611 |
PROPERTY_AND_EQUIPMENT_NET_Det
PROPERTY AND EQUIPMENT, NET (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $127,047 | $122,415 | |
Less: accumulated depreciation | -76,718 | -86,331 | |
Property and equipment, net | 50,329 | 36,084 | |
Depreciation | 13,925 | 21,026 | 21,398 |
Digital display network equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 79,348 | 90,053 | |
Gas station display network equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 23,261 | 10,686 | |
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 10,952 | 10,656 | |
Property [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 6,194 | 4,368 | |
Computer and office equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 3,627 | 2,999 | |
Vehicle [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 1,465 | 1,406 | |
Leasehold improvement [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 1,317 | 1,365 | |
Furniture and fixture [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $883 | $882 |
PREPAID_EQUIPMENT_COST_Details
PREPAID EQUIPMENT COST (Details) | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | 12-May-13 | 12-May-13 |
USD ($) | USD ($) | USD ($) | Elec-Tech [Member] | Elec-Tech [Member] | Elec-Tech [Member] | Elec-Tech [Member] | Elec-Tech [Member] | Elec-Tech [Member] | |
USD ($) | USD ($) | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | GreatView Media [Member] | GreatView Media [Member] | ||||
item | item | USD ($) | USD ($) | USD ($) | CNY | ||||
Schedule Of Prepaid Equipment Cost [Line Items] | |||||||||
Investment commitment | $104,000 | 640,000 | |||||||
Equity interest - related party | 21.27% | 21.27% | |||||||
Capital contribution from non-controlling interests | 11,241 | 59,438 | 68,458 | 57,217 | 67,015 | 56,113 | |||
Prepaid equipment costs | 11,224 | 56,996 | 58,182 | 49,415 | |||||
Property and equipment, net | $50,329 | $36,084 | $12,680 | ||||||
Number of LED screens sets purchased | 1,200 | 1,000 |
ACCRUED_EXPENSES_AND_OTHER_CUR2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | ||
Accrued payroll and welfare | $3,693 | $4,469 |
Other tax payable | 3,013 | 2,942 |
Accrued staff disbursement | 1,812 | 1,103 |
Deposit payable | 1,228 | 1,203 |
Other liabilities | 673 | 666 |
Accrued professional fees | 583 | 388 |
Accrued selling and marketing fees | 423 | |
Dividends payable to non-controlling interests holder | 73 | |
Deferred income from ADS depositary | 112 | |
Total accrued expenses and other current liabilities | $11,498 | $10,883 |
SHORTTERM_LOAN_Narrative_Detai
SHORT-TERM LOAN (Narrative) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2014 | Mar. 31, 2014 |
Short-term Debt [Line Items] | ||||
Short term loan | $3,000 | |||
Interest expense on short term borrowings | 77 | |||
Loans Payable to Bank One [Member] | ||||
Short-term Debt [Line Items] | ||||
Short term loan | 1,800 | |||
Annual interest rate | 2.89% | |||
Loans Payable to Bank Two [Member] | ||||
Short-term Debt [Line Items] | ||||
Short term loan | $1,200 | |||
Annual interest rate | 2.86% |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) (USD $) | 12 Months Ended | 36 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Taxes [Line Items] | |||||||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% | ||||
Net operating loss carry forward | $75,647 | ||||||
Enterprise Income Tax [Member] | |||||||
Income Taxes [Line Items] | |||||||
PRC statutory tax rate | 25.00% | ||||||
AM Technology [Member] | PRC Enterprise Income Tax [Member] | |||||||
Income Taxes [Line Items] | |||||||
Preferential tax rate | 15.00% | ||||||
Shenzhen AM [Member] | PRC Enterprise Income Tax [Member] | |||||||
Income Taxes [Line Items] | |||||||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% | 24.00% | |||
Preferential tax rate | 25.00% | 25.00% | 12.50% | ||||
Xi'an AM [Member] | PRC Enterprise Income Tax [Member] | |||||||
Income Taxes [Line Items] | |||||||
PRC statutory tax rate | 25.00% | ||||||
Tax exempt period | 2 years | ||||||
Preferential tax rate | 15.00% | 12.50% | |||||
Xi'an AM [Member] | PRC Enterprise Income Tax [Member] | Subsequent Event [Member] | |||||||
Income Taxes [Line Items] | |||||||
Preferential tax rate | 15.00% | 15.00% |
INCOME_TAXES_Schedule_of_Incom
INCOME TAXES (Schedule of Income Tax (Expenses)/Benefits) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INCOME TAXES [Abstract] | |||
Current | ($1,921) | ($2,250) | ($4,324) |
Deferred | 1,491 | 3,963 | 1,831 |
Total | ($430) | $1,713 | ($2,493) |
INCOME_TAXES_Schedule_of_Defer
INCOME TAXES (Schedule of Deferred Income Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
INCOME TAXES [Abstract] | ||
Allowance for doubtful accounts | $3,375 | $2,003 |
Accrued payroll | 870 | 1,046 |
Employee education fee excess | 24 | |
Valuation allowance | -2,660 | -297 |
Deferred tax assets - current | 1,585 | 2,776 |
Depreciation of property and equipment | 517 | 622 |
Amortization of intangible assets and concession fees | 4,870 | 5,476 |
Net operating loss carry forwards | 17,825 | 13,231 |
Valuation allowance | -9,280 | -7,575 |
Deferred tax assets - non-current | 13,932 | 11,754 |
Total deferred tax assets | 15,517 | 14,530 |
Acquired intangible assets | 202 | 361 |
Total deferred tax liabilities | $202 | $361 |
INCOME_TAXES_Schedule_of_Recon
INCOME TAXES (Schedule of Reconciliation of Effective Income Tax Rate) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INCOME TAXES [Abstract] | |||
Net loss before provision for income taxes | ($31,204) | ($13,164) | ($29,770) |
PRC statutory tax rate | 25.00% | 25.00% | 25.00% |
Income tax at statutory tax rate | -7,801 | -3,291 | -7,443 |
Entertainment expenses exceeded the tax limit | 299 | 321 | 315 |
Goodwill impairment | 5,153 | ||
Tax effect of tax losses not recognized | 10 | 346 | 2,791 |
Tax effect of deductible temporary difference not recognized | 1,831 | 1,972 | 1,425 |
Changes in valuation allowance | 4,068 | -571 | -471 |
Effect of preferential tax rates granted to PRC entities | 1,209 | -1,079 | -675 |
Effect of income tax rate difference in other jurisdictions | 814 | 589 | 1,398 |
Income tax (benefits)/expenses | $430 | ($1,713) | $2,493 |
Effective tax rates | -1.40% | 13.00% | -8.40% |
INCOME_TAXES_Schedule_of_VIEs_
INCOME TAXES (Schedule of VIE's Net Loss Per Share Amounts) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INCOME TAXES [Abstract] | |||
Increase/(decrease) in income tax expenses | ($1,209) | $1,079 | $675 |
Increase/(decrease) in net loss per ordinary share-basic | ($0.01) | $0.01 | $0.01 |
Increase/(decrease) in net loss per ordinary share-diluted | ($0.01) | $0.01 | $0.01 |
NET_LOSS_PER_SHARE_Details
NET LOSS PER SHARE (Details) (USD $) | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
NET LOSS PER SHARE [Abstract] | ||||||
Net loss attributable to holders of ordinary shares | ($25,695) | ($10,626) | ($32,728) | |||
Weighted average ordinary shares outstanding used in computing net loss per ordinary share - basic | 119,304,773 | 120,386,635 | 124,269,245 | |||
Weighted average ordinary shares outstanding used in computing net loss per ordinary share - diluted | 119,304,773 | [1] | 120,386,635 | [1] | 124,269,245 | [1] |
Net loss per ordinary share-basic | ($0.22) | ($0.09) | ($0.26) | |||
Net loss per ordinary share-diluted | ($0.22) | ($0.09) | ($0.26) | |||
[1] | The effect of options was excluded from the computation of diluted loss per share for the years ended December 31, 2012, 2013 and 2014, respectively, as the effect would be anti-dilutive. |
SHARE_BASED_PAYMENTS_Narrative
SHARE BASED PAYMENTS (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 01, 2014 | 31-May-14 | Nov. 01, 2012 | Oct. 10, 2012 | Sep. 01, 2012 | Apr. 15, 2014 | Jun. 09, 2014 | Jun. 07, 2011 | Mar. 22, 2011 | Aug. 23, 2011 | Jul. 10, 2009 | Jul. 20, 2007 | Jul. 02, 2007 | Nov. 29, 2007 | Sep. 22, 2013 | Jun. 01, 2014 | Nov. 30, 2012 | Dec. 29, 2008 | Mar. 18, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Options granted | 2,516,620 | |||||||||||||||||||||
Options outstanding | 14,853,764 | 14,655,530 | ||||||||||||||||||||
Exercise price | $1.03 | |||||||||||||||||||||
Granted, Weighted average grant-date fair value | $0.49 | |||||||||||||||||||||
Options exercisable | 12,744,914 | |||||||||||||||||||||
Options vested and expected to vest | 14,647,462 | |||||||||||||||||||||
Share-based compensation expense | $1,359 | $1,251 | $3,502 | |||||||||||||||||||
Intrinsic value of options exercised during the period | 442 | 3 | 66 | |||||||||||||||||||
Fair value of options vested | 357 | 1,476 | 3,503 | |||||||||||||||||||
Unrecognized compensation cost | 908 | |||||||||||||||||||||
Unrecognized compensation cost, period for recognition | 2 years 5 months 5 days | |||||||||||||||||||||
Non-Employee Options [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Options granted | 50,000 | |||||||||||||||||||||
2007 stock incentive plan [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Number of shares authorized | 12,000,000 | 17,000,000 | ||||||||||||||||||||
Options granted | 20,000 | 1,857,538 | ||||||||||||||||||||
Exercise price | $1.11 | $0.72 | ||||||||||||||||||||
Contract life | 5 years | |||||||||||||||||||||
Granted, Weighted average grant-date fair value | $0.43 | $0.33 | ||||||||||||||||||||
Options vested immediately | 20,000 | |||||||||||||||||||||
Incremental compensation cost | 449 | |||||||||||||||||||||
2007 stock incentive plan [Member] | CFO [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Expiration date of options | 31-May-16 | |||||||||||||||||||||
Options vested | 1,282,098 | |||||||||||||||||||||
Incremental compensation cost | 201 | |||||||||||||||||||||
Options cancelled | 575,440 | |||||||||||||||||||||
2007 stock incentive plan [Member] | Options granted on July 10, 2009 [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Granted, Weighted average grant-date fair value | $0.21 | |||||||||||||||||||||
Incremental compensation cost | 4 | |||||||||||||||||||||
2007 stock incentive plan [Member] | Options granted on July 10, 2009 [Member] | Exercise Price $1.15 Per Share [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Exercise price | $1.15 | |||||||||||||||||||||
Granted, Weighted average grant-date fair value | $0.22 | |||||||||||||||||||||
Incremental compensation cost | 686 | |||||||||||||||||||||
2007 stock incentive plan [Member] | Options granted on July 10, 2009 [Member] | Exercise Price $1.57 Per Share [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Exercise price | $1.57 | |||||||||||||||||||||
Granted, Weighted average grant-date fair value | $0.12 | |||||||||||||||||||||
Incremental compensation cost | 5 | |||||||||||||||||||||
2007 stock incentive plan [Member] | Options granted on November 1, 2012 [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Granted, Weighted average grant-date fair value | $0.25 | |||||||||||||||||||||
Incremental compensation cost | 4 | |||||||||||||||||||||
2007 stock incentive plan [Member] | Options granted on November 29, 2007 [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Granted, Weighted average grant-date fair value | $0.21 | |||||||||||||||||||||
Incremental compensation cost | 4 | |||||||||||||||||||||
2007 and 2011 stock incentive plans [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Options granted | 2,180,000 | |||||||||||||||||||||
Exercise price | $1.57 | $2.30 | ||||||||||||||||||||
Granted, Weighted average grant-date fair value | $0.75 | $0.53 | ||||||||||||||||||||
Incremental compensation cost | 314 | |||||||||||||||||||||
2011 stock incentive plan [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Number of shares authorized | 2,000,000 | |||||||||||||||||||||
Exercise price | $1.15 | |||||||||||||||||||||
Granted, Weighted average grant-date fair value | $0.39 | $0.22 | $0.21 | $0.26 | ||||||||||||||||||
Incremental compensation cost | 1,259 | |||||||||||||||||||||
Share-based compensation expense | 950 | |||||||||||||||||||||
2011 stock incentive plan [Member] | Minimum [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Contract life | 5 years | |||||||||||||||||||||
2011 stock incentive plan [Member] | Maximum [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Contract life | 10 years | |||||||||||||||||||||
2011 stock incentive plan [Member] | Senior Executive Options [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Options granted | 600,000 | |||||||||||||||||||||
Options vested | 200,000 | |||||||||||||||||||||
Options exercisable | 100,000 | |||||||||||||||||||||
Options vested and expected to vest | 200,000 | |||||||||||||||||||||
Share-based compensation expense | $59 | $19 | $35 | |||||||||||||||||||
2012 stock incentive plan [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Number of shares authorized | 6,000,000 | |||||||||||||||||||||
Options granted | 140,000 | 2,376,620 | 60,000 | |||||||||||||||||||
Exercise price | 1.045 | $1.02 | $1.11 | |||||||||||||||||||
Contract life | 5 years | 5 years |
SHARE_BASED_PAYMENTS_Schedule_
SHARE BASED PAYMENTS (Schedule of Stock Option Activities) (Details) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 |
Number of options | |
Outstanding at beginning of the year | 14,655,530 |
Granted | 2,516,620 |
Exercised | -808,278 |
Forfeited | -1,510,108 |
Outstanding at end of the year | 14,853,764 |
Options vested and expected to vest as of December 31, 2014 | 14,647,462 |
Options exercisable as of December 31, 2014 | 12,744,914 |
Weighted average exercise price per option | |
Outstanding at beginning of the year | $1.14 |
Granted | $1.03 |
Exercised | $0.78 |
Forfeited | $1.12 |
Outstanding at end of the year | $1.15 |
Options vested and expected to vest as of December 31, 2014 | $1.15 |
Options exercisable as of December 31, 2014 | $1.17 |
Weighted average grant-date fair value | |
Outstanding at the beginning of the year | $1.27 |
Granted | $0.49 |
Exercised | $0.48 |
Forfeited | $0.95 |
Outstanding at end of the year | $1.18 |
Options vested and expected to vest as of December 31, 2014 | $1.19 |
Options exercisable as of December 31, 2014 | $1.29 |
Weighted average remaining contractual terms | |
Outstanding at December 31, 2014 | 2 years 8 months 8 days |
Options vested and expected to vest as of December 31, 2014 | 2 years 8 months 1 day |
Options exercisable as of December 31, 2014 | 2 years 4 months 28 days |
Aggregate intrinsic value | |
Outstanding at December 31, 2014 | $2,337 |
Options vested and expected to vest as of December 31, 2014 | 2,285 |
Options exercisable as of December 31, 2014 | $1,802 |
SHARE_BASED_PAYMENTS_Schedule_1
SHARE BASED PAYMENTS (Schedule of Stock Option Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | |||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate of return | 0.10% | 0.12% | 0.12% |
Expected term | 1 year | 3 months 29 days | 25 days |
Volatility | 63.10% | 64.75% | 67.57% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate of return | 1.07% | 1.10% | 0.34% |
Expected term | 3 years 3 months 25 days | 4 years 5 months 1 day | 3 years 2 months 8 days |
Volatility | 67.06% | 94.43% | 94.43% |
FAIR_VALUE_MEASUREMENT_Details
FAIR VALUE MEASUREMENT (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
FAIR VALUE MEASUREMENT [Abstract] | |||
Impairment of intangible assets | $9,583 | ||
Impairment of goodwill | $20,611 |
SHARE_REPURCHASE_PLAN_Details
SHARE REPURCHASE PLAN (Details) (American Depositary Shares [Member], USD $) | 1 Months Ended | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Sep. 26, 2012 | Mar. 21, 2011 | Dec. 31, 2014 |
American Depositary Shares [Member] | |||
Class of Stock [Line Items] | |||
ADSs authorized for repurchase | $40 | $20 | |
Stock repurchase program, period | 3 years | 2 years | |
Number of ADSs repurchased | 6,532,429 | ||
Shares repurchased, amount | $17.40 | ||
Shares cancelled, shares | 2,190,685 | ||
Treasury stock, Number of ADSs | 4,341,744 |
MAINLAND_CHINA_CONTRIBUTION_PL1
MAINLAND CHINA CONTRIBUTION PLAN (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
MAINLAND CHINA CONTRIBUTION PLAN [Abstract] | |||
Contribution to employee benefits | $5,145 | $4,412 | $3,425 |
STATUTORY_RESERVES_Details
STATUTORY RESERVES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
STATUTORY RESERVES [Abstract] | ||
Provision for Statutory Reserves | $413 | $824 |
RESTRICTED_NET_ASSETS_Details
RESTRICTED NET ASSETS (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
RESTRICTED NET ASSETS [Abstract] | |
Restricted net assets | $357,674 |
Restricted assets attributable to VIEs | 158,704 |
Restricted assets attribute to PIC and Statutory reserves of WFOE | $198,970 |
COMMITMENTS_Narrative_Details
COMMITMENTS (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 12, 2014 |
Commitments [Line Items] | ||||
Rent expense | $3,985 | $3,312 | $2,668 | |
Concession fees | 175,696 | 180,990 | 177,996 | |
Capital commitments due 2015 | 42,455 | |||
Capital commitments due 2016 | 275 | |||
Jiacheng Advertising [Member] | ||||
Commitments [Line Items] | ||||
Registered capital | 4,849 | |||
AirMedia Group Inc. [Member] | Jiacheng Advertising [Member] | ||||
Commitments [Line Items] | ||||
Registered capital | $1,455 | $1,455 | ||
Period of capital contribution | 50 years | |||
Minimum [Member] | ||||
Commitments [Line Items] | ||||
Concession rights, contract term | 3 years | |||
Maximum [Member] | ||||
Commitments [Line Items] | ||||
Concession rights, contract term | 5 years | |||
Maximum [Member] | AirMedia Group Inc. [Member] | Jiacheng Advertising [Member] | ||||
Commitments [Line Items] | ||||
Period of capital contribution | 50 years |
COMMITMENTS_Schedule_of_Future
COMMITMENTS (Schedule of Future Minimum Rental Lease Payments) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
COMMITMENTS [Abstract] | |
2015 | $2,357 |
2016 | 50 |
2017 | 10 |
2018 | 6 |
Total | $2,423 |
COMMITMENTS_Schedule_of_Future1
COMMITMENTS (Schedule of Future Minimum Concession Fee Payments) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
COMMITMENTS [Abstract] | |
2015 | $166,761 |
2016 | 77,640 |
2017 | 52,093 |
2018 | 33,843 |
2019 | 21,654 |
2020 and thereafter | 34,228 |
Total | $386,219 |
CONTINGENT_LIABILITIES_Details
CONTINGENT LIABILITIES (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
CONTINGENT LIABILITIES [Abstract] | |
Potential administrative fine | $5 |
RELATED_PARTY_TRANSACTIONS_Sch
RELATED PARTY TRANSACTIONS (Schedule of Amount Due to/from Related Parties-Trading) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Related Party Transaction [Line Items] | ||||
Amount due from related parties-trading | $3,322 | $187 | ||
Amount due to related parties-trading | 790 | |||
BEMC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount due from related parties-trading | 157 | [1] | 187 | [1] |
Jiacheng Advertising [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount due from related parties-trading | 19 | [2] | [2] | |
Guangxi Dingyuan [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount due from related parties-trading | 401 | [3] | [3] | |
AM Jiaming [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount due from related parties-trading | 1,627 | [4] | [4] | |
Dingsheng Ruizhi (Beijing) Investment Consulting Co. Ltd. ("Dingsheng Ruizhi") [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount due from related parties-trading | 322 | [5] | [5] | |
Beijing Dayun Culture Communication Co. Ltd ("Dayun Culture") [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount due from related parties-trading | 796 | [5] | [5] | |
Qingdao AM [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount due to related parties-trading | $790 | |||
[1] | The amounts due from BEMC represents the uncollected advertising revenues earned from BEMC as of December 31, 2013 and 2014, respectively. | |||
[2] | The amounts due from Jiacheng Advertising represents the amount of digital TV on airplanes concession fee receivable as of December 31, 2014. | |||
[3] | The amounts due from Guangxi Dingyuan represents the amount of a deposit on concession fee receivable from Guangxi Dingyuan as of December 31, 2014. | |||
[4] | The amounts due from AM Jiaming includes a short-term loan to AM Jiaming amounted to $1,612 and related interest receivable of $15 as of December 31, 2014. | |||
[5] | The amounts due from Dingsheng Ruizhi and Dayun Culture represent the unreceived consideration of $322 and $796 for selling the 20% and 20% of equity interests in AM Film and AM Lianhe, respectively, as of December 31, 2014. |
RELATED_PARTY_TRANSACTIONS_Sch1
RELATED PARTY TRANSACTIONS (Schedule of Revenues and Purchases) (Details) (USD $) | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | 31-May-14 | |||
Related Party Transaction [Line Items] | ||||||||
Advertising revenues | $20 | $681 | $1,852 | |||||
Concession cost purchase from related party | 233 | |||||||
Loan to a related party | 1,612 | |||||||
BEMC [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Advertising revenues | 681 | 1,852 | ||||||
Jiacheng Advertising [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Advertising revenues | 20 | |||||||
Guangxi Dingyuan [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Concession cost purchase from related party | 233 | |||||||
AM Jiaming [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Loan to a related party | $1,612 | [1] | [1] | [1] | $806 | $806 | ||
[1] | In May 2014 and June 2014, the Group provide two loans to AM Jiaming, with amount of $806 and $806, respectively, at an annual interest rate equal to the bank lending rate over the same period, i.e. 6% for 2014. The loans will be due five days after the issuance of a written notice from the Group. No prepayment was received from AM Jiaming as of December 31, 2014. |
RELATED_PARTY_TRANSACTIONS_Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 | 31-May-14 | Dec. 31, 2013 | Dec. 31, 2012 | |||
In Thousands, unless otherwise specified | item | |||||||
Related Party Transaction [Line Items] | ||||||||
Interest receivable | $267 | $422 | ||||||
Amount receivable from related parties | 1,612 | |||||||
Beijing AirMedia Jiaming Film & TV Culture Co., Ltd. (Formerly Beijing Youtong Hezhong Advertising Media Co., Ltd.) ("AM Jiaming") [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest receivable | 15 | |||||||
Amount receivable from related parties | 1,612 | [1] | 806 | 806 | [1] | [1] | ||
Loan receivable, interest rate | 6.00% | 6.00% | ||||||
Number of loans receivable from related party | 2 | |||||||
The number of days in which the loan will due after the issuance of a written notice from the Group | 5 | |||||||
Prepayment of Loan Receivable from Related Party | $0 | |||||||
Dingsheng Ruizhi (Beijing) Investment Consulting Co. Ltd. ("Dingsheng Ruizhi") [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of economic ownership to be sold | 20.00% | |||||||
Beijing Dayun Culture Communication Co. Ltd ("Dayun Culture") [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of economic ownership to be sold | 20.00% | |||||||
[1] | In May 2014 and June 2014, the Group provide two loans to AM Jiaming, with amount of $806 and $806, respectively, at an annual interest rate equal to the bank lending rate over the same period, i.e. 6% for 2014. The loans will be due five days after the issuance of a written notice from the Group. No prepayment was received from AM Jiaming as of December 31, 2014. |
RELATED_PARTY_TRANSACTIONS_Sch2
RELATED PARTY TRANSACTIONS (Schedule of Equity Transaction with Related Party) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | ||||||
In Thousands, unless otherwise specified | Jan. 13, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Aug. 31, 2014 | |||
Related Party Transaction [Line Items] | |||||||||
Amount of cash consideration | $1,227 | ||||||||
The Group [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Amount of cash consideration | 3,088 | ||||||||
Dingsheng Ruizhi (Beijing) Investment Consulting Co. Ltd. ("Dingsheng Ruizhi") [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Percentage of economic ownership to be sold | 20.00% | ||||||||
Dingsheng Ruizhi (Beijing) Investment Consulting Co. Ltd. ("Dingsheng Ruizhi") [Member] | AM Film | |||||||||
Related Party Transaction [Line Items] | |||||||||
Percentage of economic ownership to be sold | 20.00% | ||||||||
Amount of cash consideration | 322 | [1] | [1] | [1] | 322 | ||||
Remaining percentage of economic ownership | 80.00% | ||||||||
Beijing Dayun Culture Communication Co. Ltd ("Dayun Culture") [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Percentage of economic ownership to be sold | 20.00% | ||||||||
Beijing Dayun Culture Communication Co. Ltd ("Dayun Culture") [Member] | AM Lianhe | |||||||||
Related Party Transaction [Line Items] | |||||||||
Percentage of economic ownership to be sold | 20.00% | ||||||||
Amount of cash consideration | $2,766 | [2] | [2] | [2] | $2,766 | ||||
Remaining percentage of economic ownership | 80.00% | ||||||||
[1] | In June 2014, the Group sold 20% equity interests in AM Film, a wholly-owned subsidiary, to Dingsheng Ruizhi with consideration of $322. After the transaction, the Group held 80% equity interests and remained the control over AM Film. | ||||||||
[2] | In August 2014, the Group sold 20% equity interests in AM Lianhe , a wholly-owned subsidiary, to Dayun Culture, with consideration of $2,766. After the transaction, the Group held 80% equity interests and remained the control over AM Lianhe. |
SUBSEQUENT_EVENTS_Narrative_De
SUBSEQUENT EVENTS (Narrative) (Details) (USD $) | 0 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 13, 2015 | Apr. 07, 2015 | Feb. 02, 2015 |
Subsequent Events [Line Items] | |||
Amount of cash consideration | $1,227 | ||
Subsequent event [Member] | Beijing AirMedia Jinsheng Advertising Co., Ltd. ("AM Jinsheng") [Member] | Tianyi Culture [Member] | |||
Subsequent Events [Line Items] | |||
Percentage of economic ownership to be sold | 81.00% | ||
Amount of cash consideration | 1,227 | ||
Remaining percentage of economic ownership | 19.00% | ||
Subsequent event [Member] | AM Advertising [Member] | Shenzhen Liantronics Co., Ltd. [Member] | |||
Subsequent Events [Line Items] | |||
Percentage of economic ownership to be sold | 5.00% | ||
Amount of cash consideration | 24,186 | ||
Subsequent event [Member] | Guangzhou Xinyu Advertising Co., Ltd. ("Guangzhou Xinyu") [Member] | |||
Subsequent Events [Line Items] | |||
Equity ownership acquired | 100.00% | ||
Total cash consideration | 2,418 | ||
Subsequent event [Member] | Jinshi Zhixin [Member] | |||
Subsequent Events [Line Items] | |||
Investment amount in limited partnership | $8,066 |
ADDITIONAL_INFORMATIONFINANCIA2
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I FINANCIAL INFORMATION OF PARENT COMPANY (Schedule of Parent Company Balance Sheets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $67,437 | $59,652 | $73,634 | $112,734 |
Other current assets | 25,620 | 20,437 | ||
Total current assets | 249,876 | 275,104 | ||
Non-current assets | ||||
TOTAL ASSETS | 395,597 | 402,791 | ||
Current liabilities: | ||||
Accrued expenses and other current liabilities | 11,498 | 10,883 | ||
Total liabilities | 126,725 | 111,448 | ||
Equity | ||||
Ordinary Shares ($0.001 par value; 900,000,000 shares authorized in 2013 and 2014; 127,662,057 shares and 127,662,057 shares issued as of December 31, 2013 and 2014, respectively; 119,134,135 shares and 119,942,413 shares outstanding as of December 31, 2013 and 2014, respectively) | 128 | 128 | ||
Additional paid-in capital | 323,167 | 313,912 | ||
Treasury stock (8,527,922 and 7,719,644 shares as of December 31, 2013 and 2014, respectively) | -9,236 | -9,860 | ||
Accumulated deficits | -110,519 | -84,411 | ||
Accumulated other comprehensive income | 33,815 | 40,229 | ||
Total equity | 268,872 | 291,343 | 239,435 | 270,058 |
TOTAL LIABILITIES AND EQUITY | 395,597 | 402,791 | ||
AirMedia Group Inc. [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 2,029 | 14 | 196 | 2,391 |
Due from subsidiaries | 178,347 | 181,245 | ||
Other current assets | 556 | 335 | ||
Total current assets | 180,932 | 181,594 | ||
Non-current assets | ||||
Investments in subsidiaries | 71,023 | 93,416 | ||
TOTAL ASSETS | 251,955 | 275,010 | ||
Current liabilities: | ||||
Amount due to subsidiaries | 3,135 | 3,652 | ||
Accrued expenses and other current liabilities | 84 | 392 | ||
Total liabilities | 3,219 | 4,044 | ||
Equity | ||||
Ordinary Shares ($0.001 par value; 900,000,000 shares authorized in 2013 and 2014; 127,662,057 shares and 127,662,057 shares issued as of December 31, 2013 and 2014, respectively; 119,134,135 shares and 119,942,413 shares outstanding as of December 31, 2013 and 2014, respectively) | 128 | 128 | ||
Additional paid-in capital | 323,167 | 313,912 | ||
Treasury stock (8,527,922 and 7,719,644 shares as of December 31, 2013 and 2014, respectively) | -9,236 | -9,860 | ||
Accumulated deficits | -99,138 | -73,443 | ||
Accumulated other comprehensive income | 33,815 | 40,229 | ||
Total equity | 248,736 | 270,966 | 241,876 | 272,148 |
TOTAL LIABILITIES AND EQUITY | $251,955 | $275,010 |
ADDITIONAL_INFORMATIONFINANCIA3
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I FINANCIAL INFORMATION OF PARENT COMPANY (Schedule of Parent Company Balance Sheets) (Parenthetical) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I FINANCIAL INFORMATION OF PARENT COMPANY [Abstract] | ||
Common stock, par value per share | $0.00 | $0.00 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 127,662,057 | 127,662,057 |
Common stock, shares outstanding | 119,942,413 | 119,134,135 |
Treasury stock, shares | 7,719,644 | 8,527,922 |
ADDITIONAL_INFORMATIONFINANCIA4
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I FINANCIAL INFORMATION OF PARENT COMPANY (Schedule of Parent Company Statements of Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating expenses: | |||
Selling and marketing | ($25,067) | ($20,069) | ($17,995) |
General and administrative | -26,337 | -25,723 | -21,842 |
Total operating expenses | -51,404 | -45,792 | -70,031 |
Interest income | 1,340 | 1,213 | 1,355 |
Net loss attributable to holders of ordinary shares | -25,695 | -10,626 | -32,728 |
AirMedia Group Inc. [Member] | |||
Operating expenses: | |||
Selling and marketing | -144 | -859 | |
General and administrative | -1,676 | -2,239 | -3,282 |
Total operating expenses | -1,820 | -2,239 | -4,141 |
Investment loss in subsidiaries | -23,875 | -8,387 | -28,587 |
Net loss attributable to holders of ordinary shares | ($25,695) | ($10,626) | ($32,728) |
ADDITIONAL_INFORMATIONFINANCIA5
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I FINANCIAL INFORMATION OF PARENT COMPANY (Schedule of Parent Company Statements of Comprehensive Income/Loss) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||
Net loss | ($31,826) | ($11,520) | ($32,241) |
Other comprehensive income, net of tax: | |||
Change in cumulative foreign currency translation adjustment | -6,874 | 7,582 | 2,144 |
Comprehensive income loss attributable to Parent Company | -32,109 | -3,345 | -30,514 |
AirMedia Group Inc. [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net loss | -25,695 | -10,626 | -32,728 |
Other comprehensive income, net of tax: | |||
Change in cumulative foreign currency translation adjustment | -6,414 | 7,281 | 2,214 |
Comprehensive income loss attributable to Parent Company | ($32,109) | ($3,345) | ($30,514) |
ADDITIONAL_INFORMATIONFINANCIA6
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I FINANCIAL INFORMATION OF PARENT COMPANY (Schedule of Parent Company Statements of Changes in Equity) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance | $291,343 | $239,435 | $270,058 |
Ordinary shares issued for share based compensation | 624 | 21 | 161 |
Share repurchase as treasury stock | -2,846 | -3,421 | |
Share-based compensation | 1,359 | 1,251 | 3,502 |
Foreign currency translation adjustment | -6,874 | 7,582 | 2,144 |
Capital contribution from non-controlling interests | 11,241 | 60,209 | |
Acquisition of non-controlling interests | -2,789 | ||
Disposal of equity interests of AM Film and AM Lianhe | 3,088 | ||
Net loss | -31,826 | -11,520 | -32,241 |
Ending Balance | 268,872 | 291,343 | 239,435 |
Ordinary shares [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance, shares | 119,134,135 | 122,112,485 | 125,247,597 |
Beginning Balance | 128 | 128 | 128 |
Ordinary shares issued for share based compensation, shares | 808,278 | 18,400 | 137,166 |
Ordinary shares issued for share based compensation | |||
Share repurchase as treasury stock | |||
Share-based compensation | |||
Foreign currency translation adjustment | |||
Capital contribution from non-controlling interests | |||
Acquisition of non-controlling interests | |||
Disposal of equity interests of AM Film and AM Lianhe | |||
Net loss | |||
Ending Balance, shares | 119,942,413 | 119,134,135 | 122,112,485 |
Ending Balance | 128 | 128 | 128 |
Ordinary shares [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Share repurchase as treasury stock, shares | -2,996,750 | -3,272,278 | |
Additional paid-in capital [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance | 313,912 | 278,652 | 275,150 |
Ordinary shares issued for share based compensation | |||
Share repurchase as treasury stock | |||
Share-based compensation | 1,359 | 1,251 | 3,502 |
Foreign currency translation adjustment | |||
Capital contribution from non-controlling interests | 6,463 | 39,825 | |
Acquisition of non-controlling interests | -5,816 | ||
Disposal of equity interests of AM Film and AM Lianhe | 1,433 | ||
Net loss | |||
Ending Balance | 323,167 | 313,912 | 278,652 |
Treasury stock [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance | -9,860 | -7,035 | -3,775 |
Ordinary shares issued for share based compensation | 624 | 21 | 161 |
Share repurchase as treasury stock | -2,846 | -3,421 | |
Share-based compensation | |||
Foreign currency translation adjustment | |||
Capital contribution from non-controlling interests | |||
Acquisition of non-controlling interests | |||
Disposal of equity interests of AM Film and AM Lianhe | |||
Net loss | |||
Ending Balance | -9,236 | -9,860 | -7,035 |
Accumulated other comprehensive income [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance | 40,229 | 32,948 | 30,734 |
Ordinary shares issued for share based compensation | |||
Share repurchase as treasury stock | |||
Share-based compensation | |||
Foreign currency translation adjustment | -6,414 | 7,281 | 2,214 |
Capital contribution from non-controlling interests | |||
Acquisition of non-controlling interests | |||
Disposal of equity interests of AM Film and AM Lianhe | |||
Net loss | |||
Ending Balance | 33,815 | 40,229 | 32,948 |
AirMedia Group Inc. [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance | 270,966 | 241,876 | 272,148 |
Ordinary shares issued for share based compensation | 624 | 21 | 161 |
Share repurchase as treasury stock | -2,846 | -3,421 | |
Share-based compensation | 1,359 | 1,251 | 3,502 |
Foreign currency translation adjustment | -6,414 | 7,281 | 2,214 |
Capital contribution from non-controlling interests | 6,463 | 39,825 | |
Acquisition of non-controlling interests | -5,816 | ||
Disposal of equity interests of AM Film and AM Lianhe | 1,433 | ||
Net loss | -25,695 | -10,626 | -32,728 |
Ending Balance | 248,736 | 270,966 | 241,876 |
AirMedia Group Inc. [Member] | Ordinary shares [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance, shares | 119,134,135 | 122,112,485 | 125,247,597 |
Beginning Balance | 128 | 128 | 128 |
Ordinary shares issued for share based compensation, shares | 808,278 | 18,400 | 137,166 |
Ordinary shares issued for share based compensation | |||
Share repurchase as treasury stock | |||
Share-based compensation | |||
Foreign currency translation adjustment | |||
Capital contribution from non-controlling interests | |||
Acquisition of non-controlling interests | |||
Disposal of equity interests of AM Film and AM Lianhe | |||
Net loss | |||
Ending Balance, shares | 119,942,413 | 119,134,135 | 122,112,485 |
Ending Balance | 128 | 128 | 128 |
AirMedia Group Inc. [Member] | Ordinary shares [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Share repurchase as treasury stock, shares | -2,996,750 | -3,272,278 | |
AirMedia Group Inc. [Member] | Additional paid-in capital [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance | 313,912 | 278,652 | 275,150 |
Ordinary shares issued for share based compensation | |||
Share repurchase as treasury stock | |||
Share-based compensation | 1,359 | 1,251 | 3,502 |
Foreign currency translation adjustment | |||
Capital contribution from non-controlling interests | 6,463 | 39,825 | |
Acquisition of non-controlling interests | -5,816 | ||
Disposal of equity interests of AM Film and AM Lianhe | 1,433 | ||
Net loss | |||
Ending Balance | 323,167 | 313,912 | 278,652 |
AirMedia Group Inc. [Member] | Treasury stock [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance | -9,860 | -7,035 | -3,775 |
Ordinary shares issued for share based compensation | 624 | 21 | 161 |
Share repurchase as treasury stock | -2,846 | -3,421 | |
Share-based compensation | |||
Foreign currency translation adjustment | |||
Capital contribution from non-controlling interests | |||
Acquisition of non-controlling interests | |||
Disposal of equity interests of AM Film and AM Lianhe | |||
Net loss | |||
Ending Balance | -9,236 | -9,860 | -7,035 |
AirMedia Group Inc. [Member] | Accumulated deficits [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance | -73,443 | -62,817 | -30,089 |
Ordinary shares issued for share based compensation | |||
Share repurchase as treasury stock | |||
Share-based compensation | |||
Foreign currency translation adjustment | |||
Capital contribution from non-controlling interests | |||
Acquisition of non-controlling interests | |||
Disposal of equity interests of AM Film and AM Lianhe | |||
Net loss | -25,695 | -10,626 | -32,728 |
Ending Balance | -99,138 | -73,443 | -62,817 |
AirMedia Group Inc. [Member] | Accumulated other comprehensive income [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance | 40,229 | 32,948 | 30,734 |
Ordinary shares issued for share based compensation | |||
Share repurchase as treasury stock | |||
Share-based compensation | |||
Foreign currency translation adjustment | -6,414 | 7,281 | 2,214 |
Capital contribution from non-controlling interests | |||
Acquisition of non-controlling interests | |||
Disposal of equity interests of AM Film and AM Lianhe | |||
Net loss | |||
Ending Balance | $33,815 | $40,229 | $32,948 |
ADDITIONAL_INFORMATIONFINANCIA7
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I FINANCIAL INFORMATION OF PARENT COMPANY (Schedule of Parent Company Statements of Cash Flows) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | ($31,826) | ($11,520) | ($32,241) |
Share-based compensation | 1,359 | 1,251 | 3,502 |
CHANGES IN WORKING CAPITAL ACCOUNTS | |||
Other current assets | -3,476 | -3,945 | -3,147 |
Accounts payable | 10,558 | 12,083 | 8,269 |
Accrued expenses and other current liabilities | 1,718 | 217 | -1,397 |
Amount due to subsidiaries | 794 | -454 | |
Amount due from subsidiaries | -1,536 | 1,144 | -1,148 |
Net cash provided by operating activities | -1,814 | 537 | 20,230 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Cash paid for treasury stock | -2,846 | -3,421 | |
Proceeds from exercises of stock options | 624 | 21 | 161 |
Net cash (used in) provided by financing activities | 16,823 | 54,311 | -3,260 |
Net (decrease)/increase in cash | 7,785 | -13,982 | -39,100 |
Cash and cash equivalents, at beginning of year | 59,652 | 73,634 | 112,734 |
Cash and cash equivalents, at end of year | 67,437 | 59,652 | 73,634 |
AirMedia Group Inc. [Member] | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | -25,695 | -10,626 | -32,728 |
Investment loss in subsidiaries | 23,875 | 8,387 | 28,587 |
Share-based compensation | 1,359 | 1,251 | 3,502 |
CHANGES IN WORKING CAPITAL ACCOUNTS | |||
Other current assets | -221 | 444 | -597 |
Accounts payable | -40 | ||
Accrued expenses and other current liabilities | -308 | -3 | -421 |
Amount due to subsidiaries | -517 | 3,231 | 265 |
Amount due from subsidiaries | 2,898 | -41 | 2,497 |
Net cash provided by operating activities | 1,391 | 2,643 | 1,065 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Cash paid for treasury stock | -2,846 | -3,421 | |
Proceeds from exercises of stock options | 624 | 21 | 161 |
Net cash (used in) provided by financing activities | 624 | -2,825 | -3,260 |
Net (decrease)/increase in cash | 2,015 | -182 | -2,195 |
Cash and cash equivalents, at beginning of year | 14 | 196 | 2,391 |
Cash and cash equivalents, at end of year | $2,029 | $14 | $196 |