Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2016shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | AIRMEDIA GROUP INC. |
Entity Central Index Key | 1,413,745 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 125,629,779 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 117,547 | $ 86,960 |
Short-term investment | 3,705 | |
Accounts receivable, net | 9,781 | 9,457 |
Prepaid concession fees | 8,231 | 8,114 |
Consideration receivable | 200,685 | |
Other current assets, net | 68,850 | 30,904 |
Amount due from related parties | 835 | 2,752 |
Total current assets | 205,244 | 342,577 |
Property and equipment, net | 61,005 | 48,339 |
Prepaid equipment costs | 16,200 | 27,708 |
Long-term investments | 83,861 | 89,637 |
Long-term deposits | 6,427 | 4,879 |
Deferred tax assets, net | 0 | 4,524 |
Acquired intangible assets, net | 1,682 | 2,325 |
Other non-current assets | 6,771 | 11,612 |
TOTAL ASSETS | 381,190 | 531,601 |
Current liabilities: | ||
Accounts payable | 40,366 | 36,371 |
Accrued expenses and other current liabilities | 33,596 | 10,744 |
Deferred revenue | 1,764 | 1,361 |
Income tax payable | 14,483 | 43,567 |
Amounts due to related parties | 15,389 | |
Total current liabilities | 90,209 | 107,432 |
Non-current liabilities: | ||
Other non-current liabilities | 835 | 1,205 |
Deferred tax liabilities | 91 | |
Provision for earnout commitment | 23,549 | 25,240 |
Total liabilities | 114,593 | 133,968 |
Commitments and contingencies (Note 24 and 25) | ||
Equity | ||
Ordinary shares ($0.001 par value; 900,000,000 shares authorized in 2015 and 2016; 127,662,057 shares and 127,662,057 shares issued as of December 31, 2015 and 2016, respectively; 124,395,645 shares and 125,629,779 shares outstanding as of December 31, 2015 and 2016, respectively) | 128 | 128 |
Additional paid-in capital | 287,094 | 317,414 |
Treasury stock (3,266,412 and 2,032,278 shares as of December 31, 2015 and 2016, respectively) | (2,351) | (3,778) |
Retained earnings (accumulated deficits) | (15,842) | 49,876 |
Accumulated other comprehensive income (loss) | (292) | 22,928 |
Total AirMedia Group Inc.'s shareholders' equity | 268,737 | 386,568 |
Non-controlling interests | (2,140) | 11,065 |
Total equity | 266,597 | 397,633 |
TOTAL LIABILITIES AND EQUITY | $ 381,190 | $ 531,601 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 127,662,057 | 127,662,057 |
Common stock, shares outstanding | 125,629,779 | 124,395,645 |
Treasury stock, shares | 2,032,278 | 3,266,412 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Revenues | $ 16,597 | $ 50,866 | $ 75,947 | |
Business tax and other sales tax | (84) | (633) | (1,254) | |
Net revenues | 16,513 | 50,233 | 74,693 | |
Less: Cost of revenues | 49,042 | 89,577 | 96,608 | |
Gross loss | (32,529) | (39,344) | (21,915) | |
Operating expenses: | ||||
Selling and marketing | 12,056 | 9,611 | 12,916 | |
General and administrative | 45,227 | 27,102 | 20,620 | |
Total operating expenses | 57,283 | 36,713 | 33,536 | |
Loss from operations | (89,812) | (76,057) | (55,451) | |
Interest income, net | 843 | 472 | 1,058 | |
Other income, net | 4,243 | 1,383 | 979 | |
Loss from continuing operations before income taxes and share of loss on equity method investments | (84,726) | (74,202) | (53,414) | |
Income tax (benefits) expenses from continuing operations | 4,483 | 6,421 | (1,512) | |
Net loss before (loss) income on equity method investments | (89,209) | (80,623) | (51,902) | |
(Loss) income on equity method investments | (33) | 2,352 | (212) | |
Net loss from continuing operations | (89,242) | (78,271) | (52,114) | |
Less: Net loss from continuing operations attributable to non-controlling interests | 23,617 | 7,620 | 6,808 | |
Net loss from continuing operations attributable to AirMedia Group Inc.'s shareholders | (65,625) | (70,651) | (45,306) | |
Discontinued operation: | ||||
Net income from discontinued operations (including gain of $244,164 upon the disposal in the year ended December 31, 2015) | 272,879 | 22,230 | ||
Income tax expenses from discontinued operations | (51,696) | (1,942) | ||
Net income from discontinued operations, net of tax | 221,183 | 20,288 | ||
Less: Net income from discontinued operations attributable to non-controlling interests | (885) | (677) | ||
Net income from discontinued operations attributable to AirMedia Group Inc.’s shareholders | 220,298 | 19,611 | ||
Net (loss) income | (89,242) | 142,912 | (31,826) | |
Net (loss) income attributable to AirMedia Group Inc.'s shareholders | $ (65,625) | $ 149,647 | $ (25,695) | |
Net (loss) income per ordinary share - basic | $ (0.52) | $ 1.23 | $ (0.22) | |
Net (loss) income per ordinary share - diluted | (0.52) | 1.16 | (0.22) | |
Net (loss) income per ordinary shares from continuing operations - basic | (0.52) | (0.58) | (0.38) | |
Net (loss) income per ordinary shares from continuing operations - diluted | (0.52) | (0.58) | (0.38) | |
Net income per ordinary shares from discontinued operations - basic | 1.81 | 0.16 | ||
Net income per ordinary shares from discontinued operations - diluted | $ 1.7 | $ 0.16 | ||
Weighted average shares used in calculating net (loss) income per ordinary share Continuing operations - Basic | 125,277,056 | 121,740,194 | 119,304,773 | |
Weighted average shares used in calculating net (loss) income per ordinary share Discontinued operations - Basic | 121,740,194 | 119,304,773 | ||
Weighted average shares used in calculating net (loss) income per ordinary share Continuing operations - Diluted | [1] | 125,277,056 | 121,740,194 | 119,304,773 |
Weighted average shares used in calculating net (loss) income per ordinary share Discontinued operations - Diluted | [2] | 129,372,158 | 119,924,927 | |
[1] | The effect of options was excluded from the computation of diluted loss per share from continuing operations for the years ended December 31, 2014, 2015 and 2016, respectively, as the effect would be anti-dilutive. | |||
[2] | An incremental weighted average number of 620,154, 7,631,964 and Nil ordinary shares from assumed exercise of share option were included in computing the diluted income per share for the discontinued operations for the years ended December 31, 2014, 2015 and 2016, respectively. |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Gain on the disposal | $ 244,164 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements Of Comprehensive Loss Income | |||
Net (loss) income | $ (89,242) | $ 142,912 | $ (31,826) |
Other comprehensive loss, net of tax of nil: | |||
Change in cumulative foreign currency translation adjustment | (24,140) | (11,478) | (6,874) |
Comprehensive (loss) income | (113,382) | 131,434 | (38,700) |
Less: comprehensive loss attributable to non-controlling interest | (24,537) | (7,326) | (6,591) |
Comprehensive (loss) income attributable to AirMedia Group Inc.'s shareholders | $ (88,845) | $ 138,760 | $ (32,109) |
CONSOLIDATED STATEMENTS OF COM7
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statement Of Comprehensive Loss [Abstract] | |||
Tax on other comprehensive income (loss) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Ordinary shares [Member] | Additional paid-in capital [Member] | Treasury stock [Member] | (Accumulated deficits) retained earnings [Member] | Accumulated other comprehensive Income (loss) [Member] | Total AirMedia Group Inc.'s shareholders' equity [Member] | Non-controlling Interest [Member] |
Beginning Balance, shares at Dec. 31, 2013 | 119,134,135 | |||||||
Beginning Balance at Dec. 31, 2013 | $ 291,343 | $ 128 | $ 313,912 | $ (9,860) | $ (73,443) | $ 40,229 | $ 270,966 | $ 20,377 |
Ordinary shares issued for share based compensation, shares | 808,278 | |||||||
Ordinary shares issued for share based compensation | 624 | 624 | 624 | |||||
Share-based compensation | 1,359 | 1,359 | 1,359 | |||||
Foreign currency translation adjustment | (6,874) | (6,414) | (6,414) | (460) | ||||
Net income (loss) | (31,826) | (25,695) | (25,695) | (6,131) | ||||
Disposal of equity interests of AM Film and AirMedia 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, shares at Dec. 31, 2014 | 119,942,413 | |||||||
Ending Balance at Dec. 31, 2014 | 268,872 | $ 128 | 323,167 | (9,236) | (99,138) | 33,815 | 248,736 | 20,136 |
Ordinary shares issued for share based compensation, shares | 4,453,232 | |||||||
Ordinary shares issued for share based compensation | 4,825 | 5,458 | (633) | 4,825 | ||||
Share-based compensation | 598 | 598 | 598 | |||||
Foreign currency translation adjustment | (11,478) | (10,887) | (10,887) | (591) | ||||
Net income (loss) | 142,912 | 149,647 | 149,647 | (6,735) | ||||
Profit distribution to non-controlling interest | (891) | (891) | ||||||
Capital contribution to Guangzhou Meizheng | (459) | (459) | 459 | |||||
Capital contribution from non-controlling interests | 1,313 | 271 | 271 | 1,042 | ||||
Acquisition of equity interests from non-controlling interests shareholders | (8,518) | (6,163) | (6,163) | (2,355) | ||||
Ending Balance, shares at Dec. 31, 2015 | 124,395,645 | |||||||
Ending Balance at Dec. 31, 2015 | $ 397,633 | $ 128 | 317,414 | (3,778) | 49,876 | 22,928 | 386,568 | 11,065 |
Stock option exercised, shares | 1,234,134 | 1,234,134 | ||||||
Stock option exercised | $ 1,334 | $ 0 | 1,427 | (93) | 1,334 | |||
Share-based compensation | 773 | 773 | 773 | |||||
Foreign currency translation adjustment | (24,140) | (23,220) | (23,220) | (920) | ||||
Net income (loss) | (89,242) | (65,625) | (65,625) | (23,617) | ||||
Capital contribution from non-controlling interests | 11,195 | 3,477 | 3,477 | 7,718 | ||||
Acquisition of equity interests from non-controlling interests shareholders | (30,956) | (34,570) | (34,570) | 3,614 | ||||
Ending Balance, shares at Dec. 31, 2016 | 125,629,779 | |||||||
Ending Balance at Dec. 31, 2016 | $ 266,597 | $ 128 | $ 287,094 | $ (2,351) | $ (15,842) | $ (292) | $ 268,737 | $ (2,140) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net (loss) income | $ (89,242) | $ 142,912 | $ (31,826) |
Less: Net income from discontinued operations | 221,183 | 20,288 | |
Net loss from continuing operations | (89,242) | (78,271) | (52,114) |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | |||
Bad debt provisions | 12,697 | (2,661) | 3,212 |
Depreciation and amortization | 12,971 | 5,771 | 6,294 |
Deferred tax (recovery) provision | 4,328 | 4,681 | (2,288) |
Impairment of fixed assets | 826 | ||
Share-based compensation | 773 | 567 | 1,281 |
Loss (income) on equity method investments | 33 | (2,352) | 212 |
Loss on disposal of property and equipment | 22 | (129) | (11) |
Gain on sale/maturity of short-term investments | (347) | (643) | |
Changes in assets and liabilities | |||
Accounts receivable | (3,250) | 13,742 | 9,371 |
Notes receivable | 762 | (116) | |
Prepaid concession fees | (3,043) | 7,302 | (997) |
Other current assets | (5,369) | (16,045) | 2,224 |
Long-term deposits | (1,962) | 3,632 | (108) |
Other non-current assets | (781) | 2,778 | (5,095) |
Amount due from related parties | 1,813 | (4,873) | (953) |
Accounts payable | 6,730 | (8,591) | (1,723) |
Accrued expenses and other current liabilities | 2,030 | (6,762) | (466) |
Deferred revenue | 517 | (2,643) | (1,905) |
Amount due to related parties | (15,023) | 12,803 | |
Income tax payable | (27,377) | 42,600 | (68) |
Other noncurrent liabilities | (303) | 1,264 | |
Net cash used in continuing operations | (103,610) | (28,036) | (42,629) |
Net cash provided by (used in) discontinued operations | (41,026) | 40,815 | |
Net cash used in operating activities | (103,610) | (69,062) | (1,814) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Consideration receivable | 195,915 | ||
Purchase of property and equipment | (21,558) | (10,389) | (4,306) |
Prepaid equipment costs | (11,224) | ||
Proceeds from disposal of property and equipment | 978 | 18 | |
Net amount received upon settlement of short-term investment | 3,617 | 14,206 | 26,073 |
Dividend received from equity method investee | 242 | ||
Restricted cash | 3,223 | (3,223) | |
Acquisition of Guangzhou Xinyu | (4,808) | ||
Acquisition of AM Jiaming | 325 | ||
Acquisition of non-controlling interests | (32,838) | ||
Acquisition of equity investments | (475) | ||
Proceeds from disposal of equity investment | 3,014 | ||
Disposal of controlling interest in a former subsidiary | (14) | ||
Loan to third parties | (17,093) | (5,572) | |
Purchase of long term investment | (3,033) | (1,629) | |
Net cash provided by (used in) continuing operations | 130,582 | (5,084) | 5,951 |
Net cash (used in) provided by discontinued operations | 93,226 | (12,108) | |
Net cash (used in) provided by investing activities | 130,582 | 88,142 | (6,157) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Cash received from short-term loan | 3,000 | ||
Cash payment for a short-term loan | (3,000) | ||
Capital contribution from non-controlling interest | 9,796 | 11,241 | |
Distribution of dividends to non-controlling interests | (221) | ||
Proceeds from disposal of equity interests of AirMedia Lianhe | 536 | 1,958 | |
Proceeds from options exercised | 1,334 | 4,826 | 624 |
Net cash provided by continuing operations | 11,130 | 2,141 | 16,823 |
Net cash used in discontinued operations | |||
Net cash provided by financing activities | 11,130 | 2,141 | 16,823 |
Effect of exchange rate changes | (7,515) | (1,698) | (1,067) |
Net increase in cash | 30,587 | 19,523 | 7,785 |
Cash and cash equivalents, at beginning of year | 86,960 | 67,437 | 59,652 |
Cash and cash equivalents, at end of year | 117,547 | 86,960 | 67,437 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Income tax paid | 27,712 | 957 | 1,812 |
Interests paid for short-term loan | 10 | 75 | |
Fair value of property, equipment and other assets acquired in exchange of advertising services rendered and subsidiary's equity transferred | 541 | 304 | 11,083 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: | |||
Payable for purchase of property and equipment | 15,925 | 8,526 | |
Acquisition of non-controlling interests | 1,882 | ||
Capital contribution from non-controlling interest | 1,399 | ||
Dividend payable to non-controlling interests | 73 | ||
Receivable for disposal of equity interests of AM Film and AM Lianhe | 233 | 1,118 | |
Receivable for disposal of 51% equity in AM Jiaming | 53 | ||
Consideration receivable | $ 200,685 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [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"). In June 2015, the Company, AM Technology, AirMedia Shengshi, which is the Company’s VIE in China as well as the controlling shareholder of AirMedia Group Co., Ltd. (“AM Advertising,”), and Mr. Herman Guo, who is registered shareholder of AM Advertising under PRC law entered into a definitive agreement with Beijing Longde Wenchuang Fund Management Co., Ltd. (“Longde Wenchuang” or the “Buyer”) to sell 75% equity interest of AM Advertising for a consideration of RMB2.1 billion (equivalent to $302.4) in cash. As part of the transaction, the Company effected an internal business reorganization and transferred all its media business in airports (excluding digital TV screens in airports and TV-attached digital frames) and all billboard and LED media business outside of airports (excluding gas station media network and digital TV screens on airplanes) to AM Advertising to form the target business to be sold (the "Target Business") and transferred its other business out of AM Advertising. To effectuate the sale, the Company rem. Whatoved the VIE structure with respect to AM Advertising. The change in the equity ownership of AM Advertising was registered with the local branch of the State Administration for Industry and Commerce, or the SAIC, in December 2015. Since then, there have been other investors invested in AM Advertising, the Company now holds approximately 20.18% equity interest in AM Advertising and has ceased to consolidate the results of AM Advertising since December 2015. In December 2015, Longde Wenchuang transferred 46.43% equity interest of AM Advertising to Beijing Culture Center Construction Development Fund (LLP) ("Culture Center ", together with Longde Wenchuang, the "Buyers"). Longde Wenchuang retained 28.57% equity interest of AM Advertising. This disposal represents a strategic shift on our advertising business from air travel media to gas station media and Wi-Fi service and has a major effect on the Group’s results of operations. Accordingly, assets and liabilities, revenues and expenses, and cash flows related to the disposed entities have been reclassified in the accompanying consolidated financial statements as discontinued operations for all periods presented. On June 19, 2015, Mr. Herman Man Guo submitted to the Board of Directors of the Company a preliminary non-binding proposal letter (the “Proposal Letter”) to acquire the Company in a going private transaction for $3.00 in cash per share (or $6.00 in cash per ADS) other than any ordinary shares or ADSs of the Company beneficially held by Mr. Herman Man Guo, his affiliates or other management shareholders who may choose to roll over their shares in connection with the proposed acquisition (the “Proposal”). The Board of Directors has formed a special committee consisting of three independent directors to consider the Proposal. On September 30, 2015, the Company entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”) with AirMedia Holdings Ltd. (“Parent”) and AirMedia Merger Company Limited (“Merger Sub”), a wholly owned subsidiary of Parent, pursuant to which Parent will acquire AirMedia (the “Transaction”) for US$3.00 per ordinary share of the Company (a “Share”) or US$6.00 per American depositary share, each representing two Shares (an “ADS”). This amount represents a premium of 70.5% over the Company’s closing price of US$3.52 per ADS on June 18, 2015, the last trading day prior to June 19, 2015, the date that the Company announced that it had received a “going-private” proposal. The special committee received a proposed amendment to the Merger Agreement from the buyer group, comprised of Mr. Guo, Ms. Dan Shao and Mr. Qing Xu, on May 23, 2017 to (a) acquire all of the outstanding shares not already owned by the buyer group for US$4.00 per ADS or US$2.00 per ordinary share in cash, and (b) extend the Termination Date to December 31, 2017. The special committee is evaluating the proposed amendment with the assistance of its financial and legal advisors. On June 28, 2017, the parties entered into Amendment No. 3 to the Merger Agreement to further extend the termination date to July 31, 2017 so as to give the special committee sufficient time to consider the proposed amendment. As of December 31, 2016, 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. (“Broad Cosmos”) June 26, 2006 British Virgin Islands ("BVI") 100 % AirMedia International Limited ("AM International") July 14, 2007 BVI 100 % AirMedia (China) Limited ("AM China") August 5, 2005 Hong Kong 100 % Subsidiaries: AirMedia Technology (Beijing) Co., Ltd. ("AM Technology") September 19, 2005 the PRC 100 % Shenzhen AirMedia Information Technology Co., Ltd. ("Shenzhen AM") June 6, 2006 the PRC 100 % Xi'an AirMedia Chuangyi Technology Co., Ltd. ("Xi'an AM") December 31, 2007 the PRC 100 % VIEs: Beijing AirMedia Shengshi Advertising Co., Ltd. (Formerly Beijing Shengshi Lianhe Advertising Co., Ltd.) ("AirMedia Shengshi") August 7, 2005 the PRC N/A Beijing AirMedia Jiaming Advertising Co., Ltd. (Formerly Beijing AirMedia UC Advertising Co., Ltd.) ("Jiaming Advertising") January 1, 2007 the PRC N/A Beijing Yuehang Digital Media Advertising Co., Ltd. ("AM Yuehang") January 16, 2008 the PRC N/A AirMedia Online Network Technology Co., Ltd. ("AM Online") April 30, 2015 the PRC N/A Date of Percentage incorporation/ Place of of legal Name acquisition incorporation ownership VIEs' subsidiaries: Beijing AirMedia Film & TV Culture Co., Ltd. ("AM Film") September 13, 2007 the PRC N/A Flying Dragon Media Advertising Co., Ltd. ("Flying Dragon") August 1, 2008 the PRC N/A Wenzhou AirMedia Advertising Co., Ltd. ("AM Wenzhou") October 17, 2008 the PRC N/A Hainan Jinhui Guangming Media Advertising Co., Ltd. ("Hainan Jinhui") June 23, 2009 the PRC N/A Beijing Dongding Gongyi Advertising Co., Ltd. ("Dongding") February 1, 2010 the PRC N/A Beijing GreatView Media Advertising Co., Ltd. (Formerly Beijing Weimei Shengjing Media Advertising Co., Ltd.) ("GreatView Media") April 28, 2011 the PRC N/A Guangzhou Meizheng Advertising Co., Ltd. ("Guangzhou Meizheng") May 17, 2013 the PRC N/A Beijing AirMedia Tianyi Information Technology Co., Ltd. ("AM Tianyi") September 25, 2013 the PRC N/A Guangzhou Xinyu Advertising Co., Ltd. ("Guangzhou Xinyu") February 2, 2015 the PRC N/A AirMedia Mobile Network Technology Co., Ltd. ("AM Mobile") April 23, 2015 the PRC N/A Guangzhou Meizheng Information Technology Co., Ltd. ("Guangzhou Tech") June 18, 2015 the PRC N/A AirMedia Henglong Mobile Network Technology Co., Ltd. ("AMHL Mobile") April 27, 2015 the PRC N/A Beijing AirMedia Jiaming Film & TV Culture Co., Ltd. ("AM Jiaming") December 31, 2015 the PRC N/A Meizheng Network Information Technology Co., Ltd. (“Meizheng Network”) August 8, 2016 the PRC N/A Airmedia Network Technology Co., Ltd. (“AM Network”) August 18, 2016 the PRC N/A Wangfan Network Technology Co.,Ltd. (“Iwangfan”) May 6, 2016 the PRC N/A Shandong Airmedia Car Safety Technology Co.,Ltd.(“Shangdong Car Safe”) July 21, 2016 the PRC N/A Dingsheng Ruizhi (Beiing) Investment Consulting Co., Ltd. (“Dingsheng Ruizhi”) May 25, 2016 the PRC N/A For the years ended December 31, 2015 and 2016, the Group acquired additional equity interests of 18% and 20% in Guangzhou Meizheng and AM Film, respectively, which were VIEs consolidated in the Group prior to these acquisitions, from non-controlling shareholders for an aggregated amount of $8,518 and $30,956, respectively. For the year ended December 31, 2015 and 2016, non-controlling shareholders contributed paid in capital to the Group’s VIEs for an aggregated amount of $1,313 and $11,195, respectively. 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. AirMedia Shengshi, AM Yuehang and AM Online, and the VIEs' subsidiaries. The VIEs have entered into the following series of agreements with AM Technology: ¨ Technology support and service agreement: ¨ Technology development agreement: ¨ Exclusive Technology Consultation and Service Agreement ¨ Call option agreement: ¨ Equity pledge agreement: ¨ Authorization letter: 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 may receive substantially all of the net income of the VIEs through the technical support and service fees as determined by AM Technology at its sole discretion. Accordingly, we have consolidated the VIEs because we believe, through the contractual arrangements, (1) AM Technology could direct the activities of the VIEs that most significantly affect its economic performance and (2) AM Technology could receive substantially all of the benefits that could be potentially significant to the VIEs. Other than the contractual arrangements described above, because the management and certain employees of AM Technology also serve in the VIEs as management or employees, certain operating costs paid by AM Technology, such as payroll costs and office rental, were re-charged to the VIEs. AM Technology also entered into loan agreements with each shareholder of AM Online, pursuant to which AM Technology permits to make loans in an aggregate amount of RMB 40 million to the shareholders of AM Online solely for the incorporation and capitalization of AM Online. The loan is interest free and the term of the loan is ten years and shall be automatically renewed on an annual basis unless AM Technology objects. AM Technology can require the shareholders to repay all or a portion of the loan before the maturity date with a 15 days prior written notice. Under such circumstances, AM Technology is entitled to, or designate a third party to, buy all or a portion of the shareholders' equity interests in AM Online on a pro rata basis based on the amount of the repaid principal of the loan. 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: ¨ revoke the business and operating licenses of the Group's PRC subsidiaries and affiliates; ¨ discontinue or restricting the Group's PRC subsidiaries' and affiliates' operations; ¨ impose conditions or requirements with which the Group or its PRC subsidiaries and affiliates may not be able to comply; or ¨ require 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, 2015 2016 Total current assets $ 316,268 $ 177,425 Total non-current assets 190,684 127,486 Total assets 506,952 304,911 Total current liabilities 101,197 71,535 Total non-current liabilities 26,536 24,384 Total liabilities $ 127,733 $ 95,919 For the years ended December 31, 2014 2015 2016 Net revenues $ 74,689 $ 46,237 $ 16,311 Net loss (47,119 ) (60,117 ) (81,659 ) The VIEs contributed an aggregate of 100%, 98.0% and 98.8% of the consolidated net revenues for the years ended December 31, 2014, 2015 and 2016, respectively. As of December 31, 2016, the VIEs accounted for an aggregate of 95.4% and 80.0%, respectively, of the consolidated total assets, and 95.3% and 83.7%, respectively, of the consolidated total liabilities. 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 ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
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 accounting principles generally accepted in the United States of America ("US GAAP"). The Group incurred losses from operations of US$76.1 million and US$89.8 million for the years ended December 31, 2015 and 2016. As of December 31, 2016, the Group had shareholders’ deficit of US$15.8 million. The Group had negative cash flows from operating activities for the years ended December 31, 2015 and 2016, the net cash used in operating activities was US$69.1 million and US$103.6 million for the years ended December 31, 2015 and 2016. As of December 31, 2016, the Group had cash and cash equivalents of US$117.5 million and working capital of $115.0 million. From 2017 and onwards, the Group will focus on improving operation efficiency and cost reduction, and enhancing marketing function to attract more users. The Group regularly monitors its current and expected liquidity requirements to ensure that it maintains sufficient cash balances and accessible credit to meet its liquidity requirements in the short and long term. Based on the existing cash and cash equivalents, working capital condition and forecast for future operations, the Group believes that it will be able to meet its payment obligations and other commitments for at least through the following twelve months from the date of filing. (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) Discontinued operations A disposal of a component of an entity or a group of components of an entity shall be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations. Classification as a discontinued operation occurs upon disposal or when the operation meets the criteria to be classified as held for sale, if earlier. Where an operation is classified as discontinued, a single amount is presented on the face of the consolidated statements of operations. The amount of total current assets, total non-current assets, total current liabilities and total non-current liabilities are presented separately on the consolidated balance sheets. (d) Use of estimates The preparation of financial statements in conformity with US GAAP requires to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period 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 long-lived assets, share-based compensation, provision for earnout commitment and valuation allowance for deferred tax assets. Actual results could differ from those estimates. (e) 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: net losses in the past and futures; failure in launching new business; a significant or prolonged economic downturn; contraction in the air travel advertising industry in China; competition from other competitors; regulatory or other PRC related factors; fluctuations in the demand for air travel; past and future acquisitions; failure to maintain an effective system of internal control over financial reporting and effective disclosure controls and procedures; 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 industry. (f) 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 under current market conditions. 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. (g) Fair value of financial instruments The Group's financial instruments include cash, accounts receivable, short-term investment, consideration receivable, accounts payable, and provision for earnout commitment. 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, 2015 and 2016. The Group's financial assets and liabilities measured at fair value on a non-recurring basis include certain assets in connection with an equity share exchange transaction based on level 2 inputs and acquired assets and liabilities based on level 3 inputs in connection with business combinations. (h) 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. (i) Restricted cash Restricted cash represents the bank deposits in escrow accounts as the performance security for certain concession right agreements. (j) 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 (“OTTI”) 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. OTTI is recognized as a loss in the income statement. The short-term investments held by the Group as of December 31, 2016 were Nil. (k) Assets held for sale The Group considers assets to be 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. (l) Property and equipment, net Property and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Digital display network equipment 5 years WIFI and network equipment 5 years Gas station display network equipment 5 years Office property 40 years Furniture and fixture 5 years Computer and office equipment 3-5 years Vehicle 5 years Software 5 years Leasehold improvement Shorter of the term of the lease or the estimated useful lives of the assets Costs of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The gain or loss on disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated income statement. (m) Impairment of long-lived assets Long-lived assets held and used by the Group are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be fully recoverable. It is possible that these assets could become impaired as a result of technology, economy or other industry changes. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Group first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, relief from royalty income approach, quoted market values and third-party independent appraisals, as considered necessary. The Group makes various assumptions and estimates regarding estimated future cash flows and other factors in determining the fair values of the respective assets. The assumptions and estimates used to determine future values and remaining useful lives of long-lived assets are complex and subjective. They can be affected by various factors, including external factors such as industry and economic trends, and internal factors such as the Group’s business strategy and its forecasts for specific market expansion. (n) Long-term investments Equity method investments Investee companies over which the Group 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 Group 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. Impairment for long-term investments The Group assesses its long-term investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the companies, including current earnings trends and undiscounted cash flows, and other company-specific information. The fair value determination, particularly for investments in privately-held companies, requires significant judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investments and determination of whether any identified impairment is other-than-temporary. Other-than-temporary impairment loss is recognized in the consolidated statements of comprehensive income equal to the excess of the investment’s carrying value over its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value would then become the new cost basis of such investment. (o) Acquired intangible assets Acquired intangible assets with definite lives are carried at cost less accumulated amortization. Customer relationships intangible assets are 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: 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. For the years ended December 31, 2014, 2015 and 2016, the advertising revenues were generated from TV-attached digital frames in airports, digital TV screens in airports, digital TV screens on airlines, 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, with the exception of 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 $209, $473 and nil for the years ended December 31, 2014, 2015 and 2016, respectively. No direct costs are attributable to the revenues. (q) Value Added Tax ("VAT") The Company's PRC subsidiaries are subject to value-added taxes 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 as 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. The Company’s gross revenue is presented net of VAT. (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, railway bureaus 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, airlines and railway bureaus are fixed with escalation, which means a 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 to 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 a 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. (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 $1,785, $350 and $720 for the years ended December 31, 2014, 2015 and 2016, 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 expense. For years ended December 31, 2016, 2015, and 2014, the Group did not have any material interest or penalties associated with tax positions nor did the Group have any significant unrecognized uncertain tax positions. (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) income Comprehensive (loss) income includes net (loss) income and foreign currency translation adjustments and is presented net of tax. The tax effect is nil for the three years ended December 31, 2014, 2015 and 2016 in the consolidated statements of comprehensive (loss) income. (aa) Allowance of doubtful accounts The Group conducts credit evaluations of clients and generally does 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. For the years ended December 31, 2014, 2015 and 2016, no individual customer accounted for over 10% of total revenue. There is no customer accounting for 10% or more of total accounts receivables as of December 31, 2015 and 2016. (cc) Net (loss) income per share Basic net (loss) income per share are computed by dividing net (loss) income attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted net (loss) income 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 without future performance requirement. The recognized government subsidies as other income are $491, $513 and $86 for the years ended December 31, 2014, 2015 and 2016, respectively. (ee) Recent issued accounting standards In November 2015, the FASB issued ASU 2015-17, Income Taxes-Balance Sheet Classification of Deferred Taxes. The amendments in this update simplify the presentation of deferred income taxes. ASU 2015-17 requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in ASU 2015-17 are effective for fiscal years beginning after December 15, 2016 including interim periods within those fiscal years. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The Group adopted this ASU 2015-17 for the year ended December 31, 2016, as a result, the current portion of deferred tax assets of $41 as of December 31, 2015 was reclassified and included in the non-current deferred tax assets. (ee) Recent issued accounting standards In May 2017, the FASB issued ASU No. 2017-09, “Compensation Stock Compensation (Topic 718): Scope of Modification Accounting”, which amends the scope of modification accounting for share-based payment arrangements. The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. The amendments in this Update should be applied prospectively to an award modified on or after the adoption date. The Group is currently evaluating the impact of this new standard on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business". The amendments in this ASU clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Basically these amendments provide a screen to determine when a set is not a business. If the screen is not met, the amendments in this ASU first, require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and second, remove the evaluation of whether a market participant could replace missing elements. These amendments take effect for public businesses for fiscal years beginning after December 15, 2017 and interim periods within those periods, and all other entities should apply these amendments for fiscal years beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The Group does not expect that the adoption of this guidance will have a material impact on its consolidated financial statements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. Generally Accepted Accounting Principles when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In August 2015, the FASB issued ASU No. 2015-14, “Deferral of the Effective Date” (“ASU 2015-14”), which defers the effective date for ASU 2014-09 by one year. For public entities, the guidance in ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods), which means it will be effective for the Company’s fiscal year beginning January 1, 2018. In March 2016, the FASB issued ASU No. 2016-08, “Principal versus Agent Considerations (Reporting Revenue versus Net)” (“ASU 2016-08”), which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard. In April 2016, the FASB issued ASU No. 2016-10, “Identifying Performance Obligations and Licensing” (“ASU 2016-10”), which reduces the complexity when applying the guidance for identifying performance obligations and improves the operability and understandability of the license implementation guidance. In May 2016, the FASB issued ASU No. 2016-12 “Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”), which amends the guidance on transition, collectability, noncash consideration and the presentation of sales and other similar taxes. In December 2016, the FASB further issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” (“ASU 2016-20”), which makes minor corrections or minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments are intended to address implementation issues that were raised by stakeholders and provide additional practical expedients to reduce the cost and complexity of applying the new revenue standard. These amendments have the same effective date as the new revenue standard. Preliminarily, we plan to adopt Topic 606 in the fi |
DISCOUNTINUED OPERATION
DISCOUNTINUED OPERATION | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations | |
DISCONTINUED OPERATIONS | 3. DISCOUNTINUED OPERATION The disposal of Target Business described in Note 1 was completed in December 2015. According to the Equity Interest Transfer Agreement, the Buyers may require the Company to repurchase the equity interest of AM Advertising upon the occurrence of certain events. As these events are considered improbable, no fair value was allocated to the associated put option. The Equity Interest Transfer Agreement also contains an earnout structure, in the event that the net profit (before or after adjustment for non-recurring gains and losses, whichever is less) of restructured AM Advertising in each of the fiscal years of 2015, 2016, 2017, and 2018 (collectively, the “Covered Period”) is less than the profit target of RMB 1.0592 200 240 288 331.2 30,875 37,050 44,459 51,128 25,240 23,549 25-d). The disposal represents a strategic shift and has a major effect on the Group’s results of operations. The disposed entities are accounted as discontinued operations in the consolidated financial statements for the years ended December 31, 2015. A gain of $ 244,164 324,183 25 79,718 134,497 75 2,491 For the years Net revenues $ 166,843 Cost of revenues (126,745) Gross profit 40,098 Operating expenses (13,239) Income from operations 26,859 Gain from disposal of 75% equity interest in AM Advertising 244,164 Interest income 298 Other income, net 1,293 Income on equity method investments 265 Net income before income tax 272,879 Income taxes benefit/(expense) (51,696) Income from discontinued operations attributable to owners of the Company $ 221,183 Details of related party transactions for the years ended December 31, 2014 and 2015 were as follows: Concession cost purchased from: For the years ended December 31 Name of related parties Relationship 2014 2015 Guangxi Dingyuan (1) Equity method investee $ 233 $ 1,107 Qingdao AM (2) Equity method investee - 1,230 $ 233 $ 2,337 Loan to a related party: For the years ended December 31 Name of related parties Relationship 2014 2015 AM Jiaming (3) Equity method investee $ 1,612 $ - $ 1,612 $ - Equity transaction with a related party: For the years ended December 31 Name of related parties Relationship 2014 2015 Beijing Dayun Culture Communication Co., Ltd. ("Dayun Culture") (4) Invested by management of the Group $ - $ 8,605 Dingsheng Ruizhi (5) Invested by management of the Group 322 - $ 322 $ 8,605 (1) The Group purchased stand-alone digital frames, LED and lightbox concession in Nanning airport from Guangxi Dingyuan amounting to $ 1,107 (2) The Group purchased stand-alone digital frames concession in Qingdao airport from Qingdao AM amounting to $ 1,230 (3) In May 2014 and June 2014, the Group provided two loans to AM Jiaming, with amount of $ 806 806 6 (4) In November 2015, AM Advertising purchased 20 8,605 100 (5) In June 2014, AM Advertising sold 20 322 |
SEGMENT INFORMATION AND REVENUE
SEGMENT INFORMATION AND REVENUE ANALYSIS | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |
SEGMENT INFORMATION AND REVENUE ANALYSIS | 4. 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. 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, 2014 2015 2016 Revenues from continuing operations: Air Travel Media Network $ 59,200 $ 38,917 $ 12,178 Gas Station Media Network 11,164 9,840 4,009 Other Media 5,583 2,109 410 $ 75,947 $ 50,866 $ 16,597 |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Short-term Investments [Abstract] | |
SHORT-TERM INVESTMENTS | 5. 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 three months to less than one year, with interest rates ranging from 4 8.2 3,705 |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Long-term Investments [Abstract] | |
LONG-TERM INVESTMENTS | 6. LONG-TERM INVESTMENTS (a) Equity method investments The Group had the following equity method investments: As of December 31, 2015 2016 Name of company Percentage Amount Percentage Amount % % Equity method investments Beijing Eastern Media Corporation Ltd. (“BEMC “) (1) 49 $ 1,363 49 $ 1,461 Zhejiang AirMedia Guangying Film Production Co., Ltd. ("AM Guangying") (2) 47.6 3,081 - - Beijing Hezhong Chuangjin Investment Co., Ltd. ("Hezhong Chuangjin") (3) 15 2,144 15 1,944 Lanmeihangbiao Tiandi Internet Investment Management (Beijing) Co., Ltd. ("LMHB") (4) 40 456 40 256 Beijing Yuyue Film Culture Co., Ltd (“Yuyue Film”) (5) - - 25 432 Beijing Yunxing Chuangrong Investment Fund Management Co., Ltd (“Yunxing”) (6) 50 2,083 AM Advertising (7) 25 82,177 - - $ 89,221 $ 6,176 (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 49 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) In December 2013, the Group entered into an agreement with Zhejiang Tianguang Diying Production Co., Ltd. to establish AM Guangying. AM Guangying was incorporated on December 25, 2013. AM Guangying is mainly engaged in film production. The Group sold its interest in AM Guangying for the year ended December 31, 2016. 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. The Group disposed this investment for the year ended December 31, 2016 with proceeds of $ 3,014 6 (3) In May 2015, AM Advertising, Beijing Financial Technology Investment Management Center (limited partnership), Beijing Hongdeshengzheng Investment Co., Ltd., and Beijing Hongyuan Zhixin Enterprise Management Consulting Co. Ltd. established Hezhong Chuangjin, which mainly focuses on internet financing. In July 2015, AM Advertising transferred its investment in Hezhong Chuangjin to AM Online, a subsidiary of the Group at carrying value. 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 Hezhong Chuangjin. (4) In September 2015, AM Online entered into an agreement with BlueFocus wireless Internet (Beijing) Investment Management Co., Ltd. and two individual investors to establish a joint venture, LMHB. LMHB was incorporated on September 25, 2015. LMHB is mainly engaged in investment management of Wi-Fi platform marketing and other mobile internet industries. 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 LMHB. (5) In June 2016, AM Film entered into an agreement with two individual investors to establish a joint venture, Yuyue Film. Yuyue Film is mainly engaged in investment management of film investment and marketing. 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 Yuyue Film. (6) In February 2016, AM Online entered into an agreement with Haihang Wenhua Holding Group to invest in Yunxing. Yunxing was incorporated on December 17, 2013. Yunxing is mainly engaged in information technology investments in the Hainan Airline. 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. (7) On June 15, 2015, AirMedia entered into a definitive equity interest transfer agreement with Longde Wenchuang to sell 75 324,183 The summarized financial information of the equity method investees were as follows: As of December 31, 2015 2016 Total current assets $ 277,634 $ 24,633 Total assets 319,797 25,209 Total current liabilities 135,190 3,402 Total liabilities 135,342 3,402 For the years ended December 31, 2014 2015 2016 Total net revenues $ 11,486 $ 35,866 $ 1,809 Total gross profits 567 15,341 1,241 Total net income 164 9,136 (733) (b) Cost method investment As of December 31, 2015 2016 Name of company Percentage Amount Percentage Amount % % Zhangshangtong Air Service (Beijing) Co., Ltd. ("Zhangshangtong") (1) 20 $ 367 20 $ 388 Qingdao Jinshi Zhixing Investment Centre LLP (“Qingdao Jinshi”) (2) - - 3 22 Beijing Zhongjiao Huineng Information Technology Co., Ltd (“Zhongjiao Huineng”) (3) - - 13 541 AM Advertising ( Refer to Note 25-d) - - 25 76,734 $ 367 $ 77,685 (1) In June 2010, the Group invested $ 388 20 (2) In January 2016, the Group invested $ 22 3.35 (3) In January 2016, the Group invested $ 541 13.3 The investment in AM Advertising was accounted for using the cost method of accounting in 2016, as the Group does not have the ability to exercise significant influence to the operation. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Receivable, Net [Abstract] | |
ACCOUNTS RECEIVABLE, NET | 7. ACCOUNTS RECEIVABLE, NET Accounts receivable, net, consists of the following: As of December 31, 2015 2016 Accounts receivable, gross $ 11,184 $ 13,596 Less: Allowance for doubtful accounts (1,727) (3,815) Accounts receivable, net $ 9,457 $ 9,781 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 2014 $ 1,433 3,212 (7) (180) 4,458 2015 4,458 (2,661) - (70) 1,727 2016 1,727 2,248 - (160) 3,815 |
OTHER CURRENT ASSETS, NET
OTHER CURRENT ASSETS, NET | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets [Abstract] | |
OTHER CURRENT ASSETS, NET | OTHER CURRENT ASSETS, NET Other current assets, net, consist of the following: As of December 31, 2015 2016 Input VAT receivable $ 13,604 $ 16,249 Prepaid selling and marketing fees 773 368 Short-term deposits 150 74 Prepaid income tax 447 417 Prepaid individual income tax and other employee advances 433 290 Loans to third parties (i) 5,403 17,080 Receivable from third party (ii) 4,110 11,635 Receivable from a non-controlling interest holders 1,313 6,377 Receivable from AM Advertising and its subsidiaries (iii) - 19,021 Receivables from ADS depositary 468 468 Other prepaid expenses 4,203 2,732 30,904 74,711 Allowance for doubtful amounts - (5,861) $ 30,904 $ 68,850 (i) For the years ended December 31, 2015 and 2016, the Group entered into various loan agreements with third parties amounting with aggregated amount of $ 5,403 17,080 5.10 3.19 864 (ii) Receivable from third party represented the working capital provided by the Group to support the third party's daily operations. As of December 31, 2015 and 2016, the bad debt allowance was Nil and $ 4,530 , respectively. (iii) Receivable from AM Advertising and its subsidiaries balance amounted to $ 19,021 25,956 |
CONSIDERATION RECEIVABLE
CONSIDERATION RECEIVABLE | 12 Months Ended |
Dec. 31, 2016 | |
Considerations Receivable [Abstract] | |
CONSIDERATION RECEIVABLE | CONSIDERATION RECEIVABLE As of December 31, 2015, consideration 200,685 0.8 123,498 1.3 200,685 |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
OTHER NON-CURRENT ASSETS | OTHER NON-CURRENT ASSETS Other non-current assets consist of the following: As of December 31, 2015 2016 Investment in film and TV series (i) $ 4,781 $ 1,854 Prepaid office space and leasehold improvement fees (ii) 6,831 4,917 $ 11,612 $ 6,771 (i) 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. The Group enters into agreements with other investors to invest together on certain film or TV series, which are produced by third parties, and shares the profit of the invested films and TV series proportionally based on their investments. (ii) As the office spaces legal title had not been transferred to the Group, the prepaid amounts were recognized as other non-current assets as of December 31, 2015 and 2016. |
LONG-TERM DEPOSITS
LONG-TERM DEPOSITS | 12 Months Ended |
Dec. 31, 2016 | |
Deposit Assets Disclosure [Abstract] | |
LONG-TERM DEPOSITS | 11. LONG-TERM DEPOSITS As of December 31, 2015 2016 Concession fee deposits $ 4,527 $ 5,547 Office rental deposits 352 880 $ 4,879 $ 6,427 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 one 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 cost. |
ACQUIRED INTANGIBLE ASSETS, NET
ACQUIRED INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2016 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
ACQUIRED INTANGIBLE ASSETS, NET | 12. ACQUIRED INTANGIBLE ASSETS, NET Acquired intangible assets, net, consist of the following: As of December 31, 2015 2016 Gross Net Gross Net carrying Accumulated Accumulated carrying carrying Accumulated Accumulated carrying amount amortization impairment amount amount amortization impairment amount Audio-vision programming and broadcasting qualification $ 214 $ (37) $ (177) $ - $ 200 $ (35) $ (165) $ - Customer relationships 739 (739) - - 689 (689) - - Contract backlog 1,544 (1,544) - - 1,441 (1,441) - - Concession agreements 10,459 (7,531) (603) 2,325 9,758 (7,513) (563) 1,682 Non-compete agreements 182 (172) (10) - 170 (161) (9) - $ 13,138 $ (10,023) $ (790) $ 2,325 $ 12,258 $ (9,839) $ (737) 1,682 The amortization expense for the years ended December 31, 2014, 2015 and 2016 were $ 462 505 510 510 455 360 358 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 13. PROPERTY AND EQUIPMENT, NET Property and equipment, net, consist of the following: As of December 31, 2015 2016 Digital display network equipment $ 8,341 $ 6,314 WIFI and network equipment 17,708 27,719 Gas station display network equipment 33,412 38,615 Software 9,959 9,174 Office property - 5,805 Computer and office equipment 3,140 2,828 Vehicle 774 938 Leasehold improvement 218 607 Construction in progress - 1,422 Furniture and fixture 1,092 1,123 74,644 94,545 Less: accumulated depreciation and impairment (26,305) (33,540) $ 48,339 $ 61,005 Depreciation expense recorded for the years ended December 31, 2014, 2015 and 2016 were $ 5,832 5,266 12,461 826 |
PREPAID EQUIPMENT COST
PREPAID EQUIPMENT COST | 12 Months Ended |
Dec. 31, 2016 | |
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 subsidiary, with LED screens from Elec-Tech, pursuant to which Elec-Tech would invest $ 104.0 640 21.27 27,708 16,200 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Liabilities and Other 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, 2015 2016 Accrued payroll and welfare $ 1,860 $ 2,848 Other tax payable 1,462 1,366 Accrued staff disbursement 1,166 1,447 Deposit payable 665 266 Accrued professional fees 4,382 290 Other current liabilities 1,209 1,288 Payable to non-controlling interest holders - 135 Payable to AM Advertising and its subsidiaries (1) - 25,956 $ 10,744 $ 33,596 (1) The payable to AM Advertising and its subsidiaries was $ 15,389 25,956 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 16. INCOME TAXES AirMedia is a tax-exempted company incorporated in the Cayman Islands. Broad Cosmos is tax-exempted company incorporated in the British Virgin Islands. AM China did not have any assessable profits arising in or derived from Hong Kong for the years ended December 31, 2014, 2015 and 2016, 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 2014, 2015 and 2016, and is expected to be subject to an EIT rate of 15% as long as it maintains its status as a HNTE. 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 approval by the relevant tax authorities. As Xi'an AM first made profit in 2009, it was exempted from EIT in 2009 and 2010, and enjoyed 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 years 2014, 2015 and 2016, and is expected to be subject to an EIT rate of 15% as long as it maintains its status as a HNTE. Income tax benefit / (expenses) are as follows: For the years ended December 31, 2014 2015 2016 Income tax benefits /(expenses): Current $ (988 ) $ (480 ) $ (50 ) Deferred 2,500 (5,941 ) (4,433 ) 1,512 (6,421 ) (4,483 ) The principal components of the Group's deferred income tax assets and liabilities are as follows: As of December 31, 2015 2016 Deferred tax assets: Allowance for doubtful accounts $ 899 $ 4,083 Employee education fee excess 6 - Depreciation of property and equipment 127 - Amortization of intangible assets and concession fees 2,274 1,606 Net operating loss carry forwards 15,404 30,697 Valuation allowance (14,186 ) (36,386 ) Total deferred tax assets 4,524 - Deferred tax liabilities: Acquired intangible assets 91 - Total deferred tax liabilities $ 91 $ - The valuation allowance provided as of December 31, 2016 and 2015 relates to the deferred tax assets generated by the Group’s VIE. The Group periodically evaluates the likelihood of the realization of deferred tax assets, and reduces the carrying amount of the deferred tax assets by a valuation allowance to the extent it 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 approximately of $137,040 million as of December 31, 2016, respectively. The net operating loss carry forwards for the PRC subsidiaries will expire on various dates through year 2021. 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, 2014 2015 2016 Net loss before provision for income taxes $ (53,414 ) $ (74,202 ) $ (84,726 ) PRC statutory tax rate 25 % 25 % 25 % Income tax at statutory tax rate (13,354 ) (18,551 ) (21,182 ) Expenses not deductible for tax purpose Entertainment expenses exceeded the tax limit 217 300 158 Tax effect of tax losses not recognized 10 - - Tax effect of other permanent differences 360 330 1,681 Changes in valuation allowance 2,748 9,276 22,200 Effect of preferential tax rates granted to PRC entities 7,912 14,404 642 Effect of income tax rate difference in other jurisdictions 595 662 984 Income tax expenses/ (benefits) $ (1,512 ) $ 6,421 4,483 Effective tax rates 2.8 % (8.7 )% (5.3 )% The Group did not identify significant unrecognized tax benefits for the years ended December 31, 2014, 2015 and 2016. The Group did not incur any interest and penalties related to potential underpaid income tax expenses for the years ended December 31, 2014, 2015 and 2016. 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%. However, the Company's subsidiaries located in the PRC were in a loss position and had accumulated deficit as of December 2016, 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. The Company did not record any tax on any of the undistributed earnings because the relevant subsidiaries do not intend to declare dividends and the Company intends to permanently reinvest it within the PRC. Additionally, no deferred tax liability was recorded for taxable temporary differences attributable to the undistributed earnings of VIEs because the Company believes the undistributed earnings can be distributed in a manner that would not be subject to income tax. 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) INCOME PER SHARE
NET (LOSS) INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
NET (LOSS) INCOME PER SHARE | NET (LOSS) INCOME PER SHARE For the years ended December 31, 2014 2015 2016 Numerator: Net (loss) income attributable to AirMedia Group Inc.'s ordinary shareholders $ (25,695) $ 149,647 $ (65,625) - Continuing operations (45,306) (70,651) (65,625) - Discontinued operations 19,611 220,298 - Denominator: Weighted average ordinary shares outstanding used in computing net (loss) income per ordinary share - basic 119,304,773 121,740,194 125,277,056 - diluted 119,304,773 129,372,158 125,277,056 Weighted average shares used in calculating (loss) income per ordinary shares Basic Continuing operations 119,304,773 121,740,194 125,277,056 Discontinued operations 119,304,773 121,740,194 - Diluted Continuing operations (i) 119,304,773 121,740,194 125,277,056 Discontinued operations (ii) 119,924,927 129,372,158 - Net (loss) income per ordinary share -basic $ (0.22) $ 1.23 $ (0.52) -diluted (0.22) 1.16 (0.52) Net (loss) income per ordinary share from continuing operations -basic $ (0.38) $ (0.58) $ (0.52) -diluted (0.38) (0.58) (0.52) Net income per ordinary share from discontinued operations -basic $ 0.16 $ 1.81 $ - -diluted 0.16 1.70 - The effect of options was excluded from the computation of diluted loss per share from continuing operations for the years ended December 31, 2014, 2015 and 2016, respectively, as the effect would be anti-dilutive. (ii) An incremental weighted average number of 620,154 7,631,964 |
SHARE BASED PAYMENTS
SHARE BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE BASED PAYMENTS | 18. 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 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 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 0.72 5 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 0.21 4 4 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 1,282,098 May 31, 2016 0.43 201 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 0.12 1.15 1.57 686 5 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 4 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 On March 22, 2011, the Board of Directors granted options to Group's employees to purchase an aggregate of 2,180,000 2.3 5 10 1.57 0.75 314 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 1.15 0.21 0.22 0.26 0.39 0.53 1,259 950 In September 2012, the former CFO of the Group resigned. Of the 600,000 300,000 100,000 200,000 100,000 35 200,000 by year ended December 31, 2013 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 On November 1 and November 30, 2012 20,000 60,000 1.11 20,000 60,000 On June 1 and August 1, 2014, the Group granted 2,376,620 140,000 1.025 1.045 5 On October 13, 2014, an employee terminated his employment with the Group but continued to provide service as a nonemployee consultant. 50,000 50,000 20,830 January 31, 2016 29,170 On May 12, 2015, the Group granted 660,000 1.675 5 On June 15, 2015, an employee terminated his employment with the Group but continued to provide service as a nonemployee consultant. 200,000 On October 31, 2015, an employee terminated his employment with the Group but continued to provide service as a nonemployee consultant. 100,000 On December 31, 2015, two consultants resigned. Of the 200,000 3,332 166,668 February 12, 2016 150,002 1.12 100,000 16,664 January 31, 2016 83,336 On March 10, 2016, Board of Directors approved to extend the expiration dates of the 685,000 December 31, 2016 1.67 On July 10, 2016, Board of Directors approved to extend the expiration dates of the 2,139,918 December 31, 2016 0.38 79 For the year ended December 31, 2016, four employees terminated their employments with the Group, but continued to provide service as nonemployee consultant. The options 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 of $ 179 The following summary of stock option activities under the 2007, 2011 and 2012 Share incentive plans as of December 31, 2016, 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 as of January 1, 2016 10,438,840 $ 1.14 $ 1.07 2.16 $ 17,236 Exercised (1,234,134) 1.08 0.70 Forfeited (1,494,530) 1.17 1.47 Outstanding as of December 31, 2016 7,710,176 $ 1.15 $ 1.05 1.57 $ 1,552 Options vested and expected to vest as of December 31, 2016 7,680,203 1.15 1.05 1.57 1,546 Options exercisable as of December 31, 2016 7,373,036 $ 1.15 $ 1.12 1.52 $ 1,447 The total intrinsic value of options exercised during the years ended December 31, 2014, 2015 and 2016 were $ 442 7,039 1,928 357 649 694 1,281, 567 and $ 773 843 and $ 390 1.67 0.5 For the years ended December 31, 2014 2015 2016 Risk-free interest rate of return 0.10% - 1.07% 0.00%-1.24% 0.14%-0.80% Expected term 1.00 - 3.32 years 0.04-2.93years 0.04-2.48 years Volatility 63.10% - 67.06% 7.19%-126.63% 9%-74.8% 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, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | 19. FAIR VALUE MEASUREMENT Measured on recurring basis The Group measured its financial assets and liabilities, including cash, accounts receivable, short-term investment, amounts due from related parties, consideration receivable 2015 2016 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, consideration receivable, Measured on non-recurring basis The Group measured intangible assets and property and equipment at fair value on a nonrecurring basis. The fair value was determined using models with significant unobservable inputs (Level 3 inputs). This was based on a number of key assumptions, including, but not limited to, a discount rate of 18 Nil and $ 826 charge 2014, and 2016, respectively The Group measured its long-term investment in AM Advertising at fair value on a nonrecurring basis as result of the disposal transaction of Target Business as set forth in Note 1. The fair value was determined using the market approach (AM Advertising’s recent capital transaction announced to the public) quoted price for the assets in active markets 1 inputs) years and 2016 The Group measured the provision for earnout commitment at fair value on a nonrecurring basis as result of the disposal transaction of Target Business as of December 31, 2015. 7.5 As of December 31, 2016, due to disputes, the Company considered the provision for earnout commitment as contingent liability and disclosed in Note 25 |
SHARE REPURCHASE PLAN
SHARE REPURCHASE PLAN | 12 Months Ended |
Dec. 31, 2016 | |
SHARE REPURCHASE PLAN [Abstract] | |
SHARE REPURCHASE PLAN | SHARE REPURCHASE PLAN On March 21, 2011, the Board of Directors authorized the Company to repurchase up to $ 20 40 Up to December 31, 2016, the Company had repurchased an aggregate of 6,532,429 17.4 2,190,685 4,341,744 2,708,538 and 617,067 |
MAINLAND CHINA CONTRIBUTION PLA
MAINLAND CHINA CONTRIBUTION PLAN | 12 Months Ended |
Dec. 31, 2016 | |
Pension and Other Postretirement Benefit Contributions [Abstract] | |
MAINLAND CHINA CONTRIBUTION PLAN | 21. 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 labor 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 $ 2,717 2,202 4,029 , 2015 2016 |
STATUTORY RESERVES
STATUTORY RESERVES | 12 Months Ended |
Dec. 31, 2016 | |
STATUTORY RESERVES [Abstract] | |
STATUTORY RESERVES | 22. 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 $ 413, 17,542 and $Nil , 2015 2016 |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
RESTRICTED NET ASSETS [Abstract] | |
RESTRICTED NET ASSETS | 23. 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, 2015, the balance of restricted net assets was $ 313,780 114,695 199,085 As of December 31, 2016, the balance of restricted net assets was $ 342,860 138,496 204,364 |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2016 | |
COMMITMENTS [Abstract] | |
COMMITMENTS | 24. 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, 2014, 2015 and 2016 1,316 1,507 1,988 Future minimum rental lease payments under non-cancellable operating leases agreements were as follows: Year 2017 $ 2,364 2018 2,067 2019 96 $ 4,527 (b) Concession fees The Group has entered into concession right agreements with vendors, such as airports, airlines, trains 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, 2014, 2015 and 2016 71,533 64,752 17,264 Future minimum concession fee payments under non-cancellable concession right agreements were as follows: Year 2017 $ 29,621 2018 22,426 2019 19,061 2020 17,193 2021 864 thereafter 6,049 $ 95,214 |
CONTINGENT LIABILITIES
CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
CONTINGENT LIABILITIES [Abstract] | |
CONTINGENT LIABILITIES | 25. 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 (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 travellers 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, 2016, 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. (c) Class action The Company and two of its officers were named as defendants in a putative securities class action filed on June 25, 2015 in the U.S. District Court for the Southern District of New York: Huang v. AirMedia Group Inc. et al., Civil Action No. 1:15-CV-04966-ALC (S.D.N.Y.). The complaint in this putative class action alleges that certain of the defendants' financial statements and other public statements and disclosures contained misstatements or omissions, including with respect to the alleged sale of an equity interest in the Company's advertising subsidiary, in violation the U.S. securities laws. The complaint states that plaintiffs seek to represent a class of persons who allegedly suffered damages as a result of their trading activities related to the Company's ADRs between April 15 and June 15, 2015, and alleges violations of Sections 10(b) and 20(a) of the U.S. Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. On November 10, 2015, the Court appointed China Xiayuan Transportation Co. Ltd. as the lead plaintiff and appointed a lead counsel. On January 15, 2016, the lead plaintiff filed an amended complaint, advancing similar allegations and claims as the previously filed complaint and seeking to represent a class of persons who allegedly suffered damages as a result of their trading activities related to the Company's ADRs between April 7 and June 15, 2015. On February 5, 2016, the Company filed a letter pursuant to the judge's individual practice rules, in which the Company identified the bases for its anticipated motion to dismiss the amended complaint and requested a pre-motion conference. On February 10, 2016, the lead plaintiff filed a letter in response to the Company's February 5, 2016 letter. On February 11, 2016, the court denied the request for a pre-motion conference, and ordered the following briefing schedule: the Company should file its motion to dismiss by March 10, 2016, with the plaintiffs' opposition due by April 7, 2016, and the Company's reply due by April 21, 2016. On March 10, 2016, the Company and one of its officers filed a motion to dismiss the Amended Complaint. On April 21, 2016, the Filing Defendants filed a reply to the lead plaintiff’s opposition. On March 27, 2017, the Court granted the motion to dismiss and entered a judgment dismissing the Amended Complaint with prejudice. As of December 31, 2016, 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. (d) AM Advertising Dispute AM Shengshi had served a legal letter, dated June 29, 2016 (the “Legal Letter”), on Longde Wenchuang and Culture Center to challenge the proposed transfers by Longde Wenchuang and Cultural Center of their equity interests in AM Advertising to Shanghai Golden Bridge InfoTech Co., Ltd. (stock code: 603918), a PRC company with its shares listed on the Shanghai Stock Exchange (“Golden Bridge”). As of the date of the Legal Letter, AM Shengshi held 24.84 28.57 46.43 75 On September 2, 2016, the Group received notice (the “September 2, 2016 Notice”) from the China International Economic and Trade Arbitration Commission (the “CIETAC”) that the Company, AM Technology, AM Shengshi and Mr. Herman Man Guo (collectively, the “Respondents”) were named as respondents by the Culture Center in an arbitration proceeding submitted by the Culture Center to the CIETAC in connection with the sale by the Company of 75% equity interests in AM Advertising to Culture Center and Longde Wenchuang in June 2015. Culture Center seeks specific performance by the Respondents of certain obligations under the transaction documents, which include, among other things, (i) the pledge by AM Shengshi and Mr. Guo of their respective equity interests in AM Advertising to Culture Center as security for their obligations under the transaction documents, (ii) the use of best efforts by the Respondents to cooperate with the Culture Center and Longde Wenchuang to procure the listing of AM Advertising in China and (iii) the performance by the Company and Mr. Guo of their respective non-compete obligations to refrain from holding, operating, or otherwise participating in any business that is the same or substantially the same as that of AM Advertising. The Company believes the arbitration request is without merit and intends to defend the actions vigorously. However, no assurances can be provided that the Company will prevail in this arbitration proceeding.In response to the September 2, 2016 Notice, the Group filed a notice against Culture Center to CIETAC for their breach of contract. As a result of the above disputes, the Group is no longer able to exercise significant influence in operating and strategic decision of AM Advertising and cannot access to AM Advertising’s financial information. Accordingly, the Group accounted its investment in AM Advertising using cost method (see Note 6) for the year ended December 31, 2016. AM Advertising and its subsidiaries are no longer related parties to the Group. As of December 31, 2016, the Group treated the provision for earnout commitment of $ 23,549 (e) AM Shengshi Equity Transfer Mr. Xiaoya Zhang, a former shareholder of AM Shengshi, had initiated legal proceedings against Mr. Qing Xu, a director and the executive president of the Company, with respect to the transfers by Mr. Zhang of his equity interests in the company to Mr. Xu. In December 2015, AM Shengshi received an equity interest transfer agreement (the “ AM Shengshi SPA AM Shengshi Equity Transfer |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 26. RELATED PARTY TRANSACTIONS (a) Details of outstanding balances with the Group's related parties as of December 31, 2015 and 2016 were as follows: Amount due from related parties: As of December 31, Name of related parties Relationship 2015 2016 Beijing Dayun Culture Communication Co., Ltd. ("Dayun Culture") (1) Invested by management members of the Group $ 233 $ - Mr. Xu Qing (2) Shareholder of the Company 835 Beijing AirMedia Advertising Co., Ltd. ("AM Jinshi") (3) Wholly-owned subsidiary of AM Advertising 1,182 - Beijing AirMedia Lianhe Advertising Co., Ltd. ("AirMedia Lianhe") (3) Wholly-owned subsidiary of AM Advertising 615 - AirMedia City (Beijing) Outdoor Advertising Co., Ltd. ("AM Outdoor") (3) Wholly-owned subsidiary of AM Advertising 360 - Beijing AirMedia Jinshi Advertising Co., Ltd. ("TianJin Jinshi") (3) Wholly-owned subsidiary of AM Advertising 362 - $ 2,752 $ 835 (1) The amounts due from Dayun Culture represent the unreceived consideration of $ 233 Nil 20 (2) The amounts due from Mr. Xu Qing represents interest free advances to the related party in a short term basis for general business purpose. (3) The amounts due from AM Jinshi, AirMedia Lianhe, AM Outdoor and TianJin Jinshi represents the amount of concession using fees receivable as of December 31, 2015. These entities are subsidiaries of AM Advertising. The Group owns approximately 25 Due to various disputes incurred in fiscal 2016, management is no longer able to have significant influence in operating and strategic decision of AM Advertising and cannot access to AM Advertising’s financial information. Accordingly, the Group accounted its investment in AM Advertising using cost method (see Note 25) for the year ended December 31, 2016. AM Advertising and its subsidiaries are no longer related parties to the Group. As of December 31, 2016, all the balance related to AM Advertising and its subsidiaries are included in the other current asset (See Note 8) and accrued expenses and other current liabilities (See Note 15). (b) Details of outstanding balances with the Group's related parties as of December 31, 2015 and 2016 were as follows: Amount due to related parties: As of December 31, Name of related parties Relationship 2015 2016 AirTV United (1) Wholly-owned subsidiary of AM Advertising $ 296 $ - AM Advertising (2) Long term investment 15,093 - $ 15,389 $ - (1) The amounts due to AirTV United raised from the restructuring before the disposal. AirTV United is a subsidiary of AM Advertising. The Group owns approximately 25 Due to various disputes incurred in fiscal 2016, management is no longer able to have significant influence in operating and strategic decision of AM Advertising and cannot access to AM Advertising’s financial information. Accordingly, the Group accounted its investment in AM Advertising using cost method (see Note 25) for the year ended December 31, 2016. AM Advertising and its subsidiaries are no longer related parties to the Group. As of December 31, 2016, all the balance related to AM Advertising and its subsidiaries are included in the other current asset (See Note 8) and accrued expenses and other current liabilities (See Note 15). (2) The amounts due to AM Advertising mainly represent the concession fee payables for using concessions owned by AM Advertising, unpaid loans incurred before the disposal and related interests due to AM Advertising as of December 31, 2015. As of December 31, 2016, all the balance related to AM Advertising and its subsidiaries are included in other current asset (See Note 8) and accrued expenses and other current liabilities (See Note 15). (c) Details of related party transactions occurred, for the years ended December 31, 2014, 2015 and 2016 were as follows: Revenues earned from: For the years ended December 31 Name of related parties Relationship 2014 2015 2016 AM Jinshi (1) Wholly-owned subsidiary of AM Advertising - 278 - AM Advertising (1) Long term investment - 2 - $ - $ 280 $ - Concession cost purchased from: For the years ended December 31 Name of related parties Relationship 2014 2015 2016 AM Jinshi (1) Wholly-owned subsidiary of AM Advertising - 2 - AM Advertising (1) Long term investment - 142 - $ - $ 144 $ - Equity transaction with related parties: For the years ended December 31 Name of related parties Relationship 2014 2015 2016 Dayyun Culture (2) Invested by management members of the Group $ 2,766 $ - $ - $ 2,766 $ - $ - (1) Entities in continuing operations sold some concession in certain airports to discontinued operation. Also continuing operations purchased some concession in certain airports from discontinued operation after the disposal. (2) In August 2014, the Group sold 20 2,766 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 27. SUBSEQUENT EVENTS On April 7, 2017, the Group announced that it, through AM Online, established Unicom AirMedia (Beijing) Network Co., Ltd., or Unicom AirMedia, jointly with Unicom Broadband Online Co., Ltd., a wholly owned subsidiary of China Unicom, and Chengdu Haite Kairong Aeronautical Technology Co., Ltd., a wholly owned subsidiary of a listed company providing aeronautical technical services. Pursuant to a capital contribution agreement entered into by the relevant parties, AM Online invested approximately RMB 120 39 The special committee received a proposed amendment to the Merger Agreement from the buyer group, comprised of Mr. Guo, Ms. Dan Shao and Mr. Qing Xu, on May 23, 2017 to (a) acquire all of the outstanding shares not already owned by the buyer group for US$ 4.00 2.00 |
ADDITIONAL INFORMATION-FINANCIA
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I FINANCIAL INFORMATION OF PARENT COMPANY | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [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 or otherwise noted) As of December 31, 2015 2016 Assets Current assets Cash and cash equivalents $ 332 $ 139 Amount due from subsidiaries 179,619 178,083 Other current assets 1,369 3,825 Total current assets 181,320 182,047 Non-current assets Investment in subsidiaries 205,501 86,896 TOTAL ASSETS 386,821 268,943 Liabilities Current liabilities Accrued expenses and other current liabilities 253 206 Total liabilities 253 206 Equity Ordinary Shares ($0.001 par value; 900,000,000 shares authorized in 2015 and 2016; 127,662,057 shares issued as of December 31, 2015 and 2016; 124,395,645 shares and 125,629,779 shares outstanding as of December 31, 2015 and 2016, respectively) 128 128 Additional paid-in capital 317,414 287,094 Treasury stock (3,266,412 and 2,032,278 shares as of December 31, 2015 and 2016, respectively) (3,778) (2,351) Retained earnings (accumulated deficits) 49,876 (15,842) Accumulated other comprehensive income 22,928 (292) Total equity 386,568 268,737 TOTAL LIABILITIES AND EQUITY $ 386,821 $ 268,943 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, 2014 2015 2016 Operating expenses Selling and marketing $ (144) $ - $ (8) General and administrative (1,676) (2,070) (2,356) Total operating expenses (1,820) (2,070) (2,364) Other income, net - - 548 Investment (loss) income in subsidiaries (23,875) 151,717 (63,809) Net (loss) income attributable to holders of ordinary shares $ (25,695) $ 149,647 $ (65,625) AIRMEDIA GROUP INC. ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (In U.S. dollars in thousands) For the years ended December 31, 2014 2015 2016 Net (loss) income $ (25,695) $ 149,647 $ (65,625) Other comprehensive loss, net of tax: Change in cumulative foreign currency translation adjustment (6,414) (10,887) (23,220) Comprehensive (loss) income attributable to Parent Company $ (32,109) $ 138,760 $ (88,845) 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 or otherwise noted) Accumulated other Ordinary shares Additional Treasury (Accumulated deficits) comprehensive Total Shares Amount paid-in capital stock retained earnings Income (loss) equity Balance as of January 1, 2014 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 AirMedia 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 Ordinary shares issued for share based compensation 4,453,232 - 5,458 (663) - 4,825 Share-based compensation - - 598 - - - 598 Foreign currency translation adjustment - - - - - (10,887) (10,887) Net income - - - - 149,647 - 149,647 Capital contribution from non-controlling interests - - 271 - - - 271 Capital contribution to Guangzhou Meizheng - - (459) - - - (459) Acquisition of non-controlling interests - - (6,163) - - - (6,163) Balance as of December 31, 2015 124,395,645 $ 128 317,414 (3,778) 49,876 22,928 386,568 Stock option exercised 1,234,134 - - 1,427 (93) - 1,334 Share-based compensation - - 773 - - - 773 Foreign currency translation adjustment (23,220) (23,220) Net income (65,625) - (65,625) Acquisition of equity interests from non-controlling shareholders (34,570) (34,570) Capital contribution from non-controlling interests 3,477 3,477 Balance as of December 31, 2016 125,629,779 $ 128 $ 287,094 $ (2,351) $ (15,842) $ (292) $ 268,737 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, 2014 2015 2016 CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) income $ (25,695) $ 149,647 $ (65,625) Investment loss (income) in subsidiaries 23,875 (151,717) 63,809 Share-based compensation 1,359 598 773 CHANGES IN WORKING CAPITAL ACCOUNTS Other current assets (221) (813) (2,456) Accrued expenses and other current liabilities (308) 169 (47) Amount due to subsidiaries (517) (3,135) 483 Amount due from subsidiaries 2,898 (1,272) 1,536 Net cash provided by (used in) operating activities 1,391 (6,523) (1,527) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from exercises of stock options 624 4,826 1,334 Net cash provided by financing activities. 624 4,826 1,334 Net increase (decrease) in cash 2,015 (1,697) (193) Cash, at beginning of year 14 2,029 332 Cash, at end of year $ 2,029 $ 332 $ 139 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. 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 ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). The Group incurred losses from operations of US$ 76.1 89.8 15.8 69.1 103.6 117.5 115.0 |
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. |
Discontinued operations | (c) Discontinued operations A disposal of a component of an entity or a group of components of an entity shall be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations. Classification as a discontinued operation occurs upon disposal or when the operation meets the criteria to be classified as held for sale, if earlier. Where an operation is classified as discontinued, a single amount is presented on the face of the consolidated statements of operations. The amount of total current assets, total non-current assets, total current liabilities and total non-current liabilities are presented separately on the consolidated balance sheets. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with US GAAP requires to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period 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 long-lived assets, share-based compensation, provision for earnout commitment and valuation allowance for deferred tax assets. Actual results could differ from those estimates. |
Significant risks and uncertainties | (e) 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: net losses in the past and futures; failure in launching new business; a significant or prolonged economic downturn; contraction in the air travel advertising industry in China; competition from other competitors; regulatory or other PRC related factors; fluctuations in the demand for air travel; past and future acquisitions; failure to maintain an effective system of internal control over financial reporting and effective disclosure controls and procedures; 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 industry. |
Fair value | 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 under current market conditions. 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 | Fair value of financial instruments The Group's financial instruments include cash, accounts receivable, short-term investment, consideration receivable, accounts payable, and provision for earnout commitment. 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, 2015 and 2016. The Group's financial assets and liabilities measured at fair value on a non-recurring basis include certain assets in connection with an equity share exchange transaction based on level 2 inputs and acquired assets and liabilities based on level 3 inputs in connection with business combinations. |
Cash and cash equivalents | (h) 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 | (i) Restricted cash Restricted cash represents the bank deposits in escrow accounts as the performance security for certain concession right agreements. |
Short-term investment | (j) 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 (“OTTI”) 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. OTTI is recognized as a loss in the income statement. The short-term investments held by the Group as of December 31, 2016 were Nil. |
Assets held for sale | Assets held for sale The Group considers assets to be 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, net | Property and equipment, net Property and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Digital display network equipment WIFI and network equipment 5 5 Gas station display network equipment Office property 5 40 Furniture and fixture 5 Computer and office equipment 3 5 Vehicle 5 Software 5 Leasehold improvement Shorter of the term of the lease or the estimated useful lives of the assets Costs of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The gain or loss on disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated income statement. . |
Impairment of long-lived assets | (m) Impairment of long-lived assets Long-lived assets held and used by the Group are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be fully recoverable. It is possible that these assets could become impaired as a result of technology, economy or other industry changes. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Group first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, relief from royalty income approach, quoted market values and third-party independent appraisals, as considered necessary. The Group makes various assumptions and estimates regarding estimated future cash flows and other factors in determining the fair values of the respective assets. The assumptions and estimates used to determine future values and remaining useful lives of long-lived assets are complex and subjective. They can be affected by various factors, including external factors such as industry and economic trends, and internal factors such as the Group’s business strategy and its forecasts for specific market expansion. |
Long-term investments | (n) Long-term investments Equity method investments Investee companies over which the Group 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 Group 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. I mpairment for long-term investments The Group assesses its long-term investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the companies, including current earnings trends and undiscounted cash flows, and other company-specific information. The fair value determination, particularly for investments in privately-held companies, requires significant judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investments and determination of whether any identified impairment is other-than-temporary. Other-than-temporary impairment loss is recognized in the consolidated statements of comprehensive income equal to the excess of the investment’s carrying value over its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value would then become the new cost basis of such investment. |
Acquired intangible assets | Acquired intangible assets Acquired intangible assets with definite lives are carried at cost less accumulated amortization. Customer relationships intangible assets are 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: Audio-vision programming & broadcasting qualification 19.5 Customer relationships 3 3.4 Contract backlog 1.2 3 Concession agreements 3.8 10 Non-compete agreements 4.4 |
Revenue recognition | (p Revenue recognition The Group's revenues are derived from selling advertising time slots on the Group's advertising networks. For the years ended December 31, 2014, 2015 and 2016, the advertising revenues were generated from TV-attached digital frames in airports, digital TV screens in airports, digital TV screens on airlines, 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, with the exception of 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 $209, $ 473 |
Value Added Tax ("VAT") | Value Added Tax ("VAT") The Company's PRC subsidiaries are subject to value-added taxes at a rate of 6 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 3 |
Business tax and other sale related taxes | 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 |
Concession fees | (s) Concession fees The Group enters concession right agreements with vendors such as airports, airlines, railway bureaus 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, airlines and railway bureaus are fixed with escalation, which means a 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 to 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 a 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. |
Operating leases | 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 | Advertising costs The Group expenses advertising costs as incurred. Total advertising expenses were $ 1,785 350 720 |
Foreign currency translation | 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 expense. For years ended December 31, 2016, 2015, and 2014, the Group did not have any material interest or penalties associated with tax positions nor did the Group have any significant unrecognized uncertain tax positions. |
Share-based payments | 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) income | Comprehensive (loss) income Comprehensive (loss) income includes net (loss) income and foreign currency translation adjustments and is presented net of tax. The tax effect is nil for the three years ended December 31, 2014, 2015 and |
Allowance of doubtful accounts | Allowance of doubtful accounts The Group conducts credit evaluations of clients and generally does 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 | 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. For the years ended December 31, 2014, 2015 and 2016, no individual customer accounted for over 10% of total revenue. There is no customer accounting for 10% or more of total accounts receivables as of December 31, 2015 and 2016. |
Net (loss) income per share | Net (loss) income per share Basic net (loss) income per share are computed by dividing net (loss) income attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted net (loss) income 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 without future performance requirement. The recognized government subsidies as other income are $ 491 513 86 |
Recent issued accounting standards not yet adopted | (ee) Recent issued accounting standards In November 2015, the FASB issued ASU 2015-17, Income Taxes-Balance Sheet Classification of Deferred Taxes. The amendments in this update simplify the presentation of deferred income taxes. ASU 2015-17 requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in ASU 2015-17 are effective for fiscal years beginning after December 15, 2016 including interim periods within those fiscal years. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The Group adopted this ASU 2015-17 for the year ended December 31, 2016, as a result, the current portion of deferred tax assets of $ 41 |
Recent issued accounting standards | (ee) Recent issued accounting standards In May 2017, the FASB issued ASU No. 2017-09, “Compensation Stock Compensation (Topic 718): Scope of Modification Accounting”, which amends the scope of modification accounting for share-based payment arrangements. The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. The amendments in this Update should be applied prospectively to an award modified on or after the adoption date. The Group is currently evaluating the impact of this new standard on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business". The amendments in this ASU clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Basically these amendments provide a screen to determine when a set is not a business. If the screen is not met, the amendments in this ASU first, require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and second, remove the evaluation of whether a market participant could replace missing elements. These amendments take effect for public businesses for fiscal years beginning after December 15, 2017 and interim periods within those periods, and all other entities should apply these amendments for fiscal years beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The Group does not expect that the adoption of this guidance will have a material impact on its consolidated financial statements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. Generally Accepted Accounting Principles when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In August 2015, the FASB issued ASU No. 2015-14, “Deferral of the Effective Date” (“ASU 2015-14”), which defers the effective date for ASU 2014-09 by one year. For public entities, the guidance in ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods), which means it will be effective for the Company’s fiscal year beginning January 1, 2018. In March 2016, the FASB issued ASU No. 2016-08, “Principal versus Agent Considerations (Reporting Revenue versus Net)” (“ASU 2016-08”), which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard. In April 2016, the FASB issued ASU No. 2016-10, “Identifying Performance Obligations and Licensing” (“ASU 2016-10”), which reduces the complexity when applying the guidance for identifying performance obligations and improves the operability and understandability of the license implementation guidance. In May 2016, the FASB issued ASU No. 2016-12 “Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”), which amends the guidance on transition, collectability, noncash consideration and the presentation of sales and other similar taxes. In December 2016, the FASB further issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” (“ASU 2016-20”), which makes minor corrections or minor improvements to the Codification that are not expected to have a significant effect on current accounting prac tice or create a significant administrative cost to most entities. The amendments are intended to address implementation issues that were raised by stakeholders and provide additional practical expedients to reduce the cost and complexity of applying the new revenue standard. These amendments have the same effective date as the new revenue standard. Preliminarily, we plan to adopt Topic 606 in the first quarter of our fiscal 2018 using the retrospective transition method, and are continuing to evaluate the impact our pending adoption of Topic 606 will have on our consolidated financial statements. The Company’s current revenue recognition policies are generally consistent with the new revenue recognition standards set forth in ASU 2014-09. Potential adjustments to input measures are not expected to be pervasive to the majority of the Company’s contracts. While no significant impact is expected upon adoption of the new guidance, the Group will not be able to make that determination until the time of adoption based upon outstanding contracts at that time. In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows: Restricted Cash". The amendments address diversity in practice that exists in the classification and presentation of changes in restricted cash on the statement of cash flows. The amendment is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Group is currently evaluating the impact of this new standard on its consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-17, Consolidation (Topic 810): Interest Held through Related Parties That Are under Common Control, to provide guidance on the evaluation of whether a reporting entity is the primary beneficiary of a VIE by amending how a reporting entity, that is a single decision maker of a VIE, treats indirect interests in that entity held through related parties that are under common control. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 31, 2016, and interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The Group does not expect the adoption of the ASU to have any impact on its consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes (Topic 740): Intra-entity Transfers of Assets Other Than Inventory.” This amendment is intended to improve accounting for the income tax consequences of intra-entity transfers of assets other than inventory. In accordance with this guidance, an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The ASU is effective for the Company beginning in fiscal 2019. Early adoption is permitted in fiscal 2018 with modified retrospective application. The Company is continuing to evaluate the impact of the adoption of this guidance on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to provide guidance on the presentation and classification of certain cash receipts and cash payments on the statement of cash flows. The guidance specifically addresses cash flow issues with the objective of reducing the diversity in practice. The guidance will be effective for the Company in fiscal year 2018, but early adoption is permitted. The Group is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments Credit Losses”, which will require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The guidance is effective for annual reporting periods beginning after December 15, 2019 and interim periods within those fiscal years. The Company is currently evaluating this statement and its impact on its results of operations or financial position. In May 2016, the FASB issued ASU No. 2016-11 Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815); Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16. Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting, which is rescinding certain SEC Staff Observer comments that are codified in Topic 605, Revenue Recognition, and Topic 932, Extractive ActivitiesOil and Gas, effective upon adoption of Topic 606. The Group does not expect the adoption of the ASU to have any impact on its consolidated financial statements. In April 2016, the FASB released ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. While aimed at reducing the cost and complexity of the accounting for share-based payments, the amendments are expected to significantly impact net income, EPS, and the statement of cash flows. Implementation and administration may present challenges for companies with significant share-based payment activities. The ASU is effective for public companies in annual periods beginning after December 31, 2016, and interim periods within those years. The Group does not expect that the adoption of this guidance will have a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-07, Equity Method and Joint Ventures (Topic 323). The guidance eliminates the requirement that an investor retrospectively apply equity method accounting when an investment that it had accounted for by another method initially qualifies for use of the equity method. The guidance also requires an investor that has an available-for-sale security that subsequently qualifies for the equity method to recognize in net income the unrealized holding gains or losses in accumulated other comprehensive income related to that security when it begins applying the equity method. The guidance is effective for all entities for fiscal years beginning after December 31, 2016, and interim periods within those years. Early adoption is permitted in any interim or annual period. The guidance will be adopted on a prospective basis. The Group does not expect that the adoption of this guidance will have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Group is in the process of evaluating the impact that this guidance will have on its consolidated financial statements and related disclosures. In January 2016, the FASB issued ASU 2016-01, "Financial InstrumentsOverall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" This guidance revises the accounting related to the classification and measurement of investments in equity securities as well as the presentation for certain fair value changes in financial liabilities measured at fair value, and amends certain disclosure requirements. The guidance requires that all equity investments, except those accounted for under the equity method of accounting or those resulting in the consolidation of the investee, be accounted for at fair value with all fair value changes recognized in income. For financial liabilities measured using the fair value option, the guidance requires that any change in fair value caused by a change in instrument-specific credit risk be presented separately in other comprehensive income until the liability is settled or reaches maturity. The guidance is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017, with early adoption permitted for certain provisions. A reporting entity would generally record a cumulative-effect adjustment to beginning retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Group is in the process of evaluating the impact that this guidance will have on its consolidated financial statements and related disclosures. |
ORGANIZATION AND PRINCIPAL AC39
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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. (“Broad Cosmos”) June 26, 2006 British Virgin Islands ("BVI") 100 % AirMedia International Limited ("AM International") July 14, 2007 BVI 100 % AirMedia (China) Limited ("AM China") August 5, 2005 Hong Kong 100 % Subsidiaries: AirMedia Technology (Beijing) Co., Ltd. ("AM Technology") September 19, 2005 the PRC 100 % Shenzhen AirMedia Information Technology Co., Ltd. ("Shenzhen AM") June 6, 2006 the PRC 100 % Xi'an AirMedia Chuangyi Technology Co., Ltd. ("Xi'an AM") December 31, 2007 the PRC 100 % VIEs: Beijing AirMedia Shengshi Advertising Co., Ltd. (Formerly Beijing Shengshi Lianhe Advertising Co., Ltd.) ("AirMedia Shengshi") August 7, 2005 the PRC N/A Beijing AirMedia Jiaming Advertising Co., Ltd. (Formerly Beijing AirMedia UC Advertising Co., Ltd.) ("Jiaming Advertising") January 1, 2007 the PRC N/A Beijing Yuehang Digital Media Advertising Co., Ltd. ("AM Yuehang") January 16, 2008 the PRC N/A AirMedia Online Network Technology Co., Ltd. ("AM Online") April 30, 2015 the PRC N/A Date of Percentage incorporation/ Place of of legal Name acquisition incorporation ownership VIEs' subsidiaries: Beijing AirMedia Film & TV Culture Co., Ltd. ("AM Film") September 13, 2007 the PRC N/A Flying Dragon Media Advertising Co., Ltd. ("Flying Dragon") August 1, 2008 the PRC N/A Wenzhou AirMedia Advertising Co., Ltd. ("AM Wenzhou") October 17, 2008 the PRC N/A Hainan Jinhui Guangming Media Advertising Co., Ltd. ("Hainan Jinhui") June 23, 2009 the PRC N/A Beijing Dongding Gongyi Advertising Co., Ltd. ("Dongding") February 1, 2010 the PRC N/A Beijing GreatView Media Advertising Co., Ltd. (Formerly Beijing Weimei Shengjing Media Advertising Co., Ltd.) ("GreatView Media") April 28, 2011 the PRC N/A Guangzhou Meizheng Advertising Co., Ltd. ("Guangzhou Meizheng") May 17, 2013 the PRC N/A Beijing AirMedia Tianyi Information Technology Co., Ltd. ("AM Tianyi") September 25, 2013 the PRC N/A Guangzhou Xinyu Advertising Co., Ltd. February 2, 2015 the PRC N/A AirMedia Mobile Network Technology Co., Ltd. ("AM Mobile") April 23, 2015 the PRC N/A Guangzhou Meizheng Information Technology Co., Ltd. ("Guangzhou Tech") June 18, 2015 the PRC N/A AirMedia Henglong Mobile Network Technology Co., Ltd. ("AMHL Mobile") April 27, 2015 the PRC N/A Beijing AirMedia Jiaming Film & TV Culture Co., Ltd. ("AM Jiaming") December 31, 2015 the PRC N/A Meizheng Network Information Technology Co., Ltd. (“Meizheng Network”) August 8, 2016 the PRC N/A Airmedia Network Technology Co., Ltd. (“AM Network”) August 18, 2016 the PRC N/A Wangfan Network Technology Co.,Ltd. (“Iwangfan”) May 6, 2016 the PRC N/A Shandong Airmedia Car Safety Technology Co.,Ltd.(“Shangdong Car Safe”) July 21, 2016 the PRC N/A Dingsheng Ruizhi (Beiing) Investment Consulting Co., Ltd. (“Dingsheng Ruizhi”) May 25, 2016 the PRC N/A |
Schedule of VIE's Income Statement Amounts | For the years ended December 31, 2014 2015 2016 Net revenues $ 74,689 $ 46,237 $ 16,311 Net loss (47,119) (60,117) (81,659) |
AirMedia's VIEs [Member] | |
Variable Interest Entity [Line Items] | |
Schedule of VIE's Balance Sheet Amounts | As of December 31, 2015 2016 Total current assets $ 316,268 $ 177,425 Total non-current assets 190,684 127,486 Total assets 506,952 304,911 Total current liabilities 101,197 71,535 Total non-current liabilities 26,536 24,384 Total liabilities $ 127,733 $ 95,919 |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Property and Equipment | Digital display network equipment WIFI and network equipment 5 5 Gas station display network equipment Office property 5 40 Furniture and fixture 5 Computer and office equipment 3 5 Vehicle 5 Software 5 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 | Audio-vision programming & broadcasting qualification 19.5 Customer relationships 3 3.4 Contract backlog 1.2 3 Concession agreements 3.8 10 Non-compete agreements 4.4 |
DISCOUNTINUED OPERATION (Tables
DISCOUNTINUED OPERATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations Tables | |
Schedule of reclassification of assets, liabilities, revenue and expenses under "Discontinued Operations" | For the years Net revenues $ 166,843 Cost of revenues (126,745) Gross profit 40,098 Operating expenses (13,239) Income from operations 26,859 Gain from disposal of 75% equity interest in AM Advertising 244,164 Interest income 298 Other income, net 1,293 Income on equity method investments 265 Net income before income tax 272,879 Income taxes benefit/(expense) (51,696) Income from discontinued operations attributable to owners of the Company $ 221,183 Details of related party transactions for the years ended December 31, 2014 and 2015 were as follows: Concession cost purchased from: For the years ended December 31 Name of related parties Relationship 2014 2015 Guangxi Dingyuan (1) Equity method investee $ 233 $ 1,107 Qingdao AM (2) Equity method investee - 1,230 $ 233 $ 2,337 Loan to a related party: For the years ended December 31 Name of related parties Relationship 2014 2015 AM Jiaming (3) Equity method investee $ 1,612 $ - $ 1,612 $ - Equity transaction with a related party: For the years ended December 31 Name of related parties Relationship 2014 2015 Beijing Dayun Culture Communication Co., Ltd. ("Dayun Culture") (4) Invested by management of the Group $ - $ 8,605 Dingsheng Ruizhi (5) Invested by management of the Group 322 - $ 322 $ 8,605 (1) The Group purchased stand-alone digital frames, LED and lightbox concession in Nanning airport from Guangxi Dingyuan amounting to $ 1,107 (2) The Group purchased stand-alone digital frames concession in Qingdao airport from Qingdao AM amounting to $ 1,230 (3) In May 2014 and June 2014, the Group provided two loans to AM Jiaming, with amount of $ 806 806 6 (4) In November 2015, AM Advertising purchased 20 8,605 100 (5) In June 2014, AM Advertising sold 20 322 |
SEGMENT INFORMATION AND REVEN42
SEGMENT INFORMATION AND REVENUE ANALYSIS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |
Schedule of Revenues by Service Categories | For the years ended December 31, 2014 2015 2016 Revenues from continuing operations: Air Travel Media Network $ 59,200 $ 38,917 $ 12,178 Gas Station Media Network 11,164 9,840 4,009 Other Media 5,583 2,109 410 $ 75,947 $ 50,866 $ 16,597 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Long-term Investments [Abstract] | |
Schedule of Equity Method Investments | As of December 31, 2015 2016 Name of company Percentage Amount Percentage Amount % % Equity method investments Beijing Eastern Media Corporation Ltd. (“BEMC “) (1) 49 $ 1,363 49 $ 1,461 Zhejiang AirMedia Guangying Film Production Co., Ltd. ("AM Guangying") (2) 47.6 3,081 - - Beijing Hezhong Chuangjin Investment Co., Ltd. ("Hezhong Chuangjin") (3) 15 2,144 15 1,944 Lanmeihangbiao Tiandi Internet Investment Management (Beijing) Co., Ltd. ("LMHB") (4) 40 456 40 256 Beijing Yuyue Film Culture Co., Ltd (“Yuyue Film”) (5) - - 25 432 Beijing Yunxing Chuangrong Investment Fund Management Co., Ltd (“Yunxing”) (6) 50 2,083 AM Advertising (7) 25 82,177 - - $ 89,221 $ 6,176 (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 49 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) In December 2013, the Group entered into an agreement with Zhejiang Tianguang Diying Production Co., Ltd. to establish AM Guangying. AM Guangying was incorporated on December 25, 2013. AM Guangying is mainly engaged in film production. The Group sold its interest in AM Guangying for the year ended December 31, 2016. 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. The Group disposed this investment for the year ended December 31, 2016 with proceeds of $ 3,014 6 (3) In May 2015, AM Advertising, Beijing Financial Technology Investment Management Center (limited partnership), Beijing Hongdeshengzheng Investment Co., Ltd., and Beijing Hongyuan Zhixin Enterprise Management Consulting Co. Ltd. established Hezhong Chuangjin, which mainly focuses on internet financing. In July 2015, AM Advertising transferred its investment in Hezhong Chuangjin to AM Online, a subsidiary of the Group at carrying value. 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 Hezhong Chuangjin. (4) In September 2015, AM Online entered into an agreement with BlueFocus wireless Internet (Beijing) Investment Management Co., Ltd. and two individual investors to establish a joint venture, LMHB. LMHB was incorporated on September 25, 2015. LMHB is mainly engaged in investment management of Wi-Fi platform marketing and other mobile internet industries. 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 LMHB. (5) In June 2016, AM Film entered into an agreement with two individual investors to establish a joint venture, Yuyue Film. Yuyue Film is mainly engaged in investment management of film investment and marketing. 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 Yuyue Film. (6) In February 2016, AM Online entered into an agreement with Haihang Wenhua Holding Group to invest in Yunxing. Yunxing was incorporated on December 17, 2013. Yunxing is mainly engaged in information technology investments in the Hainan Airline. 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. (7) On June 15, 2015, AirMedia entered into a definitive equity interest transfer agreement with Longde Wenchuang to sell 75 324,183 |
Schedule of Assets and Liabilities | As of December 31, 2015 2016 Total current assets $ 277,634 $ 24,633 Total assets 319,797 25,209 Total current liabilities 135,190 3,402 Total liabilities 135,342 3,402 For the years ended December 31, 2014 2015 2016 Total net revenues $ 11,486 $ 35,866 $ 1,809 Total gross profits 567 15,341 1,241 Total net income 164 9,136 (733) |
Schedule of Cost Method Investments | As of December 31, 2015 2016 Name of company Percentage Amount Percentage Amount % % Zhangshangtong Air Service (Beijing) Co., Ltd. ("Zhangshangtong") (1) 20 $ 367 20 $ 388 Qingdao Jinshi Zhixing Investment Centre LLP (“Qingdao Jinshi”) (2) - - 3 22 Beijing Zhongjiao Huineng Information Technology Co., Ltd (“Zhongjiao Huineng”) (3) - - 13 541 AM Advertising ( Refer to Note 25-d) - - 25 76,734 $ 367 $ 77,685 (1) In June 2010, the Group invested $ 388 20 (2) In January 2016, the Group invested $ 22 3.35 (3) In January 2016, the Group invested $ 541 13.3 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivable, Net | As of December 31, 2015 2016 Accounts receivable, gross $ 11,184 $ 13,596 Less: Allowance for doubtful accounts (1,727) (3,815) Accounts receivable, net $ 9,457 $ 9,781 |
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 2014 $ 1,433 3,212 (7) (180) 4,458 2015 4,458 (2,661) - (70) 1,727 2016 1,727 2,248 - (160) 3,815 |
OTHER CURRENT ASSETS, NET (Tabl
OTHER CURRENT ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets [Abstract] | |
Schedule of Other Current Assets Net | As of December 31, 2015 2016 Input VAT receivable $ 13,604 $ 16,249 Prepaid selling and marketing fees 773 368 Short-term deposits 150 74 Prepaid income tax 447 417 Prepaid individual income tax and other employee advances 433 290 Loans to third parties (i) 5,403 17,080 Receivable from third party (ii) 4,110 11,635 Receivable from a non-controlling interest holders 1,313 6,377 Receivable from AM Advertising and its subsidiaries (iii) - 19,021 Receivables from ADS depositary 468 468 Other prepaid expenses 4,203 2,732 30,904 74,711 Allowance for doubtful amounts - (5,861) $ 30,904 $ 68,850 (i) For the years ended December 31, 2015 and 2016, the Group entered into various loan agreements with third parties amounting with aggregated amount of $ 5,403 17,080 5.10 3.19 864 (ii) Receivable from third party represented the working capital provided by the Group to support the third party's daily operations. As of December 31, 2015 and 2016, the bad debt allowance was Nil and $ 4,530 , respectively. (iii) Receivable from AM Advertising and its subsidiaries balance amounted to $ 19,021 25,956 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Non-current Assets Tables | |
Schedule of Other non-current assets | As of December 31, 2015 2016 Investment in film and TV series (i) $ 4,781 $ 1,854 Prepaid office space and leasehold improvement fees (ii) 6,831 4,917 $ 11,612 $ 6,771 (i) 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. The Group enters into agreements with other investors to invest together on certain film or TV series, which are produced by third parties, and shares the profit of the invested films and TV series proportionally based on their investments. (ii) As the office spaces legal title had not been transferred to the Group, the prepaid amounts were recognized as other non-current assets as of December 31, 2015 and 2016. |
LONG-TERM DEPOSITS (Tables)
LONG-TERM DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deposit Assets Disclosure [Abstract] | |
Schedule of Long Term Deposits | As of December 31, 2015 2016 Concession fee deposits $ 4,527 $ 5,547 Office rental deposits 352 880 $ 4,879 $ 6,427 |
ACQUIRED INTANGIBLE ASSETS, N48
ACQUIRED INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Acquired Intangible Assets, Net | As of December 31, 2015 2016 Gross Net Gross Net carrying Accumulated Accumulated carrying carrying Accumulated Accumulated carrying amount amortization impairment amount amount amortization impairment amount Audio-vision programming and broadcasting qualification $ 214 $ (37) $ (177) $ - $ 200 $ (35) $ (165) $ - Customer relationships 739 (739) - - 689 (689) - - Contract backlog 1,544 (1,544) - - 1,441 (1,441) - - Concession agreements 10,459 (7,531) (603) 2,325 9,758 (7,513) (563) 1,682 Non-compete agreements 182 (172) (10) - 170 (161) (9) - $ 13,138 $ (10,023) $ (790) $ 2,325 $ 12,258 $ (9,839) $ (737) 1,682 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | As of December 31, 2015 2016 Digital display network equipment $ 8,341 $ 6,314 WIFI and network equipment 17,708 27,719 Gas station display network equipment 33,412 38,615 Software 9,959 9,174 Office property - 5,805 Computer and office equipment 3,140 2,828 Vehicle 774 938 Leasehold improvement 218 607 Construction in progress - 1,422 Furniture and fixture 1,092 1,123 74,644 94,545 Less: accumulated depreciation and impairment (26,305) (33,540) $ 48,339 $ 61,005 |
ACCRUED EXPENSES AND OTHER CU50
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | As of December 31, 2015 2016 Accrued payroll and welfare $ 1,860 $ 2,848 Other tax payable 1,462 1,366 Accrued staff disbursement 1,166 1,447 Deposit payable 665 266 Accrued professional fees 4,382 290 Other current liabilities 1,209 1,288 Payable to non-controlling interest holders - 135 Payable to AM Advertising and its subsidiaries (1) - 25,956 $ 10,744 $ 33,596 (1) The payable to AM Advertising and its subsidiaries was $ 15,389 25,956 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax (Expenses)/Benefits | For the years ended December 31, 2014 2015 2016 Income tax benefits /(expenses): Current $ (988) $ (480) $ (50) Deferred 2,500 (5,941) (4,433) 1,512 (6,421) (4,483) |
Schedule of Deferred Income Tax Assets and Liabilities | As of December 31, 2015 2016 Deferred tax assets: Allowance for doubtful accounts $ 899 $ 4,083 Employee education fee excess 6 - Depreciation of property and equipment 127 - Amortization of intangible assets and concession fees 2,274 1,606 Net operating loss carry forwards 15,404 30,697 Valuation allowance (14,186) (36,386) Total deferred tax assets 4,524 - Deferred tax liabilities: Acquired intangible assets 91 - Total deferred tax liabilities $ 91 $ - |
ScheduleOfEffectiveIncomeTaxRateReconciliation | For the years ended December 31, 2014 2015 2016 Net loss before provision for income taxes $ (53,414) $ (74,202) $ (84,726) PRC statutory tax rate 25 % 25 % 25 % Income tax at statutory tax rate (13,354) (18,551) (21,182) Expenses not deductible for tax purpose Entertainment expenses exceeded the tax limit 217 300 158 Tax effect of tax losses not recognized 10 - - Tax effect of other permanent differences 360 330 1,681 Changes in valuation allowance 2,748 9,276 22,200 Effect of preferential tax rates granted to PRC entities 7,912 14,404 642 Effect of income tax rate difference in other jurisdictions 595 662 984 Income tax expenses/ (benefits) $ (1,512) $ 6,421 $ 4,483 Effective tax rates 2.8 % (8.7) % (5.3) % |
NET (LOSS) INCOME PER SHARE (Ta
NET (LOSS) INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of the Calculation of Net Loss per Share | The calculation of the net loss per share is as follows: For the years ended December 31, 2014 2015 2016 Numerator: Net (loss) income attributable to AirMedia Group Inc.'s ordinary shareholders $ (25,695) $ 149,647 $ (65,625) - Continuing operations (45,306) (70,651) (65,625) - Discontinued operations 19,611 220,298 - Denominator: Weighted average ordinary shares outstanding used in computing net (loss) income per ordinary share - basic 119,304,773 121,740,194 125,277,056 - diluted 119,304,773 129,372,158 125,277,056 Weighted average shares used in calculating (loss) income per ordinary shares Basic Continuing operations 119,304,773 121,740,194 125,277,056 Discontinued operations 119,304,773 121,740,194 - Diluted Continuing operations (i) 119,304,773 121,740,194 125,277,056 Discontinued operations (ii) 119,924,927 129,372,158 - Net (loss) income per ordinary share -basic $ (0.22) $ 1.23 $ (0.52) -diluted (0.22) 1.16 (0.52) Net (loss) income per ordinary share from continuing operations -basic $ (0.38) $ (0.58) $ (0.52) -diluted (0.38) (0.58) (0.52) Net income per ordinary share from discontinued operations -basic $ 0.16 $ 1.81 $ - -diluted 0.16 1.70 - The effect of options was excluded from the computation of diluted loss per share from continuing operations for the years ended December 31, 2014, 2015 and 2016, respectively, as the effect would be anti-dilutive. (ii) An incremental weighted average number of 620,154 7,631,964 |
SHARE BASED PAYMENTS (Tables)
SHARE BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, 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 as of January 1, 2016 10,438,840 $ 1.14 $ 1.07 2.16 $ 17,236 Exercised (1,234,134) 1.08 0.70 Forfeited (1,494,530) 1.17 1.47 Outstanding as of December 31, 2016 7,710,176 $ 1.15 $ 1.05 1.57 $ 1,552 Options vested and expected to vest as of December 31, 2016 7,680,203 1.15 1.05 1.57 1,546 Options exercisable as of December 31, 2016 7,373,036 $ 1.15 $ 1.12 1.52 $ 1,447 |
Schedule of Stock Options Outstanding | For the years ended December 31, 2014 2015 2016 Risk-free interest rate of return 0.10% - 1.07% 0.00%-1.24% 0.14%-0.80% Expected term 1.00 - 3.32 years 0.04-2.93years 0.04-2.48 years Volatility 63.10% - 67.06% 7.19%-126.63% 9%-74.8% Dividend yield - - - |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
COMMITMENTS [Abstract] | |
Schedule of Future Minimum Payments Under Operating Leases | Year 2017 $ 2,364 2018 2,067 2019 96 $ 4,527 |
Schedule of Future Minimum Concession Fee Payments | Year 2017 $ 29,621 2018 22,426 2019 19,061 2020 17,193 2021 864 thereafter 6,049 $ 95,214 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Amount Due From/To Related Parties | As of December 31, Name of related parties Relationship 2015 2016 Beijing Dayun Culture Communication Co., Ltd. ("Dayun Culture") (1) Invested by management members of the Group $ 233 $ - Mr. Xu Qing (2) Shareholder of the Company 835 Beijing AirMedia Advertising Co., Ltd. ("AM Jinshi") (3) Wholly-owned subsidiary of AM Advertising 1,182 - Beijing AirMedia Lianhe Advertising Co., Ltd. ("AirMedia Lianhe") (3) Wholly-owned subsidiary of AM Advertising 615 - AirMedia City (Beijing) Outdoor Advertising Co., Ltd. ("AM Outdoor") (3) Wholly-owned subsidiary of AM Advertising 360 - Beijing AirMedia Jinshi Advertising Co., Ltd. ("TianJin Jinshi") (3) Wholly-owned subsidiary of AM Advertising 362 - $ 2,752 $ 835 (1) The amounts due from Dayun Culture represent the unreceived consideration of $ 233 Nil 20 (2) The amounts due from Mr. Xu Qing represents interest free advances to the related party in a short term basis for general business purpose. (3) The amounts due from AM Jinshi, AirMedia Lianhe, AM Outdoor and TianJin Jinshi represents the amount of concession using fees receivable as of December 31, 2015. These entities are subsidiaries of AM Advertising. The Group owns approximately 25 Due to various disputes incurred in fiscal 2016, management is no longer able to have significant influence in operating and strategic decision of AM Advertising and cannot access to AM Advertising’s financial information. Accordingly, the Group accounted its investment in AM Advertising using cost method (see Note 25) for the year ended December 31, 2016. AM Advertising and its subsidiaries are no longer related parties to the Group. As of December 31, 2016, all the balance related to AM Advertising and its subsidiaries are included in the other current asset (See Note 8) and accrued expenses and other current liabilities (See Note 15). As of December 31, Name of related parties Relationship 2015 2016 AirTV United (1) Wholly-owned subsidiary of AM Advertising $ 296 $ - AM Advertising (2) Long term investment 15,093 - $ 15,389 $ - (1) The amounts due to AirTV United raised from the restructuring before the disposal. AirTV United is a subsidiary of AM Advertising. The Group owns approximately 25 Due to various disputes incurred in fiscal 2016, management is no longer able to have significant influence in operating and strategic decision of AM Advertising and cannot access to AM Advertising’s financial information. Accordingly, the Group accounted its investment in AM Advertising using cost method (see Note 25) for the year ended December 31, 2016. AM Advertising and its subsidiaries are no longer related parties to the Group. As of December 31, 2016, all the balance related to AM Advertising and its subsidiaries are included in the other current asset (See Note 8) and accrued expenses and other current liabilities (See Note 15). (2) The amounts due to AM Advertising mainly represent the concession fee payables for using concessions owned by AM Advertising, unpaid loans incurred before the disposal and related interests due to AM Advertising as of December 31, 2015. As of December 31, 2016, all the balance related to AM Advertising and its subsidiaries are included in other current asset (See Note 8) and accrued expenses and other current liabilities (See Note 15). |
Schedule of Revenue Earned | For the years ended December 31 Name of related parties Relationship 2014 2015 2016 AM Jinshi (1) Wholly-owned subsidiary of AM Advertising - 278 - AM Advertising (1) Long term investment - 2 - $ - $ 280 $ - |
Schedule of Concession Cost Purchased | For the years ended December 31 Name of related parties Relationship 2014 2015 2016 AM Jinshi (1) Wholly-owned subsidiary of AM Advertising - 2 - AM Advertising (1) Long term investment - 142 - $ - $ 144 $ - |
Schedule of Equity Transactions with Related Party | For the years ended December 31 Name of related parties Relationship 2014 2015 2016 Dayyun Culture (2) Invested by management members of the Group $ 2,766 $ - $ - $ 2,766 $ - $ - (1) Entities in continuing operations sold some concession in certain airports to discontinued operation. Also continuing operations purchased some concession in certain airports from discontinued operation after the disposal. (2) In August 2014, the Group sold 20 2,766 |
ADDITIONAL INFORMATION-FINANC56
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I FINANCIAL INFORMATION OF PARENT COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Parent's Condensed Balance Sheets | As of December 31, 2015 2016 Assets Current assets Cash and cash equivalents $ 332 $ 139 Amount due from subsidiaries 179,619 178,083 Other current assets 1,369 3,825 Total current assets 181,320 182,047 Non-current assets Investment in subsidiaries 205,501 86,896 TOTAL ASSETS 386,821 268,943 Liabilities Current liabilities Accrued expenses and other current liabilities 253 206 Total liabilities 253 206 Equity Ordinary Shares ($0.001 par value; 900,000,000 shares authorized in 2015 and 2016; 127,662,057 shares issued as of December 31, 2015 and 2016; 124,395,645 shares and 125,629,779 shares outstanding as of December 31, 2015 and 2016, respectively) 128 128 Additional paid-in capital 317,414 287,094 Treasury stock (3,266,412 and 2,032,278 shares as of December 31, 2015 and 2016, respectively) (3,778) (2,351) Retained earnings (accumulated deficits) 49,876 (15,842) Accumulated other comprehensive income 22,928 (292) Total equity 386,568 268,737 TOTAL LIABILITIES AND EQUITY $ 386,821 $ 268,943 |
Schedule of Parent's Condensed Statements of Operations | For the years ended December 31, 2014 2015 2016 Operating expenses Selling and marketing $ (144) $ - $ (8) General and administrative (1,676) (2,070) (2,356) Total operating expenses (1,820) (2,070) (2,364) Other income, net - - 548 Investment (loss) income in subsidiaries (23,875) 151,717 (63,809) Net (loss) income attributable to holders of ordinary shares $ (25,695) $ 149,647 $ (65,625) |
Schedule of Parents' Condensed Statements of Comprehensive Income/Loss | For the years ended December 31, 2014 2015 2016 Net (loss) income $ (25,695) $ 149,647 $ (65,625) Other comprehensive loss, net of tax: Change in cumulative foreign currency translation adjustment (6,414) (10,887) (23,220) Comprehensive (loss) income attributable to Parent Company $ (32,109) $ 138,760 $ (88,845) |
Schedule of Parent's Condensed Statements of Changes in Equity | Accumulated other Ordinary shares Additional Treasury (Accumulated deficits) comprehensive Total Shares Amount paid-in capital stock retained earnings Income (loss) equity Balance as of January 1, 2014 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 AirMedia 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 Ordinary shares issued for share based compensation 4,453,232 - 5,458 (663) - 4,825 Share-based compensation - - 598 - - - 598 Foreign currency translation adjustment - - - - - (10,887) (10,887) Net income - - - - 149,647 - 149,647 Capital contribution from non-controlling interests - - 271 - - - 271 Capital contribution to Guangzhou Meizheng - - (459) - - - (459) Acquisition of non-controlling interests - - (6,163) - - - (6,163) Balance as of December 31, 2015 124,395,645 $ 128 317,414 (3,778) 49,876 22,928 386,568 Stock option exercised 1,234,134 - - 1,427 (93) - 1,334 Share-based compensation - - 773 - - - 773 Foreign currency translation adjustment (23,220) (23,220) Net income (65,625) - (65,625) Acquisition of equity interests from non-controlling shareholders (34,570) (34,570) Capital contribution from non-controlling interests 3,477 3,477 Balance as of December 31, 2016 125,629,779 $ 128 $ 287,094 $ (2,351) $ (15,842) $ (292) $ 268,737 |
Schedule of Parent's Condensed Statements of Cash Flows | For the years ended December 31, 2014 2015 2016 CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) income $ (25,695) $ 149,647 $ (65,625) Investment loss (income) in subsidiaries 23,875 (151,717) 63,809 Share-based compensation 1,359 598 773 CHANGES IN WORKING CAPITAL ACCOUNTS Other current assets (221) (813) (2,456) Accrued expenses and other current liabilities (308) 169 (47) Amount due to subsidiaries (517) (3,135) 483 Amount due from subsidiaries 2,898 (1,272) 1,536 Net cash provided by (used in) operating activities 1,391 (6,523) (1,527) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from exercises of stock options 624 4,826 1,334 Net cash provided by financing activities. 624 4,826 1,334 Net increase (decrease) in cash 2,015 (1,697) (193) Cash, at beginning of year 14 2,029 332 Cash, at end of year $ 2,029 $ 332 $ 139 |
ORGANIZATION AND PRINCIPAL AC57
ORGANIZATION AND PRINCIPAL ACTIVITIES (Narrative) (Details) $ / shares in Units, $ in Thousands, ¥ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015$ / shares | Jun. 30, 2015USD ($) | Jun. 30, 2015CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Apr. 07, 2017$ / shares | Dec. 31, 2016CNY (¥) | Jun. 29, 2016 | Jun. 19, 2015$ / shares | Jun. 18, 2015$ / shares | |
Organization And Principal Activities [Line Items] | ||||||||||||
Sale of equity interest, percentage | 46.43% | 75.00% | 75.00% | |||||||||
Equity interest retained | 28.57% | 28.57% | ||||||||||
Premium on Closing Share Price , Percentage | 70.50% | |||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 18.00% | 18.00% | 20.00% | |||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | $ | $ 30,956 | $ 8,518 | ||||||||||
Capital contribution from non-controlling interests | $ | $ 11,195 | 1,313 | $ 11,241 | |||||||||
Ordinary shares [Member] | ||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||
Proposed price per share | $ 3 | |||||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | $ | ||||||||||||
Capital contribution from non-controlling interests | $ | ||||||||||||
Ordinary shares [Member] | Subsequent Event [Member] | ||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||
Business Acquisition, Share Price | $ 2 | |||||||||||
American depositary share [Member] | ||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||
Proposed price per share | $ 6 | $ 3.52 | ||||||||||
American depositary share [Member] | Subsequent Event [Member] | ||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||
Business Acquisition, Share Price | $ 4 | |||||||||||
AM Advertising [Member] | ||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||
Sale of equity interest, percentage | 20.18% | |||||||||||
Longde Wenchuang the Buyer [Member] | ||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||
Sale of equity interest, amount | $ | $ 302,400 | |||||||||||
Longde Wenchuang the Buyer [Member] | AM Advertising [Member] | ||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||
Sale of equity interest, amount | ¥ | ¥ 2.1 | |||||||||||
Equity interest retained | 28.57% | |||||||||||
Mr. Herman Man Guo [Member] | Proposal [Member] | ||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||
Proposed price per share | $ 3 | |||||||||||
Mr. Herman Man Guo [Member] | Proposal [Member] | ADS [Member] | ||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||
Proposed price per share | $ 6 | |||||||||||
AirMedia Online Network Technology Co., Ltd. ("AM Online") [Member] | AirMedia Technology (Beijing) Co., Ltd. ("AM Technology") [Member] | ||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||
Loan to shareholders | ¥ | ¥ 40 | |||||||||||
Term of loan | 15 days | |||||||||||
Beijing AirMedia Shengshi Advertising Co., Ltd. [Member] | ||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||
Minimum Annual Service Fee Percentage | 0.50% | |||||||||||
AM Yuehang [Member] | ||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||
Minimum Annual Service Fee Percentage | 1.00% | |||||||||||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||||||||
Organization And Principal Activities [Line Items] | ||||||||||||
Variable Interest Entity, Consolidated Net Revenue Percentage | 98.80% | 98.00% | 100.00% | |||||||||
Variable Interest Entity, Consolidated Total Assets Percentage | 80.00% | 80.00% | 95.40% | |||||||||
Variable Interest Entity, Consolidated Total Liabilities Percentage | 83.70% | 83.70% | 95.30% |
ORGANIZATION AND PRINCIPAL AC58
ORGANIZATION AND PRINCIPAL ACTIVITIES (Schedule of Companies Subsidiaries and VIE's) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
AirMedia Online Network Technology Co., Ltd. ("AM Online") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Apr. 30, 2015 |
Place of incorporation | the PRC |
Beijing AirMedia Film & TV Culture Co., Ltd. ("AM Film") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Sep. 13, 2007 |
Place of incorporation | the PRC |
Flying Dragon Media Advertising Co., Ltd. ("Flying Dragon") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Aug. 1, 2008 |
Place of incorporation | the PRC |
Wenzhou AirMedia Advertising Co., Ltd. ("AM Wenzhou") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Oct. 17, 2008 |
Place of incorporation | the PRC |
Hainan Jinhui Guangming Media Advertising Co., Ltd. ("Hainan Jinhui") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Jun. 23, 2009 |
Place of incorporation | the PRC |
Beijing Dongding Gongyi Advertising Co., Ltd. ("Dongding") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Feb. 1, 2010 |
Place of incorporation | the PRC |
Beijing GreatView Media Advertising Co., Ltd. [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Apr. 28, 2011 |
Place of incorporation | the PRC |
Guangzhou Meizheng Advertising Co., Ltd. ("Guangzhou Meizheng") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | May 17, 2013 |
Place of incorporation | the PRC |
Beijing AirMedia Jiaming Film & TV Culture Co., Ltd. ("AM Jiaming") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Dec. 31, 2015 |
Place of incorporation | the PRC |
Meizheng Network Information Technology Co., Ltd. [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Aug. 8, 2016 |
Place of incorporation | the PRC |
Airmedia Network Technology Co., Ltd. [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Aug. 18, 2016 |
Place of incorporation | the PRC |
Wangfan Network Technology Co.,Ltd. [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | May 6, 2016 |
Place of incorporation | the PRC |
Shandong Airmedia Car Safety Technology Co.,Ltd. [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Jul. 21, 2016 |
Place of incorporation | the PRC |
Dingsheng Ruizhi Beiing Investment Consulting Co., Ltd. [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | May 25, 2016 |
Place of incorporation | the PRC |
Beijing AirMedia Shengshi Advertising Co., Ltd. [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Aug. 7, 2005 |
Place of incorporation | the PRC |
Beijing AirMedia Jiaming Advertising Co., Ltd. [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Jan. 1, 2007 |
Place of incorporation | the PRC |
Beijing Yuehang Digital Media Advertising Co., Ltd. ("AM Yuehang") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Jan. 16, 2008 |
Place of incorporation | the PRC |
AirMedia Technology (Beijing) Co., Ltd. ("AM Technology") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Sep. 19, 2005 |
Place of incorporation | the 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 | Jun. 6, 2006 |
Place of incorporation | the 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 | Dec. 31, 2007 |
Place of incorporation | the PRC |
Percentage of economic ownership | 100.00% |
Broad Cosmos Enterprises Ltd. (“Broad Cosmos”) [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Jun. 26, 2006 |
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 | Jul. 14, 2007 |
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 | Aug. 5, 2005 |
Place of incorporation | Hong Kong |
Percentage of economic ownership | 100.00% |
Beijing AirMedia Tianyi Information Technology Co., Ltd. ("AM Tianyi") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Sep. 25, 2013 |
Place of incorporation | the PRC |
Guangzhou Xinyu Advertising Co., Ltd. ("Guangzhou Xinyu") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Feb. 2, 2015 |
Place of incorporation | the PRC |
AirMedia Mobile Network Technology Co., Ltd. ("AM Mobile") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Apr. 23, 2015 |
Place of incorporation | the PRC |
Guangzhou Meizheng Information Technology Co., Ltd. ("Guangzhou Tech") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Jun. 18, 2015 |
Place of incorporation | the PRC |
AirMedia Henglong Mobile Network Technology Co., Ltd. ("AMHL Mobile") [Member] | |
Organization And Principal Activities [Line Items] | |
Date of incorporation/acquisition | Apr. 27, 2015 |
Place of incorporation | the PRC |
ORGANIZATION AND PRINCIPAL AC59
ORGANIZATION AND PRINCIPAL ACTIVITIES (Schedule of VIE's Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||
Total current assets | $ 205,244 | $ 342,577 |
Total assets | 381,190 | 531,601 |
Total current liabilities | 90,209 | 107,432 |
Total liabilities | 114,593 | 133,968 |
AirMedia's VIEs [Member] | ||
Variable Interest Entity [Line Items] | ||
Total current assets | 177,425 | 316,268 |
Total non-current assets | 127,486 | 190,684 |
Total assets | 304,911 | 506,952 |
Total current liabilities | 71,535 | 101,197 |
Total non-current liabilities | 24,384 | 26,536 |
Total liabilities | $ 95,919 | $ 127,733 |
ORGANIZATION AND PRINCIPAL AC60
ORGANIZATION AND PRINCIPAL ACTIVITIES (Schedule of VIE's Consolidated Statement of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Variable Interest Entity [Line Items] | |||
Net revenues | $ 16,513 | $ 50,233 | $ 74,693 |
Net (loss) income | (89,242) | 142,912 | (31,826) |
AirMedia's VIEs [Member] | |||
Variable Interest Entity [Line Items] | |||
Net revenues | 16,311 | 46,237 | 74,689 |
Net (loss) income | $ (81,659) | $ (60,117) | $ (47,119) |
SUMMARY OF SIGNIFICANT ACCOUN61
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Accounting Policies [Line Items] | ||||
Revenue from nonmonetary transactions | $ 473 | |||
Sales related tax, percentage of total revenue | 8.50% | |||
VAT rate | 6.00% | |||
Advertising expenses | $ 720 | 350 | $ 1,785 | |
Government subsidies | 86 | 513 | 491 | |
Deferred Tax Assets, Gross, Current | 41 | |||
Operating Income (Loss) | (89,812) | (76,057) | (55,451) | |
(Accumulated deficit) retained earnings | (15,842) | 49,876 | ||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | (103,610) | (28,036) | (42,629) | |
Cash and Cash Equivalents, at Carrying Value | 117,547 | $ 86,960 | $ 67,437 | $ 59,652 |
Working Capital | $ 115,000 | |||
Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
VAT rate | 3.00% | |||
Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
VAT rate | 6.00% |
SUMMARY OF SIGNIFICANT ACCOUN62
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Estimated Useful Lives of Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Digital display network equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
WIFI and 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 |
Office property [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 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 |
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 ACCOUN63
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Estimated Economic Lives of Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
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 |
DISCOUNTINUED OPERATION (Narrat
DISCOUNTINUED OPERATION (Narrative) (Details) $ in Thousands, ¥ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||||
Nov. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) | May 31, 2014USD ($) | ||||
Profit Target | $ 37,050 | ¥ 240 | $ 30,875 | ¥ 200 | |||||||||||
Earnout commitment recorded at fair value | 25,240 | ||||||||||||||
Gain recognized on the disposal | 244,164 | ||||||||||||||
Total consideration | $ 324,183 | ||||||||||||||
Equity interest retained | 28.57% | ||||||||||||||
Net book value of the target business | $ 134,497 | ||||||||||||||
(Loss) income on equity method investments | (33) | 2,352 | $ (212) | ||||||||||||
Equity transaction with a related party | 8,605 | 322 | |||||||||||||
Concession cost purchased | 2,337 | 233 | |||||||||||||
Contingent Liability | $ 23,549 | ||||||||||||||
Dingsheng Ruizhi [Member] | |||||||||||||||
Percentage of economic ownership to be sold | 20.00% | 20.00% | |||||||||||||
Equity transaction with a related party | $ 322 | [1] | 322 | [1] | |||||||||||
Beijing Dayun Culture Communication Co., Ltd. ("Dayun Culture") [Member] | |||||||||||||||
Equity transaction with a related party | $ 8,605 | 8,605 | [2] | [2] | |||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | ||||||||||||||
Qingdao Airport AirMedia Advertising Co., Ltd ("Qingdao AM") [Member] | |||||||||||||||
Concession cost purchased | [3] | 1,230 | |||||||||||||
Guangxi Dingyuan Media Ltd. ("Guangxi Dingyuan") [Member] | |||||||||||||||
Concession cost purchased | [4] | $ 1,107 | $ 233 | ||||||||||||
Maximum [Member] | |||||||||||||||
Profit Target | ¥ | ¥ 1,059.2 | ||||||||||||||
Scenario, Forecast [Member] | |||||||||||||||
Profit Target | $ 51,128 | ¥ 331.2 | $ 44,459 | ¥ 288 | |||||||||||
AM Jiaming [Member] | |||||||||||||||
Notes Payable, Related Parties | $ 806 | $ 806 | |||||||||||||
Loan receivable, interest rate | 6.00% | 6.00% | |||||||||||||
AM Advertising [Member] | |||||||||||||||
Equity interest retained | 25.00% | ||||||||||||||
Fair value of the remaining equity interest | $ 79,718 | ||||||||||||||
(Loss) income on equity method investments | $ 2,491 | ||||||||||||||
Ownership percentage | [5] | 25.00% | |||||||||||||
[1] | In June 2014, AM Advertising sold 20% equity interests in AM Film, a wholly-owned subsidiary, to Dingsheng Ruizhi with consideration of $322. | ||||||||||||||
[2] | In November 2015, AM Advertising purchased 20% equity interest in Beijing AirMedia Lianhe Advertising Co., Ltd. (“AirMedia Lianhe”) from Dayun Culture with consideration of $8,605. After the transaction, AM Advertising held 100% equity interest in AirMedia Lianhe. | ||||||||||||||
[3] | The Group purchased stand-alone digital frames concession in Qingdao airport from Qingdao AM amounting to $1,230 for the year ended December 31, 2015. | ||||||||||||||
[4] | The Group purchased stand-alone digital frames, LED and lightbox concession in Nanning airport from Guangxi Dingyuan amounting to $1,107 for the years ended December 31, 2015. | ||||||||||||||
[5] | On June 15, 2015, AirMedia entered into a definitive equity interest transfer agreement with Longde Wenchuang to sell 75% equity interest of AM Advertising for a cash consideration of $324,183 as disclosed in Note 1. The transaction was completed on December 7, 2015. Due to various disputes incurred post-closing of the transaction (refer to Note 25- d), the Group is no long able to have significant influence in operational and strategic decisions of the AM Advertising and cannot access to its financial information in fiscal 2016. As a result, the Group started to account its equity interest in AM advertising using cost method in fiscal 2016. During fiscal 2015, the Group accounted its investment in AM advertising using Equity method as the Group had the ability to exercise significant influence over the operation of AM Advertising at that time. |
DISCOUNTINUED OPERATION (Schedu
DISCOUNTINUED OPERATION (Schedule of result of operations of the Target Businesses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income before income tax | $ 272,879 | $ 22,230 | |
Income taxes benefit/(expense) | 51,696 | 1,942 | |
Income from discontinued operations attributable to owners of the Company | 220,298 | $ 19,611 | |
AM Advertising [Member] | |||
Net revenues | 166,843 | ||
Cost of revenues | (126,745) | ||
Gross profit | 40,098 | ||
Operating expenses | (13,239) | ||
Income from operations | 26,859 | ||
Gain from disposal of 75% equity interest in AM Advertising | 244,164 | ||
Interest income | 298 | ||
Other income, net | 1,293 | ||
Income on equity method investments | 265 | ||
Net income before income tax | 272,879 | ||
Income taxes benefit/(expense) | (51,696) | ||
Income from discontinued operations attributable to owners of the Company | $ 221,183 |
DISCOUNTINUED OPERATION (Sche66
DISCOUNTINUED OPERATION (Schedule of related party transactions) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Concession cost purchased | $ 2,337 | $ 233 | |||||
Loan to a related party | 1,612 | ||||||
Equity transaction with a related party | 8,605 | 322 | |||||
Guangxi Dingyuan Media Ltd. ("Guangxi Dingyuan") [Member] | |||||||
Concession cost purchased | [1] | 1,107 | 233 | ||||
Qingdao Airport AirMedia Advertising Co., Ltd ("Qingdao AM") [Member] | |||||||
Concession cost purchased | [2] | 1,230 | |||||
AM Jiaming [Member] | |||||||
Loan to a related party | [3] | 1,612 | |||||
Beijing Dayun Culture Communication Co., Ltd. ("Dayun Culture") [Member] | |||||||
Equity transaction with a related party | $ 8,605 | 8,605 | [4] | [4] | |||
Dingsheng Ruizhi [Member] | |||||||
Equity transaction with a related party | $ 322 | [5] | $ 322 | [5] | |||
[1] | The Group purchased stand-alone digital frames, LED and lightbox concession in Nanning airport from Guangxi Dingyuan amounting to $1,107 for the years ended December 31, 2015. | ||||||
[2] | The Group purchased stand-alone digital frames concession in Qingdao airport from Qingdao AM amounting to $1,230 for the year ended December 31, 2015. | ||||||
[3] | In May 2014 and June 2014, the Group provided 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. | ||||||
[4] | In November 2015, AM Advertising purchased 20% equity interest in Beijing AirMedia Lianhe Advertising Co., Ltd. (“AirMedia Lianhe”) from Dayun Culture with consideration of $8,605. After the transaction, AM Advertising held 100% equity interest in AirMedia Lianhe. | ||||||
[5] | In June 2014, AM Advertising sold 20% equity interests in AM Film, a wholly-owned subsidiary, to Dingsheng Ruizhi with consideration of $322. |
SEGMENT INFORMATION AND REVEN67
SEGMENT INFORMATION AND REVENUE ANALYSIS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Product Or Service [Line Items] | |||
Revenues from continuing operations | $ 16,597 | $ 50,866 | $ 75,947 |
Air Travel Media Network [Member] | |||
Product Or Service [Line Items] | |||
Revenues from continuing operations | 12,178 | 38,917 | 59,200 |
Gas Station Media Network [Member] | |||
Product Or Service [Line Items] | |||
Revenues from continuing operations | 4,009 | 9,840 | 11,164 |
Other Media [Member] | |||
Product Or Service [Line Items] | |||
Revenues from continuing operations | $ 410 | $ 2,109 | $ 5,583 |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Investments [Line Items] | ||
Short-term investment | $ 3,705 | |
Minimum [Member] | ||
Schedule of Investments [Line Items] | ||
Annual rate | 4.00% | |
Maximum [Member] | ||
Schedule of Investments [Line Items] | ||
Annual rate | 8.20% |
LONG-TERM INVESTMENTS (Narrativ
LONG-TERM INVESTMENTS (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jun. 15, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 31, 2016 | Jun. 30, 2010 | Mar. 18, 2008 | |
Schedule of Investments [Line Items] | |||||||
Cash consideration of cost method investment | $ 77,685 | $ 367 | |||||
Proceeds from Sale of Equity Method Investments | 3,014 | ||||||
Gain on disposal of interest | 6 | ||||||
BusinessCombinationConsiderationTransferred1 | $ 200,685 | ||||||
Longde Wenchuang [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Ownership percentage, cost method | 75.00% | ||||||
BusinessCombinationConsiderationTransferred1 | $ 324,183 | ||||||
Beijing Dayun Culture Communication Co., Ltd. ("Dayun Culture") [Member] | China Eastern Media Corporation [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Ownership percentage | 51.00% | ||||||
Parent Company [Member] | Zhangshangtong [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Cash consideration of cost method investment | $ 388 | ||||||
Ownership percentage, cost method | 20.00% | ||||||
Parent Company [Member] | Beijing Dayun Culture Communication Co., Ltd. ("Dayun Culture") [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Ownership percentage | 49.00% | ||||||
Parent Company [Member] | Qingdao Jinshi Zhixing Investment Centre Co., Ltd [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Cash consideration of cost method investment | $ 22 | ||||||
Ownership percentage, cost method | 3.35% | ||||||
Parent Company [Member] | Beijing Zhongjiao Huineng Information Technology Co., Ltd [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Cash consideration of cost method investment | $ 541 | ||||||
Ownership percentage, cost method | 13.30% |
LONG-TERM INVESTMENTS (Schedule
LONG-TERM INVESTMENTS (Schedule of Equity Method Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Amount | $ 6,176 | $ 89,221 | |
Beijing Eastern Media Corporation Ltd. ("BEMC") [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | [1] | 49.00% | 49.00% |
Amount | [1] | $ 1,461 | $ 1,363 |
Zhejiang AirMedia Guangying Film Production Co., Ltd. ("AM Guangying") [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | [2] | 47.60% | |
Amount | [2] | $ 3,081 | |
Lanmeihangbiao Tiandi Internet Investment Management (Beijing) Co., Ltd. ("LMHB") [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | [3] | 40.00% | 40.00% |
Amount | [3] | $ 256 | $ 456 |
AM Advertising [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | [4] | 25.00% | |
Amount | [4] | $ 82,177 | |
Beijing Hezhong Chuangjin Investment Co., Ltd. ("Hezhong Chuangjin") [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | [5] | 15.00% | 15.00% |
Amount | [5] | $ 1,944 | $ 2,144 |
Beijing Yuyue Film Culture Co., Ltd [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | [6] | 25.00% | |
Amount | [6] | $ 432 | |
Beijing Yunxing Chuangrong Investment Fund Management Co., Ltd [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | [7] | 50.00% | |
Amount | [7] | $ 2,083 | |
[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 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] | In December 2013, the Group entered into an agreement with Zhejiang Tianguang Diying Production Co., Ltd. to establish AM Guangying. AM Guangying was incorporated on December 25, 2013. AM Guangying is mainly engaged in film production. The Group sold its interest in AM Guangying for the year ended December 31, 2016. 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. The Group disposed this investment for the year ended December 31, 2016 with proceeds of $3,014 and loss of $6. | ||
[3] | In September 2015, AM Online entered into an agreement with BlueFocus wireless Internet (Beijing) Investment Management Co., Ltd. and two individual investors to establish a joint venture, LMHB. LMHB was incorporated on September 25, 2015. LMHB is mainly engaged in investment management of Wi-Fi platform marketing and other mobile internet industries. 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 LMHB. | ||
[4] | On June 15, 2015, AirMedia entered into a definitive equity interest transfer agreement with Longde Wenchuang to sell 75% equity interest of AM Advertising for a cash consideration of $324,183 as disclosed in Note 1. The transaction was completed on December 7, 2015. Due to various disputes incurred post-closing of the transaction (refer to Note 25- d), the Group is no long able to have significant influence in operational and strategic decisions of the AM Advertising and cannot access to its financial information in fiscal 2016. As a result, the Group started to account its equity interest in AM advertising using cost method in fiscal 2016. During fiscal 2015, the Group accounted its investment in AM advertising using Equity method as the Group had the ability to exercise significant influence over the operation of AM Advertising at that time. | ||
[5] | In May 2015, AM Advertising, Beijing Financial Technology Investment Management Center (limited partnership), Beijing Hongdeshengzheng Investment Co., Ltd., and Beijing Hongyuan Zhixin Enterprise Management Consulting Co. Ltd. established Hezhong Chuangjin, which mainly focuses on internet financing. In July 2015, AM Advertising transferred its investment in Hezhong Chuangjin to AM Online, a subsidiary of the Group at carrying value. 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 Hezhong Chuangjin. | ||
[6] | In June 2016, AM Film entered into an agreement with two individual investors to establish a joint venture, Yuyue Film. Yuyue Film is mainly engaged in investment management of film investment and marketing. 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 Yuyue Film. | ||
[7] | In February 2016, AM Online entered into an agreement with Haihang Wenhua Holding Group to invest in Yunxing. Yunxing was incorporated on December 17, 2013. Yunxing is mainly engaged in information technology investments in the Hainan Airline. 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. |
LONG-TERM INVESTMENTS (Schedu71
LONG-TERM INVESTMENTS (Schedule of Equity Method Investee) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Total current assets | $ 205,244 | $ 342,577 | |
Total assets | 381,190 | 531,601 | |
Total current liabilities | 90,209 | 107,432 | |
Total liabilities | 114,593 | 133,968 | |
Total net revenues | 16,597 | 50,866 | $ 75,947 |
Total gross profits | (32,529) | (39,344) | (21,915) |
Total net income | (65,625) | 149,647 | (25,695) |
Investee [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Total current assets | 24,633 | 277,634 | |
Total assets | 25,209 | 319,797 | |
Total current liabilities | 3,402 | 135,190 | |
Total liabilities | 3,402 | 135,342 | |
Total net revenues | 1,809 | 35,866 | 11,486 |
Total gross profits | 1,241 | 15,341 | 567 |
Total net income | $ (733) | $ 9,136 | $ 164 |
LONG-TERM INVESTMENTS (Schedu72
LONG-TERM INVESTMENTS (Schedule of Cost method investment) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Cost Method Investments, Fair Value Disclosure | $ 77,685 | $ 367 | |
Zhangshangtong Air Service Beijing Co., Ltd. [Member] | |||
Ownership percentage, cost method | [1] | 20.00% | 20.00% |
Cost Method Investments, Fair Value Disclosure | [1] | $ 388 | $ 367 |
Qingdao Jinshi Zhixing Investment Centre LLP [Member] | |||
Ownership percentage, cost method | [2] | 3.00% | 0.00% |
Cost Method Investments, Fair Value Disclosure | [2] | $ 22 | $ 0 |
Beijing Zhongjiao Huineng Information Technology Co., Ltd [Member] | |||
Ownership percentage, cost method | [3] | 13.00% | 0.00% |
Cost Method Investments, Fair Value Disclosure | [3] | $ 541 | $ 0 |
AM Advertising [Member] | |||
Ownership percentage, cost method | 25.00% | 0.00% | |
Cost Method Investments, Fair Value Disclosure | $ 76,734 | $ 0 | |
[1] | In June 2010, the Group invested $388 for 20% 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. | ||
[2] | In January 2016, the Group invested $22 for 3.35% equity interest in Qingdao Jinshi Zhixing Investment Centre LLP. ("Qingdao Jinshi "), a limited partnership established in the PRC that is mainly engaged in fund management and investment. | ||
[3] | In January 2016, the Group invested $541 for 13.3% equity interest in Beijing Zhongjiao Huineng Information Technology Co., Ltd (“Zhongjiao Huineng”), a company established in the PRC that is mainly engaged in providing WIFI and GPS service to logistic industry. |
ACCOUNTS RECEIVABLE, NET (Sched
ACCOUNTS RECEIVABLE, NET (Schedule of Accounts Receivable, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts receivable, gross | $ 13,596 | $ 11,184 | ||
Less: Allowance for doubtful accounts | (3,815) | (1,727) | $ (4,458) | $ (1,433) |
Accounts receivable, net | $ 9,781 | $ 9,457 |
ACCOUNTS RECEIVABLE, NET (Sch74
ACCOUNTS RECEIVABLE, NET (Schedule of Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Balance at beginning of the year | $ 1,727 | $ 4,458 | $ 1,433 |
Charge to expenses | 12,697 | (2,661) | 3,212 |
Write off | (7) | ||
Exchange adjustment | (160) | (70) | (180) |
Balance at end of the year | $ 3,815 | $ 1,727 | $ 4,458 |
OTHER CURRENT ASSETS, NET (Deta
OTHER CURRENT ASSETS, NET (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Input VAT receivable | $ 16,249 | $ 13,604 | |
Prepaid selling and marketing fees | 368 | 773 | |
Short-term deposits | 74 | 150 | |
Prepaid income tax | 417 | 447 | |
Prepaid individual income tax and other employee advances | 290 | 433 | |
Loans to third parties | [1] | 17,080 | 5,403 |
Receivable from third party | [2] | 11,635 | 4,110 |
Receivable from a non-controlling interest holders | 6,377 | 1,313 | |
Receivable from AM Advertising and its subsidiaries | [3] | 19,021 | |
Receivables from ADS depositary | 468 | 468 | |
Other prepaid expenses | 2,732 | 4,203 | |
Other Assets Current, Gross | 74,711 | 30,904 | |
Allowance for doubtful amounts | (5,861) | ||
Total other current assets | $ 68,850 | $ 30,904 | |
[1] | For the years ended December 31, 2015 and 2016, the Group entered into various loan agreements with third parties amounting with aggregated amount of $5,403 and $17,080, respectively with the terms of one year. The weighted average interest rates were 5.10% and 3.19% without any assets pledged for the years ended December 31, 2015 and 2016, respectively. As of December 31, 2015 and 2016, the bad debt allowance for loan to third parties amounted to Nil and $864, respectively. | ||
[2] | Receivable from third party represented the working capital provided by the Group to support the third party's daily operations. As of December 31, 2015 and 2016, the bad debt allowance was Nil and $4,530, respectively. | ||
[3] | Receivable from AM Advertising and its subsidiaries balance amounted to $19,021 as of December 31, 2016 and the payable to AM Advertising and its subsidiaries balance amounted to $25,956 (See Note 15) as of December 31, 2016. No provision was made for the receivable balance. The receivable balance was still outstanding as of the date of issuance of the financial statement. |
OTHER CURRENT ASSETS, NET (De76
OTHER CURRENT ASSETS, NET (Details) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Loans to third parties | [1] | $ 17,080 | $ 5,403 |
Loans and Leases Receivable, Allowance | 4,530 | 0 | |
Am Advertising And Its Subsidiaries Current Assets | [2] | 19,021 | |
Am Advertising and Its Subsidiaries Current Liabilities | [3] | 25,956 | |
Third Parties Loan [Member] | |||
Loans to third parties | $ 17,080 | $ 5,403 | |
Term of loan | 1 year | 1 year | |
Debt instrument interest rate | 3.19% | 5.10% | |
Loans and Leases Receivable, Allowance | $ 864 | $ 0 | |
[1] | For the years ended December 31, 2015 and 2016, the Group entered into various loan agreements with third parties amounting with aggregated amount of $5,403 and $17,080, respectively with the terms of one year. The weighted average interest rates were 5.10% and 3.19% without any assets pledged for the years ended December 31, 2015 and 2016, respectively. As of December 31, 2015 and 2016, the bad debt allowance for loan to third parties amounted to Nil and $864, respectively. | ||
[2] | Receivable from AM Advertising and its subsidiaries balance amounted to $19,021 as of December 31, 2016 and the payable to AM Advertising and its subsidiaries balance amounted to $25,956 (See Note 15) as of December 31, 2016. No provision was made for the receivable balance. The receivable balance was still outstanding as of the date of issuance of the financial statement. | ||
[3] | The payable to AM Advertising and its subsidiaries was $15,389 as of December 31, 2015 and included in amounts due to related parties. However , due to disputes with AM Advertising as described in Note 25-d, the Group no long considers AM Advertising and its subsidiaries as related party in fiscal 2016, as a result, the Payable balance to AM Advertising and its subsidiaries of $25,956 was included in other current liabilities as of December 31, 2016. |
CONSIDERATION RECEIVABLE (Narra
CONSIDERATION RECEIVABLE (Narrative) (Details) $ in Thousands, ¥ in Billions | 1 Months Ended | |||||
Jan. 31, 2016USD ($) | Jan. 31, 2016CNY (¥) | Jul. 31, 2015USD ($) | Jul. 31, 2015CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Consideration receivable | $ 200,685 | |||||
Installment amount received | $ 200,685 | ¥ 1.3 | $ 123,498 | ¥ 0.8 |
OTHER NON-CURRENT ASSETS (Detai
OTHER NON-CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment in film and TV series | [1] | $ 1,854 | $ 4,781 |
Prepaid office space and leasehold improvement fees | [2] | 4,917 | 6,831 |
Other non-current assets | $ 6,771 | $ 11,612 | |
[1] | 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. The Group enters into agreements with other investors to invest together on certain film or TV series, which are produced by third parties, and shares the profit of the invested films and TV series proportionally based on their investments. | ||
[2] | As the office spaces legal title had not been transferred to the Group, the prepaid amounts were recognized as other non-current assets as of December 31, 2015 and 2016. |
LONG-TERM DEPOSITS (Details)
LONG-TERM DEPOSITS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Long Term Deposits [Line Items] | ||
Concession fee deposits | $ 5,547 | $ 4,527 |
Office rental deposits | 880 | 352 |
Total long-term deposits | $ 6,427 | $ 4,879 |
ACQUIRED INTANGIBLE ASSETS, N80
ACQUIRED INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 12,258 | $ 13,138 | |
Accumulated amortization | (9,839) | (10,023) | |
Accumulated impairment | (737) | (790) | |
Net carrying amount | 1,682 | 2,325 | |
Amortization expense | 510 | 505 | $ 462 |
2,017 | 510 | ||
2,018 | 455 | ||
2,019 | 360 | ||
2,020 | 358 | ||
Audio-vision programming and broadcasting qualification [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 200 | 214 | |
Accumulated amortization | (35) | (37) | |
Accumulated impairment | (165) | (177) | |
Net carrying amount | |||
Customer relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 689 | 739 | |
Accumulated amortization | (689) | (739) | |
Accumulated impairment | |||
Net carrying amount | |||
Contract backlog [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 1,441 | 1,544 | |
Accumulated amortization | (1,441) | (1,544) | |
Accumulated impairment | |||
Net carrying amount | |||
Concession agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 9,758 | 10,459 | |
Accumulated amortization | (7,513) | (7,531) | |
Accumulated impairment | (563) | (603) | |
Net carrying amount | 1,682 | 2,325 | |
Non-compete agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 170 | 182 | |
Accumulated amortization | (161) | (172) | |
Accumulated impairment | (9) | (10) | |
Net carrying amount |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 94,545 | $ 74,644 | |
Less: accumulated depreciation | (33,540) | (26,305) | |
Property, Plant and Equipment, Net | 61,005 | 48,339 | |
Depreciation | 12,461 | 5,266 | $ 5,832 |
Impairment of Intangible Assets, Finite-lived | 826 | ||
Digital display network equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 6,314 | 8,341 | |
Gas station display network equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 38,615 | 33,412 | |
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 9,174 | 9,959 | |
Computer and office equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 2,828 | 3,140 | |
Vehicle[Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 938 | 774 | |
Leasehold improvement [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 607 | 218 | |
Furniture and fixture [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 1,123 | 1,092 | |
Wifi And Network Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 27,719 | 17,708 | |
Office Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 5,805 | ||
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 1,422 |
PREPAID EQUIPMENT COST (Details
PREPAID EQUIPMENT COST (Details) $ in Thousands, ¥ in Millions | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | May 12, 2013USD ($) | May 12, 2013CNY (¥) |
Schedule Of Prepaid Equipment Cost [Line Items] | ||||
Equity interest retained | 28.57% | |||
Prepaid equipment costs | $ 16,200 | $ 27,708 | ||
Elec Tech [Member] | Beijing GreatView Media Advertising Co., Ltd. [Member] | ||||
Schedule Of Prepaid Equipment Cost [Line Items] | ||||
Investment commitment | $ 104,000 | ¥ 640 | ||
Equity interest retained | 21.27% | 21.27% |
ACCRUED EXPENSES AND OTHER CU83
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
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 $15,389 as of December 31, 2014 and 2015, respectively) | $ 15,389 | ||
Am Advertising and Its Subsidiaries Current Liabilities | [1] | $ 25,956 | |
[1] | The payable to AM Advertising and its subsidiaries was $15,389 as of December 31, 2015 and included in amounts due to related parties. However , due to disputes with AM Advertising as described in Note 25-d, the Group no long considers AM Advertising and its subsidiaries as related party in fiscal 2016, as a result, the Payable balance to AM Advertising and its subsidiaries of $25,956 was included in other current liabilities as of December 31, 2016. |
ACCRUED EXPENSES AND OTHER CU84
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Accrued payroll and welfare | $ 2,848 | $ 1,860 | |
Other tax payable | 1,366 | 1,462 | |
Accrued staff disbursement | 1,447 | 1,166 | |
Deposit payable | 266 | 665 | |
Accrued professional fees | 290 | 4,382 | |
Other current liabilities | 1,288 | 1,209 | |
Payable to non-controlling interest holders | 135 | ||
Payable to AM Advertising and its subsidiaries | [1] | 25,956 | |
Total accrued expenses and other current liabilities | $ 33,596 | $ 10,744 | |
[1] | The payable to AM Advertising and its subsidiaries was $15,389 as of December 31, 2015 and included in amounts due to related parties. However , due to disputes with AM Advertising as described in Note 25-d, the Group no long considers AM Advertising and its subsidiaries as related party in fiscal 2016, as a result, the Payable balance to AM Advertising and its subsidiaries of $25,956 was included in other current liabilities as of December 31, 2016. |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes [Line Items] | ||||||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% | |||
Net operating loss carry forward | $ 137,040 | |||||
PRC 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% | 15.00% | 15.00% | |||
Xi'an AirMedia Chuangyi Technology Co., Ltd. ("Xi'an AM") [Member] | PRC Enterprise Income Tax [Member] | ||||||
Income Taxes [Line Items] | ||||||
Tax exempt period | 2 years | |||||
Preferential tax rate | 15.00% | 15.00% | 15.00% | 12.50% | 12.50% | 12.50% |
INCOME TAXES (Schedule of Incom
INCOME TAXES (Schedule of Income Tax (Expenses)/Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income tax benefits /(expenses): | |||
Current | $ (50) | $ (480) | $ (988) |
Deferred | (4,433) | (5,941) | 2,500 |
Income tax benefits /(expenses) | $ (4,483) | $ (6,421) | $ 1,512 |
INCOME TAXES (Schedule of Defer
INCOME TAXES (Schedule of Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 4,083 | $ 899 |
Employee education fee excess | 6 | |
Depreciation of property and equipment | 127 | |
Net operating loss carry forwards | 30,697 | 15,404 |
Valuation allowance | (36,386) | (14,186) |
Deferred tax assets - Non-current | ||
Amortization of intangible assets and concession fees | 1,606 | 2,274 |
Total deferred tax assets | 4,524 | |
Deferred tax liabilities | ||
Acquired intangible assets | 91 | |
Total deferred tax liabilities | $ 91 |
INCOME TAXES (Schedule of Recon
INCOME TAXES (Schedule of Reconciliation of Effective Income Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net loss before provision for income taxes | $ (84,726) | $ (74,202) | $ (53,414) |
PRC statutory tax rate | 25.00% | 25.00% | 25.00% |
Income tax at statutory tax rate | $ (21,182) | $ (18,551) | $ (13,354) |
Expenses not deductible for tax purpose | |||
Entertainment expenses exceeded the tax limit | 158 | 300 | 217 |
Tax effect of tax losses not recognized | 0 | 0 | 10 |
Tax effect of other permanent differences | 1,681 | 330 | 360 |
Changes in valuation allowance | 22,200 | 9,276 | 2,748 |
Effect of preferential tax rates granted to PRC entities | 642 | 14,404 | 7,912 |
Effect of income tax rate difference in other jurisdictions | 984 | 662 | 595 |
Income tax expenses/ (benefits) | $ 4,483 | $ 6,421 | $ (1,512) |
Effective tax rates | (5.30%) | (8.70%) | 2.80% |
NET (LOSS) INCOME PER SHARE (De
NET (LOSS) INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Numerator: | ||||
Net (loss) income attributable to AirMedia Group Inc.'s ordinary shareholders | $ (65,625) | $ 149,647 | $ (25,695) | |
Continuing operations | (65,625) | (70,651) | (45,306) | |
Discontinued operations | $ 0 | $ 220,298 | $ 19,611 | |
Weighted average ordinary shares outstanding used in computing net (loss) income per ordinary share | ||||
- basic | 125,277,056 | 121,740,194 | 119,304,773 | |
- diluted | 125,277,056 | 129,372,158 | 119,304,773 | |
Basic | ||||
Continuing operations | 125,277,056 | 121,740,194 | 119,304,773 | |
Discontinued operations | 121,740,194 | 119,304,773 | ||
Diluted | ||||
Continuing operations | [1] | 125,277,056 | 121,740,194 | 119,304,773 |
Discontinued operations | [2] | 129,372,158 | 119,924,927 | |
Net (loss) income per ordinary share | ||||
-basic | $ (0.52) | $ 1.23 | $ (0.22) | |
-diluted | (0.52) | 1.16 | (0.22) | |
Net (loss) income per ordinary share from continuing operations | ||||
-basic | (0.52) | (0.58) | (0.38) | |
-diluted | (0.52) | (0.58) | (0.38) | |
Net income per ordinary share from discontinued operations | ||||
-basic | 0 | 1.81 | 0.16 | |
-diluted | $ 0 | $ 1.70 | $ 0.16 | |
[1] | The effect of options was excluded from the computation of diluted loss per share from continuing operations for the years ended December 31, 2014, 2015 and 2016, respectively, as the effect would be anti-dilutive. | |||
[2] | An incremental weighted average number of 620,154, 7,631,964 and Nil ordinary shares from assumed exercise of share option were included in computing the diluted income per share for the discontinued operations for the years ended December 31, 2014, 2015 and 2016, respectively. |
NET (LOSS) INCOME PER SHARE (90
NET (LOSS) INCOME PER SHARE (Details) (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Incremental weighted average shares from assumed exercise of share option | 0 | 7,631,964 | 620,154 |
SHARE BASED PAYMENTS (Narrative
SHARE BASED PAYMENTS (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 10, 2016 | Mar. 10, 2016 | Feb. 12, 2016 | May 12, 2015 | May 12, 2015 | Aug. 01, 2014 | Jun. 09, 2014 | Jun. 01, 2014 | May 31, 2014 | Apr. 15, 2014 | Nov. 01, 2012 | Sep. 01, 2012 | Jun. 07, 2011 | Jul. 10, 2009 | Jul. 02, 2007 | Dec. 31, 2015 | Oct. 31, 2015 | Jun. 30, 2014 | Nov. 30, 2012 | Aug. 23, 2011 | Mar. 22, 2011 | Nov. 29, 2007 | Jul. 20, 2007 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 22, 2013 | Mar. 18, 2011 | Dec. 29, 2008 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||
Options vested | 300,000 | ||||||||||||||||||||||||||||
Options exercisable | 7,373,036 | ||||||||||||||||||||||||||||
Options vested and expected to vest | 7,680,203 | ||||||||||||||||||||||||||||
Options vested immediately | 60,000 | ||||||||||||||||||||||||||||
Share-based compensation expense | $ 773 | $ 567 | $ 1,281 | ||||||||||||||||||||||||||
Intrinsic value of options exercised during the period | 1,928 | 7,039 | 442 | ||||||||||||||||||||||||||
Fair value of options vested | 694 | 649 | 357 | ||||||||||||||||||||||||||
Unrecognized compensation cost | $ 843 | $ 390 | $ 843 | ||||||||||||||||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 6 months | 1 year 8 months 1 day | |||||||||||||||||||||||||||
Options Granted on July 2009 [Member] | |||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||
Granted, Weighted average grant-date fair value | $ 0.21 | ||||||||||||||||||||||||||||
Options Granted On November2007 [Member] | |||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||
Granted, Weighted average grant-date fair value | $ 0.21 | ||||||||||||||||||||||||||||
Non Employee Options [Member] | |||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||
Options granted | 50,000 | ||||||||||||||||||||||||||||
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 | 20,000 | 50,000 | 60,000 | ||||||||||||||||||||||||
Exercise price | $ 1.045 | $ 1.025 | $ 1.11 | ||||||||||||||||||||||||||
Expiration date of options | Dec. 31, 2016 | Dec. 31, 2016 | Jan. 31, 2016 | Nov. 30, 2012 | |||||||||||||||||||||||||
Contract life | 5 years | ||||||||||||||||||||||||||||
Granted, Weighted average grant-date fair value | $ 0.38 | $ 1.67 | |||||||||||||||||||||||||||
Options vested and expected to vest | 20,830 | ||||||||||||||||||||||||||||
Options vested immediately | 20,000 | ||||||||||||||||||||||||||||
AllocatedShareBasedCompensationExpense | $ 79 | ||||||||||||||||||||||||||||
Options cancelled | 29,170 | ||||||||||||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 2,139,918 | 685,000 | |||||||||||||||||||||||||||
2012 stock incentive plan [Member] | Nonemployee Consultant [Member] | |||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||
AllocatedShareBasedCompensationExpense | $ 179 | ||||||||||||||||||||||||||||
2012 stock incentive plan [Member] | Non Employee Options [Member] | |||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||
Options granted | 660,000 | 100,000 | 200,000 | ||||||||||||||||||||||||||
Exercise price | $ 1.675 | ||||||||||||||||||||||||||||
Contract life | 5 years | ||||||||||||||||||||||||||||
Options vested and expected to vest | 16,664 | 16,664 | |||||||||||||||||||||||||||
2012 stock incentive plan [Member] | Two Consultants [Member] | |||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||
Options granted | 200,000 | ||||||||||||||||||||||||||||
Exercise price | $ 1.12 | ||||||||||||||||||||||||||||
Expiration date of options | Jan. 31, 2016 | Feb. 12, 2016 | |||||||||||||||||||||||||||
Options vested | 3,332 | ||||||||||||||||||||||||||||
Options cancelled | 83,336 | 150,002 | |||||||||||||||||||||||||||
Unvested options | $ 166,668 | ||||||||||||||||||||||||||||
2012 stock incentive plan [Member] | Consultants [Member] | |||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||
Options granted | 100,000 | ||||||||||||||||||||||||||||
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 | 1,857,538 | ||||||||||||||||||||||||||||
Exercise price | $ 0.72 | ||||||||||||||||||||||||||||
Contract life | 5 years | ||||||||||||||||||||||||||||
Granted, Weighted average grant-date fair value | $ 0.25 | $ 0.43 | |||||||||||||||||||||||||||
Options vested | 1,282,098 | ||||||||||||||||||||||||||||
Options cancelled | 575,440 | ||||||||||||||||||||||||||||
2007 stock incentive plan [Member] | Options Granted on July 2009 [Member] | |||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||
AllocatedShareBasedCompensationExpense | 4 | ||||||||||||||||||||||||||||
2007 stock incentive plan [Member] | Options Granted on July 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 | ||||||||||||||||||||||||||||
AllocatedShareBasedCompensationExpense | 686 | ||||||||||||||||||||||||||||
2007 stock incentive plan [Member] | Options Granted on July 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 | ||||||||||||||||||||||||||||
AllocatedShareBasedCompensationExpense | 5 | ||||||||||||||||||||||||||||
2007 stock incentive plan [Member] | Options Granted on November 2012 [Member] | |||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||
AllocatedShareBasedCompensationExpense | 4 | ||||||||||||||||||||||||||||
2007 stock incentive plan [Member] | Options Granted On November2007 [Member] | |||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||
AllocatedShareBasedCompensationExpense | 4 | ||||||||||||||||||||||||||||
2007 stock incentive plan [Member] | Chief Financial Officer [Member] | |||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||
Expiration date of options | May 31, 2016 | ||||||||||||||||||||||||||||
AllocatedShareBasedCompensationExpense | $ 201 | ||||||||||||||||||||||||||||
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 | $ 1.57 | $ 2.3 | ||||||||||||||||||||||||||
Granted, Weighted average grant-date fair value | $ 0.75 | $ 0.53 | |||||||||||||||||||||||||||
AllocatedShareBasedCompensationExpense | $ 314 | ||||||||||||||||||||||||||||
2011 stock incentive plan [Member] [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 | $ 0.21 | $ 0.26 | $ 0.22 | |||||||||||||||||||||||||
AllocatedShareBasedCompensationExpense | $ 1,259 | ||||||||||||||||||||||||||||
Share-based compensation expense | $ 950 | ||||||||||||||||||||||||||||
2011 stock incentive plan [Member] [Member] | Minimum [Member] | |||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||
Contract life | 5 years | ||||||||||||||||||||||||||||
2011 stock incentive plan [Member] [Member] | Maximum [Member] | |||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||
Contract life | 10 years | ||||||||||||||||||||||||||||
2011 stock incentive plan [Member] [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 | 100,000 | |||||||||||||||||||||||||||
Options vested and expected to vest | 200,000 | ||||||||||||||||||||||||||||
Share-based compensation expense | $ 35 |
SHARE BASED PAYMENTS (Schedule
SHARE BASED PAYMENTS (Schedule of Stock Option Activities) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Number of options | ||
Options outstanding as of January 1, 2016 | 10,438,840 | |
Exercised | (1,234,134) | |
Forfeited | (1,494,530) | |
Options outstanding as of December 31, 2016 | 7,710,176 | 10,438,840 |
Options vested and expected to vest as of December 31, 2016 | 7,680,203 | |
Options exercisable as of December 31, 2016 | 7,373,036 | |
Weighted average exercise price per option | ||
Outstanding at beginning of the year | $ 1.14 | |
Exercised | 1.08 | |
Forfeited | 1.17 | |
Outstanding at end of the year | 1.15 | $ 1.14 |
Options vested and expected to vest as of December 31, 2016 | 1.15 | |
Options exercisable as of December 31, 2016 | 1.15 | |
Weighted average grant-date fair value | ||
Outstanding at the beginning of the year | 1.07 | |
Exercised | 0.70 | |
Forfeited | 1.47 | |
Outstanding end of the year | 1.05 | $ 1.07 |
Options vested and expected to vest as of December 31, 2016 | 1.05 | |
Options exercisable as of December 31, 2016 | $ 1.12 | |
Weighted average remaining contractual terms | ||
Outstanding | 1 year 6 months 25 days | 2 years 1 month 28 days |
Options vested and expected to vest | 1 year 6 months 25 days | |
Options exercisable | 1 year 6 months 7 days | |
Aggregate intrinsic value | ||
Outstanding at December 31, 2016 | $ 1,552 | $ 17,236 |
Options vested and expected to vest as of December 31, 2016 | 1,546 | |
Options exercisable as of December 31, 2016 | $ 1,447 |
SHARE BASED PAYMENTS (Schedul93
SHARE BASED PAYMENTS (Schedule of Stock Option Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 | 0.14% | 0.00% | 0.10% |
Expected term | 14 days | 14 days | 1 year |
Volatility | 9.00% | 7.19% | 63.10% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate of return | 0.80% | 1.24% | 1.07% |
Expected term | 2 years 5 months 23 days | 2 years 11 months 5 days | 3 years 3 months 25 days |
Volatility | 74.80% | 126.63% | 67.06% |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Risk-adjusted discount rate | 18.00% | 7.50% | |
Impairment of Intangible Assets, Finite-lived | $ 826 | ||
Risk-adjusted discount rate | 18.00% | 7.50% |
SHARE REPURCHASE PLAN (Details)
SHARE REPURCHASE PLAN (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Mar. 21, 2011 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 26, 2012 | |
Class of Stock [Line Items] | ||||
ADSs authorized for repurchase | $ 20 | $ 40 | ||
Number of ADSs repurchased | 6,532,429 | |||
Shares repurchased, amount | $ 17.4 | |||
Shares cancelled, shares | 2,190,685 | |||
Treasury stock, Number of ADSs | 4,341,744 | |||
Number of ADSs reissued | 617,067 | 2,708,538 | ||
American Depositary Shares [Member] | ||||
Class of Stock [Line Items] | ||||
Stock repurchase program, period | 2 years |
MAINLAND CHINA CONTRIBUTION P96
MAINLAND CHINA CONTRIBUTION PLAN (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Contribution to employee benefits | $ 4,029 | $ 2,202 | $ 2,717 |
STATUTORY RESERVES (Details)
STATUTORY RESERVES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Provision for Statutory Reserves | $ 0 | $ 17,542 | $ 413 |
RESTRICTED NET ASSETS (Details)
RESTRICTED NET ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Restricted net assets | $ 342,860 | $ 313,780 |
Restricted assets attributable to VIEs | 138,496 | 114,695 |
Statutory reserves | $ 204,364 | $ 199,085 |
COMMITMENTS (Narrative) (Detail
COMMITMENTS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments [Line Items] | |||
Rent expense | $ 1,988 | $ 1,507 | $ 1,316 |
Concession fees | $ 17,264 | $ 64,752 | $ 71,533 |
COMMITMENTS (Schedule of Future
COMMITMENTS (Schedule of Future Minimum Rental Lease Payments) (Details) - Rental lease payments [Member] $ in Thousands | Dec. 31, 2016USD ($) |
2,017 | $ 2,364 |
2,018 | 2,067 |
2,019 | 96 |
Total | $ 4,527 |
COMMITMENTS (Schedule of Fut101
COMMITMENTS (Schedule of Future Minimum Concession Fee Payments) (Details) - Concession fee payments [Member] $ in Thousands | Dec. 31, 2016USD ($) |
2,017 | $ 28,733 |
2,018 | 23,233 |
2,019 | 24,835 |
2,020 | 19,320 |
2,021 | 2,387 |
thereafter | |
Total | $ 98,508 |
CONTINGENT LIABILITIES (Details
CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 29, 2016 | Jun. 14, 2016 | Dec. 31, 2015 |
Potential administrative fine | $ 5 | |||
Equity interest retained | 28.57% | |||
Contingent Liability | $ 23,549 | |||
AM Advertising [Member] | Longde Wenchuang the Buyer [Member] | ||||
Equity interest retained | 28.57% | |||
AM Advertising [Member] | AM Shengshi [Member] | ||||
Equity interest retained | 24.84% | |||
AM Advertising [Member] | Culture Center [Member] | ||||
Equity interest retained | 46.43% | |||
AM Advertising [Member] | Shanghai Golden Bridge InfoTech Co., Ltd. [Member] | ||||
Equity interest retained | 75.00% |
RELATED PARTY TRANSACTIONS (Sch
RELATED PARTY TRANSACTIONS (Schedule of Amount Due from Related Parties) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Amount due from related parties-trading | $ 835 | $ 2,752 | |
Beijing Dayun Culture Communication Co. Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due from related parties-trading | [1] | 233 | |
Mr. Xu Qing [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due from related parties-trading | [2] | 835 | |
Beijing AirMedia Advertising Co., Ltd. ("AM Jinshi") [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due from related parties-trading | [3] | 1,182 | |
Beijing AirMedia Lianhe Advertising Company ( AirMedia Lianhe ) [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due from related parties-trading | [3] | 615 | |
AirMedia city ( Beijing ) Outdoor Advertising Company (AM Outdoor ) [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due from related parties-trading | [3] | 360 | |
Beijing AirMedia Jinshi Advertising Co., Ltd. ("TianJin Jinshii") [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due from related parties-trading | [3] | $ 362 | |
[1] | The amounts due from Dayun Culture represent the unreceived consideration of $233 and Nil for selling 20% of equity interests in AirMedia Lianhe as of December 31, 2015 and 2016. | ||
[2] | The amounts due from Mr. Xu Qing represents interest free advances to the related party in a short term basis for general business purpose. | ||
[3] | The amounts due from AM Jinshi, AirMedia Lianhe, AM Outdoor and TianJin Jinshi represents the amount of concession using fees receivable as of December 31, 2015. These entities are subsidiaries of AM Advertising. The Group owns approximately 25% of equity interest of AM Advertising and accounted the investment in AM Advertising using equity method for the year ended December 31, 2015. Accordingly, the subsidiaries of AM Advertising were considered as related parties of the Group for the year ended December 31, 2015. Due to various disputes incurred in fiscal 2016, management is no longer able to have significant influence in operating and strategic decision of AM Advertising and cannot access to AM Advertising’s financial information. Accordingly, the Group accounted its investment in AM Advertising using cost method (see Note 25) for the year ended December 31, 2016. AM Advertising and its subsidiaries are no longer related parties to the Group. As of December 31, 2016, all the balance related to AM Advertising and its subsidiaries are included in the other current asset (See Note 8) and accrued expenses and other current liabilities (See Note 15). |
RELATED PARTY TRANSACTIONS (104
RELATED PARTY TRANSACTIONS (Schedule of Amount Due to Related Parties) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Amount due to related parties | $ 0 | $ 15,389 | |
AM Advertising [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due to related parties | [1] | 0 | 15,093 |
AirTV United Media & Culture Co., Ltd. ("AirTV United") [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due to related parties | [2] | $ 0 | $ 296 |
[1] | The amounts due to AM Advertising mainly represent the concession fee payables for using concessions owned by AM Advertising, unpaid loans incurred before the disposal and related interests due to AM Advertising as of December 31, 2015. As of December 31, 2016, all the balance related to AM Advertising and its subsidiaries are included in other current asset (See Note 8) and accrued expenses and other current liabilities (See Note 15). | ||
[2] | The amounts due to AirTV United raised from the restructuring before the disposal. AirTV United is a subsidiary of AM Advertising. The Group owns approximately 25% of equity interest of AM Advertising and accounted the investment in AM Advertising using equity method for the year ended December 31, 2015. Accordingly, AirTV United were considered as related parties of the Group for the year ended December 31, 2015. Due to various disputes incurred in fiscal 2016, management is no longer able to have significant influence in operating and strategic decision of AM Advertising and cannot access to AM Advertising’s financial information. Accordingly, the Group accounted its investment in AM Advertising using cost method (see Note 25) for the year ended December 31, 2016. AM Advertising and its subsidiaries are no longer related parties to the Group. As of December 31, 2016, all the balance related to AM Advertising and its subsidiaries are included in the other current asset (See Note 8) and accrued expenses and other current liabilities (See Note 15). |
RELATED PARTY TRANSACTIONS (105
RELATED PARTY TRANSACTIONS (Schedule of Revenues and Purchases) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Related Party Transaction [Line Items] | ||||
Revenues earned from | $ 0 | $ 280 | ||
Concession cost purchase from related party | 0 | 144 | ||
AM Advertising [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues earned from | [1] | 0 | 2 | |
Concession cost purchase from related party | [1] | 0 | 142 | |
AM Jinshi [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues earned from | [1] | 0 | 278 | |
Concession cost purchase from related party | [1] | $ 0 | $ 2 | |
[1] | Entities in continuing operations sold some concession in certain airports to discontinued operation. Also continuing operations purchased some concession in certain airports from discontinued operation after the disposal. |
RELATED PARTY TRANSACTIONS (106
RELATED PARTY TRANSACTIONS (Schedule of Equity Transaction with Related Party) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Aug. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Parent Company [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Amount of cash consideration | $ 2,766 | ||||||
Beijing Dayun Culture Communication Co. Ltd. [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of economic ownership to be sold | 20.00% | 20.00% | |||||
Beijing Dayun Culture Communication Co. Ltd. [Member] | AM Lianhe [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of economic ownership to be sold | 20.00% | ||||||
Amount of cash consideration | $ 2,766 | [1] | [1] | $ 2,766 | [1] | ||
[1] | In August 2014, the Group sold 20% equity interest in AirMedia Lianhe, a wholly-owned subsidiary, to Dayun Culture, with a consideration of $2,766. |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
AirTV United Media & Culture Co., Ltd. ("AirTV United") [Member] | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 25.00% | ||
Beijing Dayun Culture Communication Co. Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Amount receivable from related parties | [1] | $ 233 | |
Percentage of economic ownership to be sold | 20.00% | 20.00% | |
Subsidiary of Common Parent [Member] | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 25.00% | ||
[1] | The amounts due from Mr. Xu Qing represents interest free advances to the related party in a short term basis for general business purpose. |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) $ / shares in Units, $ in Thousands, ¥ in Millions | Apr. 07, 2017$ / shares | Apr. 07, 2017CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Subsequent Event [Line Items] | ||||
Equity Method Investments | $ | $ 6,176 | $ 89,221 | ||
Subsequent Event [Member] | Ordinary Shares [Member] | ||||
Subsequent Event [Line Items] | ||||
Business Acquisition, Share Price | $ 2 | |||
Subsequent Event [Member] | American Depositary Shares [Member] | ||||
Subsequent Event [Line Items] | ||||
Business Acquisition, Share Price | $ 4 | |||
Subsequent Event [Member] | Unicom AirMedia [Member] | ||||
Subsequent Event [Line Items] | ||||
Equity Method Investments | ¥ | ¥ 120 | |||
Equity interest percentage | 39.00% |
ADDITIONAL INFORMATION-FINAN109
ADDITIONAL INFORMATION-FINANCIAL STATEMENT (Schedule of Parent Company Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets | ||||
Cash and cash equivalents | $ 117,547 | $ 86,960 | $ 67,437 | $ 59,652 |
Other current assets | 68,850 | 30,904 | ||
Total current assets | 205,244 | 342,577 | ||
Non-current assets | ||||
TOTAL ASSETS | 381,190 | 531,601 | ||
Current liabilities | ||||
Accrued expenses and other current liabilities | 33,596 | 10,744 | ||
Total liabilities | 114,593 | 133,968 | ||
Equity | ||||
Ordinary Shares ($0.001 par value; 900,000,000 shares authorized in 2015 and 2016; 127,662,057 shares issued as of December 31, 2015 and 2016; 124,395,645 shares and 125,629,779 shares outstanding as of December 31, 2015 and 2016, respectively) | 128 | 128 | ||
Additional paid in capital | 287,094 | 317,414 | ||
Treasury stock (3,266,412 and 2,032,278 shares as of December 31, 2015 and 2016, respectively) | (2,351) | (3,778) | ||
Retained earnings (accumulated deficits) | (15,842) | 49,876 | ||
Accumulated other comprehensive income | (292) | 22,928 | ||
Total equity | 266,597 | 397,633 | 268,872 | 291,343 |
TOTAL LIABILITIES AND EQUITY | 381,190 | 531,601 | ||
Parent Company [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 139 | 332 | 2,029 | 14 |
Amount due from subsidiaries | 178,083 | 179,619 | ||
Other current assets | 3,825 | 1,369 | ||
Total current assets | 182,047 | 181,320 | ||
Non-current assets | ||||
Investments in subsidiaries | 86,896 | 205,501 | ||
TOTAL ASSETS | 268,943 | 386,821 | ||
Current liabilities | ||||
Accrued expenses and other current liabilities | 206 | 253 | ||
Total liabilities | 206 | 253 | ||
Equity | ||||
Ordinary Shares ($0.001 par value; 900,000,000 shares authorized in 2015 and 2016; 127,662,057 shares issued as of December 31, 2015 and 2016; 124,395,645 shares and 125,629,779 shares outstanding as of December 31, 2015 and 2016, respectively) | 128 | 128 | ||
Additional paid in capital | 287,094 | 317,414 | ||
Treasury stock (3,266,412 and 2,032,278 shares as of December 31, 2015 and 2016, respectively) | (2,351) | (3,778) | ||
Retained earnings (accumulated deficits) | (15,842) | 49,876 | ||
Accumulated other comprehensive income | (292) | 22,928 | ||
Total equity | 268,737 | 386,568 | $ 248,736 | $ 270,966 |
TOTAL LIABILITIES AND EQUITY | $ 268,943 | $ 386,821 |
ADDITIONAL INFORMATION-FINAN110
ADDITIONAL INFORMATION-FINANCIAL STATEMENT (Schedule of Parent Company Balance Sheets) (Details) (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 127,662,057 | 127,662,057 |
Common stock, shares outstanding | 125,629,779 | 124,395,645 |
Treasury stock, shares | 2,032,278 | 3,266,412 |
Parent Company [Member] | ||
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 127,662,057 | 127,662,057 |
Common stock, shares outstanding | 125,629,779 | 124,395,645 |
Treasury stock, shares | 2,032,278 | 3,266,412 |
ADDITIONAL INFORMATION-FINAN111
ADDITIONAL INFORMATION-FINANCIAL STATEMENT (Schedule of Parent Company Statements of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating expenses | |||
Selling and marketing | $ (12,056) | $ (9,611) | $ (12,916) |
General and administrative | (45,227) | (27,102) | (20,620) |
Total operating expenses | (57,283) | (36,713) | (33,536) |
Other income, net | |||
Parent Company [Member] | |||
Operating expenses | |||
Selling and marketing | (8) | (144) | |
General and administrative | (2,356) | (2,070) | (1,676) |
Total operating expenses | (2,364) | (2,070) | (1,820) |
Other income, net | 548 | ||
Investment (loss) income in subsidiaries | (63,809) | 151,717 | (23,875) |
Net (loss) income attributable to holders of ordinary shares | $ (65,625) | $ 149,647 | $ (25,695) |
ADDITIONAL INFORMATION-FINAN112
ADDITIONAL INFORMATION-FINANCIAL STATEMENT (Schedule of Parent Company Statements of Comprehensive (Loss)/Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other comprehensive loss, net of tax: | |||
Change in cumulative foreign currency translation adjustment | $ (24,140) | $ (11,478) | $ (6,874) |
Comprehensive (loss) income attributable to Parent Company | (88,845) | 138,760 | (32,109) |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net (loss) income | (65,625) | 149,647 | (25,695) |
Other comprehensive loss, net of tax: | |||
Change in cumulative foreign currency translation adjustment | (23,220) | (10,887) | (6,414) |
Comprehensive (loss) income attributable to Parent Company | $ (88,845) | $ 138,760 | $ (32,109) |
ADDITIONAL INFORMATION-FINAN113
ADDITIONAL INFORMATION-FINANCIAL STATEMENT (Schedule of Parent Company Statements of Changes in Equity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance | $ 397,633 | $ 268,872 | $ 291,343 |
Ordinary shares issued for share based compensation | 4,825 | 624 | |
Stock option exercised, shares | 1,234,134 | ||
Stock option exercised | $ 1,334 | ||
Share-based compensation | 773 | 598 | 1,359 |
Foreign currency translation adjustment | (24,140) | (11,478) | (6,874) |
Net (loss) income | (89,242) | 142,912 | (31,826) |
Acquisition of equity interests from non-controlling interests shareholders | (30,956) | (8,518) | |
Capital contribution from non-controlling interests | 11,195 | 1,313 | 11,241 |
Capital contribution to Guangzhou Meizheng | |||
Ending Balance | $ 266,597 | $ 397,633 | $ 268,872 |
Ordinary shares [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance, shares | 124,395,645 | 119,942,413 | 119,134,135 |
Beginning Balance | $ 128 | $ 128 | $ 128 |
Ordinary shares issued for share based compensation, shares | 4,453,232 | 808,278 | |
Ordinary shares issued for share based compensation | |||
Stock option exercised, shares | 1,234,134 | ||
Stock option exercised | $ 0 | ||
Share-based compensation | |||
Foreign currency translation adjustment | |||
Net (loss) income | |||
Acquisition of equity interests from non-controlling interests shareholders | |||
Capital contribution from non-controlling interests | |||
Capital contribution to Guangzhou Meizheng | |||
Ending Balance, shares | 125,629,779 | 124,395,645 | 119,942,413 |
Ending Balance | $ 128 | $ 128 | $ 128 |
Additional paid-in capital [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance | 317,414 | 323,167 | 313,912 |
Ordinary shares issued for share based compensation | |||
Stock option exercised | |||
Share-based compensation | 773 | 598 | 1,359 |
Foreign currency translation adjustment | |||
Net (loss) income | |||
Acquisition of equity interests from non-controlling interests shareholders | (34,570) | (6,163) | |
Capital contribution from non-controlling interests | 3,477 | 271 | 6,463 |
Capital contribution to Guangzhou Meizheng | (459) | ||
Ending Balance | 287,094 | 317,414 | 323,167 |
Treasury stock [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance | (3,778) | (9,236) | (9,860) |
Ordinary shares issued for share based compensation | 5,458 | 624 | |
Stock option exercised | 1,427 | ||
Share-based compensation | |||
Foreign currency translation adjustment | |||
Net (loss) income | |||
Acquisition of equity interests from non-controlling interests shareholders | |||
Capital contribution from non-controlling interests | |||
Capital contribution to Guangzhou Meizheng | |||
Ending Balance | (2,351) | (3,778) | (9,236) |
(Accumulated deficit) retained earnings [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance | 49,876 | (99,138) | (73,443) |
Ordinary shares issued for share based compensation | (633) | ||
Stock option exercised | (93) | ||
Share-based compensation | |||
Foreign currency translation adjustment | |||
Net (loss) income | (65,625) | 149,647 | (25,695) |
Acquisition of equity interests from non-controlling interests shareholders | |||
Capital contribution from non-controlling interests | |||
Capital contribution to Guangzhou Meizheng | |||
Ending Balance | (15,842) | 49,876 | (99,138) |
Accumulated other comprehensive Income (loss) [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance | 22,928 | 33,815 | 40,229 |
Ordinary shares issued for share based compensation | |||
Stock option exercised | |||
Share-based compensation | |||
Foreign currency translation adjustment | (23,220) | (10,887) | (6,414) |
Net (loss) income | |||
Acquisition of equity interests from non-controlling interests shareholders | |||
Capital contribution from non-controlling interests | |||
Capital contribution to Guangzhou Meizheng | |||
Ending Balance | (292) | 22,928 | 33,815 |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance | 386,568 | 248,736 | 270,966 |
Ordinary shares issued for share based compensation | 4,825 | 624 | |
Share-based compensation | 598 | 1,359 | |
Foreign currency translation adjustment | (23,220) | (10,887) | (6,414) |
Net (loss) income | (65,625) | 149,647 | (25,695) |
Acquisition of equity interests from non-controlling interests shareholders | (6,163) | ||
Capital contribution from non-controlling interests | 271 | 6,463 | |
Capital contribution to Guangzhou Meizheng | (459) | ||
Disposal of equity interests of AM Film and AirMedia Lianhe | 1,433 | ||
Ending Balance | $ 268,737 | $ 386,568 | $ 248,736 |
Parent Company [Member] | Ordinary shares [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance, shares | 124,395,645 | 119,942,413 | 119,134,135 |
Beginning Balance | $ 128 | $ 128 | $ 128 |
Ordinary shares issued for share based compensation, shares | 4,453,232 | 808,278 | |
Ordinary shares issued for share based compensation | |||
Stock option exercised, shares | 1,234,134 | ||
Stock option exercised | |||
Share-based compensation | |||
Foreign currency translation adjustment | |||
Net (loss) income | |||
Acquisition of equity interests from non-controlling interests shareholders | |||
Capital contribution from non-controlling interests | |||
Capital contribution to Guangzhou Meizheng | |||
Disposal of equity interests of AM Film and AirMedia Lianhe | |||
Ending Balance, shares | 125,629,779 | 124,395,645 | 119,942,413 |
Ending Balance | $ 128 | $ 128 | $ 128 |
Parent Company [Member] | Additional paid-in capital [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance | 317,414 | 323,167 | 313,912 |
Ordinary shares issued for share based compensation | |||
Share-based compensation | 598 | 1,359 | |
Foreign currency translation adjustment | |||
Net (loss) income | |||
Acquisition of equity interests from non-controlling interests shareholders | (6,163) | ||
Capital contribution from non-controlling interests | 271 | 6,463 | |
Capital contribution to Guangzhou Meizheng | (459) | ||
Disposal of equity interests of AM Film and AirMedia Lianhe | 1,433 | ||
Ending Balance | 317,414 | 323,167 | |
Parent Company [Member] | Treasury stock [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance | (3,778) | (9,236) | (9,860) |
Ordinary shares issued for share based compensation | 5,458 | 624 | |
Share-based compensation | |||
Foreign currency translation adjustment | |||
Net (loss) income | |||
Acquisition of equity interests from non-controlling interests shareholders | |||
Capital contribution from non-controlling interests | |||
Capital contribution to Guangzhou Meizheng | |||
Disposal of equity interests of AM Film and AirMedia Lianhe | |||
Ending Balance | (3,778) | (9,236) | |
Parent Company [Member] | (Accumulated deficit) retained earnings [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance | 49,876 | (99,138) | (73,443) |
Ordinary shares issued for share based compensation | |||
Share-based compensation | |||
Foreign currency translation adjustment | |||
Net (loss) income | 149,647 | (25,695) | |
Acquisition of equity interests from non-controlling interests shareholders | |||
Capital contribution from non-controlling interests | |||
Capital contribution to Guangzhou Meizheng | |||
Disposal of equity interests of AM Film and AirMedia Lianhe | |||
Ending Balance | 49,876 | (99,138) | |
Parent Company [Member] | Accumulated other comprehensive Income (loss) [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Beginning Balance | $ 22,928 | 33,815 | 40,229 |
Ordinary shares issued for share based compensation | |||
Share-based compensation | |||
Foreign currency translation adjustment | (10,887) | (6,414) | |
Net (loss) income | |||
Acquisition of equity interests from non-controlling interests shareholders | |||
Capital contribution from non-controlling interests | |||
Capital contribution to Guangzhou Meizheng | |||
Disposal of equity interests of AM Film and AirMedia Lianhe | |||
Ending Balance | $ 22,928 | $ 33,815 |
ADDITIONAL INFORMATION-FINAN114
ADDITIONAL INFORMATION-FINANCIAL STATEMENT (Schedule of Parent Company Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net (loss) income | $ (89,242) | $ 142,912 | $ (31,826) |
Share-based compensation | 773 | 567 | 1,281 |
CHANGES IN WORKING CAPITAL ACCOUNTS | |||
Other current assets | (5,369) | (16,045) | 2,224 |
Accrued expenses and other current liabilities | 2,030 | (6,762) | (466) |
Amount due to subsidiaries | (15,023) | 12,803 | |
Amount due from subsidiaries | 1,813 | (4,873) | (953) |
Net cash provided by (used in) operating activities | (103,610) | (28,036) | (42,629) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from exercises of stock options | 1,334 | 4,826 | 624 |
Net cash provided by financing activities. | 11,130 | 2,141 | 16,823 |
Net increase (decrease) in cash | 30,587 | 19,523 | 7,785 |
Cash and cash equivalents, at beginning of year | 86,960 | 67,437 | 59,652 |
Cash and cash equivalents, at end of year | 117,547 | 86,960 | 67,437 |
Parent Company [Member] | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net (loss) income | (65,625) | 149,647 | (25,695) |
Investment loss (income) in subsidiaries | 63,809 | (151,717) | 23,875 |
Share-based compensation | 773 | 598 | 1,359 |
CHANGES IN WORKING CAPITAL ACCOUNTS | |||
Other current assets | (2,456) | (813) | (221) |
Accrued expenses and other current liabilities | (47) | 169 | (308) |
Amount due to subsidiaries | 483 | (3,135) | (517) |
Amount due from subsidiaries | 1,536 | (1,272) | 2,898 |
Net cash provided by (used in) operating activities | (1,527) | (6,523) | 1,391 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from exercises of stock options | 1,334 | 4,826 | 624 |
Net cash provided by financing activities. | 1,334 | 4,826 | 624 |
Net increase (decrease) in cash | (193) | (1,697) | 2,015 |
Cash and cash equivalents, at beginning of year | 332 | 2,029 | 14 |
Cash and cash equivalents, at end of year | $ 139 | $ 332 | $ 2,029 |