Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Renren Inc. |
Entity Central Index Key | 0001509223 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Interactive Data Current | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | No |
Entity Filer Category | Non-accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
ADS | |
Document Information [Line Items] | |
Trading Symbol | RENN |
Title of 12(b) Security | American depositary shares, each representing 45 Class A ordinary shares |
Security Exchange Name | NYSE |
Class A ordinary shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 769,444,113 |
Title of 12(b) Security | Class A ordinary shares, par value US$0.001 per share* |
Security Exchange Name | NYSE |
No Trading Symbol Flag | true |
Class B ordinary shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 305,388,450 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 19,630 | $ 1,283 |
Restricted cash | 14,457 | 13,091 |
Accounts receivable | 474 | 430 |
Short term investments | 0 | 1,436 |
Prepaid expenses and other current assets | 2,196 | 2,868 |
Inventory | 704 | 991 |
Amounts due from related parties | 764 | 688 |
Amount due from subsidiary held for sale | 2,255 | 0 |
Assets of discontinued operations - current | 48,467 | 51,985 |
Total current assets | 88,947 | 72,772 |
Property and equipment, net | 439 | 698 |
Intangible assets, net | 325 | 708 |
Goodwill | 124 | 124 |
Long-term investments | 53,641 | 13,454 |
Amounts due from related parties - non-current | 67,985 | 131,758 |
Right-of-use assets | 2,135 | 3,254 |
Restricted cash - non-current | 0 | 358 |
Other non-current assets | 77 | 680 |
Assets of discontinued operations - non-current | 0 | 2,405 |
TOTAL ASSETS | 213,673 | 226,211 |
Current liabilities: | ||
Accounts payable | 951 | 1,271 |
Short-term debt | 11,400 | 14,447 |
Accrued expenses and other current liabilities | 10,819 | 13,875 |
Operating lease liabilities - current | 1,409 | 1,051 |
Payable to investors | 15 | 14 |
Amounts due to related parties | 697 | 774 |
Deferred revenue | 602 | 750 |
Income tax payable | 13,841 | 14,735 |
Contingent consideration | 407 | 204 |
Liabilities of discontinued operations - current | 40,962 | 51,049 |
Total current liabilities | 81,103 | 98,170 |
Long-term liabilities: | ||
Long-term debt | 1,585 | 0 |
Operating lease liabilities - non-current | 589 | 1,170 |
Long-term contingent consideration | 1,652 | 828 |
Liabilities of discontinued operations- non-current | 0 | 810 |
Total non-current liabilities | 3,826 | 2,808 |
TOTAL LIABILITIES | 84,929 | 100,978 |
Equity: | ||
Additional paid-in capital | 741,130 | 720,513 |
Accumulated deficit | (634,054) | (614,834) |
Statutory reserves | 6,712 | 6,712 |
Accumulated other comprehensive loss | (9,706) | (9,334) |
Total Renren lnc. shareholders' equity | 105,157 | 104,113 |
Noncontrolling interest | 23,587 | 21,120 |
Total equity | 128,744 | 125,233 |
TOTAL LIABILITIES AND EQUITY | 213,673 | 226,211 |
Class A ordinary shares | ||
Equity: | ||
Ordinary shares | 770 | 751 |
Class B ordinary shares | ||
Equity: | ||
Ordinary shares | $ 305 | $ 305 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Class A ordinary shares | ||
Ordinary shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | 3,000,000,000 | 3,000,000,000 |
Ordinary shares, shares issued | 769,444,113 | 750,816,633 |
Ordinary shares, shares outstanding | 769,444,113 | 750,816,633 |
Class B ordinary shares | ||
Ordinary shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued | 305,388,450 | 305,388,450 |
Ordinary shares, shares outstanding | 305,388,450 | 305,388,450 |
Number of shares into which each Class B ordinary share is convertible | 1 | 1 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Total revenues | $ 18,106 | $ 15,085 | $ 66,794 |
Cost of revenues: | |||
Total cost of revenues | 3,451 | 6,718 | 62,497 |
Gross profit | 14,655 | 8,367 | 4,297 |
Operating expenses (income): | |||
Selling and marketing | 8,293 | 10,780 | 10,485 |
Research and development | 11,347 | 22,791 | 21,930 |
General and administrative | 22,242 | 10,089 | 48,082 |
Bad debt provision of prepaid expenses and other current assets | 0 | 418 | 0 |
Provision of amount due from a related party | 0 | 12,408 | 0 |
Impairment of goodwill | 0 | 9,288 | 29,055 |
Gain on disposal of property and equipment | 0 | 0 | (25,928) |
Total operating expenses | 41,882 | 65,774 | 83,624 |
Loss from operations | (27,227) | (57,407) | (79,327) |
Other (expenses) income | 3,543 | 1,523 | (1,202) |
Fair value change gain (loss) of contingent consideration | (1,027) | 20,662 | 19,899 |
Impairment of long-term investments | 0 | (2,000) | 0 |
Interest income (including interest income from a related party of $3,880, $7,878 and $9,176 for the years ended December 31, 2018, 2019 and 2020, respectively) | 8,079 | 8,776 | 5,185 |
Interest expense | (303) | (566) | (842) |
Realized loss on disposal of long-term investments | 0 | 0 | (2,141) |
Loss before provision of income tax and earnings (loss) in equity method investments and noncontrolling interest, net of tax | (16,935) | (29,012) | (58,428) |
Income tax (expenses) benefits | 65 | (1,944) | (8,988) |
Loss before (loss) earnings in equity method investments and noncontrolling interest, net of tax | (16,870) | (30,956) | (67,416) |
(Loss) earnings in equity method investments, net of tax | 70 | (7,464) | (2,463) |
Loss from continuing operations | (16,800) | (38,420) | (69,879) |
Discontinued operations: | |||
Loss from the operations of the discontinued operations, net of tax expenses of $nil for the years ended December 31, 2018, 2019 and 2020, respectively | (5,320) | (69,068) | (107,737) |
Gain on deconsolidation of subsidiaries, net of tax of $nil for the years ended December 31, 2018, 2019 and 2020, respectively | 0 | 242,097 | |
Income (Loss) from discontinued operations, net of tax expenses of $nil for the years ended December 31, 2018, 2019 and 2020, respectively | (5,320) | (69,068) | 134,360 |
Net loss attributable to the noncontrolling interest | (2,900) | (56,391) | (8,059) |
Net (loss) income from continuing operations attributable to Renren Inc. | (13,900) | 17,971 | (61,820) |
Net income (loss) | (22,120) | (107,488) | 64,481 |
Net income (loss) from discontinued operations attributable to Renren Inc. | (5,320) | (69,068) | 134,360 |
Net income (loss) attributable to Renren Inc. | $ (19,220) | $ (51,097) | $ 72,540 |
Net loss per share from continuing operations attributable to Renren Inc. shareholders: | |||
Basic (in dollars per share) | $ (0.01) | $ 0.02 | $ (0.07) |
Diluted (in dollars per share) | (0.01) | 0.02 | (0.07) |
Net income (loss) per share from discontinued operations attributable to Renren Inc. shareholders: | |||
Basic (in dollars per share) | (0.01) | (0.07) | 0.14 |
Diluted (in dollars per share) | (0.01) | (0.07) | 0.13 |
Net income (loss) per share attributable to Renren Inc. shareholders: | |||
Basic (in dollars per share) | (0.02) | (0.05) | 0.07 |
Diluted (in dollars per share) | $ (0.02) | $ (0.05) | $ 0.07 |
Weighted average number of shares used in calculating net income (loss) per share from continuing operations attributable to Renren Inc. shareholders: | |||
Basic (in shares) | 1,063,651,105 | 1,049,024,096 | 1,036,421,063 |
Diluted (in shares) | 1,063,651,105 | 1,049,024,096 | 1,036,421,063 |
Weighted average number of shares used in calculating net (loss) income per share from discontinued operations attributable to Renren Inc. shareholders: | |||
Basic (in shares) | 1,063,651,105 | 1,049,024,096 | 1,036,421,063 |
Diluted (in shares) | 1,063,651,105 | 1,049,024,096 | 1,095,805,917 |
Automobile sales | |||
Revenues: | |||
Total revenues | $ 0 | $ 0 | $ 47,226 |
Cost of revenues: | |||
Cost of revenue - other services | 0 | 0 | 50,531 |
SaaS revenue | |||
Revenues: | |||
Total revenues | 17,519 | 8,261 | 5,748 |
Cost of revenues: | |||
Cost of revenue - other services | 3,353 | 1,743 | 2,331 |
Other services | |||
Revenues: | |||
Total revenues | 587 | 6,824 | 13,820 |
Cost of revenues: | |||
Cost of revenue - other services | $ 98 | $ 4,975 | $ 9,635 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Interest income from a related party | $ 9,176 | $ 7,878 | $ 3,880 |
Loss from the operations of the discontinued operations, net of tax expenses | 0 | 0 | 0 |
Gain on deconsolidation of the subsidiaries, tax expense | 0 | 0 | 0 |
(Loss) income from discontinued operations, net of tax expenses | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | |||
Net income (loss) | $ (22,120) | $ (107,488) | $ 64,481 |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation, net of nil income taxes | 425 | (4,868) | (5,770) |
Net unrealized (loss) gain on available-for-sale investments | 0 | 9 | (9,671) |
Transfer to statements of operations of realized gain on available-for-sale investments, net of tax of $nil for the years ended December 31, 2018, 2019 and 2020, respectively | 0 | (9) | (7,364) |
Other comprehensive (loss) income | 425 | (4,868) | (22,805) |
Comprehensive income (loss) | (21,695) | (112,352) | 41,676 |
Less: Comprehensive loss attributable to noncontrolling interest | (2,351) | (57,915) | (10,578) |
Comprehensive income (loss) attributable to Renren Inc. | $ (19,344) | $ (54,437) | $ 52,254 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | |||
Foreign currency translation, net of income taxes | $ 0 | $ 0 | $ 0 |
Net unrealized gain (loss) on available-for-sale investments, net of tax | 0 | 0 | 0 |
Transfer to statements of operations of realized gain on available-for-sale investments, tax | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Class A ordinary sharesOrdinary shares | Class B ordinary sharesOrdinary shares | Total Renren Inc.'s equity (deficit) | Additional paid-in capital | Accumulated deficit | Statutory reserves | Accumulated other comprehensive income (loss) | Non-controlling interest | Total |
Balance at Dec. 31, 2017 | $ 727,000 | $ 305,000 | $ 674,804,000 | $ 1,303,117,000 | $ (653,173,000) | $ 6,712,000 | $ 17,116,000 | $ 33,942,000 | $ 708,746,000 |
Balance (in shares) at Dec. 31, 2017 | 726,549,453 | 305,388,450 | |||||||
Increase (Decrease) in Shareholders' Equity | |||||||||
Stock-based compensation | $ 0 | $ 0 | 31,603,000 | 31,603,000 | 0 | 0 | 0 | 0 | 31,603,000 |
Other comprehensive loss | 0 | 0 | (3,390,000) | 0 | 7,364,000 | 0 | (10,754,000) | (2,519,000) | (5,909,000) |
Noncontrolling interest arising from an acquisition | 0 | 0 | (2,519,000) | 0 | 0 | 0 | (2,519,000) | 5,535,000 | 3,016,000 |
Disposal of subsidiaries | (64,000) | (64,000) | (1,421,000) | (1,485,000) | |||||
Capital contribution from non-controlling shareholder | 0 | 0 | 7,947,000 | 7,947,000 | 0 | 0 | 0 | 5,995,000 | 13,942,000 |
Deconsolidation of Oak Pacific Investment | (634,278,000) | (634,278,000) | 9,532,000 | (9,532,000) | (634,278,000) | ||||
Net income (loss) | 0 | 0 | 72,540,000 | 0 | 72,540,000 | 0 | 0 | (8,059,000) | 64,481,000 |
Exercise of share option and restricted shares vesting | $ 10,000 | $ 0 | 822,000 | 812,000 | 0 | 0 | 0 | 0 | 822,000 |
Exercise of share option and restricted shares vesting (in shares) | 10,672,995 | 0 | |||||||
Balance at Dec. 31, 2018 | $ 737,000 | $ 305,000 | 147,465,000 | 709,137,000 | (563,737,000) | 6,712,000 | (5,689,000) | 33,473,000 | 180,938,000 |
Balance (in shares) at Dec. 31, 2018 | 737,222,448 | 305,388,450 | |||||||
Increase (Decrease) in Shareholders' Equity | |||||||||
Stock-based compensation | $ 0 | $ 0 | 11,369,000 | 11,369,000 | 0 | 0 | 0 | 915,000 | 12,284,000 |
Other comprehensive loss | 0 | 0 | (3,340,000) | 0 | 0 | 0 | (3,344,000) | (1,524,000) | (4,864,000) |
Net income (loss) | 0 | 0 | (51,097,000) | 0 | (51,097,000) | 0 | 0 | (56,391,000) | (107,488,000) |
Exercise of share option and restricted shares vesting | $ 14,000 | $ 0 | 8,000 | (6,000) | 0 | 0 | 0 | 0 | 8,000 |
Exercise of share option and restricted shares vesting (in shares) | 13,594,185 | 0 | |||||||
Acquisition of interest in a dealership held by non-controlling shareholder | $ 0 | $ 0 | (187,000) | (187,000) | 0 | 0 | 0 | (1,325,000) | (1,512,000) |
Disposal of a dealership | 0 | 0 | (81,000) | (81,000) | 0 | 0 | 0 | (701,000) | (782,000) |
Reverse recapitalization of the Kaixin Offering | (21,345,000) | (21,040,000) | (305,000) | 16,298,000 | (5,047,000) | ||||
Issuance of units by KAH and conversion of rights to KAH's ordinary shares | 5,184,000 | 5,184,000 | 2,316,000 | 7,500,000 | |||||
Beneficial conversion feature of a convertible loan issued by Kaixin | 1,471,000 | 1,471,000 | 657,000 | 2,128,000 | |||||
Conversion of convertible loans issued by Kaixin to KAH's ordinary shares | 14,666,000 | 14,666,000 | 6,553,000 | 21,219,000 | |||||
Reclassification from liability to equity for contingent consideration | 20,849,000 | 20,849,000 | |||||||
Balance at Dec. 31, 2019 | $ 751,000 | $ 305,000 | 104,113,000 | 720,513,000 | (614,834,000) | 6,712,000 | (9,334,000) | 21,120,000 | 125,233,000 |
Balance (in shares) at Dec. 31, 2019 | 750,816,633 | 305,388,450 | |||||||
Increase (Decrease) in Shareholders' Equity | |||||||||
Stock-based compensation | 17,549,000 | 17,549,000 | 1,133,000 | 18,682,000 | |||||
Other comprehensive loss | (372,000) | (372,000) | 797,000 | 425,000 | |||||
Capital contribution from non-controlling shareholder | 2,329,000 | 2,329,000 | 1,885,000 | 4,214,000 | |||||
Net income (loss) | (19,220,000) | (19,220,000) | (2,900,000) | (22,120,000) | |||||
Exercise of share option and restricted shares vesting | $ 19,000 | $ 0 | 0 | (19,000) | 0 | 0 | 0 | 0 | 0 |
Exercise of share option and restricted shares vesting (in shares) | 18,627,480 | 0 | |||||||
Waived performance and marketing conditions of ear out shares | (773,000) | (773,000) | 773,000 | ||||||
Issuance of ordinary shares to EarlyBird Capital by Kaixin | 663,000 | 663,000 | 337,000 | 1,000,000 | |||||
Beneficial conversion feature of preferred shares issued by Kaixin | 868,000 | 868,000 | 442,000 | 1,310,000 | |||||
Balance at Dec. 31, 2020 | $ 770,000 | $ 305,000 | $ 105,157,000 | $ 741,130,000 | $ (634,054,000) | $ 6,712,000 | $ (9,706,000) | $ 23,587,000 | $ 128,744,000 |
Balance (in shares) at Dec. 31, 2020 | 769,444,113 | 305,388,450 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net loss from continuing operations | $ (16,800) | $ (38,420) | $ (69,879) |
Net income (loss) from discontinued operations | (5,320) | (69,068) | 134,360 |
Adjustments to reconcile net loss to net cash used in operating activities of continuing operations: | |||
Share-based compensation expense | 15,320 | 12,284 | 31,603 |
Loss (earnings) in equity method investments | (70) | 7,464 | 2,463 |
Realized loss on disposal of long-term investments | 0 | 0 | 2,141 |
Reduction in the carrying amount of the right-of-use assets | 898 | 1,358 | 0 |
Depreciation and amortization | 967 | 807 | 1,282 |
Impairment on long-term investments | 0 | 2,000 | 0 |
Impairment on goodwill | 0 | 9,288 | 29,055 |
Write-offs of prepaid expenses and other current assets | 281 | 418 | 0 |
Provision for doubtful accounts | 0 | (2) | 41 |
Provision for amount due from a related party | 0 | 12,408 | 0 |
Write-offs for advance to supplier related to Ji'nan Dealership | 0 | 0 | 10,228 |
Write-offs of inventory related to Ji'nan Dealership | 0 | 0 | (200) |
Gain on disposal of property and equipment | 0 | 0 | (25,928) |
Realized gain on long-term available-for-sale investment | 0 | 0 | (1,005) |
Fair value change of put option and liability-classified warrant | 0 | 0 | (233) |
Fair value change of contingent consideration | 1,027 | (20,662) | (19,899) |
Changes in operating assets and liabilities of continuing operations: | |||
Accounts receivable | (44) | 506 | 3,692 |
Prepaid expenses and other current assets | 391 | 333 | 60,790 |
Inventory | 287 | 256 | (1,247) |
Right of use assets | 221 | (4,611) | 0 |
Other non-current assets | 603 | 82 | 154 |
Accounts payable | (320) | (1,216) | (23,260) |
Amounts due from/to related parties | (7,909) | (6,495) | (10,280) |
Amount due from subsidiary held for sale | (2,255) | 0 | 0 |
Accrued expenses and other current liabilities | (3,056) | (7,877) | (5,837) |
Interest payable to investors | 0 | 0 | (31) |
Deferred revenue | (148) | (24) | (5,049) |
Operating lease liabilities-current | 358 | 1,050 | 0 |
Operating lease liabilities-non-current | (581) | 1,169 | 0 |
Other non-current liabilities | 0 | 0 | 3,147 |
Income tax payable | (894) | 1,482 | 9,024 |
Net cash used in operating activities from continuing operations | (11,724) | (28,402) | (20,665) |
Net cash used in operating activities from discontinued operations | (3,878) | (4,745) | (39,320) |
Cash flows from investing activities of continuing operations: | |||
Proceeds from sale of equity investment with readily determinable fair values | 0 | 0 | 8,432 |
Proceeds from sales of equity investments without readily determinable fair values | 0 | 0 | 4,585 |
Proceeds from capital withdrawal from equity method investees | 0 | 0 | 1,098 |
Proceeds from disposition of Renren SNS | 0 | 6,090 | 0 |
Proceeds from repayment of the note issued by OPI | 31,529 | 9,564 | 0 |
Purchase of equity investments without readily determinable fair values | 0 | 0 | (256) |
Purchase of long-term available-for-sale investments | 0 | 0 | (650) |
Proceeds from sales (Purchase) of short-term investments | 1,436 | (1,436) | 0 |
Proceeds from disposal of equipment and property | 58 | 111 | 60,388 |
Purchases of equipment and property | (221) | (412) | (132) |
Cash disposed of from deconsolidation of subsidiaries | 0 | (343) | 0 |
Acquisition of subsidiaries, net of cash acquired | 0 | 0 | 496 |
Loans to third parties | 0 | 0 | (1,513) |
Proceeds from repayment of third party loans | 0 | 4,086 | 0 |
Net cash provided by investing activities from continuing operations | 32,802 | 17,660 | 72,448 |
Net cash provided by investing activities from discontinued operations | 0 | 1,223 | 98,994 |
Cash flows from financing activities of continuing operations: | |||
Proceeds from exercise of share options | 1 | 8 | 526 |
Payment to investors | 1 | 0 | (5,594) |
Repayment of convertible loans issued by Kaixin | 0 | (2,347) | 0 |
Repayment of borrowings | (4,751) | (31,000) | (11,500) |
Cash distribution to shareholders related to acquisition of OPI | 0 | 0 | (168,983) |
Proceeds from borrowings | 3,289 | 10,488 | 26,500 |
Advance from KAH's non-controlling Shareholder | 0 | 3,386 | 0 |
Net cash provided by used in financing activities from continuing operations | (1,460) | (19,465) | (159,051) |
Net cash (used in) provided by financing activities from discontinued operations | 3,917 | (6,328) | (95,128) |
Net (decrease) increase in cash and cash equivalents and restricted cash from continuing operations | 19,618 | (30,207) | (107,268) |
Net (decrease) increase in cash and cash equivalents and restricted cash from discontinued operations | 39 | (9,850) | (35,454) |
Cash and cash equivalents and restricted cash at beginning of year from continuing operations | 14,733 | 43,745 | 137,476 |
Cash and cash equivalents and restricted cash at beginning of year from discontinued operations | 3,189 | 13,768 | 64,447 |
Effect of exchange rate changes | (330) | 466 | (1,688) |
Cash and cash equivalents and restricted cash at end of year from continuing operations | 34,087 | 14,733 | 43,745 |
Cash and cash equivalents and restricted cash at end of year from discontinued operations | 3,162 | 3,189 | 13,768 |
Supplemental schedule of cash flows information from continuing operations: | |||
Interest paid | 337 | 565 | 842 |
Income Taxes Paid, Net | 0 | 0 | 0 |
Supplemental schedule of cash flows information from discontinuing operations: | |||
Interest paid | 839 | 1,710 | 7,448 |
Income taxes paid | 8 | 254 | 0 |
Continuing operations | |||
Schedule of non-cash activities from continuing operations: | |||
Contingent consideration | 0 | 20,849 | 0 |
Increase in equity method investments through the settlement of amount due from a related party | 0 | 600 | 0 |
Receivable from disposition of Renren SNS | 0 | 0 | 60,000 |
Acquisition of entity through settlement of loan to a related party | 40,000 | 0 | 0 |
Schedule of non-cash activities from discontinuing operations: | |||
Contingent consideration | 0 | 20,849 | 0 |
Discontinued operations | |||
Schedule of non-cash activities from continuing operations: | |||
Contingent consideration | 0 | 0 | 14,113 |
Schedule of non-cash activities from discontinuing operations: | |||
Contingent consideration | 0 | 0 | 14,113 |
Beneficial conversion feature of a convertible loan issued by Kaixin | 0 | 2,128 | 0 |
Conversion of convertible loans issued by Kaixin to KAH's ordinary shares, including interest of $219 | 0 | 21,219 | 0 |
Acquisition of noncontrolling interest | 0 | 1,512 | 0 |
Net assets disposal of a dealership | 0 | 62 | 0 |
Net liabilities acquired in the reverse recapitalization, excluding cash acquired | 0 | 5,053 | 0 |
Acquisition of business settled by forgiveness of financing receivable | 0 | 0 | (18,345) |
Amount due to related party converted to ordinary shares | $ (4,213) | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
SNS Business | |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 60 |
OPI | |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 500 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2020 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. Renren Inc. was incorporated in the Cayman Islands. Renren Inc, its consolidated subsidiaries, variable interest entities ("VIEs") and VIEs' subsidiaries (collectively referred to as the "Company") are engaged in the SaaS business, which includes all-in-one real estate solution provider and a large community for the trucking industry in the United States. Prior to 2019, the Company was primarily engaged in the business of used car trading. Prior to 2018, the Company was also engaged in the operation of its social networking internet platform ("SNS") through which it provided online advertising services and internet value-added services ("IVAS") as well as the operation of a financial services platform to provide internet finance services. During the year ended December 31, 2018, the Company disposed of its SNS business as well as of OPI as further described below. Additionally, during the year ended December 31, 2020, the Company reached a resolution to dispose of Kaixin Auto Holdings (“Kaixin”). Disposal of Oak Pacific Investment (“OPI”) On April 30, 2018, the Company announced a series of transactions that included a cash dividend by the Company and a private placement by its subsidiary OPI, which was 100% held by the Company before the disposal. The OPI transaction was undertaken to reduce the number and aggregate size of the Company's long-term investments. At the time of the disposal, OPI held the Company's ZenZone advertising agency business as well as the majority of the Company's long-term investments. The private placement closed on June 21, 2018 and the Company completed the payment of the special cash dividend shortly thereafter. As a result, the Company disposed all shares of OPI and deconsolidated OPI on June 21, 2018. The disposal of OPI represented a strategic shift and had a major effect on the Company's results of operations. Accordingly, revenues and expenses and cash flows related to OPI have been reclassified in the accompanying consolidated financial statements as discontinued operations for all periods presented. The consolidated statements of operations and consolidated statements of cash flows for the year ended December 31, 2018 have been adjusted to reflect this change (See Note 4 ) Disposal of SNS business In December 2018, the Company disposed all of its tangible and intangibles assets related to www.renren.com and its related SNS business. The disposal of its SNS business represented a strategic shift and had a major effect on the Company's results of operations. Accordingly, revenues and expenses and cash flows related to the SNS business have been reclassified in the accompanying consolidated financial statements as discontinued operations for all periods presented. The consolidated statements of operations and consolidated statements of cash flows for the years ended December 31, 2018 have been adjusted to reflect this change (See Note 4). Disposal of Kaixin Auto Holdings In December 2020, the Company approved the binding term sheet signed between Kaixin and Haitaoche Limited (“Haitaoche”). The binding term sheet sets forth the terms and conditions by which Haitaoche will merge with a newly formed wholly-owned subsidiary of Kaixin, with Haitaoche continuing as the surviving entity and a wholly-owned subsidiary of Kaixin (the “Merger”). As consideration for the Merger, Kaixin will issue a number of ordinary shares of Kaixin to the shareholders of Haitaoche (the “Haitaoche Shareholders”) so that the Haitaoche Shareholders will collectively hold 51% of Kaixin’s share capital upon the closing of the Merger. The disposal of Kaixin represents a strategic shift and has a major effect on the Company’s result of operations. Accordingly, assets, liabilities, revenues and expenses and cash flows related to Kaixin have been reclassified in the accompanying consolidated financial statements as discontinued operations for all periods presented. The consolidated balance sheets as of December 31, 2019 and 2020, consolidated statements of operations and consolidated statements of cash flows for the years ended December 31, 2018, 2019 and 2020 have been adjusted to reflect this change (See Note 4) As of December 31, 2020, Renren Inc.'s major subsidiaries, VIEs and VIEs' subsidiaries are as follows: Later of date Percentage of of incorporation Place of legal ownership Principal Name of Subsidiaries or acquisition incorporation by Renren Inc. activities Subsidiaries: Chime Technologies, Inc.(“Chime”) September 7, 2012 USA 100 % SaaS business Trucker Path, Inc. (“Trucker Path”) December 28, 2017 USA 100 % Internet business Lucrativ Inc. January 22, 2018 USA 100 % SaaS business Lofty US, Inc. December 21, 2018 USA 100 % SaaS business Renren Giantly Philippines Inc. March, 2018 Philippines 100 % SaaS business Qianxiang Shiji Technology Development (Beijing) Co., Ltd. ("Qianxiang Shiji") March 21, 2005 PRC 100 % Investment holding Variable Interest Entities: Beijing Qianxiang Tiancheng Technology Development Co., Ltd. ("Qianxiang Tiancheng") October 28, 2002 PRC N/A Internet business Subsidiaries of Variable Interest Entities: Beijing Qianxiang Wangjing Technology Development Co., Ltd. ("Qianxiang Wangjing") November 11, 2008 PRC N/A Internet business The VIE arrangements PRC regulations currently limit direct foreign ownership of business entities providing automobile sales, value-added telecommunications services, online advertising services and internet services in the PRC where certain licenses are required for the provision of such services. Historically, the Company provided online advertising, IVAS and internet finance services through the VIE, Qianxiang Tiancheng. Qianxiang Tiancheng is referred to as the “VIE”. Qianxiang Shiji ("WFOE"), entered into a series of contractual arrangements with the VIE that enable the Company to (1) have power to direct the activities that most significantly affects the economic performance of the VIE, and (2) receive the economic benefits of the VIE that could be significant to the VIE. Accordingly, the WOFE is considered the primary beneficiary of the VIE and has consolidated the VIE’s financial results of operations, assets and liabilities in the Company's consolidated financial statements. In making the conclusion that the Company is the primary beneficiary of the VIEs, the Company believes the Company's rights under the terms of the exclusive option agreement and power of attorney are substantive given the substantive participating rights held by SB Pan Pacific Corporation as it relates to operating matters, which provide it with a substantive kick out right. More specifically, the Company believes the terms of the contractual agreements are valid, binding and enforceable under PRC laws and regulations currently in effect. In particular, the Company also believes that the minimum amount of consideration permitted by the applicable PRC law to exercise the exclusive option does not represent a financial barrier or disincentive for the Company to currently exercise its rights under the exclusive option agreement. A simple majority vote of the Company's board of directors is required to pass a resolution to exercise the Company's rights under the exclusive option agreement, for which the consent from Mr. Joe Chen, who holds the most voting interests in the Company and is also the Company's chairman and CEO, is not required. The Company's rights under the exclusive option agreement give the Company the power to control the shareholders of the VIE and thus the power to direct the activities that most significantly impact the VIE's economic performance. In addition, the Company's rights under the powers of attorney also reinforce the Company's abilities to direct the activities that most significantly impact the VIE’s economic performance. The Company also believes that this ability to exercise control ensures that the VIE will continue to execute and renew service agreements and pay service fees to the Company. By charging service fees at the sole discretion of the Company, and by ensuring that service agreements are executed and renewed indefinitely, the Company has the rights to receive substantially all of the economic benefits from the VIE. The VIE and its subsidiaries hold the requisite licenses and permits necessary to conduct the Company's business under the current business arrangements. The contractual agreements below provide the Company with the power to direct the activities that most significantly affect the economic performance of the VIE and enable the Company to receive substantially all of economic benefits and absorb the losses of the VIE. (1) Power of Attorney: WFOE hold irrevocable power of attorney executed by the legal owners of the VIE to exercise their voting rights on, including but not limited to dividend declaration, all matters at meetings of the legal owners of the VIE and through such power of attorney has the right to control the operations of the VIE. The power of attorney for Qianxiang Tiancheng will remain in force for ten years until December 22, 2020, and will be automatically renewed upon the extension of the terms of the relevant business operations agreements until the earlier of the following events: (i) nominee loses his/her position in Qianxiang Shiji or Qianxiang Shiji issue a written notice to dismiss or replace nominee; and (ii) the business operations agreements among Qianxiang Shiji, Qianxiang Tiancheng and Qianxiang Tiancheng's shareholders terminate or expire. The VIE agreements were extended for another ten years since December 22, 2020. (2) Business Operations Agreement: The business operations agreements specifically and explicitly grant WFOE the principal operating decision making rights, such as appointment of the directors and executive management, of the VIEs. The terms of the business operations agreements for Qianxiang Tiancheng are ten years and will be extended automatically for another ten years unless the WFOE provide a 30‑day advance written notice to the VIE and to each of the VIE’s shareholders requesting not to extend the term three months prior to the expiration dates of December 22, 2020. The agreements were extended for another ten years since December 22, 2020. Neither the VIE nor any of the VIE’s shareholders may terminate the agreements during the terms or the extensions of the terms. (3) Exclusive Equity Option Agreement : Under the exclusive equity option agreement, the WFOE have the exclusive right to purchase the equity interests of the VIE from the registered legal equity owners as far as PRC regulations permit a transfer of legal ownership to foreign ownership. The WFOE can exercise the purchase right at any portion and any time in the 10‑year agreement period. Without the WFOE's consent, the VIE's shareholders shall not transfer, donate, pledge, or otherwise dispose their equity shareholdings in the VIE in any way. The equity option agreement will remain in full force and effect until the earlier of: (i) the date on which all of the equity interests in the VIE have been acquired by the respective WFOE or its designated representative(s); or (ii) the receipt of the 30-day advance written termination notice issued by the respective WFOE to the shareholders of the VIE. The term of these agreements will be automatically renewed upon the extension of the term of the relevant exclusive equity option agreement. (4) Spousal Consent Agreement: The spouse of each of the shareholders of Qianxiang Tiancheng acknowledged that certain equity interests of Qianxiang Tiancheng held by and registered in the name of his/her spouse will be disposed of pursuant to the equity option agreements. These spouses understand that such equity interests are held by their respective spouse on behalf of Qianxiang Shiji, and they will not take any action to interfere with the disposition of such equity interests, including, without limitation, claiming that such equity interests constitute communal property of marriage. (5) Exclusive Technical and Consulting Services Agreement : The WFOE and registered shareholders irrevocably agree that the WFOE shall be the exclusive technology service provider to the VIE in return for a service fee which is determined at the sole discretion of the WFOE. The term of each of agreement is ten years and will be extended automatically for another ten years unless terminated by the WFOE. The WFOE can terminate the agreement at any time by providing a 30‑day prior written notice. Qianxiang Tiancheng is not permitted to terminate the agreements prior to the expiration of the terms by December 22, 2020, unless the WFOE fail to comply with any of their obligations under this agreement and such breach makes the WFOE unable to continue to perform the agreements. The VIE agreement was extended for another ten years since December 22, 2020. (6) Intellectual Property License Agreement: The WFOE and registered shareholders agree that the WFOE shall have the exclusive right to license its intellectual property rights to the VIE in return for a license fee. The license fee is determined at the discretion of the Company. The term of these agreements will be automatically renewed upon the extension of the term of the relevant intellectual property license agreement. The term of the agreement will be extended for another five years with both parties' consents. The WFOE may terminate the agreement at any time by providing a 30‑day prior written notice. Any party may terminate the agreement immediately with written notice to the other party if the other party materially breaches the relevant agreement and fails to cure its breach within 30 days from the date it receives the written notice specifying its breach from the non-breaching party. The parties will review the agreement every three months and determine if any amendment is needed. (7) Loan Agreements: Under loan agreements between the WFOE and each of the shareholders of the VIE, the WFOE made interest-free loans to the shareholders exclusively for the purpose of the initial capitalization and the subsequent financial needs of the VIE. The loans can only be repaid with the proceeds derived from the sale of all of the equity interests in the VIE to the WFOE or their designated representatives pursuant to the equity option agreements. The term of each of these loans is ten years from the actual drawing down of such loans by the shareholders of the VIE, and will be automatically extended for another ten years unless a written notice to the contrary is given by the WFOE to the shareholders of the VIE three months prior to the expiration of the loan agreements. (8) Equity Interest Pledge Agreement: Shareholders of the VIE have pledged all of their equity interests in the VIE with their respective WFOE and the WFOE are entitled to certain rights to sell the pledged equity interests through auction or other means if the VIE or the shareholders default in their obligations under other above-stated agreements. These agreements are substantially the same, and that the equity interest pledge has become effective and will expire on the earlier of: (i) the date on which the VIE and their shareholders have fully performed their obligations under the loan agreements, the exclusive technical service agreement, the intellectual property right license agreement and the equity option agreements; (ii) the enforcement of the pledge by the WFOE pursuant to the terms and conditions under this agreement to fully satisfy its rights under such agreements; or (iii) the completion of the transfer of all equity interests of the VIE by the shareholders of the VIE to another individual or legal entity designated by the WFOE pursuant to the equity option agreement and no equity interests of the VIE are held by such shareholders. Risks in relation to the VIE structure The Company and the Company's legal counsel believe that Qianxiang Shiji 's contractual arrangements with the VIE are in compliance with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company's ability to enforce these contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: · Revoke the business and operating licenses of the WFOE, the VIE and their subsidiaries; · Discontinue or restrict the operations of any related-party transactions among the WFOE, the VIE and their subsidiaries; · Impose fines or other requirements on the WFOE, the VIE and their subsidiaries; · Require the WFOE, the VIE and their subsidiaries to revise the relevant ownership structure or restructure operations; and/or · Restrict or prohibit the Company’s use of the proceeds of the additional public offering to finance the Company’s business and operations in China. The Company’s ability to conduct its used car trading business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Company may not be able to consolidate the VIE and the VIE’s subsidiaries in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and the VIE’s subsidiaries and shareholders, and it may lose the ability to receive economic benefits from the VIE and the VIE’s subsidiaries. Certain shareholders of the VIE are also shareholders of the Company. The interests of the shareholders of the VIE may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms, for example by influencing the VIE not to pay the service fees when required to do so. The Company cannot assure that when conflicts of interest arise, shareholders of the VIE 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 the shareholders of the VIE may encounter in their capacity as beneficial owners and directors of the VIE. The Company believes the shareholders of the VIE will not act contrary to any of the contractual arrangements and the exclusive option agreements provide the Company with a mechanism to remove the current shareholders of the VIE as beneficial shareholders of the VIE should they act to the detriment of the Company. The Company relies on the current shareholders of VIE whom also are directors and executive officers of the Company, to fulfill their fiduciary duties and abide by laws of Cayman Islands and act in the best interest of the Company or that conflicts will be resolved in the Company’s favor. If the Company cannot resolve any conflicts of interest or disputes between the Company and the shareholders of the VIE, the Company would have to rely on legal proceedings, which could result in disruption of its business, and there is substantial uncertainty as to the outcome of any such legal proceedings. The Company's ability to control the VIE also depends on the power of attorney that the WFOE have to vote on all matters requiring shareholder approval in the VIE. As noted above, the Company believes this power of attorney is legally enforceable but may not be as effective as direct equity ownership. The following financial statement balances and amounts of the Company’s VIEs were included in the accompanying consolidated financial statements after elimination of intercompany balances and transactions between the offshore companies, WFOE, VIE and VIE’s subsidiaries. As of December 31, 2019 and 2020, the balance of the amounts payable by the VIE and their subsidiaries to the WFOE related to the service fees were $ nil. As of December 31, 2019 2020 Cash and cash equivalents $ 264 $ 955 Short-term investment 1,436 — Accounts receivable, net 218 175 Prepaid expenses and other current assets 1,537 647 Amounts due from related parties 688 764 Total current assets 4,143 2,541 Property and equipment, net 183 178 Long-term investments 1,799 41,794 Goodwill — — Amount due from a related party - non-current 40,000 — Restricted cash – non-current 358 — Right-of-use assets 1,122 659 Other non-current assets 660 76 Total non-current assets 44,122 42,707 Total assets $ 48,265 $ 45,248 Accounts payable $ 413 $ 299 Short-term debt (including short-term debt of the consolidated VIEs with recourse to Renren Inc. of $7,900 as of December 31, 2019) 3,447 — Accrued expenses and other current liabilities 7,467 6,409 Operating lease liabilities - current 217 341 Payable to investors 14 15 Amounts due to related parties 774 690 Deferred revenue 15 16 Income tax payable 4,647 3,321 Total current liabilities 16,994 11,091 Operating lease liabilities - non-current — 256 Total non-current liabilities — 256 Total liabilities $ 16,994 $ 11,347 Years ended December 31, 2018 2019 2020 Revenues $ 57,896 $ 6,581 $ 433 (Loss) income from continuing operations $ (43,743) $ (31,953) $ 1,874 Loss from discontinued operations $ (4,626) $ — $ — Years ended December 31, 2018 2019 2020 Net cash (used in) provided by operating activities $ (5,970) $ (1,170) $ 2,031 Net cash (used in) provided by investing activities $ (1,461) $ 8,735 $ 1,566 Net cash provided by (used in) financing activities $ 4,825 $ (10,340) $ (3,088) The VIEs contributed an aggregate of 86.7%, 43.6% and 2.4% of the consolidated revenues for the years ended December 31, 2018, 2019 and 2020, respectively. As of December 31, 2019 and 2020, the VIEs accounted for an aggregate of 22.6% and 21.3%, respectively, of the consolidated total assets, and 20.0% and 14.4%, respectively, of the consolidated total liabilities. The assets not associated with the VIEs primarily consist of cash and cash equivalents, restricted cash, amounts due from related parties - non-current, and long-term investments. 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 shareholders of the VIEs or entrustment loans to the VIEs. Relevant PRC laws and regulations restrict the VIEs from transferring a portion of its net assets, equivalent to the balance of its statutory reserve and its share capital, to the Company in the form of loans and advances or cash dividends. Please refer to Note 19 for disclosure of restricted net assets. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. (a) The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). (b) Liquidity The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. For the years ended December 31, 2020, 2019 and 2018, the Company incurred a loss from operations of $27,227, $57,407 and $79,327, and used cash of $11,724, $28,402 and $82,966 in operating activities, respectively. As of December 31, 2020, the Company had working capital of $7,844.In January 2021, the Company received a payment of approximately $68,000 from OPI, a related party of the Company, for the principal and interests of a promissory note issued on June 21, 2018. Including this payment, the Company has the ability to continue as a going concern for the next 12 months following the issuance date of these financial statements. (c) The consolidated financial statements of the Company include the financial statements of Renren Inc., its subsidiaries, its VIE and VIE’s subsidiaries. All inter-company transactions and balances are eliminated upon consolidation. (d) The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the reported amounts of revenues and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Company's consolidated financial statements include, but are not limited to, revenue recognition, allowance for doubtful accounts, write downs for excess and obsolete inventories, the discount rate used to determine the present value of the lease payments, the fair value of share-based compensation awards, the realization of deferred income tax assets, impairment of goodwill and indefinite-lived intangible assets, fair value of short-term and long-term investments, impairment of long-term investments, and the price purchase allocation and the fair value of contingent consideration for business acquisitions. (e) Cash and cash equivalents include cash on hand and all highly liquid investments purchased with original stated maturity of 90 days or less. (f) Restricted cash consists of cash deposits used to secure debt borrowings of the Company which is expected to be released in accordance with the debt agreement. The restriction will lapse when the related debt agreement is paid off. The current portion of restricted cash represents cash deposited into bank accounts which is expected to be released within the next twelve months. The non-current portion of restricted cash represents cash deposited into bank accounts which is not expected to be released within the next twelve months. As of December 31, 2019 2020 Cash and cash equivalents $ 1,283 $ 19,630 Restricted cash 13,091 14,457 Restricted cash – non-current 358 — Total cash, cash equivalents and restricted cash shown in the statements of cash flow $ 14,732 $ 34,087 (g) Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company 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‑inputs are based upon unadjusted quoted prices for identical assets or liabilities traded in active markets. · Level 2‑inputs are based upon quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3-inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. (h) Investments Equity method investments Equity investment in common stock or in-substance common stock of an entity where the Company can exercise significant influence, but not control, is accounted for using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock of the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements are also considered in determining whether the equity method of accounting is appropriate. An investment in in-substance common stock is an investment in an entity that has risk and reward characteristics that are substantially similar to that entity’s common stock. The Company considers subordination, risks and rewards of ownership and obligation to transfer value when determining whether an investment in an entity is substantially similar to an investment in that entity’s common stock. Under the equity method, the investment is initially recorded at cost and adjusted for the Company's share of undistributed earnings or losses of the investee. Investment losses are recognized until the investment is fully written down as the Company does not guarantee the investee's obligations nor it is committed to provide additional funding. When the Company's carrying value in an equity method affiliated company is reduced to zero, no further losses are recorded in the Company's consolidated financial statements unless the Company guaranteed obligations of the affiliated company or has committed additional funding. When the affiliated company subsequently reports income, the Company will not record its share of such income until it exceeds the amount of its share of losses not previously recognized. The Company’s management regularly evaluates the impairment of the equity investment based on performance and the financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee's cash position, recent financings, projected and historical financial performance, cash flow forecasts and financing needs. An impairment charge is recorded when the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary ("OTTI"). The Company recorded impairment losses on equity method investments of $nil, $6,155 and $nil in the earnings (loss) in equity method investments, net of tax in the consolidated statements of operations for the years ended December 31, 2018, 2019 and 2020, respectively. Equity Investments without Readily Determinable Fair Values In January 2018, the Company adopted Accounting Standards Update (‘‘ASU’’) 2016‑01, Financial Instruments—Recognition and Measurement of Financial Assets and Financial Liabilities, and accounts for equity investments that do not have a readily determinable fair value using the measurement alternative prescribed within ASU 2016‑01, to the extent such investments are not subject to consolidation or the equity method. Under the measurement alternative, these financial instruments are carried at cost, less any impairment (assessed quarterly), plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. In addition, income is recognized when dividends are received only to the extent they are distributed from net accumulated earnings of the investee. Otherwise, such distributions are considered returns of investment and are recorded as a reduction of the cost of the investment. The Company did not record impairment losses on equity securities without readily determinable fair values during the years ended December 31, 2018, 2019 and 2020. Equity Investments with Readily Determinable Fair Values All equity investments with readily determinable fair values (other than those accounted for using the equity method of accounting) are measured at fair value with changes in fair value recorded in the consolidated statements of operations. Available-for-sale investment For investments which are determined to be debt securities, the Company accounts for them as available-for-sale investments when they are not classified as either trading or held-to-maturity investments. Available-for-sale investment is carried at its fair value and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive (loss) income. The Company reviews its available-for-sale investments for other than temporary impairment based on the specific identification method. The Company considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Company 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, the Company’s intent and ability to hold the investment, and the financial condition and near term prospects of the investees. If there is OTTI on debt securities, the Company separates the amount of the OTTI into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings, which represents the difference between a security’s amortized cost basis and the discounted present value of expected future cash flows. The amount due to other factors is recognized in other comprehensive (loss) income if the entity neither intends to sell and will not more likely than not be required to sell the security before recovery before December 15, 2019. The difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income. After December 15, 2019, unrealized gains and losses (OTTI) are reported, net of the related tax effect, in other comprehensive income (OCI). Upon sale, realized gains and losses are reported in net income. The Company monitors the investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, the operating performance of the companies including current earnings trends and other company-specific information. The Company recorded impairment losses on its available-for-sale investment of $nil, $2,000 and $nil for the years ended December 31, 2018, 2019 and 2020, respectively. (i) Accounts receivable represents those receivables derived in the ordinary course of business. An allowance for doubtful accounts is provided based on aging analyses of accounts receivable balances, historical bad debt rates, repayment patterns and customer credit worthiness. (j) Inventory primarily consists of the purchased electronic logging device for use of SaaS related business, which are stated at the lower of cost and net realizable value as of December 31, 2019 and 2020. For electronic logging device, a valuation allowance is recorded to write down the cost of inventories to the estimated net realizable value, if lower, due to slow-moving or damaged products, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. Net realizable value is determined by the estimated selling prices offset by estimated additional cost of sale, selling expenses and business taxes. There was no valuation allowance provided for the inventory of continued operation as of December 31, 2020 and 2019. Prior to the disposal of the Ji’nan Dealership in 2018, the Company had used car inventory. In August 2018, Shandong Jieying Huaqi Auto Service Co. ("Ji’nan Dealership", a subsidiary of the Company's VIE's) received a notice from the local police regarding an investigation of the dealership's premises. Certain assets of Ji’nan Dealership were not accessible pursuant to the investigation. In connection with these events, the Company determined that it is probable that it cannot enforce the realization of the inventory value at the Ji’nan Dealership. As a result, the Company wrote off all inventory which totaled US$5.7 million and recorded it in cost of revenues during the year ended December 31, 2018. In 2019, due to disagreements with certain non-controlling shareholders of Kaixin on operational matters, some non-controlling shareholders detained Kaixin’s inventories in the dealerships and significant uncertainty arises on the realizability and collectability of the prepayments to purchase used cars for these dealerships and amounts due from these non-controlling shareholders. Kaixin is in the process of negotiating with these non-controlling shareholders and initiated legal proceedings where necessary. Considering the above facts and circumstances, Kaixin reassessed the realizability of all its inventory and assets related to its dealerships and wrote down US$17,826 inventory, which was recoded in cost of revenues in the discontinued operations, and write-offs of US$22,282 prepayments, which was recorded in general and administrative expenses in discontinued operations. (k) Property and equipment, net is carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Server & Network Equipment 3 years Computer equipment and application software 2‑3 years Furniture and vehicles 3-5 years Leasehold improvements Over the lesser of the lease term or useful life of the assets (l) The Company leases premises for offices under non-cancellable operating leases. Prior to January 1, 2019, operating leases were not recognized on the balance sheet of the Company, but payments made under operating lease were charged to the consolidated statements of operations on a straight-line basis over the term of underlying lease. Leases with escalated rent provisions were recognized on a straight-line basis commencing with the beginning of the lease term. There is no capital improvement funding, lease concessions or contingent rent in the lease agreements. The Company has no legal or contractual asset retirement obligations at the end of the lease term. The Company adopted Accounting Standards Codification Topic 842, Leases ("ASC 842") as of January 1, 2019, using a modified retrospective method for leases that exist at, or are entered into after, January 1, 2019, and has not recast the comparative periods presented in the consolidated financial statements. The adoption of ASC 842 requires the recognition of right-of-use assets and lease liabilities on the balance sheet for both operating and finance leases. The Company elected the package of practical expedients that not to reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases, and (3) initial direct costs for any expired or existing leases. The Company also elected the hindsight practical expedient to determine the reasonably certain lease term for existing leases. Upon the adoption of ASC 842, the Company recognized the right-of-use assets and lease liabilities of approximately US$3,441 and US$2,429, respectively, as of January 1, 2019. The Company used its estimated incremental borrowing rates based on information available at the date of adoption in calculating the present value of its existing lease payments. The following table summarizes the effect on the consolidated balance sheet as a result of adopting ASC 842. As of December As of 31, Effect of January 2018 Adoption 1, 2019 Right-of-use assets $ — $ 3,441 $ 3,441 Operating lease liabilities - current — (1,529) (1,529) Operating lease liabilities - non-current — (899) (899) Prepaid expenses and other current assets 10,801 (1,013) 9,788 Accrued expenses and other current liabilities (22,411) — (22,411) Upon adoption of ASC 842, the lease liabilities are recognized upon lease commencement for operating leases based on the present value of lease payments over the lease term. The right-of-use assets are initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. As the rates implicit in the lease cannot be readily determined, the incremental borrowing rates at the lease commencement date are used in determining the imputed interest and present value of lease payments. The incremental borrowing rates were determined using a portfolio approach based on the rates of interest that the Company would have to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company recognizes the single lease cost on a straight-line basis over the remaining lease term for operating leases . The Company has elected not to recognize right-of-use assets or lease liabilities for leases with an initial term of 12 months or less; expenses for these leases are recognized on a straight-line basis over the lease term. (m) Long-lived assets, such as property and equipment and definite-lived intangible assets are stated at cost less accumulated depreciation or amortization. Depreciation and amortization is computed using the straight-line method. The Company evaluates the recoverability of long-lived assets, including identifiable intangible assets, with determinable useful lives whenever events or changes in circumstances indicate that an intangible asset’s carrying amount may not be recoverable. The Company measures the carrying amount of long-lived asset against the estimated undiscounted future cash flows associated with it. Impairment exists when the sum of the expected undiscounted future net cash flows is less than the carrying value of the asset being evaluated. Impairment loss is calculated as the amount by which the carrying value of the asset exceeds its fair value. Fair value is estimated based on various valuation techniques, including the discounted value of estimated future cash flows. The evaluation of asset impairment requires the Company to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. For the years ended December 31, 2018, 2019 and 2020, the Company recorded impairment losses of $675, $nil and $nil for definite-lived intangible assets, respectively. (n) Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill is not amortized, but tested for impairment annually, or more frequently if event and circumstances indicate that they might be impaired. The Company has an option to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. Based on the qualitative assessment, if it is more likely than not that the fair value of each reporting unit is less than the carrying amount, the quantitative impairment test is performed. The Company has adopted Accounting Standards Update ("ASU") 2017-04, Simplifying the Test for Goodwill Impairment, for annual goodwill impairment tests from January 1, 2019. This guidance removes Step 2 of the goodwill impairment test, which required the estimation of an implied fair value of goodwill in the same manner as the calculation of goodwill upon a business combination. Under the new amendments, the Company’s goodwill impairment review involves the following steps: 1) qualitative assessment – evaluate qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. The factors the Company considers include, but are not limited to, macroeconomic conditions, industry and market considerations, cost factors, financial performance or events-specific to that reporting unit. If or when the Company determines it is more likely than not that the fair value of a reporting unit is less than the carrying amount, including goodwill, the Company would move to the quantitative method; 2) quantitative method –the Company performs the quantitative fair value test by comparing the fair value of a reporting unit with its carrying amount and an impairment charge is measured as the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The fair value of each reporting unit is estimated using the income approach. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, and assumptions that are consistent with the plans and estimates being used to manage the Company's business, estimation of the long-term rate of growth for the Company's business, estimation of the useful life over which cash flows will occur, and determination of the Company's weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for the reporting unit. The Company recorded goodwill impairment from continued operations of $29,055, $9,288 and $nil, and $nil, $74,091 and $nil from discontinued operations for the years ended December 31, 2018, 2019 and 2020, respectively. (o) The Company recognizes revenue when control of the good or service has been transferred to the customer, generally upon delivery to a customer. The contracts have a fixed contract price and revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. The Company collect value added tax and other taxes from customers on behalf of governmental authorities at the time of sale. These taxes are accounted for on a net basis and are not included in revenues and cost of revenues. The Company generally expenses sales commissions when incurred because the amortization period is less than one year. These costs are recorded within selling expenses. The Company does not have any significant financing payment terms as payment is received at or shortly after the point of sale. The Company adopted the Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”) on January 1, 2018 using the modified retrospective method. ASC 606 prescribes a five-step model that includes: (1) identify the contract; (2) identify the performance obligations; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when (or as) performance obligations are satisfied. Based on the manner in which the Company historically recognized revenue, the adoption of ASC 606 did not have a material impact on the amount or timing of its revenue recognition and the Company recorded no cumulative effect adjustment upon adoption. Additionally, the Company concluded that revenue generated from internet finance services is excluded from the scope of the new revenue standard as it represents revenue within the scope of ASC 310, Receivables, which is explicitly excluded from the scope of ASC 606. The Company's revenues include revenue from its automobile sales, SaaS business as well as revenue from other services. Automobile sales The Company purchases automobiles from unrelated individuals, third party dealerships or manufacturers and suppliers and sells them directly to its customers through the Ji’nan Dealership. The prices of used vehicles are set forth in the customer contracts which are agreed prior to delivery. The Company satisfies its performance obligation for used vehicle sales upon delivery whereby customers pick up the vehicles from the dealership. The Company recognizes revenue at the agreed upon purchase price stated in the contract. The Company ceased selling vehicles in 2018. SaaS revenue The SaaS revenue mainly include the revenue generated from the subscription services and advertising services provided by 1) the all-in-one real estate solution provider, Chime and 2) a transportation network company specializing in online and mobile services for the trucking industry, Trucker Path. The Company recognizes revenue for subscription services over the subscription periods. For Chime’s advertising service, the Company acts as an agent to place advertisement on the third-party website or platforms. For Trucker Path’s advertising service, the Company acts as principal to place advertisement on Trucker Path’s APP. The Company recognizes revenue for advertising services over the advertising periods. Other services Other services mainly include IVAS revenues and other revenues. The Company’s IVAS revenues mainly include live streaming revenue. The Company designs, creates and offers various virtual items for sales to users with pre-determined stand-alone selling price. Revenue related to each of consumable virtual items as a single performance obligation provided on a consumption basis, is recognized at the point in time when the virtual item is transferred directly to the users and consumed by them. The Company ceased the live streaming business since June 2019. Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represents amounts invoiced and revenue recognized prior to invoicing when the Company has satisfied the Company’s performance obligation and has the unconditional right to payment. The balance of accounts receivable, net of allowance for doubtful accounts were $430 and $474 as of December 31, 2019 and 2020, respectively. There were no contract assets recorded as of December 31, 2019 and 2020. Deferred revenue mainly consists of payments received from customers related to unsatisfied performance obligations for SaaS and IVAS business. The Company’s total deferred revenue was $740 and $602 as of December 31, 2019 and 2020, which is expected to be recognized as revenue within one year. The Company applied a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. These costs include certain commissions paid to intermediaries of automobile sales. The Company has no material incremental costs of obtaining contracts with customers that the Company expects the benefit of those costs to be longer than one year which need to be recognized as assets. (p) Cost of revenues consists of costs directly related to SaaS business, IVAS business and others service. (q) Value-added taxes ("VAT") is also reported as a deduction to revenue when incurred and amounted to $4,949, $1,034 and $599 for the years ended December 31, 2018, 2019 and 2020, respectively. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in accrued expense and other current liabilities on the consolidated balance sheet. (r) Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax basis of assets and liabilities and their reported amounts in the financial statements and are recorded as non-current in the consolidated balance sheet. Net operating loss carry forwards and credits are applied using 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 a portion of or all of the deferred tax assets will not be realized. The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. The Company did not recognize any income tax due to uncertain tax position or incur any interest and penalties related to potential underpaid income tax expenses for the years ended December 31, 2018, 2019 and 2020, respectively. (s) Financial instruments include cash and cash equivalents, restricted cash, accounts receivable, short-term investments, long-term investments, amounts due from/to related parties, accounts payable, short-term debt, payable to investors and long-term debt. (t) Research and development expenses are primarily incurred for development of new services, features and products for the Company's SaaS business, as well as to further improve the Company's technology infrastructure to support these businesses. The Company has expensed all research and development costs when incurred. (u) The functional and reporting currency of the Company is the United States dollar ("US dollar"). The financial records of the Company's subsidiaries and VIEs located in the PRC, Hong Kong and Philippines are maintained in their local currencies, Renminbi ("RMB"), Hong Kong Dollar ("HKD") and Philippines Peso (“PHP”), respectively, which are also the functional currencies 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 Company's entities with functional currency of RMB, HKD and PHP, translate their operating results and financial positions into US dollar, the Company's reporting currency. Assets and liabilities are translated using the exchange rates in effect on the balance sheet date. Equity amounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated using the average rates for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as accumulated other comprehensive income (loss). (v) Comprehensive (loss) income includes net (loss) income, foreign currency translation adjustments and fair value changes of available-for-sale investments of the Company. Additionally, the Company's consolidated statement of comprehensive (loss) income also includes the cumulative effect adjustment for the net unrealized loss of equity securities with determinable fair value from accumulated other comprehensive income to the opening balance of accumulated deficit related to the adoption of ASU 201 |
SIGNIFICANT RISKS AND UNCERTAIN
SIGNIFICANT RISKS AND UNCERTAINTIES | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT RISKS AND UNCERTAINTIES | |
SIGNIFICANT RISKS AND UNCERTAINTIES | 3. SIGNIFICANT RISKS AND UNCERTAINTIES Foreign currency risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People's Bank of China, controls the conversion of RMB into foreign currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. Cash and cash equivalents of the Company included aggregate amounts of $315 and $3,418 at December 31, 2019 and 2020, respectively, which were denominated in RMB. All restricted cash and restricted cash-non-current as of December 31, 2020 were denominated in RMB. Concentration of credit risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash, short-term investments, accounts receivable, and amounts due from related parties. The Company places their cash, cash equivalents, restricted cash, and short-term investments, with financial institutions with high-credit ratings and quality. There were no customers that accounted for 10% or more of total revenue for the years ended December 31, 2018, 2019 and 2020. No customers accounted for 10% or more of the balance of accounts receivable as of December 31, 2019 and 2020. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2020 | |
DISCONTINUED OPERATIONS | |
DISCONTINUED OPERATIONS | 4. DISCONTINUED OPERATIONS Disposition of Renren SNS In November 2018, the Company’s Board of Directors approved a proposal of sale of its SNS Business which comprise of www.renren.com and its social networking service business which includes the Company's SNS platform as well as its mobile live streaming to Beijing Infinities for a combined consideration of US$20 million in cash and US$40 million in the form of Beijing Infinities shares to be issued to the Company. The disposal was completed on December 29, 2018 and as a result, the Company deconsolidated its SNS Business on that date. The Company concluded that the disposal of the SNS Business represented a strategic shift of the Company's operations where the Company would no longer focus on social networking but would rather focus on its used car business in China as well as its businesses outside of China. Accordingly, assets, liabilities, revenues and expenses and cash flows related to the Company's SNS Business have been reclassified in the accompanying consolidated financial statements as discontinued operations for all the periods presented. The Company collected $6.8 million in 2019, however, by December 31, 2019, Beijing Infinities failed to make payments under the agreed extended repayment plan. Based on assessment of the collectability, the Company provided an allowance of US$12.6 million for the receivable. Additionally, the shares receivable in the form of Infinites Technology (Cayman) Holding Limited, which is the holding company of Beijing Infinities, were received as of December 31, 2020 and were recorded as long-term investments in the consolidated balance sheets as of December 31, 2020. On December 29, 2018, the Company calculated a gain regarding the disposal of the SNS Business as follows. As of December 31, 2018 Total proceeds $ 60,000 Less: Property and equipment, net 8 Net assets of Renren SNS 8 Less: Accumulated other comprehensive income 336 Less: Tax expenses — Gain on deconsolidation of Renren SNS $ 59,656 The condensed cash flow from operating of Renren SNS Business were US$1,437 used in operation activities for the year ended December 31, 2018. The condensed cash flow from investing of Renren SNS Business were immaterial. For the year ended December 31, 2019, the net cash flow provided by operating activities of Renren SNS Business were US$681. Disposition of OPI On April 30, 2018, the Company announced that OPI will offer newly issued ordinary shares of OPI in a private placement to those shareholders of Renren as of the Record Date who satisfy all three of the following criteria: (1) the shareholder is an “accredited investor,” as such term is defined under the U.S. Securities Act of 1933, as amended, (2) the shareholder is a “qualified purchaser,” as such term is defined under the U.S. Investment Company Act of 1940, as amended, and (3) the shareholder is not a resident of a jurisdiction where the offering would be illegal. Additionally, the Company also announced a cash dividend payable by Renren to all shareholders other than those shareholders who waive the cash dividend in connection with the private placement described above. The amount of the cash dividend was US$0.6125 per ordinary share of Renren. The cash dividend and the private placement are part of an integrated series of transactions designed to address concerns that Renren may be deemed to be an investment company within the meaning of the Investment Company Act. The disposition was consummated on June 21, 2018 with an issuance of a total of 816,261,781 ordinary shares of OPI on June 21, 2018 to those eligible shareholders of Renren as of June 14, 2018 who validly waived the cash dividend in connection with the private placement. In addition, on June 21, 2018, US$133.7 million of cash dividends, with US$0.6125 per ordinary share of Renren, was paid to the Company's shareholders who were not accredited investors and elected to no longer remain investors of OPI subsequent to the private placement transaction. After the transaction, the Company no longer held any shares of OPI and OPI was deconsolidated from the Company's consolidated financial statements. Additionally, the Company concluded that the disposal of OPI represents a non-pro rata distribution of shares of OPI to selected shareholders combined with a cash dividend to the remaining shareholders. Accordingly, the Company has accounted the disposal at fair value. On June 30, 2018, the Company calculated a gain regarding such disposition as follows: As of June 30, 2018 Fair value of OPI $ 500,000 Less: Cash and cash equivalents 35,274 Accounts and notes receivable, net 64 Prepaid expenses and other current assets 16,344 Property and equipment, net 12 Amount due from the Company 15,190 Equity method investments 268,515 Equity investments without readily determinable fair values 144,096 Available-for-sale investment 90,615 Other non-current assets 14 Short term loan (14,336) Accounts payable (96) Accrued expenses and other current liabilities (872) Amount due to the Company (102,304) Deferred revenue (13) Income tax payable (910) Long-term liabilities (112,604) Other Long-term liabilities (21,430) Net assets of OPI 317,559 Less: tax expenses — Gain on deconsolidation of OPI $ 182,441 The condensed cash flow of OPI were as follows for the year ended December 31, 2018: Year ended December 31, 2018 Net cash used in operating activities $ (28,134) Net cash provided by investing activities $ 12 Net cash provided by financing activities $ 60,000 Disposition of Kaixin In December 2020, the Company approved the binding term sheet signed between Kaixin and Haitaoche Limited (“Haitaoche”). The binding term sheet sets forth the terms and conditions by which Haitaoche will merge with a newly formed wholly-owned subsidiary of Kaixin, with Haitaoche continuing as the surviving entity and a wholly-owned subsidiary of Kaixin (the “Merger”). As consideration for the Merger, Kaixin will issue a number of ordinary shares of Kaixin to the shareholders of Haitaoche (the “Haitaoche Shareholders”) so that the Haitaoche Shareholders will collectively hold 51% of Kaixin’s share capital upon the closing of the Merger. The disposal of Kaixin represents a strategic shift and has a major effect on the Company’s result of operations. Accordingly, assets, liabilities, revenues and expenses and cash flows related to Kaixin have been reclassified in the accompanying consolidated financial statements as discontinued operations for all periods presented. Additionally, long-lived assets classified as held for sale as of December 31, 2020 were measured at the lower of their carrying amount or fair value less cost to sell. As a result of the disposition of Kaixin, the Company reevaluated its operating segments. Refer to Note 16. The following table summarizes the carrying amounts of the major classes of assets and liabilities held for sale in the consolidated balance sheet as of December 31, 2019 and 2020: As of December 31, 2019 2020 Cash and cash equivalents $ 3,190 $ 3,162 Financing receivable, net 219 — Inventory 20,990 — Prepaid expenses and other current assets 27,586 43,624 Property and equipment, net 153 45 Right-of-use assets 2,252 74 Other non-current asset — 1,562 Assets classified as held for sale $ 54,390 $ 48,467 Accounts payable 4,122 402 Accrued expenses and other current payables 17,302 14,683 Amount due to related parties 4,214 2,960 Short-term debt 16,630 15,257 Income tax payable 5,319 4,042 Advance from customers 1,677 1,863 Lease liabilities– current 1,785 39 Warrant Liability - 1,690 Lease liabilities – non-current 810 26 Liabilities classified as held for sale $ 51,859 $ 40,962 The condensed cash flows of Kaixin Auto Holdings were as follows for the years ended December 31, 2018, 2019 and 2020: Years ended December 31, 2018 2019 2020 Net cash used in operating activities (9,749) (4,745) (3,878) Net cash provided by investing activities 98,982 1,223 — Net cash (used in) provide by financing activities (138,637) (6,328) 3,917 The operating results from discontinued operations included in the Company's consolidated statement of operations were as follows for the years ended December 31, 2018, 2019 and 2020. Years ended December 31, 2018 2019 2020 Renren SNS OPI Kaixin Total Kaixin Kaixin Major classes of line items constituting pretax profit of discontinued operations Net revenues $ 19,679 $ 895 $ 431,404 $ 451,978 $ 334,697 $ 33,160 Cost of revenues (14,997) (834) (413,971) (429,802) (340,174) (32,160) Selling, research and development, and general and administrative expenses (7,523) (1,394) (51,508) (60,425) (53,866) (7,256) Other income (expense) — 371 (812) (441) 840 586 Interest income — 575 575 69 5 Interest expense — (3,142) (4,261) (7,403) (4,057) (1,183) Impairment of goodwill — — — — (74,091) — Impairment of long-term investments — (2,180) — (2,180) — — Fair value change of contingent consideration — — (49,503) (49,503) 65,594 — Loss from the operations of the discontinued operations, before income tax (2,841) (6,284) (88,076) (97,201) (70,988) (6,848) Income tax (expenses) benefit — — (862) (862) 1,920 1,528 Loss of equity method investment — (9,674) — (9,674) — — Loss from the operations of the discontinued operations, net of tax (2,841) (15,958) (88,938) (107,737) (69,068) (5,320) Gain on deconsolidation of the subsidiaries, net of tax 59,656 182,441 — 242,097 — — Gain (loss) from the discontinued operations, net of tax $ 56,815 $ 166,483 $ (88,938) $ 134,360 $ (69,068) $ (5,320) All notes to the accompanying consolidated financial statements have been retrospectively adjusted to reflect the effect of the discontinued operations, where applicable. |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2020 | |
SHORT-TERM INVESTMENTS | |
SHORT-TERM INVESTMENTS | 5. SHORT-TERM INVESTMENTS The Company’s short-term investments represent wealth management products issued by commercial banks in the PRC which are redeemed upon demand of the Company. The wealth management products are invested in debt securities issued by the PRC government, corporate debt securities, bank deposits, central bank bills and other securities issued by other financial institutions. The debt securities are classified as available-for-sale investments and are reported at fair value, with any unrealized holding gains or losses, net of the related tax effect, excluded from earnings and recorded as a separate component of accumulated other comprehensive income (loss) until realized. Realized gains or losses from the sale of short-term investments are determined on a specific identification basis and are recorded as investment income when earned. Short-term investments are valued based on the expected return provided by the issuer. The short-term investments are categorized in Level 2 of the fair value hierarchy. The fair value of the short-term investments approximates the book value, and there was no interest income or loss recognized in earnings and no unrealized gain or loss from the changes in fair values recognized in accumulated other comprehensive income during the fiscal years ending December 31, 2019 and 2020,respectively. |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2020 | |
LONG-TERM INVESTMENTS | |
LONG-TERM INVESTMENTS | 6. LONG-TERM INVESTMENTS As of December 31, Note 2019 2020 Equity method investments: Fundrise, L.P. (i) $ 11,655 $ 11,828 Other 1,081 1,047 Total equity method investments 12,736 12,875 Equity investment without readily determinable fair values Suzhou Youge Interconnection Venture Capital Center 718 766 Infinites Technology (Cayman) Holding Limited (ii) — 40,000 Total equity investments without readily determinable fair values 718 40,766 Total long-term investments $ 13,454 $ 53,641 (i) In October 2014, the Company entered into an agreement to purchase limited partnership interest of Fundrise, L.P. for a total consideration of $10,000. The Company held 98.04% equity interest as of December 31, 2019 and 2020 and recognized its share of gain of $276, $336 and $174 for the years ended December 31, 2018, 2019 and 2020, respectively. (ii) The investment of Infinites Technology (Cayman) Holding Limited, which is the holding company of Beijing Infinities, was acquired in connection with the disposition of the SNS business. See Note 4. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill | |
Goodwill | 7. Amount Balance at January 1, 2018 $ 40,085 Impairment loss (29,055) Exchange difference (1,617) Balance at December 31, 2018 9,413 Impairment loss (9,288) Exchange difference (1) Balance at December 31, 2019 124 Exchange difference — Balance at December 31, 2020 $ During the year ended December 31, 2018, Kaixin transferred its equity interest in the Ji'nan Dealership and the related assets to an affiliate of the Company. Following the transfer, the Company closed the dealership. As a result of the above, the Company fully impaired the goodwill related to the Ji'nan Dealership amounting to $25,804. The Company acquired Sindeo in 2017. During the year ended December 31, 2018, the Company performed its goodwill impairment test and determined there was an impairment. As a result, the entire balance of goodwill associated with Sindeo of US$3,251 was written off. During the year ended December 31, 2019, an impairment of goodwill of $1,461 was recognized related to goodwill from the acquisition of Geographic Farming, LLC and impairment of goodwill of $7,828 was recognized related to the acquisition of Trucker Path in Renren segment. The impairments were recorded primarily due to the business suspension in Geographic Farming, LLC and lower than expected performance in Trucker Path. |
SHORT - TERM DEBT AND LONG-TERM
SHORT - TERM DEBT AND LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2020 | |
SHORT-TERM DEBT AND LONG-TERM DEBT | |
SHORT-TERM DEBT AND LONG-TERM DEBT | 8. SHORT - TERM DEBT AND LONG-TERM DEBT Short-term debt As of December 31, Note 2019 2020 East West Bank (i) $ 11,000 $ 11,400 Others 3,447 — Total $ 14,447 $ 11,400 (i) In For the loan from East West Bank, the Company breached certain non-financial related covenants and the bank did not request immediate repayment of the loan. The Company repaid the loan in January 2021. Long-term debt As of December 31, Note 2019 2020 Silicon Valley Bank (i) $ $ 1,585 Total $ — $ 1,585 (i) In April 2020, the Company entered into a long-term loan agreement with Silicon Valley Bank for $1,585. The loan bears an annual interest rate of 1.0% and has a loan period of 24 months. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of December 31, 2019 2020 Other tax payable $ 3,925 $ 3,849 Accrued professional fee and marketing expense 4,688 3,162 Employee payroll and welfare 937 364 Accrued Rental 424 10 Staff reimbursement 221 128 Others 3,680 3,306 Total $ 13,875 $ 10,819 |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2020 | |
OPERATING LEASES | |
OPERATING LEASES | 10. OPERATING LEASES The Company leases its facilities and offices under non-cancellable operating lease agreements. These leases expire through 2023 and are renewable upon negotiation. The right-of-use assets were US$2,135 as of December 31, 2020. The current portion of lease liabilities was US$1,409 and the operating lease liabilities – non-current were US$589 as of December 31, 2020. For the year ended December 31, 2020, cash paid for amounts included in the measurement of lease liabilities was US$940. Before adoption of ASC842, total operating lease cost for the year ended December 31, 2018 was $4,140. The operating lease cost and short-term lease cost for the years ended December 31, 2019 and 2020 were as follows: For the Year Ended For the Year Ended December 31, 2019 December 31, 2020 Cost $ 90 $ 297 Selling expenses 7 — Research and development expenses 977 1,221 General and administrative expenses 215 296 Total operating lease cost 1,289 1,814 Short-term lease cost 276 83 Total lease cost $ 1,565 $ 1,897 The weighted average remaining lease term as of December 31, 2020 and 2019 was 1.70 and 1.88 years, and the weighted average discount rate of the operating leases was 10.30% and 10.92%. Maturities of lease liabilities as of December 31, 2020 were as follows: Operating Lease 2021 $ 1,409 2022 610 Total undiscounted lease payment 2,019 Less: Imputed interest 21 Present value of lease liabilities $ 1,998 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
INCOME TAXES | 11. INCOME TAXES The Company and subsidiaries incorporated in the Cayman Islands are not subject to income or capital gains taxes under the current laws of the Cayman Islands. The Company’s subsidiaries incorporated in the US are subject to state income tax and federal income tax at different tax rates, depending upon taxable income levels. They did not have taxable income and no income tax expense was provided for the years ended December 31, 2018, 2019 and 2020. The Company’s subsidiaries incorporated in Hong Kong are subjected to Hong Kong profits tax. With effect from 1 April 2018, a two-tiered profits tax rates regime applies. The profits tax rate for the first HKD 2 million of corporate profits is 8.25%, while the standard profits tax rate of 16.5% remains for profits exceeding HKD 2 million. No provision for Hong Kong profits tax has been made as they have no assessable profits in Hong Kong in the fiscal years ended December 31, 2018, 2019 and 2020. Renren Giantly Philippines Inc was established in 2018 and incorporated in the Philippines, which is subject to 30% enterprise income tax rate for the year ended December 31, 2019 and 2020. Renren Giantly Philippines Inc did not have taxable income and no income tax expense was provided for the year ended December 31, 2019 and 2020. The EIT Law includes a provision specifying that legal entities organized outside PRC will be considered residents for Chinese income tax purposes if their place of effective management or control is within the PRC. If legal entities organized outside PRC were considered residents for Chinese income tax purpose, they would become subject to the EIT Law on their worldwide income. This would cause any income from legal entities organized outside PRC earned to be subject to PRC’s 25% EIT. The Implementation Rules to EIT Law provide that non-resident legal entities will be considered as PRC residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting, properties, etc. reside within PRC. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Company does not believe that the legal entities organized outside the PRC should be characterized as PRC residents for EIT Law purposes. Under the EIT Law and its implementation rules which became effective on January 1, 2008, dividends generated after January 1, 2008 and payable by a foreign-invested enterprise in PRC to its foreign investors who are non-resident enterprises are subject to a 10% withholding tax, unless any such foreign investor’s jurisdiction of incorporation has a tax treaty with PRC that provides for a different withholding arrangement. The Cayman Islands, where the Company is incorporated, does not have a tax treaty with PRC. The Company’s subsidiaries and VIEs located in the PRC had aggregate accumulated deficits as of December 31, 2020. Accordingly, no deferred tax liability had been accrued for the Chinese dividend withholding taxes as of December 31, 2020. The current and deferred component of income tax expenses which were attributable to the Company’s PRC subsidiaries and VIEs and VIEs’ subsidiaries, are as follows: Years ended December 31, 2018 2019 2020 Current income tax expenses (benefit) $ 8,988 $ 1,944 $ (65) Deferred income tax expenses — — — Total income tax expenses (benefit) $ 8,988 $ 1,944 $ (65) The principal components of the deferred tax assets and liabilities are as follows: As of December 31, 2019 2020 Deferred tax assets Provision for doubtful accounts $ 4,456 $ 4,761 Accrued payroll and welfare 218 89 Allowance for prepaid expenses and other current assets 5,137 4,839 Accrued liabilities 3,019 2,424 Advertising fee 811 563 Employee education fee 18 19 Goodwill and intangible asset impairment 7,195 6,798 Net operating loss carry forwards 29,707 22,412 Total Deferred tax assets 50,561 41,905 Less valuation allowance (50,561) (41,905) Deferred tax assets, net $ — $ — The roll forward of valuation allowances of deferred tax assets for the year ended December 31, 2020 were as follows: Year ended December 31, 2020 Balance as of beginning of year $ 50,561 Additions 4,070 Reversals (11,868) Decrease relating to disposal of entities (3,355) Foreign currency translation adjustments 2,497 Balance as of end of year $ 41,905 The Company operates through multiple subsidiaries and VIEs and VIEs’ subsidiaries. The valuation allowance is considered on each an individual entity basis. The subsidiaries and VIEs and VIEs’ subsidiaries have total deferred tax assets related to net operating loss carry forwards of $29,707 and $22,413 as of December 31, 2019 and 2020, respectively. The Company assessed the available evidence to estimate if sufficient future taxable income would be generated to use the existing deferred tax assets. As of December 31, 2019 and 2020, valuation allowances were established because the Company believes that it is more likely than not that its deferred tax assets will not be realized as it does not expect to generate sufficient taxable income in the near future. As of December 31, 2020, the Company had net operating losses of $32,914, which can be carried forward to offset future taxable profit. The net operating loss of $4,569, $7,053, $10,579 , $6,980 and $3,733 will expire by 2021, 2022, 2023, 2024 and 2025 respectively, if not utilized. As of December 31, 2020, the Company had net operating loss of $47 from Hong Kong and $66,649 from United States subsidiaries which don’t have an expiring date. Reconciliation between the income tax expenses computed by applying the PRC tax rate to loss before the provision of income taxes and the actual provision for income taxes is as follows: Years ended December 31, 2018 2019 2020 Loss before provision of income tax $ (58,428) $ (29,012) $ (16,935) PRC statutory income tax rate 25 % 25 % 25 % Income tax at statutory tax rate (14,607) (7,250) (4,234) Taxable deemed interest income from inter-company interest-free loans 4,298 2,218 (66) Net operating loss not applicable for carryforward — 13,548 14,820 Non-deductible expenses 6,471 (1,340) 44 Non-deductible expenses related to share-based compensation 7,901 2,102 3,830 Non-taxable income from fair value change gain of contingent consideration — (5,166) (257) Impairment of goodwill — 2,322 — Effect of income tax rate differences in jurisdictions other than the PRC 7,426 (87) 675 Effects of Company cancellation — 205 (3,723) Changes in valuation allowance (2,501) (4,608) (11,154) Income tax expenses (benefit) $ 8,988 $ 1,944 $ (65) The Company did not identify significant unrecognized tax benefits for the years ended December 31, 2018, 2019 and 2020, respectively. The Company did not incur any interest and penalties related to potential underpaid income tax expenses. Since January 1, 2008, the relevant tax authorities have not conducted a tax examination on PRC entities. In accordance with relevant PRC tax administration laws, tax years from 2016 to present of the Company’s PRC subsidiaries and VIEs and VIEs’ subsidiaries remain subject to tax audits as of December 31, 2020, at the tax authority’s discretion. |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2020 | |
ORDINARY SHARES | |
ORDINARY SHARES | 12. ORDINARY SHARES The authorized number of Class A ordinary shares is 3,000,000,000 with par value $0.001 per share, Class A ordinary shares of the Company amounted to $751 and $770 as of December 31, 2019 and 2020, respectively. The authorized number of Class B ordinary shares is 500,000,000 with par value $0.001 per share, Class B ordinary shares of the Company amounted to $305 and $305 as of December 31, 2019 and 2020, respectively. Each Class B ordinary share is convertible into one Class A ordinary share. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 13. FAIR VALUE MEASUREMENTS Assets and liabilities disclosed at fair value The Company measures its amounts due from/to related parties, equity investments without readily determinable fair values and short-term and long-term debt, payable to investors and amount due from OPI at amortized cost. The carrying values of cash and cash equivalents and restricted cash approximated fair value and represented a level 1 measurement. The carrying value of the debt obligations approximate fair value considering the borrowing rates are at the same level of the current market yield for the comparable debts and represent a level 2 measurement. The carrying value of amount due from OPI approximates its fair value since the interest rates is considered to reflect market interest rate. The carrying value of current amounts due from /to other related parties’ approximate fair value due to their relatively short maturity. Assets and liabilities measured at fair value on a recurring basis The Company measures its financial assets and liabilities, including short-term investments, equity investments with readily determinable fair values and contingent consideration at fair value on a recurring basis as of December 31, 2019 and 2020. The short-term investments are categorized in Level 2 of the fair value hierarchy. Contingent consideration as of December 31, 2019 and 2020 is classified within Level 3 of the fair value hierarchy because the fair value is determined by using a significant number of unobservable inputs which are further described below. The following table summarizes the Company’s financial assets and liabilities measured and recorded at fair value on recurring basis as of December 31, 2019 and 2020, respectively: As of December 31, 2019 As of December 31, 2020 Fair Value Measurement at the Reporting Date Fair Value Measurement at the Reporting Date using using Quoted Quoted price in price in active active markets Significant markets Significant for other Significant for other Significant identical observable unobservable identical observable unobservable assets inputs in puts assets inputs in puts Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Short-term investments $ — $ 1,436 $ — $ 1,436 $ — $ — $ — $ — Contingent consideration — — (1,032) (1,032) — — (2,059) (2,059) Total $ — $ 1,436 $ (1,032) $ 404 $ — $ — $ (2,059) $ (2,059) The Company did not transfer any assets or liabilities in or out of Level 3 during the years ended December 31, 2018, 2019 and 2020. In connection with the Kaixin Offering closing on April 30, 2019, the dealers and after-sale service center operators became entitled to a minimum number of 4.18 million shares of KAH based on their historical performance. Because such share consideration payment will be delivered, without being affected by the outcome of the other consideration payment triggers, the fair value of US$ 20.8 million related to this consideration payment was reclassified from liability classified contingent consideration to equity classified contingent consideration, such fair value is calculated based on the number of shares multiplied by the share price upon the closing of Kaixin Offering. As of December 31, 2020 and 2019, contingent consideration was related to certain consideration payment triggers, such as the performance of each dealer and after-sale service center operator for each of the five years’ following April 30, 2019 and KAH’s share price from May 1, 2019 to October 31, 2021. The fair value of the contingent consideration was estimated with the following key assumptions 1) none of the dealer or after-sale service center operator will meet any performance condition for each of the five years’ following April 30, 2019; 2) Renren Inc. will not receive any earnout shares and 3) Renren Inc. will receive the indemnification shares. The following is a reconciliation of the beginning and ending balances for contingent consideration measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2019 and 2020: Amounts Balance at January 1, 2019 $ 105,670 Fair value change (86,256) Exchange difference 2,467 Contingent liability reclassified into equity (20,849) Balance at December 31, 2019 1,032 Fair value change 1,027 Exchange difference — Balance at December 31, 2020 $ Assets measured at fair value on a nonrecurring basis The Company measured its property, equipment and intangible assets at fair value on a nonrecurring basis whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable. The Company measures the purchase price allocation at fair value on a nonrecurring basis as of the acquisition dates. Goodwill is evaluated for impairment annually or more frequently if events or conditions were to indicate the carrying value of a reporting unit may be greater than its fair value. Impairment testing compares the carrying amount of the reporting unit with its fair value. In 2019, the Company performed annual impairment tests for goodwill using the discounted cash flow method. The fair value of goodwill is a Level 3 valuation based on certain unobservable inputs including projected cash flows and estimated risk-adjusted rates of return that would be utilized by market participants in valuing these assets or prices of similar assets, see Note 7. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 14. SHARE-BASED COMPENSATION Renren Stock options Renren Inc. (“Renren”) adopted the 2006 Equity Incentive Plan (the “2006 Plan”), the 2008 Equity Incentive Plan (the “2008 Plan”), the 2009 Equity Incentive Plan (the “2009 Plan”), the 2011 Share Incentive Plan (the “2011 Plan”), the 2016 Share Incentive Plan (the “2016 Plan”), and the 2018 Share Incentive Plan (the “2018 Plan”) for purpose of granting of stock options and incentive stock options to employees and executives to reward them for service to the parent and to provide incentives for future service. In 2006, Renren Inc. adopted the 2006 Plan to replace the equity incentive plans adopted during the years ended December 31, 2003, 2004 and 2005. The following is the maximum aggregate number of shares which may be issued pursuant to all awards under the 2006 Plan, 2008 Plan, 2009 Plan, 2011 Plan, 2016 Plan and 2018 Plan: Maximum aggregate number of shares 2006 Plan 97,430,220 2008 Plan 30,529,630 2009 Plan 40,000,000 2011 Plan 110,014,158 2016 Plan 53,596,236 2018 Plan 107,100,000 The term of the options may not exceed ten years from the date of the grant. The awards under the above plans are subject to vesting schedules ranging from immediately upon grant to six years subsequent to grant date. On June 29, 2018, Renren Inc.’s compensation committee approved a modification to certain awards to reduce the exercise price for all outstanding options previously granted by Renren with an exercise price higher than $0.0613 per ordinary share to $0.0613 per share. Such reduction was accounted by Renren as a share option modification and required the remeasurement of these share options at the time of the modification. The total incremental cost as a result of the modification was $10,779. The incremental cost related to vested options amounted to $9,304 and was recorded in the consolidated statements of operations during year ended December 31, 2018. The incremental cost related to unvested options amounted to $1,475 and will be recorded over the remaining service periods. On March 24, 2020, Renren Inc.’s compensation committee approved a modification to certain awards to reduce the exercise price for all outstanding options previously granted by Renren with an exercise price higher than $0.0113 per ordinary share to $0.0113 per share. Such reduction was accounted by Renren as a share option modification and required the remeasurement of these share options at the time of the modification. The total incremental cost as a result of the modification was $6,948. The incremental cost related to vested options amounted to $6,534 and was recorded in the consolidated statements of operations during year ended December 31, 2020. The incremental cost related to unvested options amounted to $414 and will be recorded over the remaining service periods. The Company did not grant any options under these plans for any periods presented. The following table summarizes information with respect to share options outstanding as of December 31, 2020: Options outstanding Options exercisable Weighted Weighted average Weighted Weighted average Weighted Weighted remaining average average remaining average average Number contractual exercise intrinsic Number of contractual exercise intrinsic Range of exercise prices outstanding life price value exercisable life price value $0.01 138,724,521 3.42 $ 0.06 $ 13,137 130,442,760 3.31 $ 0.01 $ 12,353 138,724,521 $ 13,137 130,442,760 $ 12,353 Weighted Weighted average average Number of exercise grant date shares price fair value Balance, December 31, 2019 138,953,386 $ 0.06 $ 0.64 Exercised (77,535) $ 0.01 $ 0.51 Forfeited (151,330) $ 0.01 $ 0.84 Balance, December 31, 2020 138,724,521 $ 0.01 $ 0.64 Exercisable, December 31, 2020 130,442,760 $ 0.01 Expected to vest, December 31, 2020 8,282,496 $ 0.01 For employee stock options, the Company recorded share-based compensation from continuing operations of $16,459, $4,628, and $11,576 for the years ended December 31, 2018, 2018 and 2020, respectively, based on the fair value on the grant dates over the requisite service period of award using the straight-line method. For Renren stock plans, no share-based compensation was recognized from discontinued operations for any period presented. For non-employee options, share based compensation was immaterial for the years ended December 31, 2018. For the years ended December 31,2019 and 2020, there was no share-based compensation recorded for non-employee options. As of December 31, 2020, there was $4,472 unrecognized share-based compensation expense relating to share options. This amount is expected to be recognized in continuing operations over a weighted-average vesting period of 1.92 years. Renren Nonvested restricted shares A summary of the nonvested restricted shares activity is as follows: Weighted Weighted average fair number of value nonvested per ordinary restricted share at the shares grant dates Outstanding as of December 31, 2019 55,821,488 $ 0.18 Granted 55,462,455 $ 0.08 Vested (18,549,945) $ 0.19 Forfeited (14,538,907) $ 0.13 Outstanding as of December 31, 2020 78,195,091 $ The Company recorded compensation expenses based on the fair value of nonvested restricted shares on the grant dates over the requisite service period of award using the straight-line vesting attribution method. The fair value of the nonvested restricted shares on the grant date was the closing market price of the ordinary shares as of the date. The Company recorded compensation expenses related to nonvested restricted shares from continuing operations of $3,917, $3,952 and $2,634 for the years ended December 31, 2018, 2019 and 2020, respectively. For Renren stock plan, no compensation expense from restricted shares was recognized in discontinued operations for any period presented. Total unrecognized compensation expense amounting to $5,259 related to nonvested restricted shares granted as of December 31, 2020. The expense is expected to be recognized in continuing operations over a weighted-average period of 1.70 years. Equity Incentive Plan of Chime Technologies, Inc. and Trucker Path, Inc. On July 13, 2020, Chime Technologies, Inc. and Trucker Path, Inc. adopted the stock incentive plans, whereby 30,000,000 ordinary shares of Chime Technologies, Inc. (“Chime Plan”) and 30,000,000 ordinary shares of Trucker Path, Inc. (“Trucker Path Plan”) are made available for future grant for employees or consultants of Chime and Trucker Path, respectively, either in the form of incentive share options or restricted shares. The term of the options may not exceed ten years from the date of the grant. The awards under the above plans are subject to vesting schedules ranging from immediately upon grant to four years subsequent to grant date. During 2020, Chime issued an aggregate of 8,346,000 options and 20,000,000 restricted shares under the Chime Plan to certain of its directors, officers and employees as compensation for their services. The term of the options may not exceed ten years from the date of the grant. The weighted-average grant-date fair value of the share options granted during the period presented was $0.02. During 2020, Trucker Path issued an aggregate of 6,871,000 options and 20,000,000 restricted shares under the Trucker Path Plan to certain of its directors, officers and employees to compensate their services. The weighted-average grant-date fair value of the share options granted during the period presented was $0.01. In determining the fair value of share options, a binomial option pricing model is applied.Assumptions used to estimate the fair values of the share options granted or modified were as follows: Years ended December 31, 2020 Chime Trucker Path Risk-free interest rate (1) 0.73 % 0.64 % Volatility(2) 57 % 49 % Expected term (in years) (3) 10 Exercise price(4) $ 0.03 $ 0.02 Dividend yield(5) — — Fair value of underlying ordinary share(6) $ 0.02 $ 0.01 (1) Risk-free interest rate Risk-free interest rate was estimated based on the yield to maturity of treasury bonds of the United States with a maturity period close to the expected life of the options. (2) Volatility The volatility of the underlying ordinary shares during the life of the options was estimated based on the historical stock price volatility of listed comparable companies over a period comparable to the expected term of the options. (3) Expected term For the options granted to employees, the Company estimated the expected term based on the vesting and contractual terms and employee demographics. (4) Exercise price The exercise price of the options was determined by the Company’s board of directors. (5) Dividend yield The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the options. (6) Fair value of underlying ordinary shares The estimated fair value of the ordinary shares underlying the options as of the valuation date was determined based on a contemporaneous valuation. When estimating the fair value of the ordinary shares on the valuation dates, management has considered a number of factors, including the result of a third - party appraisal of the Company, while taking into account standard valuation methods and the achievement of certain events. The fair value of the ordinary shares in connection with the option grants on the valuation date was determined with the assistance of an independent third - party appraiser. The following table summarizes information with respect to share options outstanding of Chime Plan as of December 31, 2020: Options outstanding Options exercisable Weighted Weighted average Weighted Weighted average Weighted Weighted remaining average average remaining average average Range of Number contractual exercise intrinsic Number of contractual exercise intrinsic exercise prices outstanding life price value exercisable life price value $ 4,701,097 9.51 $ 0.03 $ 22,384 3,599,903 9.51 $ 0.03 $ 17,141 Weighted Weighted average average Number of exercise grant date shares price fair value Balance, December 31, 2019 — $ — $ — Granted 8,346,000 $ 0.03 $ 0.02 Forfeited (45,000) $ 0.03 $ 0.02 Vested (3,599,903) 0.03 0.02 Balance, December 31, 2020 4,701,097 $ 0.03 $ 0.02 Exercisable, December 31, 2020 3,599,903 $ 0.03 Expected to vest, December 31, 2020 4,701,097 $ 0.03 The following table summarizes information with respect to share options outstanding of Trucker Path Plan as of December 31, 2020: Options outstanding Options exercisable Weighted Weighted average Weighted Weighted average Weighted Weighted remaining average average remaining average average Range of Number contractual exercise intrinsic Number of contractual exercise intrinsic exercise prices outstanding life price value exercisable life price value $0.02 3,588,181 9.51 $ 0.02 $ 17,117 3,217,819 9.51 $ 0.02 $ 15,350 Weighted Weighted average average Number of exercise grant date shares price fair value Balance, December 31, 2019 — $ — $ — Granted 6,871,000 $ 0.02 $ 0.01 Forfeited (65,000) $ 0.02 $ 0.01 Vested (3,217,819) $ 0.02 0.01 Balance, December 31, 2020 3,588,181 $ 0.02 $ 0.01 Exercisable, December 31, 2020 3,217,819 $ 0.02 Expected to vest, December 31, 2020 3,588,181 $ 0.02 The Company recorded share-based compensation for Chime Plan and Trucker Path Plan from continuing operations of $67 and $31, respectively, for the years ended December 31, 2020, based on the fair value on the grant dates over the requisite service period of award using the straight-line method. The Company did not have any compensation expenses from discontinued operations. As of December 31, 2020, there were $87 and $35 unrecognized share-based compensation expense relating to share options of Chime Plan and Trucker Path Plan, respectively. This amount is expected to be recognized over a weighted-average vesting period of 3.53 years. On July 13, 2020, Chime issued 20,000,000 restricted shares under the Chime Plan that were immediately vested on the grant date. The Company recorded compensation expenses of $632 based on the fair value of nonvested restricted shares on the grant date. The fair value of the nonvested restricted shares on the grant date was determined with the assistance of an independent third -party appraiser. On July 13, 2020, Trucker Path issued 20,000,000 restricted shares under the Trucker Path Plan that were immediately vested on the grant date. The Company recorded compensation expenses of $365 based on the fair value of nonvested restricted shares on the grant date.The fair value of the nonvested restricted shares on the grant date was determined with the assistance of an independent third party appraiser. The total amount of share-based compensation expense for options and nonvested restricted shares of the Company, Chime and Trucker Path, attributable to selling and marketing, research and development, general and administrative expenses excluding share-based compensation expense of the discontinued operations are as follows: Years ended December 31, 2018 2019 2020 Selling and marketing $ 423 $ 524 $ 185 Research and development 1,035 1,118 990 General and administrative 18,708 6,938 14,145 Total share-based compensation expense $ 20,166 $ 8,580 $ 15,320 There was no income tax benefit recognized in the statements of operations for share-based compensation for the years ended December 31, 2018, 2019 and 2020. |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY BALANCES AND TRANSACTIONS | |
RELATED PARTY BALANCES AND TRANSACTIONS | 15. RELATED PARTY BALANCES AND TRANSACTIONS Details of major related party balances as of December 31, 2019 and 2020 are as follows: (1) Amounts due from related parties As of December 31, 2019 and 2020, amounts due from related parties including both current and non-current were as follows: As of December 31, Note 2019 2020 Beijing Infinities (i) $ 681 $ 726 Others 7 38 Amounts due from related parties - current $ 688 $ 764 Oak Pacific Investment (ii) $ 91,758 $ 67,985 Beijing Infinities (i) 40,000 — Amounts due from related parties – non current 131,758 67,985 Total $ 132,446 $ 68,749 (i) The balance represents the receivable from Beijing Infinities in connection with the disposition of the SNS business. The balance includes a US$40 million receivable in the form of Beijing Infinities shares. Refer to Note 4 for further details. (ii) The balance of December 31, 2020 represents the US$50 million note issued by Oak Pacific Investment to Renren and US$18 million accrued interest income. In connection with the private placement transaction completed on June 21, 2018, OPI issued a note to Renren with an interest rate of 8.0% per year. The term of the note is the earlier of five years and the date upon which OPI and its subsidiaries no longer hold any shares of Social Finance Inc. In March 2019, the interest rate was increased to 8.5% per year in connection with a refinancing of Oak Pacific Investment’s debt obligations. In December 2019, OPI repaid the principal of US$9.6 million and the associated interests of US$0.4 million. In March 2020, OPI repaid the principal of US$3.7 million and the associated interests of US$0.3 million. In December 2020, OPI repaid the principal of US$26.4 million and the associated interests of US$1.1 million. The balance is included in amount due from related party, non-current at December 31, 2019 and 2020. (2) Amounts due to related parties As of December 31, 2019 2020 Beijing Infinities $ 681 $ 697 Others 93 — Total $ 774 $ 697 Details of major related party transactions for the years ended December 31, 2018, 2019 and 2020 are as follows: (3) Major transaction with related parties for amount due from related parties Years ended December 31, 2019 2020 Interest accrued for Promissory note: OPI $ 7,904 $ 7,756 Promissory note principal received: OPI (10,027) (31,529) Amount accrued (received) from disposition of Renren SNS: Beijing Infinities (6,067) (40,000) Loan to a related party: Beijing Zhenzhong 3,858 3,155 Amount received from loan to a related party: Beijing Zhenzhong (4,144) (3,060) Equity method Investment: One Rent (600) — (4) Transactions with related parties for amount due to related parties Years ended December 31, 2019 2020 Repayment of loan from related parties: Beijing Infinities $ 1,192 $ 29 OPI 27 — Loan from a related party: Beijing Infinities (1,879) (1) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 16. SEGMENT INFORMATION The Company’s Chief Operating Decision Maker (the "CODM") is the CEO, who is responsible for decisions about allocating resources and assessing performance of the Company. An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, and is identified on the basis of the internal financial reports that are provided to and regularly reviewed by the Company’s CODM. As described in Note 4, Kaixin was treated as discontinued operation. As a result, the Company reevaluated and concluded that it had only one reportable segment as of December 31, 2020. The majority of the Company’s revenue for the years ended December 31, 2018, 2019 and 2020 was generated from the PRC and the United States. The following table sets forth the disaggregation of revenue by country: Years ended December 31, 2018 2019 2020 PRC $ 61,046 91 % $ 6,824 45 % $ 587 3 % United States 5,748 9 % 8,261 55 % 17,519 97 % Total Revenue $ 66,794 100 % $ 15,085 100 % $ 18,106 100 % As of December 31, 2018, 2019 and 2020, substantially all of the long-lived assets of the Company were located in the PRC. Therefore, no geographical segments are presented. |
STATUTORY RESERVE AND RESTRICTE
STATUTORY RESERVE AND RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
STATUTORY RESERVE AND RESTRICTED NET ASSETS | |
STATUTORY RESERVE AND RESTRICTED NET ASSETS | 17. STATUTORY RESERVE AND RESTRICTED NET ASSETS In accordance with the Regulations on Enterprises with Foreign Investment of China and their articles of association, the Company’s subsidiaries and VIE entities located in the PRC, being foreign invested enterprises established in the PRC, are required to provide for certain statutory reserves. These statutory reserve funds include one or more of the following: (i) a general reserve, (ii) an enterprise expansion fund or discretionary reserve fund, and (iii) a staff bonus and welfare fund. Subject to certain cumulative limits, the general reserve fund requires a minimum annual appropriation of 10% of after-tax profit (as determined under accounting principles generally accepted in China at each year-end); the other fund appropriations are at the subsidiaries’ or the affiliated PRC entities’ discretion. These statutory reserve funds can only be used for specific purposes of enterprise expansion, staff bonus and welfare, and are not distributable as cash dividends except in the event of liquidation of the Company’s subsidiaries, the Company’s affiliated PRC entities and their respective subsidiaries. The Company’s subsidiaries and VIE entities are required to allocate at least 10% of their after-tax profits to the general reserve until such reserve has reached 50% of their respective registered capital. As of December 31, 2020, none of the Company’s PRC subsidiaries and VIE entities had a general reserve that reached the 50% of their registered capital threshold, therefore they will continue to allocate at least 10% of their after-tax profits to the general reserve fund. Appropriations to the enterprise expansion reserve and the staff welfare and bonus reserve are to be made at the discretion of the board of directors of each of the Company’s subsidiaries. The appropriation to these reserves by the Company’s PRC subsidiaries was $nil for the years ended December 31, 2018, 2019 and 2020, respectively. As a result of these PRC laws and regulations and the requirement that distributions by PRC entities can only be paid out of distributable profits computed in accordance with PRC GAAP, the PRC entities are restricted from transferring a portion of their net assets to the Company. Amounts restricted include paid-in capital and the statutory reserves of the Company’s PRC subsidiaries and VIE entities. The aggregate amounts of capital and statutory reserves restricted which represented the amount of net assets of the relevant subsidiaries and VIE entities in the Company not available for distribution was $257,107 and $266,542 as of December 31, 2019 and 2020, respectively. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2020 | |
SUBSEQUENT EVENT | |
SUBSEQUENT EVENT | 18. SUBSEQUENT EVENT On March 31, 2021, Kaixin announced that it has entered into a definitive securities purchase agreement (the"Purchase Agreement") with the Company, and completed the closing on the same date. Pursuant to the Purchase Agreement, the Company invested $6,000 in newly designated convertible preferred shares of Kaixin. The preferred shares are convertible into the Kaixin's ordinary shares at a conversion price of $3.00, subject to customary adjustments pursuant to the Purchase Agreement . |
Financial Statement Schedule I
Financial Statement Schedule I Condensed Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2020 | |
Financial Statement Schedule I Condensed Financial Information of Parent Company | |
Financial Statement Schedule I Condensed Financial Information of Parent Company | RENREN INC. Financial Statement Schedule I Condensed Financial Information of Parent Company BALANCE SHEETS As of December 31, 2019 and 2020 (U.S. dollars in thousands, except share data and per share data) As of December 31, 2019 2020 ASSETS Current assets: Cash and cash equivalents $ 173 $ 1,933 Prepaid expenses and other current assets 519 1,058 Amounts due from subsidiaries 409,258 432,494 Total current assets 409,950 435,485 Amounts due from related parties non-current 91,758 67,985 TOTAL ASSETS $ 501,708 $ 503,470 LIABILITIES AND EQUITY Current liabilities: Short-term loan 11,000 11,400 Accrued expenses and other current liabilities 3,152 2,167 Contingent consideration 204 407 Total current liabilities 14,356 13,974 Long-term contingent consideration 828 1,652 Deficit of investment in subsidiaries 382,411 380,794 TOTAL LIABILITIES $ 397,595 $ 396,420 Equity: Class A ordinary shares, $0.001 par value, 3,000,000,000 shares authorized, 750,816,633 and 769,444,113 shares issued and outstanding as of December 31, 2019 and 2020, respectively 751 770 Class B ordinary shares, $0.001 par value, 500,000,000 shares authorized, 305,388,450 and 305,388,450 shares issued and outstanding as of December 31, 2019 and 2020, respectively 305 305 Additional paid-in capital 720,513 742,775 Accumulated deficit (608,118) (627,338) Accumulated other comprehensive loss (9,338) (9,462) Equity 104,113 107,050 TOTAL LIABILITIES AND EQUITY $ 501,708 $ 503,470 RENREN INC. Financial Statement Schedule I Condensed Financial Information of Parent Company STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME For the years ended December 31, 2018, 2019 and 2020 (U.S. dollars in thousands, except share data and per share data) Years ended December 31, 2018 2019 2020 Selling and marketing $ 423 $ 524 $ 98 Research and development 1,035 1,118 467 General and administrative 25,536 8,030 16,003 Total operating expenses 26,994 9,672 16,568 Other income (expenses) 924 — (2,765) Interest income 3,969 7,904 7,756 Interest expenses (3,989) (565) (302) Fair value change of contingent consideration — 20,662 (1,027) Loss in equity method investments (1,415) (417) — Gain on deconsolidation of the subsidiaries 182,441 — Equity in loss of subsidiaries and variable interest entities (82,396) (69,005) (6,314) Net income (loss) $ 72,540 $ (51,093) $ (19,220) Other comprehensive (loss) income, net of tax: Foreign currency translation (5,770) (3,344) (124) Net unrealized (loss) gain on available-for-sale investments (9,671) 9 — Non-controlling interest disposition 2,519 — — Transfer to statements of operations of realized gain on available-for-sale securities (7,364) (9) — Other comprehensive loss (20,286) (3,344) (124) Comprehensive income (loss) 52,254 (54,437) (19,344) RENREN INC. Financial Statement Schedule I Condensed Financial Information of Parent Company STATEMENTS OF CASH FLOWS (U.S. dollars in thousands, except share data and per share data) Years ended December 31, 2018 2019 2020 Net cash provided by (used in) operating activities $ 16,026 $ 13,850 $ (30,170) Cash flows from investing activities: Proceeds from sale of equity investments without readily determinable fair values 4,585 — — Proceeds from repayment of the note issued by OPI — 9,564 31,529 Net cash provided by investing activities 4,585 9,564 31,529 Cash flows from financing activities: Proceeds from exercise of share options 1,107 10 1 Proceeds from borrowings 27,000 7,000 400 Cash distribution to shareholders related to acquisition of OPI (133,665) — — Repayment of borrowings (12,000) (31,000) — Net cash (used in) provided by financing activities (117,558) (23,990) 401 Net (decrease) increase in cash and cash equivalents (96,947) (576) 1,760 Cash and cash equivalents at beginning of year 97,697 749 173 Effect of exchange rate changes (1) — — Cash and cash equivalents at end of year $ 749 $ 173 $ 1,933 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | (a) The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). |
Liquidity | (b) Liquidity The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. For the years ended December 31, 2020, 2019 and 2018, the Company incurred a loss from operations of $27,227, $57,407 and $79,327, and used cash of $11,724, $28,402 and $82,966 in operating activities, respectively. As of December 31, 2020, the Company had working capital of $7,844.In January 2021, the Company received a payment of approximately $68,000 from OPI, a related party of the Company, for the principal and interests of a promissory note issued on June 21, 2018. Including this payment, the Company has the ability to continue as a going concern for the next 12 months following the issuance date of these financial statements. |
Principles of consolidation | (c) The consolidated financial statements of the Company include the financial statements of Renren Inc., its subsidiaries, its VIE and VIE’s subsidiaries. All inter-company transactions and balances are eliminated upon consolidation. |
Use of estimates | (d) The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the reported amounts of revenues and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Company's consolidated financial statements include, but are not limited to, revenue recognition, allowance for doubtful accounts, write downs for excess and obsolete inventories, the discount rate used to determine the present value of the lease payments, the fair value of share-based compensation awards, the realization of deferred income tax assets, impairment of goodwill and indefinite-lived intangible assets, fair value of short-term and long-term investments, impairment of long-term investments, and the price purchase allocation and the fair value of contingent consideration for business acquisitions. |
Cash and cash equivalents | (e) Cash and cash equivalents include cash on hand and all highly liquid investments purchased with original stated maturity of 90 days or less. |
Restricted cash | (f) Restricted cash consists of cash deposits used to secure debt borrowings of the Company which is expected to be released in accordance with the debt agreement. The restriction will lapse when the related debt agreement is paid off. The current portion of restricted cash represents cash deposited into bank accounts which is expected to be released within the next twelve months. The non-current portion of restricted cash represents cash deposited into bank accounts which is not expected to be released within the next twelve months. As of December 31, 2019 2020 Cash and cash equivalents $ 1,283 $ 19,630 Restricted cash 13,091 14,457 Restricted cash – non-current 358 — Total cash, cash equivalents and restricted cash shown in the statements of cash flow $ 14,732 $ 34,087 |
Fair value | (g) Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company 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‑inputs are based upon unadjusted quoted prices for identical assets or liabilities traded in active markets. · Level 2‑inputs are based upon quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3-inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. |
Investments | (h) Investments Equity method investments Equity investment in common stock or in-substance common stock of an entity where the Company can exercise significant influence, but not control, is accounted for using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock of the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements are also considered in determining whether the equity method of accounting is appropriate. An investment in in-substance common stock is an investment in an entity that has risk and reward characteristics that are substantially similar to that entity’s common stock. The Company considers subordination, risks and rewards of ownership and obligation to transfer value when determining whether an investment in an entity is substantially similar to an investment in that entity’s common stock. Under the equity method, the investment is initially recorded at cost and adjusted for the Company's share of undistributed earnings or losses of the investee. Investment losses are recognized until the investment is fully written down as the Company does not guarantee the investee's obligations nor it is committed to provide additional funding. When the Company's carrying value in an equity method affiliated company is reduced to zero, no further losses are recorded in the Company's consolidated financial statements unless the Company guaranteed obligations of the affiliated company or has committed additional funding. When the affiliated company subsequently reports income, the Company will not record its share of such income until it exceeds the amount of its share of losses not previously recognized. The Company’s management regularly evaluates the impairment of the equity investment based on performance and the financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee's cash position, recent financings, projected and historical financial performance, cash flow forecasts and financing needs. An impairment charge is recorded when the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary ("OTTI"). The Company recorded impairment losses on equity method investments of $nil, $6,155 and $nil in the earnings (loss) in equity method investments, net of tax in the consolidated statements of operations for the years ended December 31, 2018, 2019 and 2020, respectively. Equity Investments without Readily Determinable Fair Values In January 2018, the Company adopted Accounting Standards Update (‘‘ASU’’) 2016‑01, Financial Instruments—Recognition and Measurement of Financial Assets and Financial Liabilities, and accounts for equity investments that do not have a readily determinable fair value using the measurement alternative prescribed within ASU 2016‑01, to the extent such investments are not subject to consolidation or the equity method. Under the measurement alternative, these financial instruments are carried at cost, less any impairment (assessed quarterly), plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. In addition, income is recognized when dividends are received only to the extent they are distributed from net accumulated earnings of the investee. Otherwise, such distributions are considered returns of investment and are recorded as a reduction of the cost of the investment. The Company did not record impairment losses on equity securities without readily determinable fair values during the years ended December 31, 2018, 2019 and 2020. Equity Investments with Readily Determinable Fair Values All equity investments with readily determinable fair values (other than those accounted for using the equity method of accounting) are measured at fair value with changes in fair value recorded in the consolidated statements of operations. Available-for-sale investment For investments which are determined to be debt securities, the Company accounts for them as available-for-sale investments when they are not classified as either trading or held-to-maturity investments. Available-for-sale investment is carried at its fair value and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive (loss) income. The Company reviews its available-for-sale investments for other than temporary impairment based on the specific identification method. The Company considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Company 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, the Company’s intent and ability to hold the investment, and the financial condition and near term prospects of the investees. If there is OTTI on debt securities, the Company separates the amount of the OTTI into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings, which represents the difference between a security’s amortized cost basis and the discounted present value of expected future cash flows. The amount due to other factors is recognized in other comprehensive (loss) income if the entity neither intends to sell and will not more likely than not be required to sell the security before recovery before December 15, 2019. The difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income. After December 15, 2019, unrealized gains and losses (OTTI) are reported, net of the related tax effect, in other comprehensive income (OCI). Upon sale, realized gains and losses are reported in net income. The Company monitors the investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, the operating performance of the companies including current earnings trends and other company-specific information. The Company recorded impairment losses on its available-for-sale investment of $nil, $2,000 and $nil for the years ended December 31, 2018, 2019 and 2020, respectively. |
Accounts receivable and allowance for doubtful accounts | (i) Accounts receivable represents those receivables derived in the ordinary course of business. An allowance for doubtful accounts is provided based on aging analyses of accounts receivable balances, historical bad debt rates, repayment patterns and customer credit worthiness. |
Inventory | (j) Inventory primarily consists of the purchased electronic logging device for use of SaaS related business, which are stated at the lower of cost and net realizable value as of December 31, 2019 and 2020. For electronic logging device, a valuation allowance is recorded to write down the cost of inventories to the estimated net realizable value, if lower, due to slow-moving or damaged products, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. Net realizable value is determined by the estimated selling prices offset by estimated additional cost of sale, selling expenses and business taxes. There was no valuation allowance provided for the inventory of continued operation as of December 31, 2020 and 2019. Prior to the disposal of the Ji’nan Dealership in 2018, the Company had used car inventory. In August 2018, Shandong Jieying Huaqi Auto Service Co. ("Ji’nan Dealership", a subsidiary of the Company's VIE's) received a notice from the local police regarding an investigation of the dealership's premises. Certain assets of Ji’nan Dealership were not accessible pursuant to the investigation. In connection with these events, the Company determined that it is probable that it cannot enforce the realization of the inventory value at the Ji’nan Dealership. As a result, the Company wrote off all inventory which totaled US$5.7 million and recorded it in cost of revenues during the year ended December 31, 2018. In 2019, due to disagreements with certain non-controlling shareholders of Kaixin on operational matters, some non-controlling shareholders detained Kaixin’s inventories in the dealerships and significant uncertainty arises on the realizability and collectability of the prepayments to purchase used cars for these dealerships and amounts due from these non-controlling shareholders. Kaixin is in the process of negotiating with these non-controlling shareholders and initiated legal proceedings where necessary. Considering the above facts and circumstances, Kaixin reassessed the realizability of all its inventory and assets related to its dealerships and wrote down US$17,826 inventory, which was recoded in cost of revenues in the discontinued operations, and write-offs of US$22,282 prepayments, which was recorded in general and administrative expenses in discontinued operations. |
Property and equipment, net | (k) Property and equipment, net is carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Server & Network Equipment 3 years Computer equipment and application software 2‑3 years Furniture and vehicles 3-5 years Leasehold improvements Over the lesser of the lease term or useful life of the assets |
Leases | (l) The Company leases premises for offices under non-cancellable operating leases. Prior to January 1, 2019, operating leases were not recognized on the balance sheet of the Company, but payments made under operating lease were charged to the consolidated statements of operations on a straight-line basis over the term of underlying lease. Leases with escalated rent provisions were recognized on a straight-line basis commencing with the beginning of the lease term. There is no capital improvement funding, lease concessions or contingent rent in the lease agreements. The Company has no legal or contractual asset retirement obligations at the end of the lease term. The Company adopted Accounting Standards Codification Topic 842, Leases ("ASC 842") as of January 1, 2019, using a modified retrospective method for leases that exist at, or are entered into after, January 1, 2019, and has not recast the comparative periods presented in the consolidated financial statements. The adoption of ASC 842 requires the recognition of right-of-use assets and lease liabilities on the balance sheet for both operating and finance leases. The Company elected the package of practical expedients that not to reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases, and (3) initial direct costs for any expired or existing leases. The Company also elected the hindsight practical expedient to determine the reasonably certain lease term for existing leases. Upon the adoption of ASC 842, the Company recognized the right-of-use assets and lease liabilities of approximately US$3,441 and US$2,429, respectively, as of January 1, 2019. The Company used its estimated incremental borrowing rates based on information available at the date of adoption in calculating the present value of its existing lease payments. The following table summarizes the effect on the consolidated balance sheet as a result of adopting ASC 842. As of December As of 31, Effect of January 2018 Adoption 1, 2019 Right-of-use assets $ — $ 3,441 $ 3,441 Operating lease liabilities - current — (1,529) (1,529) Operating lease liabilities - non-current — (899) (899) Prepaid expenses and other current assets 10,801 (1,013) 9,788 Accrued expenses and other current liabilities (22,411) — (22,411) Upon adoption of ASC 842, the lease liabilities are recognized upon lease commencement for operating leases based on the present value of lease payments over the lease term. The right-of-use assets are initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. As the rates implicit in the lease cannot be readily determined, the incremental borrowing rates at the lease commencement date are used in determining the imputed interest and present value of lease payments. The incremental borrowing rates were determined using a portfolio approach based on the rates of interest that the Company would have to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company recognizes the single lease cost on a straight-line basis over the remaining lease term for operating leases . The Company has elected not to recognize right-of-use assets or lease liabilities for leases with an initial term of 12 months or less; expenses for these leases are recognized on a straight-line basis over the lease term. |
Impairment of long-lived assets and intangible assets with definite lives | (m) Long-lived assets, such as property and equipment and definite-lived intangible assets are stated at cost less accumulated depreciation or amortization. Depreciation and amortization is computed using the straight-line method. The Company evaluates the recoverability of long-lived assets, including identifiable intangible assets, with determinable useful lives whenever events or changes in circumstances indicate that an intangible asset’s carrying amount may not be recoverable. The Company measures the carrying amount of long-lived asset against the estimated undiscounted future cash flows associated with it. Impairment exists when the sum of the expected undiscounted future net cash flows is less than the carrying value of the asset being evaluated. Impairment loss is calculated as the amount by which the carrying value of the asset exceeds its fair value. Fair value is estimated based on various valuation techniques, including the discounted value of estimated future cash flows. The evaluation of asset impairment requires the Company to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. For the years ended December 31, 2018, 2019 and 2020, the Company recorded impairment losses of $675, $nil and $nil for definite-lived intangible assets, respectively. |
Goodwill | (n) Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill is not amortized, but tested for impairment annually, or more frequently if event and circumstances indicate that they might be impaired. The Company has an option to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. Based on the qualitative assessment, if it is more likely than not that the fair value of each reporting unit is less than the carrying amount, the quantitative impairment test is performed. The Company has adopted Accounting Standards Update ("ASU") 2017-04, Simplifying the Test for Goodwill Impairment, for annual goodwill impairment tests from January 1, 2019. This guidance removes Step 2 of the goodwill impairment test, which required the estimation of an implied fair value of goodwill in the same manner as the calculation of goodwill upon a business combination. Under the new amendments, the Company’s goodwill impairment review involves the following steps: 1) qualitative assessment – evaluate qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. The factors the Company considers include, but are not limited to, macroeconomic conditions, industry and market considerations, cost factors, financial performance or events-specific to that reporting unit. If or when the Company determines it is more likely than not that the fair value of a reporting unit is less than the carrying amount, including goodwill, the Company would move to the quantitative method; 2) quantitative method –the Company performs the quantitative fair value test by comparing the fair value of a reporting unit with its carrying amount and an impairment charge is measured as the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The fair value of each reporting unit is estimated using the income approach. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, and assumptions that are consistent with the plans and estimates being used to manage the Company's business, estimation of the long-term rate of growth for the Company's business, estimation of the useful life over which cash flows will occur, and determination of the Company's weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for the reporting unit. The Company recorded goodwill impairment from continued operations of $29,055, $9,288 and $nil, and $nil, $74,091 and $nil from discontinued operations for the years ended December 31, 2018, 2019 and 2020, respectively. |
Revenue recognition | (o) The Company recognizes revenue when control of the good or service has been transferred to the customer, generally upon delivery to a customer. The contracts have a fixed contract price and revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. The Company collect value added tax and other taxes from customers on behalf of governmental authorities at the time of sale. These taxes are accounted for on a net basis and are not included in revenues and cost of revenues. The Company generally expenses sales commissions when incurred because the amortization period is less than one year. These costs are recorded within selling expenses. The Company does not have any significant financing payment terms as payment is received at or shortly after the point of sale. The Company adopted the Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”) on January 1, 2018 using the modified retrospective method. ASC 606 prescribes a five-step model that includes: (1) identify the contract; (2) identify the performance obligations; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when (or as) performance obligations are satisfied. Based on the manner in which the Company historically recognized revenue, the adoption of ASC 606 did not have a material impact on the amount or timing of its revenue recognition and the Company recorded no cumulative effect adjustment upon adoption. Additionally, the Company concluded that revenue generated from internet finance services is excluded from the scope of the new revenue standard as it represents revenue within the scope of ASC 310, Receivables, which is explicitly excluded from the scope of ASC 606. The Company's revenues include revenue from its automobile sales, SaaS business as well as revenue from other services. Automobile sales The Company purchases automobiles from unrelated individuals, third party dealerships or manufacturers and suppliers and sells them directly to its customers through the Ji’nan Dealership. The prices of used vehicles are set forth in the customer contracts which are agreed prior to delivery. The Company satisfies its performance obligation for used vehicle sales upon delivery whereby customers pick up the vehicles from the dealership. The Company recognizes revenue at the agreed upon purchase price stated in the contract. The Company ceased selling vehicles in 2018. SaaS revenue The SaaS revenue mainly include the revenue generated from the subscription services and advertising services provided by 1) the all-in-one real estate solution provider, Chime and 2) a transportation network company specializing in online and mobile services for the trucking industry, Trucker Path. The Company recognizes revenue for subscription services over the subscription periods. For Chime’s advertising service, the Company acts as an agent to place advertisement on the third-party website or platforms. For Trucker Path’s advertising service, the Company acts as principal to place advertisement on Trucker Path’s APP. The Company recognizes revenue for advertising services over the advertising periods. Other services Other services mainly include IVAS revenues and other revenues. The Company’s IVAS revenues mainly include live streaming revenue. The Company designs, creates and offers various virtual items for sales to users with pre-determined stand-alone selling price. Revenue related to each of consumable virtual items as a single performance obligation provided on a consumption basis, is recognized at the point in time when the virtual item is transferred directly to the users and consumed by them. The Company ceased the live streaming business since June 2019. Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represents amounts invoiced and revenue recognized prior to invoicing when the Company has satisfied the Company’s performance obligation and has the unconditional right to payment. The balance of accounts receivable, net of allowance for doubtful accounts were $430 and $474 as of December 31, 2019 and 2020, respectively. There were no contract assets recorded as of December 31, 2019 and 2020. Deferred revenue mainly consists of payments received from customers related to unsatisfied performance obligations for SaaS and IVAS business. The Company’s total deferred revenue was $740 and $602 as of December 31, 2019 and 2020, which is expected to be recognized as revenue within one year. The Company applied a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. These costs include certain commissions paid to intermediaries of automobile sales. The Company has no material incremental costs of obtaining contracts with customers that the Company expects the benefit of those costs to be longer than one year which need to be recognized as assets. |
Cost of revenues | (p) Cost of revenues consists of costs directly related to SaaS business, IVAS business and others service. |
Value added taxes | (q) Value-added taxes ("VAT") is also reported as a deduction to revenue when incurred and amounted to $4,949, $1,034 and $599 for the years ended December 31, 2018, 2019 and 2020, respectively. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in accrued expense and other current liabilities on the consolidated balance sheet. |
Income taxes | (r) Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax basis of assets and liabilities and their reported amounts in the financial statements and are recorded as non-current in the consolidated balance sheet. Net operating loss carry forwards and credits are applied using 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 a portion of or all of the deferred tax assets will not be realized. The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. The Company did not recognize any income tax due to uncertain tax position or incur any interest and penalties related to potential underpaid income tax expenses for the years ended December 31, 2018, 2019 and 2020, respectively. |
Financial instruments | (s) Financial instruments include cash and cash equivalents, restricted cash, accounts receivable, short-term investments, long-term investments, amounts due from/to related parties, accounts payable, short-term debt, payable to investors and long-term debt. |
Research and development expenses | (t) Research and development expenses are primarily incurred for development of new services, features and products for the Company's SaaS business, as well as to further improve the Company's technology infrastructure to support these businesses. The Company has expensed all research and development costs when incurred. |
Foreign currency translation | (u) The functional and reporting currency of the Company is the United States dollar ("US dollar"). The financial records of the Company's subsidiaries and VIEs located in the PRC, Hong Kong and Philippines are maintained in their local currencies, Renminbi ("RMB"), Hong Kong Dollar ("HKD") and Philippines Peso (“PHP”), respectively, which are also the functional currencies 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 Company's entities with functional currency of RMB, HKD and PHP, translate their operating results and financial positions into US dollar, the Company's reporting currency. Assets and liabilities are translated using the exchange rates in effect on the balance sheet date. Equity amounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated using the average rates for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as accumulated other comprehensive income (loss). |
Comprehensive (loss) income | (v) Comprehensive (loss) income includes net (loss) income, foreign currency translation adjustments and fair value changes of available-for-sale investments of the Company. Additionally, the Company's consolidated statement of comprehensive (loss) income also includes the cumulative effect adjustment for the net unrealized loss of equity securities with determinable fair value from accumulated other comprehensive income to the opening balance of accumulated deficit related to the adoption of ASU 2016-01. |
Share-based compensation | (w) Share-based payment transactions with employees, such as share options are measured based on the grant date fair value of the equity instrument. The Company recognizes the compensation costs net of estimated forfeitures using the straight-line method, over the applicable vesting period. The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of stock compensation expense to be recognized in future periods. Share options granted to employees with market conditions attached are measured at fair value on the grant date and are recognized as the compensation costs over the estimated requisite service period, regardless of whether the market condition has been met. A change in any of the terms or conditions of share options is accounted for as a modification of stock options. The Company calculates the incremental compensation cost of a modification as the excess of the fair value of the modified option over the fair value of the original option immediately before its terms are modified, measured based on the share price and other pertinent factors at the modification date. For vested options, the Company recognizes incremental compensation cost in the period the modification occurred. For unvested options, the Company recognizes, over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date. |
Loss (income) per share | (x) Basic (loss) income per ordinary share is computed by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted (loss) income per ordinary share reflect the potential dilution that could occur if securities were exercised or converted into ordinary shares. The Company had stock options, non-vested restricted shares and contingent consideration, which could potentially dilute basic earnings per share in the future. Potential ordinary shares in the diluted net loss per share computation are excluded in periods of losses from continuing operations as their effect would be anti-diluted. |
Recent accounting pronouncements not yet adopted | (y) In June 2016, the FASB issued Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses (Topic 326)” (“ASU 2016-13”). ASU 2016-13 revises the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. In November 2019, FASB issued ASU 2019-10, “Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842).” This ASU defers the effective date of ASU 2016-13 for public companies that are considered smaller reporting companies as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is planning to adopt this standard beginning on January 1, 2023. The Company is currently evaluating the potential effects of adopting the provisions of ASU No. 2016-13 on its combined and consolidated financial statements, particularly its recognition of allowances for accounts receivable. In January 2020, the FASB issued ASU No. 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)-Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the FASB Emerging Issues Task Force) ("ASU 2020-01"), which clarifies the interactions of the accounting for certain equity securities under ASC 321, investments accounted for under the equity method of accounting in ASC 323, and the accounting for certain forward contracts and purchased options accounted for under ASC 815. ASU 2020-01 could change how an entity accounts for (i) an equity security under the measurement alternative and (ii) a forward contract or purchased option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting or the fair value option in accordance with ASC 825. These amendments improve current U.S. GAAP by reducing diversity in practice and increasing comparability of the accounting for these interactions. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 31, 2020. Early adoption is permitted. The Company will adopt the new standard effective January 1, 2021 and does not expect the adoption to have a material impact on the consolidated financial statements. Recently issued ASUs by the FASB, except for the ones mentioned above, have no material impact on the Company's consolidated results of operations or financial position. |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Schedule of percentage of legal ownership by Renren Inc | As of December 31, 2020, Renren Inc.'s major subsidiaries, VIEs and VIEs' subsidiaries are as follows: Later of date Percentage of of incorporation Place of legal ownership Principal Name of Subsidiaries or acquisition incorporation by Renren Inc. activities Subsidiaries: Chime Technologies, Inc.(“Chime”) September 7, 2012 USA 100 % SaaS business Trucker Path, Inc. (“Trucker Path”) December 28, 2017 USA 100 % Internet business Lucrativ Inc. January 22, 2018 USA 100 % SaaS business Lofty US, Inc. December 21, 2018 USA 100 % SaaS business Renren Giantly Philippines Inc. March, 2018 Philippines 100 % SaaS business Qianxiang Shiji Technology Development (Beijing) Co., Ltd. ("Qianxiang Shiji") March 21, 2005 PRC 100 % Investment holding Variable Interest Entities: Beijing Qianxiang Tiancheng Technology Development Co., Ltd. ("Qianxiang Tiancheng") October 28, 2002 PRC N/A Internet business Subsidiaries of Variable Interest Entities: Beijing Qianxiang Wangjing Technology Development Co., Ltd. ("Qianxiang Wangjing") November 11, 2008 PRC N/A Internet business |
Schedule of consolidated financial information | As of December 31, 2019 2020 Cash and cash equivalents $ 264 $ 955 Short-term investment 1,436 — Accounts receivable, net 218 175 Prepaid expenses and other current assets 1,537 647 Amounts due from related parties 688 764 Total current assets 4,143 2,541 Property and equipment, net 183 178 Long-term investments 1,799 41,794 Goodwill — — Amount due from a related party - non-current 40,000 — Restricted cash – non-current 358 — Right-of-use assets 1,122 659 Other non-current assets 660 76 Total non-current assets 44,122 42,707 Total assets $ 48,265 $ 45,248 Accounts payable $ 413 $ 299 Short-term debt (including short-term debt of the consolidated VIEs with recourse to Renren Inc. of $7,900 as of December 31, 2019) 3,447 — Accrued expenses and other current liabilities 7,467 6,409 Operating lease liabilities - current 217 341 Payable to investors 14 15 Amounts due to related parties 774 690 Deferred revenue 15 16 Income tax payable 4,647 3,321 Total current liabilities 16,994 11,091 Operating lease liabilities - non-current — 256 Total non-current liabilities — 256 Total liabilities $ 16,994 $ 11,347 Years ended December 31, 2018 2019 2020 Revenues $ 57,896 $ 6,581 $ 433 (Loss) income from continuing operations $ (43,743) $ (31,953) $ 1,874 Loss from discontinued operations $ (4,626) $ — $ — Years ended December 31, 2018 2019 2020 Net cash (used in) provided by operating activities $ (5,970) $ (1,170) $ 2,031 Net cash (used in) provided by investing activities $ (1,461) $ 8,735 $ 1,566 Net cash provided by (used in) financing activities $ 4,825 $ (10,340) $ (3,088) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of cash, cash equivalents and restricted cash | As of December 31, 2019 2020 Cash and cash equivalents $ 1,283 $ 19,630 Restricted cash 13,091 14,457 Restricted cash – non-current 358 — Total cash, cash equivalents and restricted cash shown in the statements of cash flow $ 14,732 $ 34,087 |
Schedule of property and equipment, net | Property and equipment, net is carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Server & Network Equipment 3 years Computer equipment and application software 2‑3 years Furniture and vehicles 3-5 years Leasehold improvements Over the lesser of the lease term or useful life of the assets |
Summary of effect on consolidated balance sheet as a result of adopting ASC 842 | As of December As of 31, Effect of January 2018 Adoption 1, 2019 Right-of-use assets $ — $ 3,441 $ 3,441 Operating lease liabilities - current — (1,529) (1,529) Operating lease liabilities - non-current — (899) (899) Prepaid expenses and other current assets 10,801 (1,013) 9,788 Accrued expenses and other current liabilities (22,411) — (22,411) |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DISCONTINUED OPERATIONS | |
Summary of operating results from discontinued operations included in the Company's consolidated statement of operations | Years ended December 31, 2018 2019 2020 Renren SNS OPI Kaixin Total Kaixin Kaixin Major classes of line items constituting pretax profit of discontinued operations Net revenues $ 19,679 $ 895 $ 431,404 $ 451,978 $ 334,697 $ 33,160 Cost of revenues (14,997) (834) (413,971) (429,802) (340,174) (32,160) Selling, research and development, and general and administrative expenses (7,523) (1,394) (51,508) (60,425) (53,866) (7,256) Other income (expense) — 371 (812) (441) 840 586 Interest income — 575 575 69 5 Interest expense — (3,142) (4,261) (7,403) (4,057) (1,183) Impairment of goodwill — — — — (74,091) — Impairment of long-term investments — (2,180) — (2,180) — — Fair value change of contingent consideration — — (49,503) (49,503) 65,594 — Loss from the operations of the discontinued operations, before income tax (2,841) (6,284) (88,076) (97,201) (70,988) (6,848) Income tax (expenses) benefit — — (862) (862) 1,920 1,528 Loss of equity method investment — (9,674) — (9,674) — — Loss from the operations of the discontinued operations, net of tax (2,841) (15,958) (88,938) (107,737) (69,068) (5,320) Gain on deconsolidation of the subsidiaries, net of tax 59,656 182,441 — 242,097 — — Gain (loss) from the discontinued operations, net of tax $ 56,815 $ 166,483 $ (88,938) $ 134,360 $ (69,068) $ (5,320) |
Summary of carrying amounts of the major classes of assets and liabilities held for sale, condensed cash flows and operating results from discontinued operations | Years ended December 31, 2018 2019 2020 Renren SNS OPI Kaixin Total Kaixin Kaixin Major classes of line items constituting pretax profit of discontinued operations Net revenues $ 19,679 $ 895 $ 431,404 $ 451,978 $ 334,697 $ 33,160 Cost of revenues (14,997) (834) (413,971) (429,802) (340,174) (32,160) Selling, research and development, and general and administrative expenses (7,523) (1,394) (51,508) (60,425) (53,866) (7,256) Other income (expense) — 371 (812) (441) 840 586 Interest income — 575 575 69 5 Interest expense — (3,142) (4,261) (7,403) (4,057) (1,183) Impairment of goodwill — — — — (74,091) — Impairment of long-term investments — (2,180) — (2,180) — — Fair value change of contingent consideration — — (49,503) (49,503) 65,594 — Loss from the operations of the discontinued operations, before income tax (2,841) (6,284) (88,076) (97,201) (70,988) (6,848) Income tax (expenses) benefit — — (862) (862) 1,920 1,528 Loss of equity method investment — (9,674) — (9,674) — — Loss from the operations of the discontinued operations, net of tax (2,841) (15,958) (88,938) (107,737) (69,068) (5,320) Gain on deconsolidation of the subsidiaries, net of tax 59,656 182,441 — 242,097 — — Gain (loss) from the discontinued operations, net of tax $ 56,815 $ 166,483 $ (88,938) $ 134,360 $ (69,068) $ (5,320) |
Renren SNS [Member] | |
DISCONTINUED OPERATIONS | |
Schedule of calculation of gain (loss) on deconsolidation | On December 29, 2018, the Company calculated a gain regarding the disposal of the SNS Business as follows. As of December 31, 2018 Total proceeds $ 60,000 Less: Property and equipment, net 8 Net assets of Renren SNS 8 Less: Accumulated other comprehensive income 336 Less: Tax expenses — Gain on deconsolidation of Renren SNS $ 59,656 |
OPI | |
DISCONTINUED OPERATIONS | |
Schedule of calculation of gain (loss) on deconsolidation | On June 30, 2018, the Company calculated a gain regarding such disposition as follows: As of June 30, 2018 Fair value of OPI $ 500,000 Less: Cash and cash equivalents 35,274 Accounts and notes receivable, net 64 Prepaid expenses and other current assets 16,344 Property and equipment, net 12 Amount due from the Company 15,190 Equity method investments 268,515 Equity investments without readily determinable fair values 144,096 Available-for-sale investment 90,615 Other non-current assets 14 Short term loan (14,336) Accounts payable (96) Accrued expenses and other current liabilities (872) Amount due to the Company (102,304) Deferred revenue (13) Income tax payable (910) Long-term liabilities (112,604) Other Long-term liabilities (21,430) Net assets of OPI 317,559 Less: tax expenses — Gain on deconsolidation of OPI $ 182,441 |
Cash Flow Statement, Discontinued Operations | The condensed cash flow of OPI were as follows for the year ended December 31, 2018: Year ended December 31, 2018 Net cash used in operating activities $ (28,134) Net cash provided by investing activities $ 12 Net cash provided by financing activities $ 60,000 |
Kaixin Auto Holdings | |
DISCONTINUED OPERATIONS | |
Cash Flow Statement, Discontinued Operations | The condensed cash flows of Kaixin Auto Holdings were as follows for the years ended December 31, 2018, 2019 and 2020: Years ended December 31, 2018 2019 2020 Net cash used in operating activities (9,749) (4,745) (3,878) Net cash provided by investing activities 98,982 1,223 — Net cash (used in) provide by financing activities (138,637) (6,328) 3,917 |
Summary of operating results from discontinued operations included in the Company's consolidated statement of operations | The following table summarizes the carrying amounts of the major classes of assets and liabilities held for sale in the consolidated balance sheet as of December 31, 2019 and 2020: As of December 31, 2019 2020 Cash and cash equivalents $ 3,190 $ 3,162 Financing receivable, net 219 — Inventory 20,990 — Prepaid expenses and other current assets 27,586 43,624 Property and equipment, net 153 45 Right-of-use assets 2,252 74 Other non-current asset — 1,562 Assets classified as held for sale $ 54,390 $ 48,467 Accounts payable 4,122 402 Accrued expenses and other current payables 17,302 14,683 Amount due to related parties 4,214 2,960 Short-term debt 16,630 15,257 Income tax payable 5,319 4,042 Advance from customers 1,677 1,863 Lease liabilities– current 1,785 39 Warrant Liability - 1,690 Lease liabilities – non-current 810 26 Liabilities classified as held for sale $ 51,859 $ 40,962 |
Summary of carrying amounts of the major classes of assets and liabilities held for sale, condensed cash flows and operating results from discontinued operations | The following table summarizes the carrying amounts of the major classes of assets and liabilities held for sale in the consolidated balance sheet as of December 31, 2019 and 2020: As of December 31, 2019 2020 Cash and cash equivalents $ 3,190 $ 3,162 Financing receivable, net 219 — Inventory 20,990 — Prepaid expenses and other current assets 27,586 43,624 Property and equipment, net 153 45 Right-of-use assets 2,252 74 Other non-current asset — 1,562 Assets classified as held for sale $ 54,390 $ 48,467 Accounts payable 4,122 402 Accrued expenses and other current payables 17,302 14,683 Amount due to related parties 4,214 2,960 Short-term debt 16,630 15,257 Income tax payable 5,319 4,042 Advance from customers 1,677 1,863 Lease liabilities– current 1,785 39 Warrant Liability - 1,690 Lease liabilities – non-current 810 26 Liabilities classified as held for sale $ 51,859 $ 40,962 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LONG-TERM INVESTMENTS | |
Schedule of long-term investments | As of December 31, Note 2019 2020 Equity method investments: Fundrise, L.P. (i) $ 11,655 $ 11,828 Other 1,081 1,047 Total equity method investments 12,736 12,875 Equity investment without readily determinable fair values Suzhou Youge Interconnection Venture Capital Center 718 766 Infinites Technology (Cayman) Holding Limited (ii) — 40,000 Total equity investments without readily determinable fair values 718 40,766 Total long-term investments $ 13,454 $ 53,641 (i) In October 2014, the Company entered into an agreement to purchase limited partnership interest of Fundrise, L.P. for a total consideration of $10,000. The Company held 98.04% equity interest as of December 31, 2019 and 2020 and recognized its share of gain of $276, $336 and $174 for the years ended December 31, 2018, 2019 and 2020, respectively. (ii) The investment of Infinites Technology (Cayman) Holding Limited, which is the holding company of Beijing Infinities, was acquired in connection with the disposition of the SNS business. See Note 4. |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill | |
Schedule of changes in carrying amounts of goodwill | Amount Balance at January 1, 2018 $ 40,085 Impairment loss (29,055) Exchange difference (1,617) Balance at December 31, 2018 9,413 Impairment loss (9,288) Exchange difference (1) Balance at December 31, 2019 124 Exchange difference — Balance at December 31, 2020 $ |
SHORT - TERM DEBT AND LONG-TE_2
SHORT - TERM DEBT AND LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SHORT-TERM DEBT AND LONG-TERM DEBT | |
Schedule of Short-term Debt | As of December 31, Note 2019 2020 East West Bank (i) $ 11,000 $ 11,400 Others 3,447 — Total $ 14,447 $ 11,400 (i) In For the loan from East West Bank, the Company breached certain non-financial related covenants and the bank did not request immediate repayment of the loan. The Company repaid the loan in January 2021. |
Schedule of Long-term Debt Instruments | As of December 31, Note 2019 2020 Silicon Valley Bank (i) $ $ 1,585 Total $ — $ 1,585 (i) In April 2020, the Company entered into a long-term loan agreement with Silicon Valley Bank for $1,585. The loan bears an annual interest rate of 1.0% and has a loan period of 24 months. |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of accrued expenses and other payables | As of December 31, 2019 2020 Other tax payable $ 3,925 $ 3,849 Accrued professional fee and marketing expense 4,688 3,162 Employee payroll and welfare 937 364 Accrued Rental 424 10 Staff reimbursement 221 128 Others 3,680 3,306 Total $ 13,875 $ 10,819 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OPERATING LEASES | |
Schedule of operating lease cost and short-term lease cost | For the Year Ended For the Year Ended December 31, 2019 December 31, 2020 Cost $ 90 $ 297 Selling expenses 7 — Research and development expenses 977 1,221 General and administrative expenses 215 296 Total operating lease cost 1,289 1,814 Short-term lease cost 276 83 Total lease cost $ 1,565 $ 1,897 |
Schedule of maturities of lease liabilities | Maturities of lease liabilities as of December 31, 2020 were as follows: Operating Lease 2021 $ 1,409 2022 610 Total undiscounted lease payment 2,019 Less: Imputed interest 21 Present value of lease liabilities $ 1,998 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
Schedule of current and deferred component of income tax expenses which were attributable to the Company's PRC subsidiaries and VIE and VIE's subsidiaries | Years ended December 31, 2018 2019 2020 Current income tax expenses (benefit) $ 8,988 $ 1,944 $ (65) Deferred income tax expenses — — — Total income tax expenses (benefit) $ 8,988 $ 1,944 $ (65) |
Schedule of principal components of the deferred tax assets and liabilities | As of December 31, 2019 2020 Deferred tax assets Provision for doubtful accounts $ 4,456 $ 4,761 Accrued payroll and welfare 218 89 Allowance for prepaid expenses and other current assets 5,137 4,839 Accrued liabilities 3,019 2,424 Advertising fee 811 563 Employee education fee 18 19 Goodwill and intangible asset impairment 7,195 6,798 Net operating loss carry forwards 29,707 22,412 Total Deferred tax assets 50,561 41,905 Less valuation allowance (50,561) (41,905) Deferred tax assets, net $ — $ — |
Schedule of rollforward of valuation allowances of deferred tax assets | Year ended December 31, 2020 Balance as of beginning of year $ 50,561 Additions 4,070 Reversals (11,868) Decrease relating to disposal of entities (3,355) Foreign currency translation adjustments 2,497 Balance as of end of year $ 41,905 |
Schedule of reconciliation between the income taxes expense (benefit) computed by applying the PRC tax rate to income (loss) before income taxes and the actual provision for income taxes | Years ended December 31, 2018 2019 2020 Loss before provision of income tax $ (58,428) $ (29,012) $ (16,935) PRC statutory income tax rate 25 % 25 % 25 % Income tax at statutory tax rate (14,607) (7,250) (4,234) Taxable deemed interest income from inter-company interest-free loans 4,298 2,218 (66) Net operating loss not applicable for carryforward — 13,548 14,820 Non-deductible expenses 6,471 (1,340) 44 Non-deductible expenses related to share-based compensation 7,901 2,102 3,830 Non-taxable income from fair value change gain of contingent consideration — (5,166) (257) Impairment of goodwill — 2,322 — Effect of income tax rate differences in jurisdictions other than the PRC 7,426 (87) 675 Effects of Company cancellation — 205 (3,723) Changes in valuation allowance (2,501) (4,608) (11,154) Income tax expenses (benefit) $ 8,988 $ 1,944 $ (65) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |
Summary of the Company's financial assets and liabilities measured and recorded at fair value on recurring basis | As of December 31, 2019 As of December 31, 2020 Fair Value Measurement at the Reporting Date Fair Value Measurement at the Reporting Date using using Quoted Quoted price in price in active active markets Significant markets Significant for other Significant for other Significant identical observable unobservable identical observable unobservable assets inputs in puts assets inputs in puts Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Short-term investments $ — $ 1,436 $ — $ 1,436 $ — $ — $ — $ — Contingent consideration — — (1,032) (1,032) — — (2,059) (2,059) Total $ — $ 1,436 $ (1,032) $ 404 $ — $ — $ (2,059) $ (2,059) |
Summary of additional information about the reconciliation of the fair value measurements using significant unobservable inputs level 3 | Amounts Balance at January 1, 2019 $ 105,670 Fair value change (86,256) Exchange difference 2,467 Contingent liability reclassified into equity (20,849) Balance at December 31, 2019 1,032 Fair value change 1,027 Exchange difference — Balance at December 31, 2020 $ |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SHARE-BASED COMPENSATION | |
Schedule of aggregate number of shares | Maximum aggregate number of shares 2006 Plan 97,430,220 2008 Plan 30,529,630 2009 Plan 40,000,000 2011 Plan 110,014,158 2016 Plan 53,596,236 2018 Plan 107,100,000 |
Schedule of fair value of the options granted, estimated on the date of grant using the option-pricing models with assistance from Marsh, an independent valuation firm, with assumptions used | Years ended December 31, 2020 Chime Trucker Path Risk-free interest rate (1) 0.73 % 0.64 % Volatility(2) 57 % 49 % Expected term (in years) (3) 10 Exercise price(4) $ 0.03 $ 0.02 Dividend yield(5) — — Fair value of underlying ordinary share(6) $ 0.02 $ 0.01 (1) Risk-free interest rate Risk-free interest rate was estimated based on the yield to maturity of treasury bonds of the United States with a maturity period close to the expected life of the options. (2) Volatility The volatility of the underlying ordinary shares during the life of the options was estimated based on the historical stock price volatility of listed comparable companies over a period comparable to the expected term of the options. (3) Expected term For the options granted to employees, the Company estimated the expected term based on the vesting and contractual terms and employee demographics. (4) Exercise price The exercise price of the options was determined by the Company’s board of directors. (5) Dividend yield The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the options. (6) Fair value of underlying ordinary shares The estimated fair value of the ordinary shares underlying the options as of the valuation date was determined based on a contemporaneous valuation. When estimating the fair value of the ordinary shares on the valuation dates, management has considered a number of factors, including the result of a third - party appraisal of the Company, while taking into account standard valuation methods and the achievement of certain events. The fair value of the ordinary shares in connection with the option grants on the valuation date was determined with the assistance of an independent third - party appraiser. |
Summary of information with respect to share options outstanding | Options outstanding Options exercisable Weighted Weighted average Weighted Weighted average Weighted Weighted remaining average average remaining average average Number contractual exercise intrinsic Number of contractual exercise intrinsic Range of exercise prices outstanding life price value exercisable life price value $0.01 138,724,521 3.42 $ 0.06 $ 13,137 130,442,760 3.31 $ 0.01 $ 12,353 138,724,521 $ 13,137 130,442,760 $ 12,353 Options outstanding Options exercisable Weighted Weighted average Weighted Weighted average Weighted Weighted remaining average average remaining average average Range of Number contractual exercise intrinsic Number of contractual exercise intrinsic exercise prices outstanding life price value exercisable life price value $ 4,701,097 9.51 $ 0.03 $ 22,384 3,599,903 9.51 $ 0.03 $ 17,141 Options outstanding Options exercisable Weighted Weighted average Weighted Weighted average Weighted Weighted remaining average average remaining average average Range of Number contractual exercise intrinsic Number of contractual exercise intrinsic exercise prices outstanding life price value exercisable life price value $0.02 3,588,181 9.51 $ 0.02 $ 17,117 3,217,819 9.51 $ 0.02 $ 15,350 |
Summary of the activity of the stock options granted | Weighted Weighted average average Number of exercise grant date shares price fair value Balance, December 31, 2019 138,953,386 $ 0.06 $ 0.64 Exercised (77,535) $ 0.01 $ 0.51 Forfeited (151,330) $ 0.01 $ 0.84 Balance, December 31, 2020 138,724,521 $ 0.01 $ 0.64 Exercisable, December 31, 2020 130,442,760 $ 0.01 Expected to vest, December 31, 2020 8,282,496 $ 0.01 Weighted Weighted average average Number of exercise grant date shares price fair value Balance, December 31, 2019 — $ — $ — Granted 8,346,000 $ 0.03 $ 0.02 Forfeited (45,000) $ 0.03 $ 0.02 Vested (3,599,903) 0.03 0.02 Balance, December 31, 2020 4,701,097 $ 0.03 $ 0.02 Exercisable, December 31, 2020 3,599,903 $ 0.03 Expected to vest, December 31, 2020 4,701,097 $ 0.03 Weighted Weighted average average Number of exercise grant date shares price fair value Balance, December 31, 2019 — $ — $ — Granted 6,871,000 $ 0.02 $ 0.01 Forfeited (65,000) $ 0.02 $ 0.01 Vested (3,217,819) $ 0.02 0.01 Balance, December 31, 2020 3,588,181 $ 0.02 $ 0.01 Exercisable, December 31, 2020 3,217,819 $ 0.02 Expected to vest, December 31, 2020 3,588,181 $ 0.02 |
Summary of the nonvested restricted shares activity | Weighted Weighted average fair number of value nonvested per ordinary restricted share at the shares grant dates Outstanding as of December 31, 2019 55,821,488 $ 0.18 Granted 55,462,455 $ 0.08 Vested (18,549,945) $ 0.19 Forfeited (14,538,907) $ 0.13 Outstanding as of December 31, 2020 78,195,091 $ |
Share-based compensation attributable to selling and marketing, research and development and general and administrative expenses of the discontinued operations | Years ended December 31, 2018 2019 2020 Selling and marketing $ 423 $ 524 $ 185 Research and development 1,035 1,118 990 General and administrative 18,708 6,938 14,145 Total share-based compensation expense $ 20,166 $ 8,580 $ 15,320 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY BALANCES AND TRANSACTIONS | |
Schedule of amount due from related parties | As of December 31, Note 2019 2020 Beijing Infinities (i) $ 681 $ 726 Others 7 38 Amounts due from related parties - current $ 688 $ 764 Oak Pacific Investment (ii) $ 91,758 $ 67,985 Beijing Infinities (i) 40,000 — Amounts due from related parties – non current 131,758 67,985 Total $ 132,446 $ 68,749 |
Schedule of amount due to related parties | As of December 31, 2019 2020 Beijing Infinities $ 681 $ 697 Others 93 — Total $ 774 $ 697 |
Schedule of transactions with related parties for amount due from related parties | Years ended December 31, 2019 2020 Interest accrued for Promissory note: OPI $ 7,904 $ 7,756 Promissory note principal received: OPI (10,027) (31,529) Amount accrued (received) from disposition of Renren SNS: Beijing Infinities (6,067) (40,000) Loan to a related party: Beijing Zhenzhong 3,858 3,155 Amount received from loan to a related party: Beijing Zhenzhong (4,144) (3,060) Equity method Investment: One Rent (600) — |
Schedule of transactions with related parties for amount due to related parties | Years ended December 31, 2019 2020 Repayment of loan from related parties: Beijing Infinities $ 1,192 $ 29 OPI 27 — Loan from a related party: Beijing Infinities (1,879) (1) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENT INFORMATION | |
Schedule of disaggregation of revenue by country | Years ended December 31, 2018 2019 2020 PRC $ 61,046 91 % $ 6,824 45 % $ 587 3 % United States 5,748 9 % 8,261 55 % 17,519 97 % Total Revenue $ 66,794 100 % $ 15,085 100 % $ 18,106 100 % |
Financial Statement Schedule _2
Financial Statement Schedule I Condensed Financial Information of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Statement Schedule I Condensed Financial Information of Parent Company | |
Schedule of Condensed Balance Sheets | Financial Statement Schedule I Condensed Financial Information of Parent Company BALANCE SHEETS As of December 31, 2019 and 2020 (U.S. dollars in thousands, except share data and per share data) As of December 31, 2019 2020 ASSETS Current assets: Cash and cash equivalents $ 173 $ 1,933 Prepaid expenses and other current assets 519 1,058 Amounts due from subsidiaries 409,258 432,494 Total current assets 409,950 435,485 Amounts due from related parties non-current 91,758 67,985 TOTAL ASSETS $ 501,708 $ 503,470 LIABILITIES AND EQUITY Current liabilities: Short-term loan 11,000 11,400 Accrued expenses and other current liabilities 3,152 2,167 Contingent consideration 204 407 Total current liabilities 14,356 13,974 Long-term contingent consideration 828 1,652 Deficit of investment in subsidiaries 382,411 380,794 TOTAL LIABILITIES $ 397,595 $ 396,420 Equity: Class A ordinary shares, $0.001 par value, 3,000,000,000 shares authorized, 750,816,633 and 769,444,113 shares issued and outstanding as of December 31, 2019 and 2020, respectively 751 770 Class B ordinary shares, $0.001 par value, 500,000,000 shares authorized, 305,388,450 and 305,388,450 shares issued and outstanding as of December 31, 2019 and 2020, respectively 305 305 Additional paid-in capital 720,513 742,775 Accumulated deficit (608,118) (627,338) Accumulated other comprehensive loss (9,338) (9,462) Equity 104,113 107,050 TOTAL LIABILITIES AND EQUITY $ 501,708 $ 503,470 |
Schedule of Condensed Statements of Operations And Comprehensive (Loss) Income | Financial Statement Schedule I Condensed Financial Information of Parent Company STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME For the years ended December 31, 2018, 2019 and 2020 (U.S. dollars in thousands, except share data and per share data) Years ended December 31, 2018 2019 2020 Selling and marketing $ 423 $ 524 $ 98 Research and development 1,035 1,118 467 General and administrative 25,536 8,030 16,003 Total operating expenses 26,994 9,672 16,568 Other income (expenses) 924 — (2,765) Interest income 3,969 7,904 7,756 Interest expenses (3,989) (565) (302) Fair value change of contingent consideration — 20,662 (1,027) Loss in equity method investments (1,415) (417) — Gain on deconsolidation of the subsidiaries 182,441 — Equity in loss of subsidiaries and variable interest entities (82,396) (69,005) (6,314) Net income (loss) $ 72,540 $ (51,093) $ (19,220) Other comprehensive (loss) income, net of tax: Foreign currency translation (5,770) (3,344) (124) Net unrealized (loss) gain on available-for-sale investments (9,671) 9 — Non-controlling interest disposition 2,519 — — Transfer to statements of operations of realized gain on available-for-sale securities (7,364) (9) — Other comprehensive loss (20,286) (3,344) (124) Comprehensive income (loss) 52,254 (54,437) (19,344) |
Schedule of Condensed Statements of Cash Flows | Financial Statement Schedule I Condensed Financial Information of Parent Company STATEMENTS OF CASH FLOWS (U.S. dollars in thousands, except share data and per share data) Years ended December 31, 2018 2019 2020 Net cash provided by (used in) operating activities $ 16,026 $ 13,850 $ (30,170) Cash flows from investing activities: Proceeds from sale of equity investments without readily determinable fair values 4,585 — — Proceeds from repayment of the note issued by OPI — 9,564 31,529 Net cash provided by investing activities 4,585 9,564 31,529 Cash flows from financing activities: Proceeds from exercise of share options 1,107 10 1 Proceeds from borrowings 27,000 7,000 400 Cash distribution to shareholders related to acquisition of OPI (133,665) — — Repayment of borrowings (12,000) (31,000) — Net cash (used in) provided by financing activities (117,558) (23,990) 401 Net (decrease) increase in cash and cash equivalents (96,947) (576) 1,760 Cash and cash equivalents at beginning of year 97,697 749 173 Effect of exchange rate changes (1) — — Cash and cash equivalents at end of year $ 749 $ 173 $ 1,933 |
ORGANIZATION AND PRINCIPAL AC_3
ORGANIZATION AND PRINCIPAL ACTIVITIES - Schedule of information related to Entity's subsidiary, VIEs And VIE's subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Qianxiang Tiancheng [Member] | |
Investment Holdings | |
Later of date of incorporation or acquisition | Oct. 28, 2002 |
Place of incorporation | PRC |
Principal activities | Internet business |
Qianxiang Wangjing [Member] | |
Investment Holdings | |
Later of date of incorporation or acquisition | Nov. 11, 2008 |
Place of incorporation | PRC |
Principal activities | Internet business |
Qianxiang Shiji Technology Development (Beijing) Co., Ltd. ("Qianxiang Shiji") | |
Investment Holdings | |
Later of date of incorporation or acquisition | Mar. 21, 2005 |
Place of incorporation | PRC |
Percentage of legal ownership by Renren Inc | 100.00% |
Principal activities | Investment holding |
Ownership interst held | 100.00% |
Haitaoche Shareholders | |
Investment Holdings | |
Percentage of legal ownership by Renren Inc | 51.00% |
Ownership interst held | 51.00% |
Chime Technologies, Inc [Member] | |
Investment Holdings | |
Later of date of incorporation or acquisition | Sep. 7, 2012 |
Place of incorporation | USA |
Percentage of legal ownership by Renren Inc | 100.00% |
Principal activities | SaaS business |
Ownership interst held | 100.00% |
Trucker Path | |
Investment Holdings | |
Later of date of incorporation or acquisition | Dec. 28, 2017 |
Place of incorporation | USA |
Percentage of legal ownership by Renren Inc | 100.00% |
Principal activities | Internet business |
Ownership interst held | 100.00% |
Lucrativ Inc [Member] | |
Investment Holdings | |
Later of date of incorporation or acquisition | Jan. 22, 2018 |
Place of incorporation | USA |
Percentage of legal ownership by Renren Inc | 100.00% |
Principal activities | SaaS business |
Ownership interst held | 100.00% |
Lofty US, Inc [Member] | |
Investment Holdings | |
Later of date of incorporation or acquisition | Jan. 22, 2019 |
Place of incorporation | USA |
Percentage of legal ownership by Renren Inc | 100.00% |
Principal activities | SaaS business |
Ownership interst held | 100.00% |
Renren Giantly Philippines Inc [Member] | |
Investment Holdings | |
Later of date of incorporation or acquisition | Mar. 1, 2018 |
Place of incorporation | Philippines |
Percentage of legal ownership by Renren Inc | 100.00% |
Principal activities | SaaS business |
Ownership interst held | 100.00% |
ORGANIZATION AND PRINCIPAL AC_4
ORGANIZATION AND PRINCIPAL ACTIVITIES - Schedule of consolidated financial information of Company's VIEs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | Dec. 31, 2017 | |
Consolidated financial information | |||||
Cash and cash equivalents | $ 19,630 | $ 1,283 | |||
Short term investments | 0 | 1,436 | |||
Prepaid expenses and other current assets | 2,196 | 2,868 | $ 10,801 | $ 9,788 | |
Amounts due from related parties | 764 | 688 | |||
Total current assets | 88,947 | 72,772 | |||
Property and equipment, net | 439 | 698 | |||
Long-term investments | 53,641 | 13,454 | |||
Goodwill | 124 | 124 | 9,413 | $ 40,085 | |
Amount due from a related party - non-current | 67,985 | 131,758 | |||
Restricted cash - non-current | 0 | 358 | |||
Right-of-use assets | 2,135 | 3,254 | 3,441 | ||
Other non-current assets | 77 | 680 | |||
Total assets | 213,673 | 226,211 | |||
Accounts payable | 951 | 1,271 | |||
Short-term Debt | 11,400 | 14,447 | |||
Accrued expenses and other current liabilities | 10,819 | 13,875 | 22,411 | $ 22,411 | |
Payable to investors | 15 | 14 | |||
Amounts due to related parties | 697 | 774 | |||
Deferred revenue | 602 | 750 | |||
Income tax payable | 13,841 | 14,735 | |||
Total current liabilities | 81,103 | 98,170 | |||
Total non-current liabilities | 3,826 | 2,808 | |||
Total liabilities | 84,929 | 100,978 | |||
Revenues | 18,106 | 15,085 | 66,794 | ||
(Loss) income from continuing operations | (16,800) | (38,420) | (69,879) | ||
Loss from discontinued operations | (5,320) | (69,068) | 134,360 | ||
Variable Interest Entity [Member] | |||||
Consolidated financial information | |||||
Revenues | 433 | 6,581 | 57,896 | ||
(Loss) income from continuing operations | 1,874 | (31,953) | (43,743) | ||
Loss from discontinued operations | (4,626) | ||||
Net cash (used in) provided by operating activities | 2,031 | (1,170) | (5,970) | ||
Net cash (used in) provided by investing activities | 1,566 | 8,735 | (1,461) | ||
Net cash provided by (used in) financing activities | (3,088) | (10,340) | $ 4,825 | ||
VIE with recourse | |||||
Consolidated financial information | |||||
Short-term Debt | 7,900 | ||||
Variable Interest Entity [Member] | |||||
Consolidated financial information | |||||
Cash and cash equivalents | 955 | 264 | |||
Short term investments | 1,436 | ||||
Accounts receivable, net | 175 | 218 | |||
Prepaid expenses and other current assets | 647 | 1,537 | |||
Amounts due from related parties | 764 | 688 | |||
Total current assets | 2,541 | 4,143 | |||
Property and equipment, net | 178 | 183 | |||
Long-term investments | 41,794 | 1,799 | |||
Goodwill | 0 | ||||
Amount due from a related party - non-current | 40,000 | ||||
Restricted cash - non-current | 358 | ||||
Right-of-use assets | 659 | 1,122 | |||
Other non-current assets | 76 | 660 | |||
Total non-current assets | 42,707 | 44,122 | |||
Total assets | 45,248 | 48,265 | |||
Accounts payable | 299 | 413 | |||
Short-term Debt | 3,447 | ||||
Accrued expenses and other current liabilities | 6,409 | 7,467 | |||
Operating lease liabilities - current | 341 | 217 | |||
Payable to investors | 15 | 14 | |||
Amounts due to related parties | 690 | 774 | |||
Deferred revenue | 16 | 15 | |||
Income tax payable | 3,321 | 4,647 | |||
Total current liabilities | 11,091 | 16,994 | |||
Operating lease liabilities - non-current | 256 | 0 | |||
Total non-current liabilities | 256 | 0 | |||
Total liabilities | $ 11,347 | $ 16,994 |
ORGANIZATION AND PRINCIPAL AC_5
ORGANIZATION AND PRINCIPAL ACTIVITIES - Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2018 | |
VIE arrangements | ||||
Revenues | $ 18,106 | $ 15,085 | $ 66,794 | |
OPI | ||||
VIE arrangements | ||||
Ownership interst held | 100.00% | |||
Percentage of legal ownership by Renren Inc | 100.00% | |||
Haitaoche Shareholders | ||||
VIE arrangements | ||||
Ownership interst held | 51.00% | |||
Percentage of legal ownership by Renren Inc | 51.00% | |||
Variable Interest Entity [Member] | ||||
VIE arrangements | ||||
Percentage of VIEs revenues to the consolidated net revenues | 2.40% | 43.60% | 86.70% | |
Percentage of VIEs assets to the consolidated total assets | 21.30% | 22.60% | ||
Percentage of VIEs liability to the consolidated total liabilities | 14.40% | 20.00% | ||
Revenues | $ 433 | $ 6,581 | $ 57,896 | |
Variable Interest Entity [Member] | Power of Attorney [Member] | ||||
VIE arrangements | ||||
Term of agreement | 10 years | |||
Variable Interest Entity [Member] | Business Operations Agreement [Member] | ||||
VIE arrangements | ||||
Advance written notice period for not extending term of agreement | 30 days | |||
Variable Interest Entity [Member] | Exclusive Equity Option Agreement [Member] | ||||
VIE arrangements | ||||
Term of agreement | 10 years | |||
Advance written notice period for not extending term of agreement | 30 days | |||
Variable Interest Entity [Member] | Exclusive Technical and Consulting Services Agreement [Member] | ||||
VIE arrangements | ||||
Advance written notice period for not extending term of agreement | 30 days | |||
Variable Interest Entity [Member] | Intellectual Property License Agreement [Member] | ||||
VIE arrangements | ||||
Advance written notice period for not extending term of agreement | 30 days |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Non current portion of restricted cash (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Cash and cash equivalents | $ 19,630 | $ 1,283 |
Restricted cash | 14,457 | 13,091 |
Restricted cash - non-current | 0 | 358 |
Total cash, cash equivalents and restricted cash shown in the statements of cash flow | $ 34,087 | $ 14,732 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of estimated useful lives of property and equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Server and Network Equipment [Member] | |
Property and equipment, net | |
Estimated useful lives | 3 years |
Computer equipment and application software [Member] | Minimum | |
Property and equipment, net | |
Estimated useful lives | 2 years |
Computer equipment and application software [Member] | Maximum | |
Property and equipment, net | |
Estimated useful lives | 3 years |
Furniture and vehicles [Member] | Minimum | |
Property and equipment, net | |
Estimated useful lives | 3 years |
Furniture and vehicles [Member] | Maximum | |
Property and equipment, net | |
Estimated useful lives | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right-of-use assets | $ 2,135 | $ 3,254 | $ 3,441 | |
Lease liabilities | 1,998 | |||
Operating lease liabilities - current | (1,409) | (1,051) | (1,529) | |
Operating lease liabilities - non - current | (589) | (1,170) | (899) | |
Prepaid expenses and other current assets | 2,196 | 2,868 | 9,788 | $ 10,801 |
Accrued expenses and other current liabilities | $ (10,819) | $ (13,875) | (22,411) | $ (22,411) |
ASU 2016 - 02 | Revision of Prior Period, Adjustment [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right-of-use assets | 3,441 | |||
Lease liabilities | 2,429 | |||
Operating lease liabilities - current | (1,529) | |||
Operating lease liabilities - non - current | (899) | |||
Prepaid expenses and other current assets | $ (1,013) |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loss from operations | $ (27,227) | $ (57,407) | $ (79,327) | |
Cash used in operating activities | (11,724) | (28,402) | (82,966) | |
Working capital | 7,844 | |||
Impairment loss of equity investments | 0 | 6,155 | 0 | |
impairment loss of available-for-sale of investment | 0 | 2,000 | 0 | |
Inventory write off and write down | 17,826 | |||
Prepayments written off | 22,282 | |||
Goodwill impairment | 0 | 9,288 | 29,055 | |
impairment of long-term investments | 0 | 0 | 675 | |
Goodwill | ||||
Goodwill, Impairment Loss | 0 | 9,288 | 29,055 | |
Deferred Revenue, Current | 602 | 750 | ||
Value added taxes | ||||
Amount of VAT reported as a deduction to revenue | 599 | 1,034 | 4,949 | |
Continuing operations | ||||
Goodwill impairment | 9,288 | 29,055 | ||
Goodwill | ||||
Goodwill, Impairment Loss | 9,288 | 29,055 | ||
Discontinued operations | ||||
Goodwill impairment | 0 | 74,091 | 0 | |
Goodwill | ||||
Goodwill, Impairment Loss | $ 0 | $ 74,091 | 0 | |
Maximum | ||||
Equity Method Investment, Ownership Percentage | 50.00% | |||
Minimum | ||||
Equity Method Investment, Ownership Percentage | 20.00% | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | ||||
Goodwill | ||||
Advance from customers, period of recognition of revenue | 1 year | |||
Jieying Huaqi Auto Service Co [Member] | ||||
Inventory Write-down | $ 5,700 | |||
SUBSEQUENT EVENT | ||||
Proceeds from related party debt | $ 68 |
SIGNIFICANT RISKS AND UNCERTA_2
SIGNIFICANT RISKS AND UNCERTAINTIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Foreign currency risk | |||
Cash and cash equivalents denominated in RMB | $ 3,418 | $ 315 | |
Sales Revenue, Net | |||
Foreign currency risk | |||
Concentration risk percentage | 10.00% | 10.00% | 10.00% |
Accounts Receivable | |||
Foreign currency risk | |||
Concentration risk percentage | 10.00% | 10.00% |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | |||
Nov. 30, 2018 | Jun. 21, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
DECONSOLIDATION OF SUBSIDIARIES | ||||
Stock Issued During Period, Shares, New Issues | 816,261,781 | |||
Payments of Dividends | $ 133.7 | |||
Dividends Payable, Amount Per Share | $ 0.6125 | |||
Beijing Infinities Interactive Media Co Ltd [Member] | ||||
DECONSOLIDATION OF SUBSIDIARIES | ||||
Business Combination, Consideration Transferred | $ 20 | |||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 40 | |||
Allowance for doubtful accounts receivable | $ 12.6 | |||
Renren SNS [Member] | ||||
DECONSOLIDATION OF SUBSIDIARIES | ||||
Proceeds From Related Party Discontinued Operation | $ 6.8 |
DISCONTINUED OPERATIONS - Sched
DISCONTINUED OPERATIONS - Schedule of calculation of gain (loss) on consolidation (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 |
Calculation of gain on deconsolidation | ||||
Gain on deconsolidation of OPI | $ 0 | $ 242,097 | ||
Renren SNS [Member] | ||||
Calculation of gain on deconsolidation | ||||
Fair value of OPI | 60,000 | |||
Less: Property and equipment, net | 8 | |||
Net assets of Renren SNS | 8 | |||
Less: Accumulated other comprehensive income | 336 | |||
Gain on deconsolidation of OPI | 59,656 | |||
Cash flows from operating activities | 681 | 1,437 | ||
OPI | ||||
Calculation of gain on deconsolidation | ||||
Fair value of OPI | $ 500,000 | |||
Less: Cash and cash equivalents | 35,274 | |||
Accounts and notes receivable, net | 64 | |||
Prepaid expenses and other current assets | 16,344 | |||
Less: Property and equipment, net | 12 | |||
Amount due from the Company | 15,190 | |||
Equity method investments | 268,515 | |||
Equity investments without readily determinable fair values | 144,096 | |||
Available-for-sale investment | 90,615 | |||
Other non-current assets | 14 | |||
Short term loan | (14,336) | |||
Accounts payable | (96) | |||
Accrued expenses and other current liabilities | (872) | |||
Amount due to the Company | (102,304) | |||
Deferred revenue | (13) | |||
Income tax payable | (910) | |||
Long-term liabilities | (112,604) | |||
Other Long-term liabilities | (21,430) | |||
Less: Accumulated other comprehensive income | 317,559 | |||
Less: Tax expenses | 0 | |||
Gain on deconsolidation of OPI | $ 182,441 | $ 182,441 | ||
Kaixin Auto Holdings | ||||
Calculation of gain on deconsolidation | ||||
Less: Cash and cash equivalents | 3,190 | $ 3,162 | ||
Accounts and notes receivable, net | 219 | |||
Prepaid expenses and other current assets | 27,586 | 43,624 | ||
Less: Property and equipment, net | 153 | 45 | ||
Other non-current assets | 1,562 | |||
Income tax payable | $ (5,319) | $ (4,042) |
DISCONTINUED OPERATIONS - Sch_2
DISCONTINUED OPERATIONS - Schedule of condensed cash flow (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net cash (used in) provided by operating activities | $ (3,878,000) | $ (4,745,000) | $ (39,320,000) |
Net cash (used in) provided by investing activities | 0 | 1,223,000 | 98,994,000 |
Net cash (used in) provided by financing activities from discontinued operations | 3,917,000 | (6,328,000) | (95,128,000) |
OPI | |||
Net cash (used in) provided by operating activities | (28,134,000) | ||
Net cash (used in) provided by investing activities | 12,000 | ||
Net cash (used in) provided by financing activities from discontinued operations | 60,000,000 | ||
Kaixin Auto Holdings | |||
Net cash (used in) provided by operating activities | (3,878,000) | (4,745,000) | (9,749,000) |
Net cash (used in) provided by investing activities | 1,223,000 | 98,982,000 | |
Net cash (used in) provided by financing activities from discontinued operations | $ 3,917,000 | $ (6,328,000) | $ (138,637,000) |
DISCONTINUED OPERATIONS - Addit
DISCONTINUED OPERATIONS - Additional information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets classified as held for sale | $ 0 | $ 2,405 |
Liabilities classified as held for sale | 0 | 810 |
Kaixin Auto Holdings | ||
Cash and cash equivalents | 3,162 | 3,190 |
Financing receivable, net | 219 | |
Inventory | 20,990 | |
Prepaid expenses and other current assets | 43,624 | 27,586 |
Property and equipment, net | 45 | 153 |
Right-of-use assets | 74 | 2,252 |
Other non-current asset | 1,562 | |
Assets classified as held for sale | 48,467 | 54,390 |
Accounts payable | 402 | 4,122 |
Accrued expenses and other current payables | 14,683 | 17,302 |
Amount due to related parties | 2,960 | 4,214 |
Short-term debt | 15,257 | 16,630 |
Income tax payable | 4,042 | 5,319 |
Advance from customers | 1,863 | 1,677 |
Lease liabilities- current | 39 | 1,785 |
Warrant Liability | 1,690 | |
Lease liabilities - non-current | 26 | 810 |
Liabilities classified as held for sale | $ 40,962 | $ 51,859 |
DISCONTINUED OPERATIONS - Sch_3
DISCONTINUED OPERATIONS - Schedule of condensed statement of operation (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Major classes of line items constituting pretax profit of discontinued operations | ||||
Revenues | $ 18,106 | $ 15,085 | $ 66,794 | |
Interest expense | (303) | (566) | (842) | |
Other (expenses) income | 3,543 | 1,523 | (1,202) | |
Impairment of long-term investments | 0 | (2,000) | 0 | |
Income tax (expenses) benefit | 0 | 0 | 0 | |
Income from the operations of the discontinued operations, net of tax | (5,320) | (69,068) | (107,737) | |
Loss from the operations of the discontinued operations, net of tax | (5,320) | (69,068) | 134,360 | |
Gain on deconsolidation of the subsidiaries, net of tax | 0 | 242,097 | ||
OPI | ||||
Major classes of line items constituting pretax profit of discontinued operations | ||||
Net revenues | 895 | |||
Cost of revenues | (834) | |||
Selling, research and development, and general and administrative expenses | (1,394) | |||
Other income (expense) | 371 | |||
Interest expense | (3,142) | |||
Impairment of long-term investments | (2,180) | |||
Loss from the operations of the discontinued operations, before income tax | (6,284) | |||
Loss of equity method investment | (9,674) | |||
Loss from the operations of the discontinued operations, net of tax | (15,958) | |||
Gain on deconsolidation of the subsidiaries, net of tax | $ 182,441 | 182,441 | ||
Gain (loss) from the discontinued operations, net of tax | 166,483 | |||
Renren SNS [Member] | ||||
Major classes of line items constituting pretax profit of discontinued operations | ||||
Net revenues | 19,679 | |||
Cost of revenues | (14,997) | |||
Selling, research and development, and general and administrative expenses | (7,523) | |||
Loss from the operations of the discontinued operations, before income tax | (2,841) | |||
Loss from the operations of the discontinued operations, net of tax | (2,841) | |||
Gain on deconsolidation of the subsidiaries, net of tax | 59,656 | |||
Gain (loss) from the discontinued operations, net of tax | 56,815 | |||
Kaixin Auto Holdings | ||||
Major classes of line items constituting pretax profit of discontinued operations | ||||
Net revenues | 33,160 | 334,697 | 431,404 | |
Cost of revenues | (32,160) | (340,174) | (413,971) | |
Selling, research and development, and general and administrative expenses | (7,256) | (53,866) | (51,508) | |
Other income (expense) | 586 | 840 | (812) | |
Interest income | 5 | 69 | 575 | |
Interest expense | (1,183) | (4,057) | (4,261) | |
Impairment of goodwill | (74,091) | |||
Fair value change of contingent consideration | 65,594 | (49,503) | ||
Loss from the operations of the discontinued operations, before income tax | (6,848) | (70,988) | (88,076) | |
Income tax (expenses) benefit | 1,528 | 1,920 | (862) | |
Loss from the operations of the discontinued operations, net of tax | (5,320) | (69,068) | (88,938) | |
Gain (loss) from the discontinued operations, net of tax | $ (5,320) | $ (69,068) | (88,938) | |
Total | ||||
Major classes of line items constituting pretax profit of discontinued operations | ||||
Net revenues | 451,978 | |||
Cost of revenues | (429,802) | |||
Selling, research and development, and general and administrative expenses | (60,425) | |||
Other income (expense) | (441) | |||
Interest income | 575 | |||
Interest expense | (7,403) | |||
Impairment of long-term investments | (2,180) | |||
Fair value change of contingent consideration | (49,503) | |||
Loss from the operations of the discontinued operations, before income tax | (97,201) | |||
Income tax (expenses) benefit | (862) | |||
Loss of equity method investment | (9,674) | |||
Loss from the operations of the discontinued operations, net of tax | (107,737) | |||
Gain on deconsolidation of the subsidiaries, net of tax | 242,097 | |||
Gain (loss) from the discontinued operations, net of tax | $ 134,360 |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details) $ in Thousands | 24 Months Ended |
Dec. 31, 2020USD ($) | |
SHORT-TERM INVESTMENTS | |
Unrealized gain (loss) on investments | $ 0 |
LONG-TERM INVESTMENTS - Schedul
LONG-TERM INVESTMENTS - Schedule of long-term investments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
LONG-TERM INVESTMENTS | ||
Total equity method investments | $ 12,875 | $ 12,736 |
Total equity investments without readily determinable fair values | 40,766 | 718 |
Total long-term investments | 53,641 | 13,454 |
SYI Venture Capital Center [Member] | ||
LONG-TERM INVESTMENTS | ||
Total equity investments with readily determinable fair values | 766 | 718 |
Fundrise LP [Member] | ||
LONG-TERM INVESTMENTS | ||
Total equity method investments | 11,828 | 11,655 |
Infinites Technology (Cayman) Holding Limited [Member] | ||
LONG-TERM INVESTMENTS | ||
Total equity investments without readily determinable fair values | 40,000 | |
Other [Member] | ||
LONG-TERM INVESTMENTS | ||
Total equity method investments | $ 1,047 | $ 1,081 |
LONG-TERM INVESTMENTS (Details)
LONG-TERM INVESTMENTS (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2014 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity method investments: | ||||
Earnings (loss) in equity method investments, net of tax | $ 70 | $ (7,464) | $ (2,463) | |
Fundrise LP [Member] | ||||
Equity method investments: | ||||
Payment for equity method investments | $ 10,000 | |||
Equity Method Investment, Ownership Percentage | 98.04% | 98.04% | ||
Earnings (loss) in equity method investments, net of tax | $ 174 | $ 336 | $ 276 |
Goodwill - Schedule Of Changes
Goodwill - Schedule Of Changes In Carrying Amounts Of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Costs: | |||
Beginning balance | $ 124 | $ 9,413 | $ 40,085 |
Impairment loss | 0 | (9,288) | (29,055) |
Exchange difference | 0 | 1 | (1,617) |
Ending balance | $ 124 | $ 124 | $ 9,413 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill, Impairment Loss | $ 0 | $ 9,288 | $ 29,055 |
New Car Business [Member] | |||
Goodwill, Impairment Loss | 25,804 | ||
Sindeo Business [Member] | |||
Goodwill, Impairment Loss | $ 3,251 | ||
Geographic Farming, LLC | |||
Goodwill, Impairment Loss | 1,461 | ||
Trucker Path | |||
Goodwill, Impairment Loss | $ 7,828 |
SHORT - TERM DEBT AND LONG-TE_3
SHORT - TERM DEBT AND LONG-TERM DEBT- Schedule Of Short Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Total | $ 11,400 | $ 14,447 |
East West Bank [Member] | ||
Total | $ 11,400 | 11,000 |
Others [Member] | ||
Total | $ 3,447 |
SHORT - TERM DEBT AND LONG-TE_4
SHORT - TERM DEBT AND LONG-TERM DEBT - Short-term debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2020 | Sep. 30, 2020 | Apr. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |
SHORT-TERM DEBT [Line Items] | ||||||
Short-term Debt | $ 11,400 | $ 14,447 | ||||
East West Bank [Member] | ||||||
SHORT-TERM DEBT [Line Items] | ||||||
Face amount of debt | $ 18,000 | $ 1,585 | ||||
Short-term Debt | $ 11,400 | $ 11,000 | ||||
London Interbank Offered Rate (LIBOR) [Member] | East West Bank [Member] | ||||||
SHORT-TERM DEBT [Line Items] | ||||||
Face amount of debt | $ 7,000 | |||||
Spread on variable rate basis (as a percent) | 1.70% | |||||
Short-term Debt | $ 11,000 |
SHORT - TERM DEBT AND LONG-TE_5
SHORT - TERM DEBT AND LONG-TERM DEBT - Schedule Of Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Total | $ 1,585 | $ 0 |
East West Bank [Member] | ||
Total | $ 1,585 |
SHORT - TERM DEBT AND LONG-TE_6
SHORT - TERM DEBT AND LONG-TERM DEBT - Long-term debt (Details) - East West Bank [Member] - USD ($) $ in Thousands | 1 Months Ended | |
Apr. 30, 2020 | Sep. 30, 2020 | |
LONG-TERM DEBT | ||
Face amount of debt | $ 1,585 | $ 18,000 |
Debt Instrument, Description of Variable Rate Basis | 1.0% |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule Of Accrued Expenses And Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Accrued expenses and other current liabilities | ||||
Other tax payable | $ 3,849 | $ 3,925 | ||
Accrued professional fee and marketing expense | 3,162 | 4,688 | ||
Employee payroll and welfare | 364 | 937 | ||
Accrued Rental | 10 | 424 | ||
Staff reimbursement | 128 | 221 | ||
Others | 3,306 | 3,680 | ||
Total | $ 10,819 | $ 13,875 | $ 22,411 | $ 22,411 |
OPERATING LEASES - Right of use
OPERATING LEASES - Right of use assets and lease liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
OPERATING LEASES. | ||||
Right-of-use assets | $ 2,135 | $ 3,254 | $ 3,441 | |
Operating lease liabilities - current | 1,409 | 1,051 | 1,529 | |
Operating lease liabilities - non - current | 589 | 1,170 | $ 899 | |
Cash paid for amounts included in the measurement of lease liabilities | 940 | |||
Total operating lease cost | $ 1,814 | $ 1,289 | $ 4,140 |
OPERATING LEASES - Lease cost (
OPERATING LEASES - Lease cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Total operating lease cost | $ 1,814 | $ 1,289 | $ 4,140 |
Short-term lease cost | 83 | 276 | |
Total lease cost | $ 1,897 | $ 1,565 | |
Weighted average remaining lease term | 1 year 8 months 12 days | 1 year 10 months 17 days | |
Weighted average discount rate of operating leases | 10.30% | 10.92% | |
Cost | |||
Lessee, Lease, Description [Line Items] | |||
Total operating lease cost | $ 297 | $ 90 | |
Selling expenses | |||
Lessee, Lease, Description [Line Items] | |||
Total operating lease cost | 7 | ||
Research and development expenses | |||
Lessee, Lease, Description [Line Items] | |||
Total operating lease cost | 1,221 | 977 | |
General and administrative expenses | |||
Lessee, Lease, Description [Line Items] | |||
Total operating lease cost | $ 296 | $ 215 |
OPERATING LEASES - Maturities o
OPERATING LEASES - Maturities of lease liabilities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
OPERATING LEASES. | |
2021 | $ 1,409 |
2022 | 610 |
Total undiscounted lease payment | 2,019 |
Less: Imputed interest | 21 |
Present value of lease liabilities | $ 1,998 |
INCOME TAXES - Additional infor
INCOME TAXES - Additional information (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Income taxes | ||||
Statutory income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | |
Net operating loss carry forwards | $ 32,914 | |||
PRC | ||||
Income taxes | ||||
Statutory income tax rate (as a percent) | 25.00% | |||
Withholding income tax rate on dividends generated and payable by a foreign-invested enterprise in PRC to foreign non-resident enterprise investors (as a percent) | 10.00% | |||
Net operating loss carry forwards | $ 22,413 | $ 29,707 | ||
PHILIPPINES | ||||
Income taxes | ||||
Effective Income Tax Rate Reconciliation, Percent | 30.00% | 30.00% | ||
Foreign Tax Authority [Member] | Profit Slab One [Member] | ||||
Income taxes | ||||
Effective Income Tax Rate Reconciliation, Percent | 8.25% | |||
Effective Tax Rate Terms And Conditions | profits tax rate for the first HKD 2 million | |||
Foreign Tax Authority [Member] | Profit Slab Two [Member] | ||||
Income taxes | ||||
Effective Income Tax Rate Reconciliation, Percent | 16.50% | |||
Effective Tax Rate Terms And Conditions | profits exceeding HKD 2 million | |||
Expiration by 2021 | ||||
Income taxes | ||||
Net operating loss carry forwards | $ 4,569 | |||
Expiration by 2022 | ||||
Income taxes | ||||
Net operating loss carry forwards | 7,053 | |||
Expiration by 2023 | ||||
Income taxes | ||||
Net operating loss carry forwards | 10,579 | |||
Expiration by 2024 | ||||
Income taxes | ||||
Net operating loss carry forwards | 6,980 | |||
Expiration by 2025 | ||||
Income taxes | ||||
Net operating loss carry forwards | 3,733 | |||
No Expiration | Hong Kong | ||||
Income taxes | ||||
Net operating loss carry forwards | 47 | |||
No Expiration | United States | ||||
Income taxes | ||||
Net operating loss carry forwards | $ 66,649 |
INCOME TAXES - Schedule Of Curr
INCOME TAXES - Schedule Of Current And Deferred Component Of Income Tax Expenses Which Were Attributable To The Companys PRC Subsidiaries And VIE And VIEs Subsidiaries (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current and deferred component of income tax expenses (benefits) | |||
Total income tax expenses (benefit) | $ (65) | $ 1,944 | $ 8,988 |
PRC | |||
Current and deferred component of income tax expenses (benefits) | |||
Current income tax expenses (benefit) | (65) | 1,944 | 8,988 |
Deferred income tax expenses | 0 | 0 | |
Total income tax expenses (benefit) | $ (65) | $ 1,944 | $ 8,988 |
INCOME TAXES - Schedule Of Prin
INCOME TAXES - Schedule Of Principal Components Of The Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||
Less valuation allowance | $ (41,905) | $ (50,561) |
PRC | ||
Deferred tax assets | ||
Provision for doubtful accounts | 4,761 | 4,456 |
Accrued payroll and welfare | 89 | 218 |
Prepaid expenses and other current assets | 4,839 | 5,137 |
Accrued liabilities | 2,424 | 3,019 |
Advertising fee | 563 | 811 |
Employee education fee | 19 | 18 |
Goodwill and intangible asset impairment | 6,798 | 7,195 |
Net operating loss carry forwards | 22,412 | 29,707 |
Total Deferred tax assets | 41,905 | 50,561 |
Less valuation allowance | (41,905) | (50,561) |
Deferred tax assets, net | $ 0 | $ 0 |
INCOME TAXES - Rollforward of v
INCOME TAXES - Rollforward of valuation allowances of deferred tax assets (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Deferred Tax Assets, Valuation Allowance [Roll Forward] | |
Balance as of beginning of year | $ (50,561) |
Additions of valuation allowance | 4,070 |
Reversals | (11,868) |
Decrease relating to disposal of entities | (3,355) |
Foreign currency translation adjustments | 2,497 |
Balance as of end of year | $ (41,905) |
INCOME TAXES - Schedule Of Reco
INCOME TAXES - Schedule Of Reconciliation Between The Income Taxes Expense (Benefit) Computed By Applying PRC Tax Rate To Income (Loss) Before Income Taxes And Actual Provision For Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
INCOME TAXES | |||
Loss before provision of income tax | $ (16,935) | $ (29,012) | $ (58,428) |
PRC statutory income tax rate (as a percent) | 25.00% | 25.00% | 25.00% |
Income tax at statutory tax rate | $ (4,234) | $ (7,250) | $ (14,607) |
Taxable deemed interest income from inter-company interest-free loans | (66) | 2,218 | 4,298 |
Net operating loss not applicable for carryforward | 14,820 | 13,548 | 0 |
Non-deductible expenses | 44 | (1,340) | 6,471 |
Non-deductible expenses related to share-based compensation | 3,830 | 2,102 | 7,901 |
Non-taxable income from fair value change gain of contingent consideration | (257) | (5,166) | 0 |
Impairment of goodwill | 2,322 | 0 | |
Effect of income tax rate differences in jurisdictions other than the PRC | 675 | (87) | 7,426 |
Effects of Company cancellation | (3,723) | 205 | 0 |
Changes in valuation allowance | (11,154) | (4,608) | (2,501) |
Total income tax expenses (benefit) | $ (65) | $ 1,944 | $ 8,988 |
ORDINARY SHARES (Details)
ORDINARY SHARES (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Class A ordinary shares | ||
Ordinary shares, shares authorized | 3,000,000,000 | 3,000,000,000 |
Ordinary shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Ordinary shares, value | $ 770 | $ 751 |
Class B ordinary shares | ||
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 |
Ordinary shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Ordinary shares, value | $ 305 | $ 305 |
Number of shares into which each Class B ordinary share is convertible | 1 | 1 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Company's financial assets measured and recorded at fair value on recurring basis (Details) - Recurring basis [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets measured and recorded at fair value [Line Items] | ||
Short-term investments | $ 0 | $ 1,436 |
Long-term investments | ||
Contingent consideration | (2,059) | (1,032) |
Total | (2,059) | 404 |
Quoted price in active markets for identical assets Level 1 [Member] | ||
Financial assets measured and recorded at fair value [Line Items] | ||
Short-term investments | 0 | |
Long-term investments | ||
Contingent consideration | 0 | |
Total | 0 | |
Significant other observable inputs Level 2 [Member] | ||
Financial assets measured and recorded at fair value [Line Items] | ||
Short-term investments | 0 | 1,436 |
Long-term investments | ||
Contingent consideration | 0 | |
Total | 0 | 1,436 |
Significant unobservable inputs Level 3 [Member] | ||
Financial assets measured and recorded at fair value [Line Items] | ||
Short-term investments | 0 | |
Long-term investments | ||
Contingent consideration | (2,059) | (1,032) |
Total | $ (2,059) | $ (1,032) |
FAIR VALUE MEASUREMENTS - Sum_2
FAIR VALUE MEASUREMENTS - Summary of additional information about the reconciliation of the fair value measurements using significant unobservable inputs level 3 (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
FAIR VALUE MEASUREMENTS | ||
Balance at beginning of the period | $ 1,032 | $ 105,670 |
Fair value change | 1,027 | (86,256) |
Exchange difference | 2,467 | |
Contingent liability reclassified into equity | (20,849) | |
Balance at ending of the period | $ 2,059 | $ 1,032 |
FAIR VALUE MEASUREMENTS - Discl
FAIR VALUE MEASUREMENTS - Disclosure of contingent consideration from acquisition of sales service centers (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2020shares | |
Sales Service Centers [Member] | |
Ordinary shares entitled to receive | 4,180 |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 13, 2020 | Mar. 24, 2020 | Jun. 29, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
SHARE-BASED COMPENSATION : Stock Options [Line Items] | ||||||
Options forfeited | 151,330 | |||||
Exercise price of the outstanding share options granted before modification (in dollars per ADS) | $ 0.0113 | $ 0.0613 | ||||
Exercise price of the outstanding share options granted after modification (in dollars per ADS) | $ 0.0113 | $ 0.0613 | ||||
Total incremental cost | $ 6,948 | $ 10,779 | ||||
Share-based Payment Arrangement, Expense, Tax Benefit | $ 0 | $ 0 | $ 0 | |||
Unrecognized share-based compensation cost disclosure | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost Related To Vested Options | 6,534 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost Related To Unvested Options | $ 414 | 1,475 | ||||
Share based compensation arrangement by share based payment award to vested option modification incremental compensation cost | $ 9,304 | |||||
Share-based Compensation | $ 15,320 | 12,284 | 31,603 | |||
Stock options [Member] | ||||||
Unrecognized share-based compensation cost disclosure | ||||||
Weighted-average vesting period for recognition of unrecognized share-based compensation cost | 1 year 11 months 1 day | |||||
Non-employee stock options [Member] | ||||||
SHARE-BASED COMPENSATION : Stock Options [Line Items] | ||||||
Share based compensation | $ 0 | 0 | ||||
Employee stock options [Member] | ||||||
SHARE-BASED COMPENSATION : Stock Options [Line Items] | ||||||
Share-based compensation expenses from continuing operations | 11,576 | 4,628 | 16,459 | |||
Unrecognized share-based compensation cost disclosure | ||||||
Unrecognized share-based compensation expense relating to share options | 4,472 | |||||
Nonvested restricted shares [Member] | ||||||
SHARE-BASED COMPENSATION : Stock Options [Line Items] | ||||||
Share based compensation | $ 2,634 | $ 3,952 | $ 3,917 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 18,549,945 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 5,259 | |||||
Unrecognized share-based compensation cost disclosure | ||||||
Weighted-average vesting period for recognition of unrecognized share-based compensation cost | 1 year 8 months 12 days | |||||
Number of awards granted (in shares) | 55,462,455 | |||||
Stock Incentive Plan 2011 [Member] | ||||||
SHARE-BASED COMPENSATION : Stock Options [Line Items] | ||||||
Options approved under the plan (in shares) | 110,014,158 | |||||
Unrecognized share-based compensation cost disclosure | ||||||
Maximum aggregrae number of shares | 110,014,158 | |||||
Stock Incentive Plan 2006 [Member] | ||||||
SHARE-BASED COMPENSATION : Stock Options [Line Items] | ||||||
Options approved under the plan (in shares) | 97,430,220 | |||||
Unrecognized share-based compensation cost disclosure | ||||||
Maximum aggregrae number of shares | 97,430,220 | |||||
Stock Incentive Plan 2008 [Member] | ||||||
SHARE-BASED COMPENSATION : Stock Options [Line Items] | ||||||
Options approved under the plan (in shares) | 30,529,630 | |||||
Unrecognized share-based compensation cost disclosure | ||||||
Maximum aggregrae number of shares | 30,529,630 | |||||
Stock Incentive Plan 2009 [Member] | ||||||
SHARE-BASED COMPENSATION : Stock Options [Line Items] | ||||||
Options approved under the plan (in shares) | 40,000,000 | |||||
Unrecognized share-based compensation cost disclosure | ||||||
Maximum aggregrae number of shares | 40,000,000 | |||||
Stock Incentive Plan 2016 [Member] | ||||||
SHARE-BASED COMPENSATION : Stock Options [Line Items] | ||||||
Options approved under the plan (in shares) | 53,596,236 | |||||
Unrecognized share-based compensation cost disclosure | ||||||
Maximum aggregrae number of shares | 53,596,236 | |||||
Stock Incentive Plan 2018 [Member] | ||||||
SHARE-BASED COMPENSATION : Stock Options [Line Items] | ||||||
Options approved under the plan (in shares) | 107,100,000 | |||||
Unrecognized share-based compensation cost disclosure | ||||||
Maximum aggregrae number of shares | 107,100,000 | |||||
Chime Plan | ||||||
SHARE-BASED COMPENSATION : Stock Options [Line Items] | ||||||
Share based compensation | $ 632 | $ 67 | ||||
Number of shares available for future grant | 30,000,000 | |||||
Term of the options | 10 years | |||||
Vesting term | 4 years | |||||
Weighted average grant date fair value of option per share | $ 0.02 | |||||
Unrecognized share-based compensation cost disclosure | ||||||
Unrecognized share-based compensation expense relating to share options | $ 87 | |||||
Weighted-average vesting period for recognition of unrecognized share-based compensation cost | 3 years 6 months 11 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.02 | |||||
Award vesting period | 4 years | |||||
Chime Plan | Employee stock options [Member] | ||||||
SHARE-BASED COMPENSATION : Stock Options [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 20,000,000 | |||||
Number of shares issued | 20,000,000 | 8,346,000 | ||||
Chime Plan | Nonvested restricted shares [Member] | ||||||
SHARE-BASED COMPENSATION : Stock Options [Line Items] | ||||||
Number of shares issued | 20,000,000 | |||||
Trucker Path Plan | ||||||
SHARE-BASED COMPENSATION : Stock Options [Line Items] | ||||||
Share based compensation | $ 365 | $ 31 | ||||
Number of shares available for future grant | 30,000,000 | |||||
Weighted average grant date fair value of option per share | $ 0.01 | |||||
Unrecognized share-based compensation cost disclosure | ||||||
Unrecognized share-based compensation expense relating to share options | $ 35 | |||||
Weighted-average vesting period for recognition of unrecognized share-based compensation cost | 3 years 6 months 11 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.01 | |||||
Trucker Path Plan | Stock options [Member] | ||||||
SHARE-BASED COMPENSATION : Stock Options [Line Items] | ||||||
Options granted to employees, management and external advisors (in shares) | 6,871,000 | |||||
Options forfeited | 65,000 | |||||
Weighted average grant date fair value of option per share | $ 0.01 | |||||
Unrecognized share-based compensation cost disclosure | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.01 | |||||
Granted (in shares) | 6,871,000 | |||||
Trucker Path Plan | Employee stock options [Member] | ||||||
SHARE-BASED COMPENSATION : Stock Options [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 20,000,000 | |||||
Number of shares issued | 20,000,000 | 6,871,000 | ||||
Trucker Path Plan | Nonvested restricted shares [Member] | ||||||
SHARE-BASED COMPENSATION : Stock Options [Line Items] | ||||||
Number of shares issued | 20,000,000 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of information with respect to share Options outstanding (Details) - Renren stock options [Member] | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Options outstanding | |
Number outstanding (in shares) | shares | 138,724,521 |
Weighted average intrinsic value | $ | $ 13,137,000 |
Options exercisable | |
Number of exercisable (in shares) | shares | 130,442,760 |
Weighted average intrinsic value | $ | $ 12,353,000 |
Stock Options Exercise Price Range 0.06 [Member] | |
Options outstanding | |
Number outstanding (in shares) | shares | 138,724,521 |
Weighted average remaining contractual life | 3 years 5 months 1 day |
Weighted average exercise price (in dollars per share) | $ 0.06 |
Weighted average intrinsic value | $ | $ 13,137,000 |
Options exercisable | |
Number of exercisable (in shares) | shares | 130,442,760 |
Weighted average remaining contractual life | 3 years 3 months 22 days |
Weighted average exercise price (in dollars per share) | $ 0.01 |
Weighted average intrinsic value | $ | $ 12,353,000 |
Range of exercise price from $0.01-$0.18 [Member] | |
Information with respect to share options outstanding [Line Items] | |
Low end of range of exercise prices (in dollars per share) | $ 0.01 |
Range of exercise price from $0.3 [Member] | Chime Plan | |
Information with respect to share options outstanding [Line Items] | |
Low end of range of exercise prices (in dollars per share) | $ 0.03 |
Options outstanding | |
Number outstanding (in shares) | shares | 4,701,097 |
Weighted average remaining contractual life | 9 years 6 months 4 days |
Weighted average exercise price (in dollars per share) | $ 0.0300 |
Weighted average intrinsic value | $ | $ 22,384 |
Options exercisable | |
Number of exercisable (in shares) | shares | 3,599,903 |
Weighted average remaining contractual life | 9 years 6 months 4 days |
Weighted average exercise price (in dollars per share) | $ 0.0300 |
Weighted average intrinsic value | $ | $ 17,141 |
Range of exercise price from $0.2 [Member] | Trucker Path Plan | |
Information with respect to share options outstanding [Line Items] | |
Low end of range of exercise prices (in dollars per share) | $ 0.02 |
Options outstanding | |
Number outstanding (in shares) | shares | 3,588,181 |
Weighted average remaining contractual life | 9 years 6 months 4 days |
Weighted average exercise price (in dollars per share) | $ 0.0200 |
Weighted average intrinsic value | $ | $ 17,117 |
Options exercisable | |
Number of exercisable (in shares) | shares | 3,217,819 |
Weighted average remaining contractual life | 9 years 6 months 4 days |
Weighted average exercise price (in dollars per share) | $ 0.0200 |
Weighted average intrinsic value | $ | $ 15,350 |
SHARE-BASED COMPENSATION - Su_2
SHARE-BASED COMPENSATION - Summary of activity of stock Options granted (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Number of shares | |
Balance at the beginning of the period (in shares) | shares | 138,953,386 |
Exercised (in shares) | shares | (77,535) |
Forfeited (in shares) | shares | (151,330) |
Balance at the end of the period (in shares) | shares | 138,724,521 |
Exercisable, at the end of the period (in shares) | shares | 130,442,760 |
Vested and expected to vest, at the end of the period (in shares) | shares | 8,282,496 |
Weighted average exercise price | |
Balance at the beginning of the period (in dollars per share) | $ 0.06 |
Exercised (in dollars per share) | 0.01 |
Forfeited (in dollars per share) | 0.01 |
Balance at the end of the period (in dollars per share) | 0.01 |
Exercisable, at the end of the period (in dollars per share) | 0.01 |
Vested and expected to vest, at the end of the period (in dollars per share) | 0.01 |
Weighted average grant date fair value | |
Balance at the beginning of the period (in dollars per share) | 0.64 |
Exercised (in dollars per share) | 0.51 |
Forfeited (in dollars per share) | 0.84 |
Balance at the end of the period (in dollars per share) | 0.64 |
Chime Plan | |
Weighted average grant date fair value | |
Granted (in dollars per share) | 0.02 |
Trucker Path Plan | |
Weighted average grant date fair value | |
Granted (in dollars per share) | $ 0.01 |
Stock options [Member] | Trucker Path Plan | |
Number of shares | |
Granted (in shares) | shares | 6,871,000 |
Exercised (in shares) | shares | (3,217,819) |
Forfeited (in shares) | shares | (65,000) |
Balance at the end of the period (in shares) | shares | 3,588,181 |
Exercisable, at the end of the period (in shares) | shares | 3,217,819 |
Vested and expected to vest, at the end of the period (in shares) | shares | 3,588,181 |
Weighted average exercise price | |
Granted (in dollars per share) | $ 0.02 |
Exercised (in dollars per share) | 0.02 |
Forfeited (in dollars per share) | 0.02 |
Balance at the end of the period (in dollars per share) | 0.02 |
Exercisable, at the end of the period (in dollars per share) | 0.02 |
Vested and expected to vest, at the end of the period (in dollars per share) | 0.02 |
Weighted average grant date fair value | |
Granted (in dollars per share) | 0.01 |
Forfeited (in dollars per share) | 0.01 |
Vested (in dollars per share) | 0.01 |
Balance at the end of the period (in dollars per share) | $ 0.01 |
Renren stock options [Member] | Chime Plan | |
Number of shares | |
Balance at the beginning of the period (in shares) | shares | 0 |
Granted (in shares) | shares | 8,346,000 |
Exercised (in shares) | shares | (3,599,903) |
Forfeited (in shares) | shares | (45,000) |
Balance at the end of the period (in shares) | shares | 4,701,097 |
Exercisable, at the end of the period (in shares) | shares | 3,599,903 |
Vested and expected to vest, at the end of the period (in shares) | shares | 4,701,097 |
Weighted average exercise price | |
Balance at the beginning of the period (in dollars per share) | $ 0 |
Granted (in dollars per share) | 0.03 |
Exercised (in dollars per share) | 0.03 |
Forfeited (in dollars per share) | 0.03 |
Balance at the end of the period (in dollars per share) | 0.03 |
Exercisable, at the end of the period (in dollars per share) | 0.03 |
Vested and expected to vest, at the end of the period (in dollars per share) | 0.03 |
Weighted average grant date fair value | |
Granted (in dollars per share) | 0.02 |
Forfeited (in dollars per share) | 0.02 |
Vested (in dollars per share) | 0.02 |
Balance at the end of the period (in dollars per share) | $ 0.02 |
SHARE-BASED COMPENSATION - Su_3
SHARE-BASED COMPENSATION - Summary of Nonvested restricted shares activity (Details) - Nonvested restricted shares [Member] | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Weighted number of nonvested restricted shares | |
Outstanding at the beginning of the period (in shares) | shares | 55,821,488 |
Granted (in shares) | shares | 55,462,455 |
Vested (in shares) | shares | (18,549,945) |
Forfeited (in shares) | shares | (14,538,907) |
Outstanding at the end of the period (in shares) | shares | 78,195,091 |
Weighted average fair value per ordinary share at the grant dates | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 0.18 |
Granted (in dollars per share) | $ / shares | 0.08 |
Vested (in dollars per share) | $ / shares | 0.19 |
Forfeited (in dollars per share) | $ / shares | 0.13 |
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 0.12 |
SHARE-BASED COMPENSATION - Nonv
SHARE-BASED COMPENSATION - Nonvested restricted shares (Details) - Nonvested restricted shares [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other disclosures | |||
Compensation expense | $ 2,634 | $ 3,952 | $ 3,917 |
Unrecognized compensation expense | $ 5,259 | ||
Expected weighted-average period for unrecognized compensation expense to be recognized | 1 year 8 months 12 days |
SHARE-BASED COMPENSATION - Sche
SHARE-BASED COMPENSATION - Schedule of fair value of options granted, estimated on date of grant using Option-pricing models with assistance from Marsh,Independent Valuation Firm, With assumptions used (Details) - Binomial option pricing model [Member] | 12 Months Ended |
Dec. 31, 2020$ / shares | |
Trucker Path Plan | |
Fair value of the options granted, estimated on the date of grant using option-pricing models with assistance an independent valuation firm, with assumptions used [Line Items] | |
Risk-free interest rate (as a percent) | 0.64% |
Volatility (as a percent) | 49.00% |
Expected term (in years) | 10 years |
Exercise price | $ 0.02 |
Fair value of underlying ordinary share | $ 0.01 |
Chime Plan | |
Fair value of the options granted, estimated on the date of grant using option-pricing models with assistance an independent valuation firm, with assumptions used [Line Items] | |
Risk-free interest rate (as a percent) | 0.73% |
Volatility (as a percent) | 57.00% |
Expected term (in years) | 10 years |
Exercise price | $ 0.03 |
Fair value of underlying ordinary share | $ 0.02 |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share-based compensation attributable to selling and marketing, research and development and general and administrative expenses of discontinued operations (Details) (Imported) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based compensation recorded by Group [Line Items] | |||
Share-based compensation expenses from continuing operations | $ 15,320 | $ 8,580 | $ 20,166 |
Selling expenses | |||
Share-based compensation recorded by Group [Line Items] | |||
Share-based compensation expenses from continuing operations | 185 | 524 | 423 |
Research and development expenses | |||
Share-based compensation recorded by Group [Line Items] | |||
Share-based compensation expenses from continuing operations | 990 | 1,118 | 1,035 |
General and administrative expenses | |||
Share-based compensation recorded by Group [Line Items] | |||
Share-based compensation expenses from continuing operations | $ 14,145 | $ 6,938 | $ 18,708 |
RELATED PARTY BALANCES AND TR_3
RELATED PARTY BALANCES AND TRANSACTIONS - Schedule of amounts due from related parties (Details) (Imported) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
Amounts due from related parties [Line Items] | |||||
Repayments of principal from related party | $ 0 | $ 3,386 | $ 0 | ||
Amounts due from related parties - current | 764 | 688 | |||
Amount due from related parties non-current | 67,985 | 131,758 | |||
Total | 68,749 | 132,446 | |||
OPI | |||||
Amounts due from related parties [Line Items] | |||||
Accrued interest income | 18,000 | ||||
Notes issued | $ 50,000 | ||||
Interest rate | 8.00% | 8.50% | |||
Term of the note | 5 years | ||||
Repayments of principal from related party | $ 3,700 | $ 26,400 | 9,600 | ||
Repayments of interests from related party | $ 300 | 1,100 | 400 | ||
Amount due from related parties non-current | 67,985 | 91,758 | |||
Beijing Infinities | |||||
Amounts due from related parties [Line Items] | |||||
Receivable in cash classified as current | $ 40,000 | ||||
Amounts due from related parties - current | 726 | 681 | |||
Amount due from related parties non-current | 40,000 | ||||
Others | |||||
Amounts due from related parties [Line Items] | |||||
Amounts due from related parties - current | $ 38 | $ 7 |
RELATED PARTY BALANCES AND TR_4
RELATED PARTY BALANCES AND TRANSACTIONS - Schedule of amount due to related parties (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amounts due from related parties [Line Items] | ||
Others | $ 93 | |
Total | $ 697 | 774 |
Beijing Infinities | ||
Amounts due from related parties [Line Items] | ||
Total | $ 697 | $ 681 |
RELATED PARTY BALANCES AND TR_5
RELATED PARTY BALANCES AND TRANSACTIONS - Schedule of transactions with related parties for amount due from related parties (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Equity method investments | ||
Related Party Transaction [Line Items] | ||
Transactions with related parties for amount due from related parties | $ 0 | $ (600) |
Interest accrued for Promissory note [Member] | OPI | ||
Related Party Transaction [Line Items] | ||
Transactions with related parties for amount due from related parties | 7,756 | 7,904 |
Promissory note principal received [Member] | OPI | ||
Related Party Transaction [Line Items] | ||
Transactions with related parties for amount due from related parties | (31,529) | (10,027) |
Amount accrued (received) from disposition of Renren SNS [Member] | Beijing Infinities | ||
Related Party Transaction [Line Items] | ||
Transactions with related parties for amount due from related parties | (40,000) | (6,067) |
Beijing Zhenzhong | Loan to a related party [Member] | ||
Related Party Transaction [Line Items] | ||
Transactions with related parties for amount due from related parties | 3,155 | 3,858 |
Beijing Zhenzhong | Amount received from loan to a related party [Member] | ||
Related Party Transaction [Line Items] | ||
Transactions with related parties for amount due from related parties | $ (3,060) | $ (4,144) |
RELATED PARTY BALANCES AND TR_6
RELATED PARTY BALANCES AND TRANSACTIONS - Schedule of transactions with related parties for amount due to related parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Loan from a related party | $ (1) | $ (1,879) |
OPI | ||
Related Party Transaction [Line Items] | ||
Repayment of loan from related parties | 0 | 27 |
Beijing Infinities | ||
Related Party Transaction [Line Items] | ||
Repayment of loan from related parties | $ 29 | $ 1,192 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEGMENT INFORMATION | |||
Revenues | $ 18,106 | $ 15,085 | $ 66,794 |
Revenue (in percent) | 100.00% | 100.00% | 100.00% |
PRC | |||
SEGMENT INFORMATION | |||
Revenues | $ 587 | $ 6,824 | $ 61,046 |
Revenue (in percent) | 3.00% | 45.00% | 91.00% |
United States | |||
SEGMENT INFORMATION | |||
Revenues | $ 17,519 | $ 8,261 | $ 5,748 |
Revenue (in percent) | 97.00% | 55.00% | 9.00% |
STATUTORY RESERVE AND RESTRIC_2
STATUTORY RESERVE AND RESTRICTED NET ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
STATUTORY RESERVE AND RESTRICTED NET ASSETS | |||
Percentage of after-tax profits required to be allocated to general reserve | 10.00% | ||
General reserve as a percentage of registered capital up to which after-tax profit of PRC subsidiaries and VIEs shall be transferred | 50.00% | ||
Aggregate amount of net assets of the relevant subsidiaries and VIE entities in the Company not available for distribution | $ 266,542 | $ 257,107 | |
Appropriation of reserves of PRC subsidiaries | $ 0 | $ 0 | $ 0 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - SUBSEQUENT EVENT - Convertible preferred shares - Kaixin $ / shares in Units, $ in Thousands | Mar. 31, 2021USD ($)$ / shares |
SUBSEQUENT EVENT | |
Amount Invested In Shares | $ | $ 6,000 |
Conversion price | $ / shares | $ 3 |
Financial Statement Schedule _3
Financial Statement Schedule I Condensed Financial Information of Parent Company - BALANCE SHEETS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Current assets: | ||||
Cash and cash equivalents | $ 19,630 | $ 1,283 | ||
Prepaid expenses and other current assets | 2,196 | 2,868 | $ 9,788 | $ 10,801 |
Amounts due from subsidiaries | 2,255 | 0 | ||
Total current assets | 88,947 | 72,772 | ||
Amount due from related parties non-current | 67,985 | 131,758 | ||
TOTAL ASSETS | 213,673 | 226,211 | ||
Current liabilities: | ||||
Short-term debt | 11,400 | 14,447 | ||
Accrued expenses and other current liabilities | 10,819 | 13,875 | $ 22,411 | $ 22,411 |
Contingent consideration | 407 | 204 | ||
Total current liabilities | 81,103 | 98,170 | ||
Long-term contingent consideration | 1,652 | 828 | ||
TOTAL LIABILITIES | 84,929 | 100,978 | ||
Equity: | ||||
Additional paid-in capital | 741,130 | 720,513 | ||
Accumulated deficit | (634,054) | (614,834) | ||
Accumulated other comprehensive loss | (9,706) | (9,334) | ||
Total Renren lnc. shareholders' equity | 105,157 | 104,113 | ||
TOTAL LIABILITIES AND EQUITY | 213,673 | 226,211 | ||
Class A ordinary shares | ||||
Equity: | ||||
Ordinary shares | 770 | 751 | ||
Class B ordinary shares | ||||
Equity: | ||||
Ordinary shares | 305 | 305 | ||
Reportable Legal Entities [Member] | Parent Company [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 1,933 | 173 | ||
Prepaid expenses and other current assets | 1,058 | 519 | ||
Amounts due from subsidiaries | 432,494 | 409,258 | ||
Total current assets | 435,485 | 409,950 | ||
Amount due from related parties non-current | 67,985 | 91,758 | ||
TOTAL ASSETS | 503,470 | 501,708 | ||
Current liabilities: | ||||
Short-term debt | 11,400 | 11,000 | ||
Accrued expenses and other current liabilities | 2,167 | 3,152 | ||
Contingent consideration | 407 | 204 | ||
Total current liabilities | 13,974 | 14,356 | ||
Long-term contingent consideration | 1,652 | 828 | ||
Deficit of investment in subsidiaries | 380,794 | 382,411 | ||
TOTAL LIABILITIES | 396,420 | 397,595 | ||
Equity: | ||||
Additional paid-in capital | 742,775 | 720,513 | ||
Accumulated deficit | (627,338) | (608,118) | ||
Accumulated other comprehensive loss | (9,462) | (9,338) | ||
Total Renren lnc. shareholders' equity | 107,050 | 104,113 | ||
TOTAL LIABILITIES AND EQUITY | 503,470 | 501,708 | ||
Reportable Legal Entities [Member] | Parent Company [Member] | Class A ordinary shares | ||||
Equity: | ||||
Ordinary shares | 770 | 751 | ||
Reportable Legal Entities [Member] | Parent Company [Member] | Class B ordinary shares | ||||
Equity: | ||||
Ordinary shares | $ 305 | $ 305 |
Financial Statement Schedule _4
Financial Statement Schedule I Condensed Financial Information of Parent Company - BALANCE SHEETS (Parenthetical) (Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Class A ordinary shares | ||
Consolidated financial information | ||
Ordinary shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | 3,000,000,000 | 3,000,000,000 |
Ordinary shares, shares issued | 769,444,113 | 750,816,633 |
Ordinary shares, shares outstanding | 769,444,113 | 750,816,633 |
Class B ordinary shares | ||
Consolidated financial information | ||
Ordinary shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued | 305,388,450 | 305,388,450 |
Ordinary shares, shares outstanding | 305,388,450 | 305,388,450 |
Reportable Legal Entities [Member] | Parent Company [Member] | Class A ordinary shares | ||
Consolidated financial information | ||
Ordinary shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | 3,000,000,000 | 3,000,000,000 |
Ordinary shares, shares issued | 769,444,113 | 750,816,633 |
Ordinary shares, shares outstanding | 769,444,113 | 750,816,633 |
Reportable Legal Entities [Member] | Parent Company [Member] | Class B ordinary shares | ||
Consolidated financial information | ||
Ordinary shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued | 305,388,450 | 305,388,450 |
Ordinary shares, shares outstanding | 305,388,450 | 305,388,450 |
Financial Statement Schedule _5
Financial Statement Schedule I Condensed Financial Information of Parent Company - STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||
Selling and marketing | $ 8,293 | $ 10,780 | $ 10,485 |
Research and development | 11,347 | 22,791 | 21,930 |
General and administrative | 22,242 | 10,089 | 48,082 |
Total operating expenses | 41,882 | 65,774 | 83,624 |
Other income (expenses) | 3,543 | 1,523 | (1,202) |
Interest income | 8,079 | 8,776 | 5,185 |
Interest expense | (303) | (566) | (842) |
Fair value change of contingent consideration | 1,027 | (20,662) | (19,899) |
Loss in equity method investments | 70 | (7,464) | (2,463) |
Gain on deconsolidation of the subsidiaries | 0 | 242,097 | |
Net income (loss) | (22,120) | (107,488) | 64,481 |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation, net of nil income taxes | 425 | (4,868) | (5,770) |
Net unrealized (loss) gain on available-for-sale investments | 0 | 9 | (9,671) |
Transfer to statements of operations of realized gain on available-for-sale securities | 0 | (9) | (7,364) |
Other comprehensive loss | 425 | (4,868) | (22,805) |
Comprehensive income (loss) | (21,695) | (112,352) | 41,676 |
Reportable Legal Entities [Member] | Parent Company [Member] | |||
STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||
Selling and marketing | 98 | 524 | 423 |
Research and development | 467 | 1,118 | 1,035 |
General and administrative | 16,003 | 8,030 | 25,536 |
Total operating expenses | 16,568 | 9,672 | 26,994 |
Other income (expenses) | (2,765) | 0 | 924 |
Interest income | 7,756 | 7,904 | 3,969 |
Interest expense | (302) | (565) | (3,989) |
Fair value change of contingent consideration | (1,027) | 20,662 | 0 |
Loss in equity method investments | 0 | (417) | (1,415) |
Gain on deconsolidation of the subsidiaries | 0 | 0 | 182,441 |
Equity in loss of subsidiaries and variable interest entities | (6,314) | (69,005) | (82,396) |
Net income (loss) | (19,220) | (51,093) | 72,540 |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation, net of nil income taxes | (124) | (3,344) | (5,770) |
Net unrealized (loss) gain on available-for-sale investments | 0 | 9 | (9,671) |
Non-controlling interest disposition | 0 | 0 | 2,519 |
Transfer to statements of operations of realized gain on available-for-sale securities | 0 | (9) | (7,364) |
Other comprehensive loss | (124) | (3,344) | (20,286) |
Comprehensive income (loss) | $ (19,344) | $ (54,437) | $ 52,254 |
Financial Statement Schedule _6
Financial Statement Schedule I Condensed Financial Information of Parent Company - STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from investing activities of continuing operations: | |||
Proceeds from sale of equity investments without readily determinable fair values | $ 0 | $ 0 | $ 4,585 |
Proceeds from repayment of the note issued by OPI | 31,529 | 9,564 | 0 |
Cash flows from financing activities of continuing operations: | |||
Proceeds from exercise of share options | 1 | 8 | 526 |
Cash distribution to shareholders related to acquisition of OPI | 0 | 0 | (168,983) |
Repayment of borrowings | (4,751) | (31,000) | (11,500) |
Effect of exchange rate changes | (330) | 466 | (1,688) |
Reportable Legal Entities [Member] | Parent Company [Member] | |||
STATEMENTS OF CASH FLOWS | |||
Net cash used in operating activities | (30,170) | 13,850 | 16,026 |
Cash flows from investing activities of continuing operations: | |||
Proceeds from sale of equity investments without readily determinable fair values | 0 | 0 | 4,585 |
Proceeds from repayment of the note issued by OPI | 31,529 | 9,564 | 0 |
Net cash provided by investing activities | 31,529 | 9,564 | 4,585 |
Cash flows from financing activities of continuing operations: | |||
Proceeds from exercise of share options | 1 | 10 | 1,107 |
Proceeds from borrowings | 400 | 7,000 | 27,000 |
Cash distribution to shareholders related to acquisition of OPI | 0 | 0 | (133,665) |
Repayment of borrowings | 0 | (31,000) | (12,000) |
Net cash used in financing activities | 401 | (23,990) | (117,558) |
Net increase (decrease) in cash and cash equivalents | 1,760 | (576) | (96,947) |
Cash and cash equivalents at beginning of year | 173 | 749 | 97,697 |
Effect of exchange rate changes | 0 | 0 | (1) |
Cash and cash equivalents at end of year | $ 1,933 | $ 173 | $ 749 |
Financial Statement Schedule _7
Financial Statement Schedule I Condensed Financial Information of Parent Company - BASIS FOR PREPARATION (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Statement Schedule I Condensed Financial Information of Parent Company | ||
Restricted net assets of Company's subsidiaries, VIE and VIE's subsidiaries | $ 266,542 | $ 257,107 |