| Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
| Mar. 31, 2017 |
| Summary Of Significant Accounting Policies Policies | |
| Reverse Acquisition | On February 13, 2017, Aerkomm completed the
reverse acquisition of Aircom pursuant to the Exchange Agreement. As a result of the reverse acquisition, Aircom became AerkommÂ’s
wholly-owned subsidiary. For accounting purposes, the share transaction with Aircom was treated as a reverse acquisition, with
Aircom as the acquirer and Aerkomm as the acquired party. Unless the context suggests otherwise, “the Company” referred
for the periods prior to the consummation of the reverse acquisition is Aircom and its consolidated subsidiaries. |
| Unaudited Interim Financial Information | The
accompanying consolidated balance sheet as of March 31, 2017, the consolidated statements of operations and comprehensive loss
and cash flows for the three-month periods ended March 31, 2016 and 2017 and the consolidated statement of changes in equity for
the three-month period ended March 31, 2017 are unaudited. The unaudited interim consolidated financial statements have been prepared
on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments,
which include only normal recurring adjustments, necessary to present fairly the CompanyÂ’s financial position as of March
31, 2017 and results of operations and cash flows for the three-month periods ended March 31, 2016 and 2017. The financial data
and the other information disclosed in these notes to the consolidated financial statements related to these three-month periods
are unaudited. The results of the three-month periods ended March 31, 2016 and 2017 are not necessarily indicative of the results
to be expected for the fiscal year ending December 31, 2017 or for any other interim period or other future year. |
| Principle of Consolidation | Aerkomm
consolidates the accounts of its subsidiaries, Aircom, Aircom Seychelles, Aircom HK and Aircom Japan. All significant intercompany
accounts and transactions have been eliminated in consolidation. All
of the entities in these consolidated financial statements have adopted fiscal year end of December 31. |
| Reclassifications of Prior Year Presentation | Certain prior
year balance sheet amounts have been reclassified for consistency with the current year presentation. These reclassifications
had no effect on the reported results of operations. |
| Use of Estimates | The
preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial
statements and accompanying notes. Actual results may differ from these estimates. |
| Concentrations of Credit Risk | Financial
instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash in banks
and accounts receivable. As of December 31, 2016 and 2015, the total balances of cash in bank were insured by the Federal Deposit
Insurance Corporation (FDIC) and foreign financial institution deposits insurance. As of March 31, 2017 the total balance of cash
in bank exceeded the amount insured by FDIC and foreign financial institution insurance for the Company by approximately $217,000. The
Company performs ongoing credit evaluation of its customers and requires no collateral. An allowance for doubtful accounts is
provided based on a review of the collectability of accounts receivable. The Company determines the amount of allowance for doubtful
accounts by examining the historical collection experience as well as its internal credit policies. The
Company conducts extensive transactions with its related parties. Revenue for the year ended December 31, 2015 was solely from
related parties. |
| Inventories | Inventories
are recorded at the lower of weighted-average cost or market. The Company assesses the impact of changing technology on its inventory
on hand and writes off inventories that are considered obsolete. Estimated losses on scrap and slow-moving items are recognized
in the allowance for losses. |
| Property and Equipment | Property
and equipment are stated at cost less accumulated depreciation. When value impairment is determined, the related assets are stated
at the lower of fair value or book value. Significant additions, renewals and betterments are capitalized. Maintenance and repairs
are expensed as incurred. Depreciation
is computed by using the straight-line and double declining method over the following estimated service lives: computer equipment
– 3 to 5 years and furniture and fixtures – 5 years. Construction
costs for on-flight entertainment equipment not yet in service are recorded under construction in progress. Upon
sale or disposal of property and equipment, the related cost and accumulated depreciation are removed from the corresponding accounts,
with any gain or loss credited or charged to non-operating income in the period of sale or disposal. The
Company reviews the carrying amount of property and equipment for impairment when events or changes in circumstances indicate
that the carrying amount of such assets may not be recoverable. It determined that there was no impairment loss for each of the
years in the three-year period ended December 31, 2016 and the three-month periods ended March 31, 2016 and 2017. |
| Goodwill and Purchased Intangible Assets | The
CompanyÂ’s goodwill represents the amount by which the total purchase price paid exceeded the estimated fair value of net
assets acquired from acquisition of subsidiaries. The Company tests goodwill for impairment on an annual basis, or more often
if events or circumstances indicate that there may be impairment. Purchased
intangible assets with finite life are amortized on the straight-line basis over the estimated useful lives of respective assets.
Purchased intangible assets with indefinite life are evaluated for impairment when events or changes in circumstances indicate
that the carrying amount of such assets may not be recoverable. As of December 31, 2015 and 2016, and March 31, 2017, purchased
intangible asset consists of satellite system software and is amortized over 10 years. |
| Fair Value of Financial Instruments | The
Company utilizes the three-level valuation hierarchy for the recognition and disclosure of fair value measurements. The categorization
of assets and liabilities within this hierarchy is based upon the lowest level of input that is significant to the measurement
of fair value. The three levels of the hierarchy consist of the following: Level
1 – Inputs to the valuation methodology are unadjusted quoted prices in active markets for identical assets or liabilities
that the Company has the ability to access at the measurement date. Level
2 – Inputs to the valuation methodology are quoted prices for similar assets and liabilities in active markets, quoted prices
in markets that are not active or inputs that are observable for the asset or liability, either directly or indirectly, for substantially
the full term of the instrument. Level
3 – Inputs to the valuation methodology are unobservable inputs based upon management’s best estimate of inputs market
participants could use in pricing the asset or liability at the measurement date, including assumptions. The
carrying amounts of the CompanyÂ’s cash, accounts receivable, other receivable and other payable approximated their fair
value due to the short-term nature of these financial instruments. |
| Revenue Recognition | The
Company recognizes sales when the earning process is completed, as evidenced by an arrangement with the customer, transfer of
title and acceptance, if applicable, has occurred, as well as the price is fixed or determinable, and collection is reasonably
assured. |
| Research and Development Costs | Research
and development costs are charged to operating expenses as incurred. For the years ended December 31, 2014, 2015 and 2016, the
Company incurred approximately $0, $25,000 and $1,597,000 of research and development costs, respectively. |
| Income Taxes | Income
taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are computed for differences
between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the
future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation
allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense
is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities.
Adjustments to prior periodÂ’s income tax liabilities are added to or deducted from the current periodÂ’s tax provision. The
Company follows FASB guidance on uncertain tax positions and has analyzed its filing positions in all the federal, state and foreign
jurisdictions where it is required to file income tax returns, as well as all open tax years in those jurisdictions. The Company
files income tax returns in the US federal, state and foreign jurisdictions where it conducts business. The Company believes that
its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result
in a material adverse effect on its consolidated financial position, results of operations, or cash flows. Therefore, no reserves
for uncertain tax positions have been recorded. The Company does not expect its unrecognized tax benefits to change significantly
over the next twelve months. The
CompanyÂ’s policy for recording interest and penalties associated with any uncertain tax positions is to record such items
as a component of income before taxes. Penalties and interest paid or received, if any, are recorded as part of other operating
expenses in the consolidated statement of operations. |
| Translation Adjustments | If
a foreign subsidiaryÂ’s functional currency is the local currency, translation adjustments will result from the process of
translating the subsidiaryÂ’s financial statements into the reporting currency of the Company. Such adjustments are accumulated
and reported under other comprehensive income as a separate component of stockholderÂ’s equity. |
| Earnings (Loss) Per Share | Basic
earnings (loss) per share is computed by dividing income available to common shareholders by the weighted average number of shares
of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders
by the weighted-average number of shares of common outstanding during the period increased to include the number of additional
shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive
securities include stock warrants and outstanding stock options, shared to be purchased by employees under the CompanyÂ’s
employee stock purchase plan. Diluted earnings (loss) per common share presented for the year ended December 31, 2014, 2015 and
2016, and the three-month period ended March 31, 2016 and 2017 have taken into account the stock split in June 2016 and share
exchange for reverse acquisition on February 13, 2017 (see Note 1). |
| Subsequent Events | The
Company has evaluated events and transactions after the reported year-end up to May 19, 2017, the date on which these consolidated
financial statements were available to be issued. All subsequent events requiring recognition as of December 31, 2016 have been
incorporated into these consolidated financial statements. |
