Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information Line Items | |
Entity Registrant Name | CHEER HOLDING, INC. |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 10,070,012 |
Amendment Flag | false |
Entity Central Index Key | 0001738758 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38631 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 22F, Block B, Xinhua Technology Building |
Entity Address, Address Line Two | No. 8 Tuofangying South Road |
Entity Address, Address Line Three | Jiuxianqiao |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100016 |
Entity Interactive Data Current | Yes |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Auditor Firm ID | 6783 |
Auditor Name | Assentsure PAC. |
Auditor Location | Singapore |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 22F, Block B, Xinhua Technology Building |
Entity Address, Address Line Two | No. 8 Tuofangying South Road |
Entity Address, Address Line Three | Jiuxianqiao |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100016 |
Contact Personnel Name | Bing Zhang |
City Area Code | + 86 |
Local Phone Number | 10-87700500 |
Contact Personnel Email Address | zhangbing@gsmg.co |
Ordinary Shares, par value $0.001 per share | |
Document Information Line Items | |
Trading Symbol | CHR |
Title of 12(b) Security | Ordinary Shares, par value $0.001 per share |
Security Exchange Name | NASDAQ |
Warrants, each exercisable for one-half of one Ordinary Share, for $11.50 per whole Ordinary Share | |
Document Information Line Items | |
Trading Symbol | GSMGW |
Title of 12(b) Security | Warrants, each exercisable for one-half of one Ordinary Share, for $11.50 per whole Ordinary Share |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Current assets: | |||
Cash and cash equivalents | $ 194,227 | $ 70,482 | |
Restricted cash | 298 | ||
Accounts receivable, net | 81,170 | 98,034 | |
Prepayment and other current assets | 31,179 | 15,329 | |
Total current assets | 306,874 | 183,845 | |
Property, plant and equipment, net | 85 | 160 | |
Intangible assets, net | 20,255 | 20,297 | |
Deferred tax assets | 41 | 103 | |
Unamortized produced content, net | 807 | ||
Right-of-use assets | 377 | 750 | |
Prepayment and other non-current assets, net | 1 | ||
Total non-current assets | 20,758 | 22,118 | |
TOTAL ASSETS | 327,632 | 205,963 | |
Current liabilities: | |||
Short-term bank loans | 4,216 | 4,421 | |
Accounts payable | 9,599 | 6,405 | |
Contract liabilities | 130 | 147 | |
Accrued liabilities and other payables | 3,764 | 2,632 | |
Other taxes payable | 28,178 | 19,090 | |
Lease liabilities current | 330 | 208 | |
Total current liabilities | 46,217 | 32,903 | |
Long-term bank loan | 1,408 | ||
Lease liabilities non-current | 471 | ||
Warrant liability | 86 | ||
Total non-current liabilities | 1,408 | 557 | |
TOTAL LIABILITIES | 47,625 | 33,460 | |
Equity | |||
Ordinary shares (par value of $0.001 per share; 200,000,000 shares authorized as of December 31, 2023 and 2022; 10,070,012 and 6,812,440 shares issued and outstanding as of December 31, 2023 and 2022, respectively)* | [1] | 10 | 7 |
Additional paid-in capital | 106,215 | 27,009 | |
Statutory reserve | 1,411 | 1,411 | |
Retained earnings | 181,162 | 150,685 | |
Accumulated other comprehensive loss | (8,869) | (6,684) | |
TOTAL CHEER HOLDING, INC SHAREHOLDERS’ EQUITY | 279,929 | 172,428 | |
Non-controlling interest | 78 | 75 | |
TOTAL EQUITY | 280,007 | 172,503 | |
TOTAL LIABILITIES AND EQUITY | $ 327,632 | $ 205,963 | |
[1] Retroactively restated to give effect to a share consolidation at a ratio of one-for-tenth ordinary shares effective on November 24, 2023 (Note 1). |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Financial Position [Abstract] | |||
Ordinary shares, par value (in Dollars per share) | [1] | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | [1] | 200,000,000 | 200,000,000 |
Ordinary shares, shares issued | [1] | 10,070,012 | 6,812,440 |
Ordinary shares, shares outstanding | [1] | 10,070,012 | 6,812,440 |
[1] Retroactively restated to give effect to a share consolidation at a ratio of one-for-tenth ordinary shares effective on November 24, 2023 (Note 1). |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Income Statement [Abstract] | ||||
Revenues | $ 152,327 | $ 157,079 | $ 153,012 | |
Operating expenses: | ||||
Cost of revenues | (39,549) | (40,580) | (34,944) | |
Selling and marketing | (76,200) | (82,534) | (77,520) | |
General and administrative | (5,658) | (5,908) | (3,341) | |
Research and development | (1,635) | (1,331) | (920) | |
Total operating expenses | (123,042) | (130,353) | (116,725) | |
Income from operations | 29,285 | 26,726 | 36,287 | |
Other income (expenses): | ||||
Interest income (expense), net | 3 | (93) | (513) | |
Change in fair value of warrant liability | 86 | (62) | 809 | |
Other income (expense), net | 1,215 | 282 | (255) | |
Total other income | 1,304 | 127 | 41 | |
Income before income tax | 30,589 | 26,853 | 36,328 | |
Income tax expense | (61) | (413) | (976) | |
Net income | 30,528 | 26,440 | 35,352 | |
Less: net gain (loss) attributable to non-controlling interest | 51 | (450) | 65 | |
Net income attributable to Cheer Holding, Inc.’s shareholders | 30,477 | 26,890 | 35,287 | |
Other comprehensive income (loss) | ||||
Unrealized foreign currency translation (loss) gain | (2,233) | (13,357) | 2,945 | |
Comprehensive income | 28,295 | 13,083 | 38,297 | |
Less: comprehensive gain (loss) attributable to non-controlling interests | 3 | (478) | 119 | |
Comprehensive income attributable to Cheer Holding, Inc.’s shareholders | $ 28,292 | $ 13,561 | $ 38,178 | |
Earnings per ordinary share | ||||
Basic (in Dollars per share) | [1] | $ 3.53 | $ 3.95 | $ 5.4 |
Weighted average shares used in calculating earnings per ordinary share | ||||
Basic (in Shares) | [1] | 8,637,504 | 6,812,387 | 6,538,118 |
[1] Retroactively restated to give effect to a share consolidation at a ratio of one-for-tenth ordinary shares effective on November 24, 2023 (Note 1). |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income (Loss) (Parentheticals) - $ / shares | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Income Statement [Abstract] | ||||
Diluted | [1] | $ 3.83 | $ 3.95 | $ 5.40 |
Diluted | [1] | 8,635,241 | 6,812,387 | 6,538,118 |
[1] Retroactively restated to give effect to a share consolidation at a ratio of one-for-tenth ordinary shares effective on November 24, 2023 (Note 1). |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Ordinary shares | Additional paid-in capital | Retained earnings | Statutory reserve | Accumulated other comprehensive (loss) gain | Total shareholders’ equity | Non- controlling interests | Total |
Balance at Dec. 31, 2020 | $ 6 | $ 9,159 | $ 89,271 | $ 648 | $ 4,892 | $ 103,976 | $ 471 | $ 104,447 |
Balance (in Shares) at Dec. 31, 2020 | 5,788,635 | |||||||
Shares-based compensation granted to nonemployees | 181 | 181 | 181 | |||||
Issuance of shares for the conversion of rights | 1,400 | 1,400 | 1,400 | |||||
Issuance of shares for the conversion of rights (in Shares) | 28,000 | |||||||
Shares on earn out | $ 1 | (1) | ||||||
Shares on earn out (in Shares) | 500,000 | |||||||
Shares-based compensation granted to employees | 4 | 4 | 4 | |||||
Shares-based compensation granted to employees (in Shares) | 200 | |||||||
Issuance of shares though private placement | 14,886 | 14,886 | 14,886 | |||||
Issuance of shares though private placement (in Shares) | 495,405 | |||||||
Appropriation to statutory reserve | (576) | 576 | ||||||
Net income (loss) | 35,287 | 35,287 | 65 | 35,352 | ||||
Foreign currency translation adjustment | 3,177 | 3,177 | 17 | 3,194 | ||||
Balance at Dec. 31, 2021 | $ 7 | 25,629 | 123,982 | 1,224 | 8,069 | 158,911 | 553 | 159,464 |
Balance (in Shares) at Dec. 31, 2021 | 6,812,240 | |||||||
Contribution from shareholder | 500 | 500 | 500 | |||||
Issuance of shares due to roundup of fractional shares in share consolidation (in Shares) | 31,766 | |||||||
Shares-based compensation granted to employees | 2 | 2 | 2 | |||||
Shares-based compensation granted to employees (in Shares) | 200 | |||||||
Issuance of shares though private placement | 878 | 878 | 878 | |||||
Appropriation to statutory reserve | (187) | 187 | ||||||
Net income (loss) | 26,890 | 26,890 | (450) | 26,440 | ||||
Foreign currency translation adjustment | (14,753) | (14,753) | (28) | (14,781) | ||||
Balance at Dec. 31, 2022 | $ 7 | 27,009 | 150,685 | 1,411 | (6,684) | 172,428 | 75 | 172,503 |
Balance (in Shares) at Dec. 31, 2022 | 6,812,440 | |||||||
Contribution from shareholder | (791) | (791) | $ (791) | |||||
Issuance of shares due to roundup of fractional shares in share consolidation (in Shares) | 31,766 | |||||||
Issuance of shares though private placement | $ 3 | 79,997 | 80,000 | $ 80,000 | ||||
Issuance of shares though private placement (in Shares) | 3,225,806 | |||||||
Net income (loss) | 30,477 | 30,477 | 51 | 30,528 | ||||
Foreign currency translation adjustment | (2,185) | (2,185) | (48) | (2,233) | ||||
Balance at Dec. 31, 2023 | $ 10 | $ 106,215 | $ 181,162 | $ 1,411 | $ (8,869) | $ 279,929 | $ 78 | $ 280,007 |
Balance (in Shares) at Dec. 31, 2023 | 10,070,012 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 30,528 | $ 26,440 | $ 35,352 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision (reversal of provision) for doubtful accounts | 2,096 | 440 | (268) |
Provision for unamortized produced content | 112 | 770 | |
Depreciation and amortization | 3,385 | 2,884 | 2,090 |
Amortization of right-of-use assets | 394 | 454 | 426 |
Deferred income tax expense (benefits) | 63 | (53) | 713 |
Share based compensation for employees | 4 | ||
Share based compensation for non-employees | 391 | 181 | |
Loss on disposal of property and equipment | 2 | ||
Gains on disposal of a subsidiary | (26) | ||
Amortization of loan origination fees | 16 | 76 | 104 |
Change in fair value of warrant liability | (86) | 62 | (809) |
Changes in assets and liabilities | |||
Accounts receivable | 15,205 | (42,105) | 19,904 |
Prepayment and other current assets | (22,270) | 16,872 | (10,681) |
Unamortized produced content | 682 | 170 | (537) |
Accounts payable | 3,325 | (5,576) | 4,750 |
Contract liabilities | (14) | (356) | (87) |
Accrued liabilities and other payables | (370) | 565 | (9,236) |
Other taxes payable | 9,477 | 7,346 | 4,964 |
Lease liabilities | (371) | (641) | (389) |
Net cash provided by operating activities | 42,174 | 7,739 | 46,455 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property, plant and equipment | (3) | (25) | (72) |
Prepayments for acquisition of intangible assets | (7,964) | (2,718) | |
Cash disposed for sales of subsidiaries | (12) | ||
Return for short term investment | 1,751 | ||
Net cash used in investing activities | (3) | (7,989) | (1,051) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from short-term bank loans | 4,660 | 6,096 | 5,114 |
Repayments of short-term bank loans | (4,802) | (6,244) | (6,818) |
Proceeds from long-term bank loans | 1,412 | ||
Payment of loan origination fees | (58) | (87) | (68) |
(Withdrawal of) contribution from shareholders | (791) | 743 | |
Borrowings from related parties | 1,600 | ||
Repayments to related parties | (232) | ||
Proceeds from issuance of ordinary shares in connection with a private placement | 80,000 | 15,290 | |
Net cash provided by financing activities | 82,021 | 508 | 13,286 |
Effect of exchange rate changes | (149) | (7,078) | 881 |
Net increase (decrease) in cash and cash equivalents | 124,043 | (6,820) | 59,571 |
Cash, cash equivalents and restricted cash, at beginning of year | 70,482 | 77,302 | 17,731 |
Cash, cash equivalents and restricted cash, at end of year | 194,525 | 70,482 | 77,302 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Interests paid | 271 | 247 | 336 |
Income tax paid | |||
NONCASH INVESTING AND FINANCING ACTIVITIES | |||
Acquisition of intangible assets from prepayments | 4,464 | ||
Cash and cash equivalents | 194,227 | 70,482 | |
Restricted cash | 298 | ||
Total Reconciliation of Cash, Cash Equivalents and Restricted Cash to the Consolidated Balance Sheets | $ 194,525 | $ 70,482 | $ 77,302 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Principal Activities [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Cheer Holding, Inc. (“CHR” or the “Company”) (formerly known as “Glory Star New Media Group Holdings Limited”) is an exempted company incorporated on November 30, 2018, under the laws of the Cayman Islands. Glory Star, through its subsidiaries, the VIE and the VIE’s subsidiaries, provides advertisement and content production services and operate a leading mobile and online advertising, media and entertainment business in China. On November 1, 2023, the Company changed its legal name from Glory Star New Media Group Holdings Limited. to Cheer Holding, Inc. In connection with the name change, the Company also changed its trading symbol for tis ordinary shares from “GSMG” to “CHR”. The Company’s warrants continue to trade under the ticker symbol “GSMGW”. Effective on November 9, 2023, the Company traded on open market under new name and trading symbol. On November 24, 2023, the Company effected a share consolidation at a ratio of one-for-tenth (10) ordinary shares with a par value of US$0.0001 each in the Company’s issued and unissued share capital into one ordinary share with a par value of US$0.001 (“the Share Consolidation”). Immediately following the Share Consolidation, the authorized share capital of the Company to be US$20,200 divided into 20,000,000 ordinary shares of a par value of US$0.001 each and 2,000,000 preferred shares of a par value of US$0.0001 each As of December 31, 2023, the Company’s subsidiaries, the VIEs and the VIE’s subsidiaries were as the following: Date of Place of Percentage of Principal Subsidiaries: Glory Star New Media Group HK Limited December 18, 2018 Hong Kong 100 % Holding Glory Star New Media (Beijing) March 13, 2019 PRC 100 % Holding VIEs: Cui Can International Media (Beijing) September 7, 2016 PRC 100 % Holding Horgos Glory Star Media Co., Ltd. November 1, 2016 PRC 100 % Holding VIEs’ subsidiaries Glory Star Media (Beijing) Co., Ltd. December 9, 2016 PRC 100 % Provision of provides advertisement and content production services Leshare Star (Beijing) Technology Co., Ltd. March 28, 2016 PRC 100 % Provision of provides advertisement and content production services Horgos Glary Prosperity Culture Co., Ltd. December 14, 2017 PRC 51 % Provision of provides advertisement and content production services Horgos Glary Prosperity Culture Co., Ltd, May 8, 2018 PRC 51 % Provision of provides advertisement and content production services Glory Star (Horgos) Media Technology Co., Ltd September 9, 2020 PRC 100 % Provision of provides advertisement and content production services * On March 17, 2023, we wrote off Shenzhen Leshare Investment Co.,Ltd. due to business adjustment. For the year ended December 31, 2023, we recognized minimal gain arising from the writing off and recorded in the account of “other income, net” in the consolidated statements of income and comprehensive income. In September 2019, WFOE has entered into a series of contractual arrangements with (i) Xing Cui Can and its shareholders, and (ii) Horgos and its shareholders, which allow the Company to exercise the power to direct the activities of the Xing Cui Can and Horgos (the “VIEs”) that most significantly affect the VIEs’ economic performance and receive substantially all the economic benefits of the VIEs. These contractual agreements include Business Cooperation Agreement, Exclusive Option Agreement, Share Pledge Agreement, Proxy Agreement and Power of Attorney and Master Exclusive Service Agreement (collectively “VIEs Agreements”). The Company, together with its wholly-owned subsidiary Glory Star HK and WFOE and its VIEs and VIEs’ subsidiaries were effectively controlled by the same shareholders after the reorganization. The VIE contractual arrangements Current PRC laws and regulations impose certain restrictions or prohibitions on foreign ownership of companies that engage in value-added telecommunication services, and certain other business. Glory Star Beijing is considered a foreign-invested enterprise. To comply with PRC laws and regulations, the Company primarily conducts its business in China through Xing Cui Can and Horgos and its subsidiaries, based on a series of contractual arrangements. The following is a summary of the contractual arrangements that provide the Company with the power to direct the activities of the VIEs that most significantly affect the VIEs’ economic performance and that enables it to receive substantially all the economic benefits from its operations. Each of the VIEs Agreements is described in detail below: Business Cooperation Agreement WFOE entered into separate business cooperation agreements with Xing Cui Can and Horgos, and their respective shareholders in September 2019, pursuant to which (1) each VIE shall not enter into any transaction which may materially affect such VIE’s assets, obligations, rights and operations without the written consent of WFOE; (2) each VIE and the VIE shareholders agrees to accept suggestions by WFOE in respect of the employment and dismissal of such VIE’s employees, daily operations, dividend distribution and financial management of such VIE; and (3) the VIE and the VIE shareholders shall only appoint individuals designated by WFOE as the director, general manager, chief financial officer and other senior management members. In addition, each of the VIE shareholders agree that (i) unless required by WFOE, will not make any decisions or otherwise request the VIE to distribute any profits, funds, assets or property to the VIE shareholders, (ii) or issue any dividends or other distribution with respect to the shares of the VIE held by the VIE shareholders. The term of each of these business cooperation agreements are perpetual unless terminated by WFOE upon thirty (30) days advance notice, or upon the transfer of all shares of the respective VIEs to WFOE (or its designee). Exclusive Option Agreement WFOE entered into a separate exclusive option agreement with Xing Cui Can and Horgos, and their respective shareholders in September 2019. Pursuant to these exclusive option agreements, the VIE shareholders have granted WFOE (or its designee) an option to acquire all or a portion of each of their equity interests in the VIEs at the price equivalent to the lowest price then permitted under PRC law. If the equity interests are transferred in installments, the purchase price for each installment shall be pro rata to the equity interests transferred. WFOE may, at its sole discretion, at any time exercise the option granted by the VIE shareholders. Moreover, WFOE may transfer such option to any third party. The VIE shareholders may not, among other obligations, change or amend the articles of association and bylaws of the VIE, increase or decrease the registered capital of the VIEs, sell, transfer, mortgage or dispose of their equity interest in any way, or incur, inherit, guarantee or assume any debt except for debts incurred in the ordinary course of business unless otherwise expressly agreed to by WFOE, and enter into any material contracts except in the ordinary course of business unless otherwise expressly agreed to by WFOE. The term of each of these exclusive option agreements is 10 years and will be extended automatically for successive 5-year terms except where WFOE provides prior written notice otherwise. The exclusive option agreements may be terminated by WFOE upon thirty (30) days advance notice, or upon the transfer of all shares of the respective VIEs to WFOE (or its designee). Share Pledge Agreement WFOE entered into a separate share pledge agreement with Xing Cui Can and Horgos, and their respective shareholders in September 2019. Pursuant to these share pledge agreements, the VIE shareholders have pledged all of their equity interests in the VIEs as priority security interest in favor of WFOE to secure the performance of the VIEs and their shareholders’ performance of their obligations under, where applicable, (i) Master Exclusive Service Agreement, (ii) Business Cooperation Agreement, and (iii) the Exclusive Option Agreement (collectively the “Principal Agreements”). WFOE is entitled to exercise its right to dispose of the VIE shareholders’ pledged interests in the equity of the VIE in the event that either the VIE shareholders or the VIE fails to perform their respective obligations under the Principal Agreements. The equity pledges on the VIE’s equity interests are in the process of being registered with the Market Supervision Administration Authority in China. The equity pledge agreements will remain in full force and remain effective until the VIE and the VIE shareholders have satisfied their obligations under the Principal Agreements. Proxy Agreement and Power of Attorney WFOE entered into a separate Proxy Agreement and Power of Attorney with Xing Cui Can and Horgos, and their respective shareholders in September 2019. Pursuant to the proxy agreement and power of attorney, each VIE shareholders irrevocably nominates and appoints WFOE or any natural person designated by WFOE as its attorney-in-fact to exercise all rights of such VIE equity holder has in such VIE, including, but not limited to, (i) execute and deliver any and all written decisions and to sign any minutes of meetings of the board or shareholder of the VIE, (ii) to make shareholder’s decision on any matters of the VIE, including without limitations, the sale, transfer, mortgage, pledge or disposal of any or all of the assets of the VIE, (iii) to sell, transfer, pledge or dispose of any or all shares in the VIE, (iv) to nominate, appoint, or remove the directors, supervisors and senior management members of the VIE when necessary, (v) to oversee the business performance of the VIE, (vi) to have full access to the financial information of the VIE, (vii) to file any shareholder lawsuits or to take other legal actions against the VIE’s directors or senior management members, (viii) to approve annual budget or declare dividends, (ix) to manage and dispose of the assets of the VIE, (x) to have the full rights to control and manage the VIE’s finance, accounting and daily operations, (xi) to approve filing of any documents with the relevant governmental authorities or regulatory bodies, and (xii) any other rights provided by the VIE’s charters and/or the relevant laws and regulations on the VIE shareholders. The proxy agreement and power of attorney shall remain in effect during the term of the Exclusive Service Agreement. Confirmation and Guarantee Letter Each of the VIE shareholders signed a confirmation and guarantee letter in September 2019, pursuant to which each VIE equity holder agreed that to fully implement the arrangements set forth in the Principal Agreements, Share Pledge Agreement, and the Proxy Agreement and Power of Attorney, and agrees to not carry out any act which may be contrary to the purpose or intent of such agreements. Master Exclusive Service Agreement WFOE entered into separate exclusive service agreement with Xing Cui Can and Horgos in September 2019, pursuant to which WFOE provides exclusive technology support and services, staff training and consultation services, public relation services, market development, planning and consultation services, human resource management services, licensing of intellectual property, and other services as determined by the parties. In exchange, the VIEs pay service fees to WFOE equal to the pre-tax profits of the VIEs less (i) accumulated losses of the VIEs and their subsidiaries in the previous financial year, (ii) operating costs, expenses, and taxes, and (iii) reasonable operating profit under applicable PRC tax law and practices. During the term of these agreements, WFOE has the right to adjust the amount and time of payment of the service fees at its sole discretion without the consent of the VIEs. WFOE (or its service provider) will own any intellectual property arising from the performance of these agreements. The term of each of these exclusive service agreements are perpetual unless terminated by WFOE upon thirty (30) advance notice, or upon the transfer of all shares of the respective VIEs to WFOE (or its designee) 10 years under the Option Agreement. Risks in relation to the VIE structure In accordance with accounting standards regarding consolidation of variable interest entities (“VIEs”), VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision-making ability. All VIEs with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. The Company believes that the contractual arrangements with its VIEs and their respective shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the contractual arrangements. If the legal structure and co ntractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● revoke the business and operating licenses of the Company’s PRC subsidiary and VIEs; ● discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiary and VIEs; ● limit the Company’s business expansion in China by way of entering into contractual arrangements; ● impose fines or other requirements with which the Company’s PRC subsidiary and VIEs may not be able to comply; ● require the Company or the Company’s PRC subsidiary and VIEs to restructure the relevant ownership structure or operations; or ● restrict or prohibit the Company’s use of the proceeds of the additional public offering to finance. Total assets and liabilities presented on the Company’s consolidated balance sheets and revenue and net income presented on consolidated statements of income and comprehensive income as well as the cash flow from operating, investing and financing activities presented on the consolidated statements of cash flows are substantially the financial position, operation and cash flow of the Company’s VIEs and subsidiaries of VIEs. The Company has not provided any financial support to VIEs for the years ended December 31, 2023, 2022 and 2021. The following financial statements amounts and balances of the VIEs and VIEs’ subsidiaries were included in the consolidated financial statements as of December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022 and 2021: December 31, December 31, 2023 2022 Total assets $ 324,019 $ 188,597 Total liabilities $ 146,188 $ 38,872 For the Years Ended December 31, 2023 2022 2021 Total revenues $ 152,327 $ 157,225 $ 153,012 Net income $ 31,126 $ 27,562 $ 35,907 Net cash provided by operating activities $ 42,044 $ 11,650 $ 57,397 Net cash used in investing activities $ (3 ) $ (7,989 ) $ (1,051 ) Net cash provided by (used in) financing activities $ 83,062 $ 508 $ (2,004 ) The Company believes that there are no assets in the VIEs that can be used only to settle specific obligations of the VIEs, except for the registered capital of the VIEs and non-distributable statutory reserves. As the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Company for any of the liabilities of the VIEs. There are no terms in any arrangements, explicitly or implicitly, requiring the Company or its subsidiaries to provide financial support to the VIEs. However, if the VIEs were ever to need financial support, the Company may, at its option and subject to statutory limits and restrictions, provide financial support to its VIEs through loans. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIEs and its VIEs’ subsidiaries. All inter-company transactions and balances have been eliminated upon consolidation. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period and accompanying notes, including allowance for doubtful accounts, allowance for unamortized production content, the useful lives of property, plant and equipment and intangible assets, impairment of long-lived assets, valuation allowance for deferred tax assets and revenue recognition. Actual results could differ from those estimates. Fair value Measurement The Company applies ASC Topic 820, Fair Value Measurements and Disclosures which defines fair value, establishes a framework for measuring fair value and expands financial statement disclosure requirements for fair value measurements. ASC Topic 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. ASC Topic 820 specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Unobservable inputs are valuation technique inputs that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Management of the Company considers the carrying amount of cash and cash equivalents, restricted cash, accounts receivable, other receivables, short-term bank loans, accounts payable, due to related parties, other payables and other taxes payable based on the short-term maturity of these instruments to approximate their fair values because of their short-term nature. Cash and cash equivalents Cash and cash equivalents primarily consist of bank deposits, as well as highly liquid investments, with original maturities of three months or less, which are unrestricted as to withdrawal and use. The Company maintains most of the bank accounts in the PRC. Restricted cash Restricted cash represents cash or cash equivalents at banks subject to withdrawal restrictions. As of December 31, 2023 and 2022, the Company had restricted cash in bank accounts in the amount of $298 and $ nil Accounts Receivable, net On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), using the modified retrospective transition method. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. Upon adoption, the Company changed the impairment model to utilize a forward-looking current expected credit losses (CECL) model in place of the incurred loss methodology for financial instruments measured at amortized cost and receivables resulting from the application of ASC 606, including contract assets. The adoption of the guidance had no impact on the allowance for credit losses for accounts receivable. Prior to the Company’s adoption of ASU 2016-13, accounts receivable are presented net of allowance for doubtful accounts. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company maintains allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyses historical bad debt, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to estimate the allowance. Past due accounts are generally written off against the allowance for bad debts only after all collection attempts have been exhausted and the potential for recovery is considered remote. After the adoption of ASU 2016-13, The Company maintains an allowance for credit losses and records the allowance for credit losses as an offset to accounts receivable and the estimated credit losses charged to the allowance is classified as “General and administrative expenses” in the consolidated statements of income and comprehensive income. The Company assesses collectability by reviewing accounts receivable on an individual basis because the Company had limited customers and each of them has difference characteristics, primarily based on business line and geographical area. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due status, the age of the balances, credit quality of the Company’s customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Unamortized produced content Produced content includes direct production costs, production overhead and acquisition costs and is stated at the lower of unamortized cost or estimated fair value. Produced content also includes cash expenditures made to enter into arrangements with third parties to co-produce certain of its productions. The Company uses the individual-film-forecast-computation method and amortizes the produced content based on the ratio of current period actual revenue (numerator) to estimated remaining unrecognized ultimate revenue as of the beginning of the fiscal year (denominator) in accordance with ASC 926. Ultimate revenue estimates for the produced content are periodically reviewed and adjustments, if any, will result in prospective changes to amortization rates. When estimates of total revenues and other events or changes in circumstances indicate that a film or television series has a fair value that is less than its unamortized cost, a loss is recognized currently for the amount by which the unamortized cost exceeds the film or television series’ fair value. For the years ended December 31, 2023, 2022 and 2021, $25,514, $128, $7,375 were amortized to the cost of sales, respectively. For the years ended December 31, 2023, 2022 and 2021, the Company provided impairment of $112, $770 and $ nil Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and depreciated on a straight-line basis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income/loss in the year of disposition. Estimated useful lives are as follows: Estimated Useful Life Electric equipment 3 Years Office equipment and furniture 3 - 5 Years Leasehold improvement Shorter of useful life or lease term Intangible asset, net Intangible asset is stated at cost less accumulated amortization and amortized in a method which reflects the pattern in which the economic benefits of the intangible asset are expected to be consumed or otherwise used up. The balance of intangible asset represents software related to CHEERS App, a mobile application that allows its users to access its online store (e-Mall), video content, live streaming, and online games. The software is acquired externally tailored to the Company’s requirements and is amortized straight-line over 7 years in accordance with the way the Company estimates to generate economic benefits from such software. Impairment of long-lived Assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company did not record any impairment charge for the years ended December 31, 2023, 2022 and 2021. Leases In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-02, Leases (Topic 842), which is effective for annual reporting periods (including interim periods) beginning after December 15, 2018, and early adoption is permitted. The Company has adopted the Topic 842 on January 1, 2019 using a modified retrospective approach reflecting the application of the standard to leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. The Company leases its offices, which are classified as operating leases in accordance with Topic 842. Under Topic 842, lessees are required to recognize the following for all leases (with the exception of short-term leases) on the commencement date: (i) lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. At the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment. No impairment for right-of-use lease assets as of December 31, 2023 and 2022. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Contract liabilities Contract liabilities amounted to $130 and $147 at December 31, 2023 and 2022, respectively, which represent advance payment received from our customers for goods or services that had not yet been provided. The Company will recognize the advances as revenue when it has transferred control of the goods or services to which the advances relate, and has no obligation under the contract to transfer additional goods or services. Value Added Tax Horgos and its China subsidiaries are subject to VAT for providing services and sales of products. The amount of VAT liability is determined by applying the applicable tax rates to the invoiced amount of services provided and sales of products (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). The Company reports revenue net of PRC’s VAT for all the periods presented in the consolidated statements of income and other comprehensive income. Revenue Recognition The Company early adopted the new revenue standard Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, on January 1, 2017. The core principle of this new revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: ● Step 1: Identify the contract with the customer ● Step 2: Identify the performance obligations in the contract ● Step 3: Determine the transaction price ● Step 4: Allocate the transaction price to the performance obligations in the contract ● Step 5: Recognize revenue when the company satisfies a performance obligation The Company mainly offers and generates revenue from the copyright licensing of self-produced content, advertising and customized content production and others. Revenue recognition policies are discussed as follows: Copyright revenue The Company self produces or coproduces TV series featuring lifestyle, culture and fashion, and licenses the copyright of the TV series on an episode basis to the customer for broadcast over a period of time. Generally, the Company signs a contract with a customer which requires the Company to deliver a series of episodes that are substantially the same and that have the same pattern of transfer to the customer. Accordingly, the delivery of the series of episodes is defined as the only performance obligation in the contract. For the TV series produced solely by the Company, the Company satisfies its performance obligation over time by measuring the progress toward the delivery of the entire series of episodes which is made available to the licensee for exhibition after the license period has begun. Therefore, the copyright revenue in a contract is recognized over time based on the progress of the number of episodes delivered. The Company also coproduces TV series with other producers and licenses the copyright to third-party video broadcast platforms for broadcast. For TV series produced by the Company with co-producers, the Company satisfies its performance obligations over time by the delivery of the entire series of episodes to the customer, and requires the customer to pay consideration based on the number and the unit price of valid subsequent views of the TV series that occur on a broadcast platform. Therefore, the copyright revenue is recognized when the later of the valid subsequent view occurs or the performance obligation relating to the delivery of a number of episodes has been satisfied. Advertising revenue The Company generates revenue from sales of various forms of advertising on its TV series and streaming content by way of 1) advertisement displays, or 2) the integration of promotion activities in TV series and content to be broadcast. Advertising contracts are signed to establish the different contract prices for different advertising scenarios, consistent with the advertising period. The Company enters into advertising contracts directly with the advertisers or the third-party advertising agencies that represent advertisers. For the contracts that involve the third-party advertising agencies, the Company is principal as the Company is responsible for fulfilling the promise of providing advertising services and has the discretion in establishing the price for the specified advertisement. Under a framework contract, the Company receives separate purchase orders from advertising agencies before the broadcast. Accordingly, each purchase order is identified as a separate performance obligation, containing a bundle of advertisements that are substantially the same and that have the same pattern of transfer to the customer. Where collectability is reasonably assured, revenue is recognized monthly over the service period of the purchase order. For contracts signed directly with the advertisers, the Company commits to display a series of advertisements which are substantially the same or similar in content and transfer pattern, and the display of the whole series of advertisements is identified as the single performance obligation under the contract. The Company satisfies its performance obligations over time by measuring the progress toward the display of the whole series of advertisements in a contract, and advertising revenue is recognized over time based on the number of advertisements displayed. Payment terms and conditions vary by contract types, and terms typically include a requirement for payment within a period from 6 to 9 months. Both direct advertisers and third-party advertising agencies are generally billed at the end of the display period and require the Company to issue VAT invoices in order to make their payments. Customized content production revenue The Company produces customized short streaming videos according to its customers’ requirement, and earns fixed fees based on delivery. Revenue is recognized upon the delivery of short streaming videos. CHEERS E-mall marketplace service revenue The Company through CHEERS E-mall, an online e-commerce platform, enables third-party merchants to sell their products to consumers in China. The Company charges fees for platform services to merchants for sales transactions completed on the Cheer E-Mall including but not limited to products displaying, promotion and transaction settlement services. The Company does not take control of the products provided by the merchants at any point in the time during the transactions and does not have latitude over pricing of the merchandise. Transaction services fee is determined as the difference between the platform sales price and the settlement price with the merchants. CHEERS E-mall marketplace service revenue is recognized at a point of time when the Company’s performance obligation to provide marketplace services to the merchants are determined to have been completed under each sales transaction upon the consumers confirming the receipts of goods. Payments for services are generally received before deliveries. The Company provides coupons to consumers at our own discretion as incentives to promote CHEERS E-mall marketplace with validity usually around or less than one week, which can only be used in future purchases of eligible merchandise offered on CHEERS E-mall to reduce purchase price that are not specific to any merchant. Consumers are not customers of the Company, therefore incentives offered to consumers are not considered consideration payable to customers. As the consumers are required to make future purchases of the merchants’ merchandise to redeem these coupons, the Company does not accrue any expense for coupons when granted and recognizes the amounts of redeemed coupons as marketing expenses when future purchases are made. Other Revenues Other revenue primarily consists of copyrights trading of purchased and produced TV-series and the sales of products on Taobao platform. For copyright licensing of purchased and produced TV-series, the Company recognize revenue on net basis at a point of time upon the delivery of master tape and authorization of broadcasting right. For sales of product, the company recognize revenue upon the transfer of products according to the fixed price and production amount in sales orders. The following table identifies the disaggregation of our revenue for the years ended December 31, 2023, 2022 and 2021, respectively: For the Years Ended December 31, 2023 2022 2021 Category of Revenue: Advertising revenue $ 149,046 $ 152,086 $ 132,918 Customized content production revenue - - 5,326 Copyrights revenue 3,035 4,217 7,478 CHEERS e-Mall marketplace service revenue 232 306 6,807 Other revenue 14 470 483 Total $ 152,327 $ 157,079 $ 153,012 Timing of Revenue Recognition: Services transferred over time $ 152,081 $ 156,303 $ 145,722 Services transferred at a point in time 232 306 6,807 Goods transferred at a point in time 14 470 483 Total $ 152,327 $ 157,079 $ 153,012 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. The Company does not have any significant incremental costs of obtaining contracts with customers incurred and/or costs incurred in fulfilling contracts with customers within the scope of ASC Topic 606, that shall be recognized as an asset and amortized to expenses in a pattern that matches the timing of the revenue recognition of the related contract. Cost of revenues Cost of revenues consists primarily of production cost of TV series, short stream video and live streaming, labor cost and related benefits, payments to various channel owners for broadcast, purchase cost of goods and copyrights and costs associated with the operation of the Company’s online game and shopping platform CHERRS App such as bandwidth cost and amortization of intangible assets. Share-based compensation The Company periodically grants restricted ordinary shares to eligible employees and non-employee consultants. The Group accounts for share-based awards issued to employees and non-employee consultants in accordance with ASC Topic 718 Compensation – Stock Compensation. The share-based awards are measured at the grant date fair value of the awards and recognized as expenses a) immediately at grant date if no vesting conditions are required; or b) using the straight-line method over the requisite service period, which is the vesting period. Share-based compensation in relation to the restricted ordinary shares is measured based on the fair value of its ordinary shares on the date of the grant. The Group recognizes the compensation cost, net of estimated forfeitures, over a vesting term for service-based restricted shares. Forfeitures are estimated at the time of grant and revised in the subsequent periods if actual forfeitures differ from those estimates. Income Taxes The Company accounts for income taxes using the asset/liability method prescribed by ASC 740, “Income Taxes.” Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company does not believe that there was any uncertain tax position at December 31, 2023 and 2022. The Company’s operating subsidiaries in PRC are subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB 100,000 (approximately $14,100). In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. As of December 31, 2023, the tax years ended December 31, 2019 through December 31, 2023 for the Company’s PRC subsidiaries remain open for statutory examination by PRC tax authorities. Non-controlling Interest A non-controlling interest in a subsidiary of the Company represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity on the consolidated balance sheet and consolidated statements of income and comprehensive income are attributed to controlling and non-controlling interests. Earnings per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income attributable to ordinary shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, earn out shares, warrants and stock options) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. There is no anti-dilutive effect for the years ended December 31, 2023, 2022 and 2021. Related Parties Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all significant related party transactions in Note 11. Concentration and Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are cash and cash equivalents, and accounts receivable arising from its normal business activities. The Company places its cash and cash equivalents in what it believes to be credit-worthy financial institutions. The Company’s operations are carried out in the PRC. Accordingly, our business, financial condition, and results of operations may be influenced by the political, economic, and legal environment in the PRC, and by the general state of the economy of the PRC. Our operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash and cash equivalent. All of our cash is maintained with state-owned banks, commercial banks or third-party service provider certified by the People’s bank of China, such as Alipay, within the PRC. Per PRC regulations, the maximum insured bank deposit amount is RMB500,000 (approximately $70,400) for each financial institution. The Company’s total unprotected cash held in bank amounted to approximately $194,081 and $70,199 as of December 31, 2023 and 2022, respectively. The Company has not experienced any losses in such accounts and believes the Company is not exposed to any risks on our cash held in bank accounts. Accounts receivable are typically unsecured and derived from revenue earned from customers, thereby exposed to credit risk. The risk is mitigated by the Company’s assessment of its customers’ creditworthiness and its ongoing monitoring of outstanding balances. The Company’s sales are made to customers that are located primarily in China. The Company has a concentration of its revenues and receivables with specific customers. For the year ended December 31, 2023, four customers accounted for 25%, 17%, 13% and 12% of the Company’s total revenue, respectively. For the year ended December 31, 2022, four customers accounted for 21%, 18%, 18% and 15% of the Company’s total revenue, respectively. For the year ended December 31, 2021, four customers accounted for 20%, 17%,16% and 12% of the Company’s total revenue, respectively. As of December 31, 2023, six customers accounted for 23%, 16%, 15% 14% 12% and 11% of the net accounts receivable balance, respectively. As of December 31, 2022, four customers accounted for 27%, 19%,11% and 10% of the net accounts receivable balance, respectively. As of December 31, 2023, four vendors accounted for 50%, 21%, 12% and 11% of the accounts payable, respectively. As of December 31, 2022, four vendors accounted for 30%, 22%, 17% and 10% of the accounts payable, respectively. Foreign Currency Translation The reporting currency of the Company is the U.S. dollar (“USD”). The functional currency of subsidiaries, VIEs and VIEs’ subsidiaries located in China is the Chinese Renminbi (“RMB”). For the entities whose functional currency is the RMB, result of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive income/loss. Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet date with any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. All of the Company’s revenue and expense transactions are transacted in the functional currency of the operating subsidiaries. The Company does not enter into any material transaction in foreign currencies. Transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company. The consolidated balance sheet amounts, with the exception of equity, at December 31, 2023 and 2022 were translated at RMB 7.0999 to $1.00 and at RMB 6.9646 to $1.00, respectively. Equity accounts were stated at their historical rates. The average translation rates applied to consolidated statements of income and cash flows for the years ended December 31, 2023, 2022 and 2021 were RMB 7.0809 to $1.00, RMB 6.7261 to $1.00 and RMB 6.4531 to $1.00, respectively. Recent Accounting Pronouncements In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The new amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. T |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivables Net [Abstract] | |
ACCOUNTS RECEIVABLE, NET | 3. ACCOUNTS RECEIVABLE, NET As of December 31, 2023 and 2022, accounts receivable consisted of the following: December 31, 2023 December 31, 2022 Accounts receivable $ 81,990 $ 99,040 Less: allowance for doubtful accounts (820 ) (1,006 ) Accounts receivables, net $ 81,170 $ 98,034 For the years ended December 31, 2023, 2022 and 2021, the movement of allowance for doubtful accounts is as the following: For the Years Ended December 31, 2023 2022 2021 Opening balance $ 1,006 $ 635 $ 886 Provision (reversal of provision) for doubtful accounts (167 ) 440 (268 ) Foreign exchange adjustment (19 ) (69 ) 17 Ending balance $ 820 $ 1,006 $ 635 |
Prepayment and Other Current an
Prepayment and Other Current and Non-Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Prepayment and Other Current and Non-Current Assets [Abstract] | |
PREPAYMENT AND OTHER CURRENT AND NON-CURRENT ASSETS | 4. PREPAYMENT AND OTHER CURRENT AND NON-CURRENT ASSETS As of December 31, 2023 and 2022, prepayment and other current and non-current assets consisted of the following: December 31, December 31, Advances to vendors $ 33,295 $ 15,272 Prepayment for outsourced production cost - 36 Staff advance 98 14 Others 43 8 Subtotal 33,736 15,330 Less: allowance for doubtful accounts (2,257 ) - Prepayment and other assets, net $ 31,179 $ 15,330 Including: Prepayment and other current assets, net $ 31,179 $ 15,329 Prepayment and other non-current assets, net $ - $ 1 For the years ended December 31, 2023, 2022 and 2021, the Company provided allowance of $2,263, $ nil nil |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment Net [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | 5. PROPERTY, PLANT AND EQUIPMENT, NET As of December 31, 2023 and 2022, property, plant and equipment consisted of the following: December 31, December 31, Electronic equipment $ 820 $ 864 Office equipment and furniture 70 66 Leasehold improvement 182 186 1,072 1,116 Less: accumulated depreciation (987 ) (956 ) $ 85 $ 160 For the years ended December 31, 2023, 2022 and 2021, depreciation expense amounted to $74, $90 and $82 respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net [Abstract] | |
INTANGIBLE ASSETS, NET | 6. INTANGIBLE ASSETS, NET As of December 31, 2023 and 2022, intangible assets consisted of the following: December 31, 2023 December 31, 2022 Intangible assets $ 30,187 $ 27,055 Less: accumulated amortization (9,932 ) (6,758 ) $ 20,255 $ 20,297 The balance of intangible assets mainly represents software related to CHEERS App, primarily consisting of e-mall, online game, video media library and data warehouse modules, etc., CheerCar App, NFT App and Cheer Chat App, which were acquired externally tailored to the Company’s requirements and is amortized straight-line over 7 years in accordance with the way the Company estimates to generate economic benefits from such software. For the years ended December 31, 2023, 2022 and 2021, amortization expense amounted to $3,311, $2,794 and $2,008, respectively. The following is a schedule, by fiscal years, of amortization amount of intangible asset as of December 31, 2023: 2024 $ 3,302 2025 3,302 2026 3,302 2027 3,302 Thereafter 7,047 Total $ 20,255 |
Accrued Liabilities and Other P
Accrued Liabilities and Other Payables | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Liabilities and Other Payables [Abstract] | |
ACCRUED LIABILITIES AND OTHER PAYABLES | 7. ACCRUED LIABILITIES AND OTHER PAYABLES As of December 31, 2023 and 2022, accrued liabilities and other payables consisted of the following: December 31, December 31, Payroll payables $ 1,233 $ 1,444 Other payables 2,531 720 Payable to merchants of Cheers e-Mall - 1 Co-invest online series production fund - 467 $ 3,764 $ 2,632 |
Other Taxes Payable
Other Taxes Payable | 12 Months Ended |
Dec. 31, 2023 | |
Other Taxes Payable [Abstract] | |
OTHER TAXES PAYABLE | 8. OTHER TAXES PAYABLE As of December 31, 2023 and 2022, other taxes payable consisted of the following: December 31, December 31, VAT payable $ 22,916 $ 15,266 Income tax payable 2,455 2,505 Business tax payable 2,791 1,319 Others 16 - $ 28,178 $ 19,090 |
Bank Loans, Current and Non Cur
Bank Loans, Current and Non Current | 12 Months Ended |
Dec. 31, 2023 | |
Bank Loans, Current and Non Current [Abstract] | |
BANK LOANS, CURRENT AND NON CURRENT | 9. BANK LOANS, CURRENT AND NON CURRENT Bank loans represent the amounts due to various banks that are due within and over one year. As of December 31, 2023 and 2022, bank loans consisted of the following: December 31, December 31, Short-term bank loans: Loan from China Merchants Bank $ 2,103 $ 2,144 Loan from Xiamen International Bank 2,113 431 Loan from Bank of Beijing - 1,139 Loan from Huaxia Bank - 707 $ 4,216 $ 4,421 Long-term bank loans: Loan from China Construction Bank $ 1,408 $ - $ 1,408 $ - Short-term bank loans For the year ended December 31, 2023, the Company entered into loan agreements with two banks, pursuant to the Company borrowed an aggregate of $4,660 from the banks with maturity dates due in February 2024 through May 2024. The loan bore per annum interest rates ranging between 4.50% and 6.00%. For the year ended December 31, 2023, the Company also repaid an aggregate of $4,802 to four banks. For the year ended December 31, 2022, the Company entered into loan agreements with four banks, pursuant to the Company borrowed an aggregate of $6,096 from the banks with maturity dates due in February 2023 through May 2023. The loan bore per annum interest rates ranging between 3.65% and 6.00%. For the year ended December 31, 2022, the Company also repaid an aggregate of $6,244 to four banks. For the year ended December 31, 2021, the Company entered into loan agreements with four banks, pursuant to the Company borrowed an aggregate of $5,114 from the banks with maturity dates due in March 2022 through November 2022. The loan bore per annum interest rates ranging between 3.80% and 6.09%. For the year ended December 31, 2021, the Company also repaid an aggregate of $6,818 to four banks. Long-term bank loans For the year ended December 31, 2023, the Company entered into loan agreements with one bank, pursuant to the Company borrowed a three-year bank borrowing of $1,412 from the banks with maturity date due in September 2026. The loan bore an interest rates of 3.95% per annum. Guarantee information As of December 31, 2023, the guarantee information for bank borrowings were as below: The loan from China Merchants Bank was guaranteed by Beijing Zhongguancun Sci-tech Financing Guarantee Co., Ltd, for whom a counter guarantee was provided by Horgos, Mr. Zhang Bing, the Chairman of the Company’s board of directors, and Mr. Lu Jia, the Vice President of the Company. The loans from Xiamen International Bank were guaranteed by Horgos, and Mr. Zhang Bing, the Chairman of the Company’s board of directors. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASES | 10. LEASES The Company leases offices space under non-cancelable operating leases, with terms ranging from one to five years. The Company considers those renewal or termination options that are reasonably certain to be exercised in the determination of the lease term and initial measurement of right of use assets and lease liabilities. Lease expense for lease payment is recognized on a straight-line basis over the lease term. Leases with initial term of 12 months or less are not recorded on the balance sheet. The Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company discount lease payments based on an estimate of its incremental borrowing rate. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Supplemental balance sheet information related to operating lease was as follows: December 31, 2023 December 31, 2022 Right-of-use assets $ 377 $ 750 Lease liabilities current $ 330 $ 208 Lease liabilities non-current - 471 Total operating lease liabilities $ 330 $ 679 The weighted average remaining lease terms and discount rates for the operating lease were as follows as of December 31, 2023: Remaining lease term and discount rate: Weighted average remaining lease term (years) 1.08 Weighted average discount rate 5.55 % For the years ended December 31, 2023, 2022 and 2021, the Company incurred total operating lease expenses of $363, $454 and $535, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 11. RELATED PARTY TRANSACTIONS Convertible promissory note – related party On September 6, 2019, CHR issued the Sponsor an unsecured promissory note in a principal amount of up to $1,100 (the “Sponsor Note”) for working capital loans made or to be made by the Sponsor, pursuant to which $350 of previously provided advances were converted into loans under the Sponsor Note. The Note bore no interest and was due on the earlier of (i) the consummation of a Business Combination or (ii) the liquidation of CHR. Up to $1,000 of the loans under the Sponsor Note could be converted into warrants, each warrant entitling the holders to receive one half of one ordinary share, at $0.50 per warrant. In September and October 2019, CHR received an additional $750 under the Sponsor Note, bringing the total outstanding balance due under the Sponsor Note as of December 31, 2019 to an aggregate of $1,100. On February 14, 2020, CHR entered into an amended and restated promissory note with the Sponsor (the “Amended Sponsor Note”) to extend the maturity date from the closing of the Business Combination to a date that is one year from the closing of the Business Combination. In addition, under the Amended Sponsor Note, TKK granted the Sponsor the right to convert the current outstanding balance of $1,400 under the Amended Sponsor Note to CHR’ ordinary shares at the conversion price equal to the volume-weighted average price of CHR’ ordinary shares on Nasdaq or such other securities exchange or securities market on which CHR’ ordinary shares are then listed or quoted, for the ten trading days prior to such conversion date; provided, however, the conversion price shall not be less than $5.00. On February 14, 2021, which is the maturity date of the Amended Sponsor Note, the Amended Sponsor Note automatically converted into 280,000 of CHR’ ordinary shares at a conversion price of $5.00 per share. Other than the above, the Company did not enter into related party arrangements with any related parties for the years ended December 31, 2023, 2022 and 2021. As of December 31, 2023 and 2022, the Company had no balances due from or due to related parties. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
INCOME TAXES | 12. INCOME TAXES Cayman Islands CHR and Glory Star are incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, CHR and Glory Star are not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the Cayman Islands. Hong Kong On March 21, 2018, the Hong Kong Legislative Council passed The Inland Revenue (Amendment) (No. 7) Bill 2017 (the “Bill”) which introduces the two-tiered profits tax rates regime. The Bill was signed into law on March 28, 2018 and was gazette on the following day. Under the two-tiered profits tax rates regime, the first 2 million Hong Kong Dollar (“HKD”) of profits of the qualifying group entity will be taxed at 8.25%, and profits above HKD2 million will be taxed at 16.5%. PRC WFOE, Horgos, Glory Star Beijing, Beijing Leshare, Glory Prosperity , Glory Prosperity BJ, Shenzhen Leshare, Horgos Glary Wisdom, Horgos Technology and Xing Cui Can were incorporated in the PRC and are subject to PRC Enterprise Income Tax (“EIT”) on the taxable income in accordance with the relevant PRC income tax laws. On March 16, 2007, the National People’s Congress enacted a new enterprise income tax law, which took effect on January 1, 2008. The law applies a uniform 25% enterprise income tax rate to both foreign invested enterprises and domestic enterprises. Beijing Leshare was recognized as a high-tech enterprise and received a preferential income tax rate of 15%. Horgos, Horgos Glory Prosperity and Horgos Glary Wisdom were eligible to enjoy a preferential income tax rate of 15% that are expected to last from 2021 to 2025. Horgos Technology is eligible to be exempted from income tax from 2020 to 2024, and expected to enjoy a preferential income tax rate of 15% from 2025 to 2029, as they are all incorporated in the Horgos Economic District, Xinjiang province. The reconciliations of the statutory income tax rate and the Company’s effective income tax rate are as follows: For the Years Ended December 31 2023 2022 2021 Net income before provision for income taxes $ 30,589 $ 26,853 $ 36,328 PRC statutory tax rate 25 % 25 % 25 % Income tax at statutory tax rate 7,647 6,713 9,082 Expenses not deductible for tax purpose 385 11 96 Changes in valuation allowance 11,953 567 - Effect of warrant liability revaluation (22 ) 16 (203 ) Effect of preferential tax rates granted to the PRC entities (a) (19,902 ) (6,894 ) (7,999 ) Income tax expense $ 61 $ 413 $ 976 Effective income tax rate 0.20 % 1.54 % 2.69 % (a) The Company’s subsidiary Horgos, Horgos Glory Prosperity, Horgos Glary Wisdom were eligible to enjoy a preferential income tax rate of 15% for five years ended December 31, 2025. Horgos Technology is eligible to be exempted from income tax from 2020 to 2024. Beijing Leshare was recognized as a high-tech enterprise and received a preferential income tax rate of 15%. For the years ended December 31, 2023, 2022 and 2021 , the tax saving as the result of the favorable tax rate amounted to $21,841, $6,894 and $7,999, respectively, and per share effect of the favorable tax rate were $2.5, $1.0 and $1.2 (after giving effect to share consolidation effected in November 2023. See Note 14). The current PRC EIT Law imposes a 10% withholding income tax for dividends distributed by foreign invested enterprises to their immediate holding companies outside the PRC. A lower withholding tax rate will be applied if there is a tax treaty arrangement between the PRC and the jurisdiction of the foreign holding company. Distributions to holding companies in Hong Kong that satisfy certain requirements specified by the PRC tax authorities, for example, will be subject to a 5% withholding tax rate. As of December 31, 2023 and 2022, the Company had not recorded any withholding tax on the retained earnings of its foreign invested enterprises in the PRC, since the Company intends to reinvest its earnings to further expand its business in mainland China, and its foreign invested enterprises do not intend to declare dividends to their immediate foreign holding companies. The tax effect of temporary difference under ASC 740 “Accounting for Income Taxes” that give rise to deferred tax asset as of December 31, 2023 and 2022 was as follows: December 31, 2023 December 31, 2022 Deferred tax assets: Allowance for doubtful accounts $ 41 $ 103 Total deferred tax assets, net $ 41 $ 103 The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company does not believe that there was any uncertain tax position as of December 31, 2023 and 2022. |
Share-Based Compensation to Emp
Share-Based Compensation to Employees | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Compensation to Employees [Abstract] | |
SHARE-BASED COMPENSATION TO EMPLOYEES | 13. SHARE-BASED COMPENSATION TO EMPLOYEES On September 14, 2020, the Company granted 200 ordinary shares (after giving effect to share consolidation effected in November 2023. See Note 14) to Mr. Ke Chen, one of the independent directors, as compensation expenses. The ordinary shares were fully vest on September 30, 2021. On September 14, 2020, the Company granted 200 ordinary shares (after giving effect to share consolidation effected in November 2023. See Note 14) to Mr. Zhihong Tan, one of the independent directors, as compensation expenses. The ordinary shares were immediately vest on grant date. For the year ended December 31, 2023, the Company did not grant share-based compensation to employees. A summary of the restricted ordinary shares activities for years ended December 31, 2022 and 2021 is presented below. Number of Shares Weighted average grant date fair value US$ December 31, 2020 200 30.1 Vested 200 30.1 December 31, 2021 - - Granted 200 9.7 Vested 200 9.7 December 31, 2022 - - For the years ended December 31, 2023, 2022 and 2021, the Company recognized share-based compensation expenses of $ nil |
Equity
Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
EQUITY | 14. EQUITY Preferred Shares The Company is authorized to issue 2,000,000 preferred shares with a par value of $0.0001 per share with such designation, rights and preferences as may be determined from time to time by the Company’s Board of Directors. At December 31, 2023 and 2022, there were no Ordinary Shares The Company is authorized to issue 200,000,000 ordinary shares with a par value of $0.0001 per share. Holders of the ordinary shares are entitled to one vote for each share. On November 24, 2023, the Company effected a share consolidation at a ratio of one-for-tenth (10) ordinary shares with a par value of US$0.0001 each in the Company’s issued and unissued share capital into one ordinary share with a par value of US$0.001 (“the Share Consolidation”). Immediately following the Share Consolidation, the authorized share capital of the Company to be US$20,200 divided into 20,000,000 ordinary shares of a par value of US$0.001 each and 2,000,000 preferred shares of a par value of US$0.0001 each. The Company believed that it was appropriate to reflect the transactions on a retroactive basis pursuant to ASC 260, Earnings Per Share. Giving the effects of the share consolidation, there were 5,788,635 ordinary shares issued and outstanding as of December 31, 2020. In February 2021, 28,000 ordinary shares issuable upon the conversion of convertible debentures were issued to TKK, at a weighted-average exercise price of $50.00 per share. On February 22, 2021, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Univest Securities, LLC (“Univest”), as the representative of the several underwriters named therein (collectively, the “Underwriters”), pursuant to which the Company agreed to issue and sell (i) 381,098 ordinary shares of the Company (“Offered Shares”) (after giving effect to share consolidation effected in November 2023), par value of $0.001 per share (the “Ordinary Shares”) and (ii) warrants (the “Warrants”) to purchase an aggregate of 381,098 Ordinary Shares (the “Warrant Shares”) (after giving effect to share consolidation effected in November 2023) in an underwritten public offering (the “Offering”). In addition, the Company has granted the Underwriters a 45-day option (the “Over-Allotment Option”) to purchase up to an additional 57,165 Ordinary Shares (the “Option Shares”) (after giving effect to share consolidation effected in November 2023) and Warrants to purchase up to 57,165 Ordinary Shares (after giving effect to share consolidation effected in November 2023) at the public offering price, less underwriting discounts and commissions. The Offered Shares and Warrants are delivered on February 24, 2021, at a public offering price of $32.8 per share (after giving effect to share consolidation effected in November 2023) and associated warrant to purchase one ordinary share, as set forth in the Underwriting Agreement, subject to the satisfaction of certain closing conditions. On March 25, 2021, the underwriters fully exercised and closed on their over-allotment option to purchase an additional 57,165 ordinary shares (after giving effect to share consolidation effected in November 2023) of the Company, together with warrants to purchase up to 57,165 ordinary shares (after giving effect to share consolidation effected in November 2023) of the Company in connection with the Company’s underwritten public offering on February 24, 2021. The additional ordinary shares and warrants were sold at the public offering price of $32.8 per ordinary share (after giving effect to share consolidation effected in November 2023) and associated warrant. In April, 2021, the Company issued an additional 500,000 of the Company’s ordinary shares (after giving effect to share consolidation effected in November 2023) as the earn out shares to the Sellers pursuant to the terms of the Shares Exchange Agreement. On August 26, 2021, the Company entered into a subscription agreement with an institutional investor for the sale of up to 285,714 ordinary shares of the Company (the “Ordinary Shares”) (after giving effect to share consolidation effected in November 2023) for total gross proceeds of up to approximately $10,000,000 (the “Offering”). Each Ordinary Share will be accompanied by a warrant exercisable to purchase one Ordinary Share at an exercise price of $44.0 per share (the “Warrant”) (after giving effect to share consolidation effected in November 2023). Each Ordinary Share and Warrant are being sold at a fixed combined purchase price of $35.0 (after giving effect to share consolidation effected in November 2023). Each warrant will be exercisable immediately, and will expire on the first anniversary of the date of issuance. The first closing of the Offering representing the sale and purchase of 57,143 Ordinary Shares (after giving effect to share consolidation effected in November 2023) and warrants to purchase 57,143 Ordinary Shares (after giving effect to share consolidation effected in November 2023) has closed on August 30, 2021. On April 7, 2022, the board appointed Mr. Zhihong Tan as our non-executive director, then granted and vested 200 ordinary shares (after giving effect to share consolidation effected in November 2023) for compensation. On May 9, 2023, the Company closed private placements with two (2) accredited investors (the “Investors”). The Company issued an aggregate of 2,419,355 ordinary shares (after giving effect to share consolidation effected in November 2023) of the Company, par value $0.001, at a price per share of $15.5 for gross proceeds of $60,000,000. On September 5, 2023, the Company closed private placements with two (2) accredited investors (the “Investors”). The Company issued an aggregate of 806,451 ordinary shares (after giving effect to share consolidation effected in November 2023) of the Company, par value $0.001, at a price per share of $24.8 (after giving effect to share consolidation effected in November 2023) for gross proceeds of $20,000,000. In December 2023, the Company issued additional 31,766 ordinary shares subject to roundup of fractional shares arising from Share Consolidation. As of December 31, 2023 and 2022, there were 10,070,012 and 6,812,440 ordinary shares (after giving effect to share consolidation effected in November 2023) issued and outstanding, respectively. Public Warrants Pursuant to the Initial Public Offering, TKK sold 2,500,000 Units (after giving effect to share consolidation effected in November 2023) at a purchase price of $100.00 per Unit (after giving effect to share consolidation effected in November 2023), inclusive of 300,000 Units (after giving effect to share consolidation effected in November 2023) sold to the underwriters on August 22, 2018 upon the underwriters’ election to partially exercise their over-allotment option. Each Unit consists of one ordinary share, one warrant (“Public Warrant”) and one right (“Public Right”). Each Public Warrant entitles the holder to purchase one-half of one ordinary share at an exercise price of $115.00 per whole share. Each Public Right entitles the holder to receive one-tenth of one ordinary share at the closing of a Business Combination. Public Warrants may only be exercised for a whole number of shares. No fractional ordinary shares will be issued upon exercise of the Public Warrants. The Public Warrants will become exercisable on the later of (a) the completion of a Business Combination and (b) 12 months from the closing of the Initial Public Offering. No Public Warrants will be exercisable for cash unless the Company has an effective and current registration statement covering the ordinary shares issuable upon exercise of the Public Warrants and a current prospectus relating to such ordinary shares. Notwithstanding the foregoing, if a registration statement covering the ordinary shares issuable upon the exercise of the Public Warrants is not effective within 90 days from the consummation of a Business Combination, the holders may, until such time as there is an effective registration statement and during any period when the Company shall have failed to maintain an effective registration statement, exercise the Public Warrants on a cashless basis pursuant to an available exemption from registration under the Securities Act. If an exemption from registration is not available, holders will not be able to exercise their Public Warrants on a cashless basis. The Public Warrants will expire five years from the consummation of a Business Combination or earlier upon redemption or liquidation. The Company may redeem the Public Warrants: ● in whole and not in part; ● at a price of $0.01 per warrant; ● at any time while the Public Warrants are exercisable; ● upon no less than 30 days’ prior written notice of redemption to each Public Warrant holder; ● if, and only if, the reported last sale price of the Company’s ordinary shares equals or exceeds $18.00 per share, for any 20 trading days within a 30 trading day period ending on the third business day prior to the notice of redemption to the warrant holders; and ● if, and only if, there is a current registration statement in effect with respect to the ordinary shares underlying such warrants at the time of redemption and for the entire 30-day trading period referred to above and continuing each day thereafter until the date of redemption. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of ordinary shares issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a capitalization of shares, extraordinary dividend or recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted for issuances of ordinary shares at a price below their exercise price or issuance of potential extension warrants in connection with an extension of the period of time for the Company to complete a Business Combination. Additionally, in no event will the Company be required to net cash settle the warrants. If the Company is unable to complete a Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with the respect to such warrants. Accordingly, the warrants may expire worthless. As of December 31, 2023 and 2022, the Company had 2,500,000 of public warrants outstanding (after giving effect to share consolidation effected in November 2023). Rights Each holder of a Public Right will automatically receive one-tenth (1/10) of an ordinary share upon consummation of a Business Combination, even if the holder of a Public Right converted all ordinary shares held by him, her or it in connection with a Business Combination or an amendment to the Company’s Amended and Restated Memorandum and Articles of Association with respect to its pre-business combination activities. Upon the closing of the Business Combination, the Company issued 250,433 shares (after giving effect to share consolidation effected in November 2023) in connection with an exchange of Public Rights. Statutory reserve Horgos, Beijing Glory Star, Beijing Leshare, Shenzhen Leshare, Glary Prosperity, Horgos Technology and Xing Cui Can operate in the PRC, are required to reserve 10% of their net profit after income tax, as determined in accordance with the PRC accounting rules and regulations. Appropriation to the statutory reserve by the Company is based on profit arrived at under PRC accounting standards for business enterprises for each year. The profit arrived at must be set off against any accumulated losses sustained by the Company in prior years, before allocation is made to the statutory reserve. Appropriation to the statutory reserve must be made before distribution of dividends to shareholders. The appropriation is required until the statutory reserve reaches 50% of the registered capital. This statutory reserve is not distributable in the form of cash dividends. Non-controlling interest As of December 31, 2023 and 2022, the Company’s non-controlling interest represented 49% equity interest of Horgos Glary Prosperity. |
Private Placement Warrants
Private Placement Warrants | 12 Months Ended |
Dec. 31, 2023 | |
Private Placement Warrants [Abstract] | |
PRIVATE PLACEMENT WARRANTS | 15. PRIVATE PLACEMENT WARRANTS Simultaneously with the closing of the Initial Public Offering, Symphony Holdings Limited (“Symphony”) purchased an aggregate of 1,180,000 Private Placement Warrants (after giving effect to share consolidation effected in November 2023) at $5.00 per Private Placement Warrant for an aggregate purchase price of $5,900. On August 22, 2018, TKK consummated the sale of an additional 120,000 Private Placement Warrants at a price of $5.00 per Private Placement Warrant, generating gross proceeds of $600. Each Private Placement Warrant is exercisable to purchase one-half of one ordinary share at an exercise price of $115.00 per whole share. The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Placement Warrants (i) are not redeemable by the Company and (ii) may be exercised for cash or on a cashless basis, so long as they are held by the initial purchaser or any of its permitted transferees. If the Private Placement Warrants are held by holders other than the initial purchasers or any of their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by the holders on the same basis as the Public Warrants. In addition, the Private Placement Warrants may not be transferable, assignable or salable until the consummation of a Business Combination, subject to certain limited exceptions. As of December 31, 2023 and 2022, the Company had 1,300,000 of private placement warrants outstanding. The warrant liability related to such private placement warrants was remeasured to its fair value at each reporting period. The change in fair value was recognized in the consolidated statements of income. The change in fair value of the warrant liability was as follows: Warrant Liability Estimated fair value at December 31, 2020 (restated) $ 833 Warrant liability assumed from the Business Combination - Change in estimated fair value (809 ) Estimated fair value at December 31, 2021 $ 24 Warrant liability assumed from the Business Combination - Change in estimated fair value 62 Estimated fair value at December 31, 2022 $ 86 Warrant liability assumed from the Business Combination - Change in estimated fair value (86 ) Estimated fair value at December 31, 2023 $ - The fair value of the private warrants was estimated using the binomial option valuation model. The application of the binomial option valuation model requires the use of a number of inputs and significant assumptions including volatility. Significant judgment is required in determining the expected volatility of the common share. Due to the limited history of trading of the Company’s common share, the Company determined expected volatility based on a peer group of publicly traded companies. The following reflects the inputs and assumptions used: For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 For the Year Ended December 31, 2021 Stock price $ 2.87 $ 14.6 $ 11.8 Exercise price $ 115.00 $ 115.00 $ 115.00 Risk-free interest rate 4.23 % 4.39 % 0.99 % Expected term (in years) 1.12 2.12 3.12 Expected dividend yield - - - Expected volatility 95.1 % 60.0 % 48.3 % |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Information [Abstract] | |
SEGMENT INFORMATION | 16. SEGMENT INFORMATION In accordance with ASC 280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision making group, in deciding how to allocate resources and in assessing performance. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision maker, reviews operation results by the revenue of different services. Based on management’s assessment, the Company has determined that it has two operating segments as defined by ASC 280, including Cheers APP internet business and traditional media businesses. Cheers APP Internet Business generates advertising revenue from broadcasting IP short video, live streaming and APP advertising through Cheer APP and service revenue from Cheers E-mall marketplace. Traditional Media Business mainly contributes the advertising revenue from Cheers TV-series, copyright revenue, customized content production revenue and others. The CODM measures the performance of each segment based on metrics of revenues and earnings from operations and uses these results to evaluate the performance of, and to allocate resources to, each of the segments. The Company currently does not allocate assets and share-based compensation for employees to its segments, as the CODM does not use such information to allocate resources to or evaluate the performance of the operating segments. As most of the Company’s long-lived assets are located in the PRC and most of the Company’s revenues are derived from the PRC, no geographical information is presented. The table below provides a summary of the Company’s operating segment results for the years ended December 31, 2023, 2022 and 2021: For the Years Ended December 31, 2023 2022 2021 Net revenues: Cheers App Internet Business $ 141,005 $ 144,045 $ 135,263 Traditional Media Business 11,322 13,034 17,749 Total consolidated net revenues $ 152,327 $ 157,079 $ 153,012 Operating income: Cheers APP Internet Business $ 27,108 $ 24,510 $ 32,081 Traditional Media Business 2,177 2,218 4,210 Total segment operating income 29,285 26,728 36,291 Unallocated item (1) - (2 ) (4 ) Total consolidated operating income $ 29,285 $ 26,726 $ 36,287 * The unallocated item for the years ended December 31, 2023, 2022 and 2021 presents the share-based compensation for employees, which is not allocated to segments. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2023 | |
Commitments [Abstract] | |
COMMITMENTS | 17. COMMITMENTS Capital expenditure commitments The Company has commitments for capital expenditures totaling $7,056 as of December 31, 2023. These commitments are primarily related to the acquisition of CheerCar, CheerReal, and a VR platform. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 18. SUBSEQUENT EVENTS In February 2024, the Company repaid bank borrowings of $2,103 to China Merchants Bank. These consolidated financial statements were approved by management and available for issuance on March 14, 2024. The Company has evaluated subsequent events through this date and concluded that there are no additional reportable subsequent events other than that disclosed in above. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIEs and its VIEs’ subsidiaries. All inter-company transactions and balances have been eliminated upon consolidation. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period and accompanying notes, including allowance for doubtful accounts, allowance for unamortized production content, the useful lives of property, plant and equipment and intangible assets, impairment of long-lived assets, valuation allowance for deferred tax assets and revenue recognition. Actual results could differ from those estimates. |
Fair value Measurement | Fair value Measurement The Company applies ASC Topic 820, Fair Value Measurements and Disclosures which defines fair value, establishes a framework for measuring fair value and expands financial statement disclosure requirements for fair value measurements. ASC Topic 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. ASC Topic 820 specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Unobservable inputs are valuation technique inputs that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Management of the Company considers the carrying amount of cash and cash equivalents, restricted cash, accounts receivable, other receivables, short-term bank loans, accounts payable, due to related parties, other payables and other taxes payable based on the short-term maturity of these instruments to approximate their fair values because of their short-term nature. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents primarily consist of bank deposits, as well as highly liquid investments, with original maturities of three months or less, which are unrestricted as to withdrawal and use. The Company maintains most of the bank accounts in the PRC. |
Restricted cash | Restricted cash Restricted cash represents cash or cash equivalents at banks subject to withdrawal restrictions. As of December 31, 2023 and 2022, the Company had restricted cash in bank accounts in the amount of $298 and $ nil |
Accounts Receivable, net | Accounts Receivable, net On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), using the modified retrospective transition method. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. Upon adoption, the Company changed the impairment model to utilize a forward-looking current expected credit losses (CECL) model in place of the incurred loss methodology for financial instruments measured at amortized cost and receivables resulting from the application of ASC 606, including contract assets. The adoption of the guidance had no impact on the allowance for credit losses for accounts receivable. Prior to the Company’s adoption of ASU 2016-13, accounts receivable are presented net of allowance for doubtful accounts. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company maintains allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyses historical bad debt, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to estimate the allowance. Past due accounts are generally written off against the allowance for bad debts only after all collection attempts have been exhausted and the potential for recovery is considered remote. After the adoption of ASU 2016-13, The Company maintains an allowance for credit losses and records the allowance for credit losses as an offset to accounts receivable and the estimated credit losses charged to the allowance is classified as “General and administrative expenses” in the consolidated statements of income and comprehensive income. The Company assesses collectability by reviewing accounts receivable on an individual basis because the Company had limited customers and each of them has difference characteristics, primarily based on business line and geographical area. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due status, the age of the balances, credit quality of the Company’s customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. |
Unamortized produced content | Unamortized produced content Produced content includes direct production costs, production overhead and acquisition costs and is stated at the lower of unamortized cost or estimated fair value. Produced content also includes cash expenditures made to enter into arrangements with third parties to co-produce certain of its productions. The Company uses the individual-film-forecast-computation method and amortizes the produced content based on the ratio of current period actual revenue (numerator) to estimated remaining unrecognized ultimate revenue as of the beginning of the fiscal year (denominator) in accordance with ASC 926. Ultimate revenue estimates for the produced content are periodically reviewed and adjustments, if any, will result in prospective changes to amortization rates. When estimates of total revenues and other events or changes in circumstances indicate that a film or television series has a fair value that is less than its unamortized cost, a loss is recognized currently for the amount by which the unamortized cost exceeds the film or television series’ fair value. For the years ended December 31, 2023, 2022 and 2021, $25,514, $128, $7,375 were amortized to the cost of sales, respectively. For the years ended December 31, 2023, 2022 and 2021, the Company provided impairment of $112, $770 and $ nil |
Property, plant and equipment, net | Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and depreciated on a straight-line basis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income/loss in the year of disposition. Estimated useful lives are as follows: Estimated Useful Life Electric equipment 3 Years Office equipment and furniture 3 - 5 Years Leasehold improvement Shorter of useful life or lease term |
Intangible asset, net | Intangible asset, net Intangible asset is stated at cost less accumulated amortization and amortized in a method which reflects the pattern in which the economic benefits of the intangible asset are expected to be consumed or otherwise used up. The balance of intangible asset represents software related to CHEERS App, a mobile application that allows its users to access its online store (e-Mall), video content, live streaming, and online games. The software is acquired externally tailored to the Company’s requirements and is amortized straight-line over 7 years in accordance with the way the Company estimates to generate economic benefits from such software. |
Impairment of long-lived Assets | Impairment of long-lived Assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company did not record any impairment charge for the years ended December 31, 2023, 2022 and 2021. |
Leases | Leases In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-02, Leases (Topic 842), which is effective for annual reporting periods (including interim periods) beginning after December 15, 2018, and early adoption is permitted. The Company has adopted the Topic 842 on January 1, 2019 using a modified retrospective approach reflecting the application of the standard to leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. The Company leases its offices, which are classified as operating leases in accordance with Topic 842. Under Topic 842, lessees are required to recognize the following for all leases (with the exception of short-term leases) on the commencement date: (i) lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. At the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment. No impairment for right-of-use lease assets as of December 31, 2023 and 2022. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. |
Advances from customers | Contract liabilities amounted to $130 and $147 at December 31, 2023 and 2022, respectively, which represent advance payment received from our customers for goods or services that had not yet been provided. The Company will recognize the advances as revenue when it has transferred control of the goods or services to which the advances relate, and has no obligation under the contract to transfer additional goods or services. |
Value Added Tax | Value Added Tax Horgos and its China subsidiaries are subject to VAT for providing services and sales of products. The amount of VAT liability is determined by applying the applicable tax rates to the invoiced amount of services provided and sales of products (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). The Company reports revenue net of PRC’s VAT for all the periods presented in the consolidated statements of income and other comprehensive income. |
Revenue Recognition | Revenue Recognition The Company early adopted the new revenue standard Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, on January 1, 2017. The core principle of this new revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: ● Step 1: Identify the contract with the customer ● Step 2: Identify the performance obligations in the contract ● Step 3: Determine the transaction price ● Step 4: Allocate the transaction price to the performance obligations in the contract ● Step 5: Recognize revenue when the company satisfies a performance obligation The Company mainly offers and generates revenue from the copyright licensing of self-produced content, advertising and customized content production and others. Revenue recognition policies are discussed as follows: Copyright revenue The Company self produces or coproduces TV series featuring lifestyle, culture and fashion, and licenses the copyright of the TV series on an episode basis to the customer for broadcast over a period of time. Generally, the Company signs a contract with a customer which requires the Company to deliver a series of episodes that are substantially the same and that have the same pattern of transfer to the customer. Accordingly, the delivery of the series of episodes is defined as the only performance obligation in the contract. For the TV series produced solely by the Company, the Company satisfies its performance obligation over time by measuring the progress toward the delivery of the entire series of episodes which is made available to the licensee for exhibition after the license period has begun. Therefore, the copyright revenue in a contract is recognized over time based on the progress of the number of episodes delivered. The Company also coproduces TV series with other producers and licenses the copyright to third-party video broadcast platforms for broadcast. For TV series produced by the Company with co-producers, the Company satisfies its performance obligations over time by the delivery of the entire series of episodes to the customer, and requires the customer to pay consideration based on the number and the unit price of valid subsequent views of the TV series that occur on a broadcast platform. Therefore, the copyright revenue is recognized when the later of the valid subsequent view occurs or the performance obligation relating to the delivery of a number of episodes has been satisfied. Advertising revenue The Company generates revenue from sales of various forms of advertising on its TV series and streaming content by way of 1) advertisement displays, or 2) the integration of promotion activities in TV series and content to be broadcast. Advertising contracts are signed to establish the different contract prices for different advertising scenarios, consistent with the advertising period. The Company enters into advertising contracts directly with the advertisers or the third-party advertising agencies that represent advertisers. For the contracts that involve the third-party advertising agencies, the Company is principal as the Company is responsible for fulfilling the promise of providing advertising services and has the discretion in establishing the price for the specified advertisement. Under a framework contract, the Company receives separate purchase orders from advertising agencies before the broadcast. Accordingly, each purchase order is identified as a separate performance obligation, containing a bundle of advertisements that are substantially the same and that have the same pattern of transfer to the customer. Where collectability is reasonably assured, revenue is recognized monthly over the service period of the purchase order. For contracts signed directly with the advertisers, the Company commits to display a series of advertisements which are substantially the same or similar in content and transfer pattern, and the display of the whole series of advertisements is identified as the single performance obligation under the contract. The Company satisfies its performance obligations over time by measuring the progress toward the display of the whole series of advertisements in a contract, and advertising revenue is recognized over time based on the number of advertisements displayed. Payment terms and conditions vary by contract types, and terms typically include a requirement for payment within a period from 6 to 9 months. Both direct advertisers and third-party advertising agencies are generally billed at the end of the display period and require the Company to issue VAT invoices in order to make their payments. Customized content production revenue The Company produces customized short streaming videos according to its customers’ requirement, and earns fixed fees based on delivery. Revenue is recognized upon the delivery of short streaming videos. CHEERS E-mall marketplace service revenue The Company through CHEERS E-mall, an online e-commerce platform, enables third-party merchants to sell their products to consumers in China. The Company charges fees for platform services to merchants for sales transactions completed on the Cheer E-Mall including but not limited to products displaying, promotion and transaction settlement services. The Company does not take control of the products provided by the merchants at any point in the time during the transactions and does not have latitude over pricing of the merchandise. Transaction services fee is determined as the difference between the platform sales price and the settlement price with the merchants. CHEERS E-mall marketplace service revenue is recognized at a point of time when the Company’s performance obligation to provide marketplace services to the merchants are determined to have been completed under each sales transaction upon the consumers confirming the receipts of goods. Payments for services are generally received before deliveries. The Company provides coupons to consumers at our own discretion as incentives to promote CHEERS E-mall marketplace with validity usually around or less than one week, which can only be used in future purchases of eligible merchandise offered on CHEERS E-mall to reduce purchase price that are not specific to any merchant. Consumers are not customers of the Company, therefore incentives offered to consumers are not considered consideration payable to customers. As the consumers are required to make future purchases of the merchants’ merchandise to redeem these coupons, the Company does not accrue any expense for coupons when granted and recognizes the amounts of redeemed coupons as marketing expenses when future purchases are made. Other Revenues Other revenue primarily consists of copyrights trading of purchased and produced TV-series and the sales of products on Taobao platform. For copyright licensing of purchased and produced TV-series, the Company recognize revenue on net basis at a point of time upon the delivery of master tape and authorization of broadcasting right. For sales of product, the company recognize revenue upon the transfer of products according to the fixed price and production amount in sales orders. The following table identifies the disaggregation of our revenue for the years ended December 31, 2023, 2022 and 2021, respectively: For the Years Ended December 31, 2023 2022 2021 Category of Revenue: Advertising revenue $ 149,046 $ 152,086 $ 132,918 Customized content production revenue - - 5,326 Copyrights revenue 3,035 4,217 7,478 CHEERS e-Mall marketplace service revenue 232 306 6,807 Other revenue 14 470 483 Total $ 152,327 $ 157,079 $ 153,012 Timing of Revenue Recognition: Services transferred over time $ 152,081 $ 156,303 $ 145,722 Services transferred at a point in time 232 306 6,807 Goods transferred at a point in time 14 470 483 Total $ 152,327 $ 157,079 $ 153,012 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. The Company does not have any significant incremental costs of obtaining contracts with customers incurred and/or costs incurred in fulfilling contracts with customers within the scope of ASC Topic 606, that shall be recognized as an asset and amortized to expenses in a pattern that matches the timing of the revenue recognition of the related contract. |
Cost of revenues | Cost of revenues Cost of revenues consists primarily of production cost of TV series, short stream video and live streaming, labor cost and related benefits, payments to various channel owners for broadcast, purchase cost of goods and copyrights and costs associated with the operation of the Company’s online game and shopping platform CHERRS App such as bandwidth cost and amortization of intangible assets. |
Share-based compensation | Share-based compensation The Company periodically grants restricted ordinary shares to eligible employees and non-employee consultants. The Group accounts for share-based awards issued to employees and non-employee consultants in accordance with ASC Topic 718 Compensation – Stock Compensation. The share-based awards are measured at the grant date fair value of the awards and recognized as expenses a) immediately at grant date if no vesting conditions are required; or b) using the straight-line method over the requisite service period, which is the vesting period. Share-based compensation in relation to the restricted ordinary shares is measured based on the fair value of its ordinary shares on the date of the grant. The Group recognizes the compensation cost, net of estimated forfeitures, over a vesting term for service-based restricted shares. Forfeitures are estimated at the time of grant and revised in the subsequent periods if actual forfeitures differ from those estimates. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset/liability method prescribed by ASC 740, “Income Taxes.” Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company does not believe that there was any uncertain tax position at December 31, 2023 and 2022. The Company’s operating subsidiaries in PRC are subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB 100,000 (approximately $14,100). In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. As of December 31, 2023, the tax years ended December 31, 2019 through December 31, 2023 for the Company’s PRC subsidiaries remain open for statutory examination by PRC tax authorities. |
Non-controlling Interest | Non-controlling Interest A non-controlling interest in a subsidiary of the Company represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity on the consolidated balance sheet and consolidated statements of income and comprehensive income are attributed to controlling and non-controlling interests. |
Earnings per Share | Earnings per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income attributable to ordinary shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, earn out shares, warrants and stock options) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. There is no anti-dilutive effect for the years ended December 31, 2023, 2022 and 2021. |
Related Parties | Related Parties Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all significant related party transactions in Note 11. |
Concentration and Credit Risk | Concentration and Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are cash and cash equivalents, and accounts receivable arising from its normal business activities. The Company places its cash and cash equivalents in what it believes to be credit-worthy financial institutions. The Company’s operations are carried out in the PRC. Accordingly, our business, financial condition, and results of operations may be influenced by the political, economic, and legal environment in the PRC, and by the general state of the economy of the PRC. Our operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash and cash equivalent. All of our cash is maintained with state-owned banks, commercial banks or third-party service provider certified by the People’s bank of China, such as Alipay, within the PRC. Per PRC regulations, the maximum insured bank deposit amount is RMB500,000 (approximately $70,400) for each financial institution. The Company’s total unprotected cash held in bank amounted to approximately $194,081 and $70,199 as of December 31, 2023 and 2022, respectively. The Company has not experienced any losses in such accounts and believes the Company is not exposed to any risks on our cash held in bank accounts. Accounts receivable are typically unsecured and derived from revenue earned from customers, thereby exposed to credit risk. The risk is mitigated by the Company’s assessment of its customers’ creditworthiness and its ongoing monitoring of outstanding balances. The Company’s sales are made to customers that are located primarily in China. The Company has a concentration of its revenues and receivables with specific customers. For the year ended December 31, 2023, four customers accounted for 25%, 17%, 13% and 12% of the Company’s total revenue, respectively. For the year ended December 31, 2022, four customers accounted for 21%, 18%, 18% and 15% of the Company’s total revenue, respectively. For the year ended December 31, 2021, four customers accounted for 20%, 17%,16% and 12% of the Company’s total revenue, respectively. As of December 31, 2023, six customers accounted for 23%, 16%, 15% 14% 12% and 11% of the net accounts receivable balance, respectively. As of December 31, 2022, four customers accounted for 27%, 19%,11% and 10% of the net accounts receivable balance, respectively. As of December 31, 2023, four vendors accounted for 50%, 21%, 12% and 11% of the accounts payable, respectively. As of December 31, 2022, four vendors accounted for 30%, 22%, 17% and 10% of the accounts payable, respectively. |
Foreign Currency Translation | Foreign Currency Translation The reporting currency of the Company is the U.S. dollar (“USD”). The functional currency of subsidiaries, VIEs and VIEs’ subsidiaries located in China is the Chinese Renminbi (“RMB”). For the entities whose functional currency is the RMB, result of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive income/loss. Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet date with any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. All of the Company’s revenue and expense transactions are transacted in the functional currency of the operating subsidiaries. The Company does not enter into any material transaction in foreign currencies. Transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company. The consolidated balance sheet amounts, with the exception of equity, at December 31, 2023 and 2022 were translated at RMB 7.0999 to $1.00 and at RMB 6.9646 to $1.00, respectively. Equity accounts were stated at their historical rates. The average translation rates applied to consolidated statements of income and cash flows for the years ended December 31, 2023, 2022 and 2021 were RMB 7.0809 to $1.00, RMB 6.7261 to $1.00 and RMB 6.4531 to $1.00, respectively. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The new amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments, with early adoption permitted. The Company is currently evaluating the impact of the new guidance on the consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”, which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. This guidance also requires certain disclosures for equity securities subject to contractual sale restrictions. The new guidance is required to be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. This guidance is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect that the adoption of this guidance will have a material impact on the financial position, results of operations and cash flows. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows or disclosures. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Principal Activities [Abstract] | |
Schedule of VIEs and the VIE’s Subsidiaries | As of December 31, 2023, the Company’s subsidiaries, the VIEs and the VIE’s subsidiaries were as the following: Date of Place of Percentage of Principal Subsidiaries: Glory Star New Media Group HK Limited December 18, 2018 Hong Kong 100 % Holding Glory Star New Media (Beijing) March 13, 2019 PRC 100 % Holding VIEs: Cui Can International Media (Beijing) September 7, 2016 PRC 100 % Holding Horgos Glory Star Media Co., Ltd. November 1, 2016 PRC 100 % Holding VIEs’ subsidiaries Glory Star Media (Beijing) Co., Ltd. December 9, 2016 PRC 100 % Provision of provides advertisement and content production services Leshare Star (Beijing) Technology Co., Ltd. March 28, 2016 PRC 100 % Provision of provides advertisement and content production services Horgos Glary Prosperity Culture Co., Ltd. December 14, 2017 PRC 51 % Provision of provides advertisement and content production services Horgos Glary Prosperity Culture Co., Ltd, May 8, 2018 PRC 51 % Provision of provides advertisement and content production services Glory Star (Horgos) Media Technology Co., Ltd September 9, 2020 PRC 100 % Provision of provides advertisement and content production services |
Schedule of Financial Statements of VIEs | The following financial statements amounts and balances of the VIEs and VIEs’ subsidiaries were included in the consolidated financial statements as of December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022 and 2021: December 31, December 31, 2023 2022 Total assets $ 324,019 $ 188,597 Total liabilities $ 146,188 $ 38,872 |
Schedule of Operation and Cash Flow VIEs and Subsidiaries of VIEs | For the Years Ended December 31, 2023 2022 2021 Total revenues $ 152,327 $ 157,225 $ 153,012 Net income $ 31,126 $ 27,562 $ 35,907 Net cash provided by operating activities $ 42,044 $ 11,650 $ 57,397 Net cash used in investing activities $ (3 ) $ (7,989 ) $ (1,051 ) Net cash provided by (used in) financing activities $ 83,062 $ 508 $ (2,004 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Estimated useful lives are as follows: Estimated Useful Life Electric equipment 3 Years Office equipment and furniture 3 - 5 Years Leasehold improvement Shorter of useful life or lease term |
Schedule of Disaggregation of Our Revenue | The following table identifies the disaggregation of our revenue for the years ended December 31, 2023, 2022 and 2021, respectively: For the Years Ended December 31, 2023 2022 2021 Category of Revenue: Advertising revenue $ 149,046 $ 152,086 $ 132,918 Customized content production revenue - - 5,326 Copyrights revenue 3,035 4,217 7,478 CHEERS e-Mall marketplace service revenue 232 306 6,807 Other revenue 14 470 483 Total $ 152,327 $ 157,079 $ 153,012 Timing of Revenue Recognition: Services transferred over time $ 152,081 $ 156,303 $ 145,722 Services transferred at a point in time 232 306 6,807 Goods transferred at a point in time 14 470 483 Total $ 152,327 $ 157,079 $ 153,012 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivables Net [Abstract] | |
Schedule of Accounts Receivable | As of December 31, 2023 and 2022, accounts receivable consisted of the following: December 31, 2023 December 31, 2022 Accounts receivable $ 81,990 $ 99,040 Less: allowance for doubtful accounts (820 ) (1,006 ) Accounts receivables, net $ 81,170 $ 98,034 |
Schedule of Allowance for Doubtful Accounts | For the years ended December 31, 2023, 2022 and 2021, the movement of allowance for doubtful accounts is as the following: For the Years Ended December 31, 2023 2022 2021 Opening balance $ 1,006 $ 635 $ 886 Provision (reversal of provision) for doubtful accounts (167 ) 440 (268 ) Foreign exchange adjustment (19 ) (69 ) 17 Ending balance $ 820 $ 1,006 $ 635 |
Prepayment and Other Current _2
Prepayment and Other Current and Non-Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepayment and Other Current and Non-Current Assets [Abstract] | |
Schedule of Prepayment and Other Current and Non-Current Assets | As of December 31, 2023 and 2022, prepayment and other current and non-current assets consisted of the following: December 31, December 31, Advances to vendors $ 33,295 $ 15,272 Prepayment for outsourced production cost - 36 Staff advance 98 14 Others 43 8 Subtotal 33,736 15,330 Less: allowance for doubtful accounts (2,257 ) - Prepayment and other assets, net $ 31,179 $ 15,330 Including: Prepayment and other current assets, net $ 31,179 $ 15,329 Prepayment and other non-current assets, net $ - $ 1 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of Property, Plant and Equipment | As of December 31, 2023 and 2022, property, plant and equipment consisted of the following: December 31, December 31, Electronic equipment $ 820 $ 864 Office equipment and furniture 70 66 Leasehold improvement 182 186 1,072 1,116 Less: accumulated depreciation (987 ) (956 ) $ 85 $ 160 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net [Abstract] | |
Schedule of Intangible Assets | As of December 31, 2023 and 2022, intangible assets consisted of the following: December 31, 2023 December 31, 2022 Intangible assets $ 30,187 $ 27,055 Less: accumulated amortization (9,932 ) (6,758 ) $ 20,255 $ 20,297 |
Schedule of Amortization Amount of Intangible Asset | The following is a schedule, by fiscal years, of amortization amount of intangible asset as of December 31, 2023: 2024 $ 3,302 2025 3,302 2026 3,302 2027 3,302 Thereafter 7,047 Total $ 20,255 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Liabilities and Other Payables [Abstract] | |
Schedule of Accrued Liabilities and Other Payables | As of December 31, 2023 and 2022, accrued liabilities and other payables consisted of the following: December 31, December 31, Payroll payables $ 1,233 $ 1,444 Other payables 2,531 720 Payable to merchants of Cheers e-Mall - 1 Co-invest online series production fund - 467 $ 3,764 $ 2,632 |
Other Taxes Payable (Tables)
Other Taxes Payable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Taxes Payable [Abstract] | |
Schedule of Other Taxes Payable | As of December 31, 2023 and 2022, other taxes payable consisted of the following: December 31, December 31, VAT payable $ 22,916 $ 15,266 Income tax payable 2,455 2,505 Business tax payable 2,791 1,319 Others 16 - $ 28,178 $ 19,090 |
Bank Loans, Current and Non C_2
Bank Loans, Current and Non Current (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Bank Loans, Current and Non Current [Abstract] | |
Schedule of Bank Loans Represent the Amounts Due to Various Banks | Bank loans represent the amounts due to various banks that are due within and over one year. As of December 31, 2023 and 2022, bank loans consisted of the following: December 31, December 31, Short-term bank loans: Loan from China Merchants Bank $ 2,103 $ 2,144 Loan from Xiamen International Bank 2,113 431 Loan from Bank of Beijing - 1,139 Loan from Huaxia Bank - 707 $ 4,216 $ 4,421 Long-term bank loans: Loan from China Construction Bank $ 1,408 $ - $ 1,408 $ - |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Operating Lease | Supplemental balance sheet information related to operating lease was as follows: December 31, 2023 December 31, 2022 Right-of-use assets $ 377 $ 750 Lease liabilities current $ 330 $ 208 Lease liabilities non-current - 471 Total operating lease liabilities $ 330 $ 679 |
Schedule of Remaining Lease Term and Discount Rate | The weighted average remaining lease terms and discount rates for the operating lease were as follows as of December 31, 2023: Remaining lease term and discount rate: Weighted average remaining lease term (years) 1.08 Weighted average discount rate 5.55 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Schedule of Effective Income Tax Rate | The reconciliations of the statutory income tax rate and the Company’s effective income tax rate are as follows: For the Years Ended December 31 2023 2022 2021 Net income before provision for income taxes $ 30,589 $ 26,853 $ 36,328 PRC statutory tax rate 25 % 25 % 25 % Income tax at statutory tax rate 7,647 6,713 9,082 Expenses not deductible for tax purpose 385 11 96 Changes in valuation allowance 11,953 567 - Effect of warrant liability revaluation (22 ) 16 (203 ) Effect of preferential tax rates granted to the PRC entities (a) (19,902 ) (6,894 ) (7,999 ) Income tax expense $ 61 $ 413 $ 976 Effective income tax rate 0.20 % 1.54 % 2.69 % (a) The Company’s subsidiary Horgos, Horgos Glory Prosperity, Horgos Glary Wisdom were eligible to enjoy a preferential income tax rate of 15% for five years ended December 31, 2025. Horgos Technology is eligible to be exempted from income tax from 2020 to 2024. Beijing Leshare was recognized as a high-tech enterprise and received a preferential income tax rate of 15%. For the years ended December 31, 2023, 2022 and 2021 , the tax saving as the result of the favorable tax rate amounted to $21,841, $6,894 and $7,999, respectively, and per share effect of the favorable tax rate were $2.5, $1.0 and $1.2 (after giving effect to share consolidation effected in November 2023. See Note 14). |
Schedule of Deferred tax Asset | The tax effect of temporary difference under ASC 740 “Accounting for Income Taxes” that give rise to deferred tax asset as of December 31, 2023 and 2022 was as follows: December 31, 2023 December 31, 2022 Deferred tax assets: Allowance for doubtful accounts $ 41 $ 103 Total deferred tax assets, net $ 41 $ 103 |
Share-Based Compensation to E_2
Share-Based Compensation to Employees (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Compensation to Employees [Abstract] | |
Schedule of Restricted Ordinary Shares Activities | A summary of the restricted ordinary shares activities for years ended December 31, 2022 and 2021 is presented below. Number of Shares Weighted average grant date fair value US$ December 31, 2020 200 30.1 Vested 200 30.1 December 31, 2021 - - Granted 200 9.7 Vested 200 9.7 December 31, 2022 - - |
Private Placement Warrants (Tab
Private Placement Warrants (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Private Placement Warrants [Abstract] | |
Schedule of Change in Fair Value of Warrant Liability | The change in fair value of the warrant liability was as follows: Warrant Liability Estimated fair value at December 31, 2020 (restated) $ 833 Warrant liability assumed from the Business Combination - Change in estimated fair value (809 ) Estimated fair value at December 31, 2021 $ 24 Warrant liability assumed from the Business Combination - Change in estimated fair value 62 Estimated fair value at December 31, 2022 $ 86 Warrant liability assumed from the Business Combination - Change in estimated fair value (86 ) Estimated fair value at December 31, 2023 $ - |
Schedule of Inputs and Significant Assumptions Including Volatility | The following reflects the inputs and assumptions used: For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 For the Year Ended December 31, 2021 Stock price $ 2.87 $ 14.6 $ 11.8 Exercise price $ 115.00 $ 115.00 $ 115.00 Risk-free interest rate 4.23 % 4.39 % 0.99 % Expected term (in years) 1.12 2.12 3.12 Expected dividend yield - - - Expected volatility 95.1 % 60.0 % 48.3 % |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Information [Abstract] | |
Schedule of Segment Information | The table below provides a summary of the Company’s operating segment results for the years ended December 31, 2023, 2022 and 2021: For the Years Ended December 31, 2023 2022 2021 Net revenues: Cheers App Internet Business $ 141,005 $ 144,045 $ 135,263 Traditional Media Business 11,322 13,034 17,749 Total consolidated net revenues $ 152,327 $ 157,079 $ 153,012 Operating income: Cheers APP Internet Business $ 27,108 $ 24,510 $ 32,081 Traditional Media Business 2,177 2,218 4,210 Total segment operating income 29,285 26,728 36,291 Unallocated item (1) - (2 ) (4 ) Total consolidated operating income $ 29,285 $ 26,726 $ 36,287 * The unallocated item for the years ended December 31, 2023, 2022 and 2021 presents the share-based compensation for employees, which is not allocated to segments. |
Organization and Principal Ac_3
Organization and Principal Activities (Details) - USD ($) | 12 Months Ended | ||||
Nov. 24, 2023 | Dec. 31, 2023 | Sep. 05, 2023 | Dec. 31, 2022 | ||
Organization and Principal Activities (Details) [Line Items] | |||||
Price per share | $ 0.0001 | $ 24.8 | |||
Authorized share capital (in Dollars) | $ 20,200 | ||||
Ordinary shares (in Shares) | 20,000,000 | ||||
Common shares of a par value | [1] | $ 0.001 | $ 0.001 | ||
Preferred shares (in Shares) | 2,000,000 | ||||
Description of option agreement term | The term of each of these exclusive option agreements is 10 years and will be extended automatically for successive 5-year terms except where WFOE provides prior written notice otherwise. | ||||
Description of Master Exclusive Service Agreement | The term of each of these exclusive service agreements are perpetual unless terminated by WFOE upon thirty (30) advance notice, or upon the transfer of all shares of the respective VIEs to WFOE (or its designee) 10 years under the Option Agreement. | ||||
Ordinary Shares [Member] | |||||
Organization and Principal Activities (Details) [Line Items] | |||||
Common shares of a par value | $ 0.001 | $ 0.001 | |||
Share Consolidation [Member] | |||||
Organization and Principal Activities (Details) [Line Items] | |||||
Preferred shares of a par value | $ 0.0001 | ||||
Share Consolidation [Member] | |||||
Organization and Principal Activities (Details) [Line Items] | |||||
Price per share | $ 0.001 | ||||
[1] Retroactively restated to give effect to a share consolidation at a ratio of one-for-tenth ordinary shares effective on November 24, 2023 (Note 1). |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of VIEs and the VIE’s Subsidiaries | 12 Months Ended |
Dec. 31, 2023 | |
Glory Star New Media Group HK Limited (“Glory Star HK”) [Member] | |
Subsidiaries: | |
Date of incorporation | Dec. 18, 2018 |
Place of incorporation | Hong Kong |
Percentage of legal/beneficial ownership by the Company | 100% |
Principal activities | Holding |
Glory Star New Media (Beijing) Technology Co., Ltd. (“WFOE”) [Member] | |
Subsidiaries: | |
Date of incorporation | Mar. 13, 2019 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100% |
Principal activities | Holding |
Xing Cui Can International Media (Beijing) Co., Ltd. (“Xing Cui Can”) [Member] | |
Subsidiaries: | |
Date of incorporation | Sep. 07, 2016 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100% |
Principal activities | Holding |
Horgos Glory Star Media Co., Ltd. (“Horgos”) [Member] | |
Subsidiaries: | |
Date of incorporation | Nov. 01, 2016 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100% |
Principal activities | Holding |
Glory Star Media (Beijing) Co., Ltd. (“Glory Star Beijing”) [Member] | |
Subsidiaries: | |
Date of incorporation | Dec. 09, 2016 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100% |
Principal activities | Provision of provides advertisement and content production services |
Leshare Star (Beijing) Technology Co., Ltd. (“Beijing Leshare”) [Member] | |
Subsidiaries: | |
Date of incorporation | Mar. 28, 2016 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100% |
Principal activities | Provision of provides advertisement and content production services |
Horgos Glary Prosperity Culture Co., Ltd. (“Glary Prosperity”) [Member] | |
Subsidiaries: | |
Date of incorporation | Dec. 14, 2017 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 51% |
Principal activities | Provision of provides advertisement and content production services |
Horgos Glary Prosperity Culture Co., Ltd, Beijing Branch (“Glary Prosperity BJ”) [Member] | |
Subsidiaries: | |
Date of incorporation | May 08, 2018 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 51% |
Principal activities | Provision of provides advertisement and content production services |
Glory Star (Horgos) Media Technology Co., Ltd (“Horgos Technology”) [Member] | |
Subsidiaries: | |
Date of incorporation | Sep. 09, 2020 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100% |
Principal activities | Provision of provides advertisement and content production services |
Organization and Principal Ac_5
Organization and Principal Activities (Details) - Schedule of Financial Statements of VIEs - VIEs [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Organization and Principal Activities (Details) - Schedule of financial statements of VIEs [Line Items] | ||
Total assets | $ 324,019 | $ 188,597 |
Total liabilities | $ 146,188 | $ 38,872 |
Organization and Principal Ac_6
Organization and Principal Activities (Details) - Schedule of Operation and Cash Flow VIEs and Subsidiaries of VIEs - Variable Interest Entity, Primary Beneficiary [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of operation and cash flow VIEs and subsidiaries of VIEs [Abstract] | |||
Total revenues | $ 152,327 | $ 157,225 | $ 153,012 |
Net income | 31,126 | 27,562 | 35,907 |
Net cash provided by operating activities | 42,044 | 11,650 | 57,397 |
Net cash used in investing activities | (3) | (7,989) | (1,051) |
Net cash provided by (used in) financing activities | $ 83,062 | $ 508 | $ (2,004) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) ¥ / shares in Units, $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2023 USD ($) ¥ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2022 USD ($) ¥ / shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2021 ¥ / shares | Dec. 31, 2023 CNY (¥) | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Cash balances (in Dollars) | $ 298 | ||||||
Amortized cost of sales (in Dollars) | 25,514 | 128 | $ 7,375 | ||||
Unamortized production cost (in Dollars) | 112 | 770 | |||||
Advances from customers (in Dollars) | $ 130 | $ 130 | $ 147 | $ 147 | |||
Description of term | Payment terms and conditions vary by contract types, and terms typically include a requirement for payment within a period from 6 to 9 months | ||||||
Bank deposit amount | $ 70,400 | $ 70,400 | ¥ 500,000 | ||||
Exception of equity rates | (per share) | $ 1 | $ 7.0999 | $ 1 | $ 6.9646 | |||
Average translation rates | (per share) | $ 1 | $ 7.0809 | $ 1 | $ 6.7261 | $ 1 | ¥ 6.4531 | |
Credit Concentration Risk [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Deposit at financial institutions (in Dollars) | $ 194,081 | $ 70,199 | |||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | CustomerOneMember | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Concentration risk percentage | 25% | 21% | 20% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | CustomerTwoMember | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Concentration risk percentage | 17% | 18% | 17% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | CustomerThreeMember | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Concentration risk percentage | 13% | 18% | 16% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | CustomerFourMember | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Concentration risk percentage | 12% | 15% | 12% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | CustomerOneMember | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Concentration risk percentage | 23% | 27% | |||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | CustomerTwoMember | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Concentration risk percentage | 16% | 19% | |||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | CustomerThreeMember | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Concentration risk percentage | 15% | 11% | |||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | CustomerFourMember | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Concentration risk percentage | 14% | 10% | |||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Five [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Concentration risk percentage | 12% | ||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Six [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Concentration risk percentage | 11% | ||||||
Accounts Payable [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Number of vendors | 4 | 4 | |||||
Accounts Payable [Member] | Customer Concentration Risk [Member] | CustomerOneMember | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Concentration risk percentage | 50% | 30% | |||||
Accounts Payable [Member] | Customer Concentration Risk [Member] | CustomerTwoMember | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Concentration risk percentage | 21% | 22% | |||||
Accounts Payable [Member] | Customer Concentration Risk [Member] | CustomerThreeMember | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Concentration risk percentage | 12% | 17% | |||||
Accounts Payable [Member] | Customer Concentration Risk [Member] | CustomerFourMember | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Concentration risk percentage | 11% | 10% | |||||
PRC [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Income tax, description | The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB 100,000 (approximately $14,100). In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. As of December 31, 2023, the tax years ended December 31, 2019 through December 31, 2023 for the Company’s PRC subsidiaries remain open for statutory examination by PRC tax authorities. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Electric equipment [Member] | |
Schedule of Property, Plant and Equipment, Net [Line Items] | |
Estimated Useful Life | 3 years |
Office equipment and furniture [Member] | Minimum [Member] | |
Schedule of Property, Plant and Equipment, Net [Line Items] | |
Estimated Useful Life | 3 years |
Office equipment and furniture [Member] | Maximum [Member] | |
Schedule of Property, Plant and Equipment, Net [Line Items] | |
Estimated Useful Life | 5 years |
Leasehold Improvements [Member] | |
Schedule of Property, Plant and Equipment, Net [Line Items] | |
Leasehold improvement, description | Shorter of useful life or lease term |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Disaggregation of Our Revenue - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Category of Revenue: | |||
Category of Revenue | $ 152,327 | $ 157,079 | $ 153,012 |
Services transferred over time [Member] | |||
Category of Revenue: | |||
Category of Revenue | 152,081 | 156,303 | 145,722 |
Services transferred at a point in time [Member] | |||
Category of Revenue: | |||
Category of Revenue | 232 | 306 | 6,807 |
Goods transferred at a point in time [Member] | |||
Category of Revenue: | |||
Category of Revenue | 14 | 470 | 483 |
Advertising revenue [Member] | |||
Category of Revenue: | |||
Category of Revenue | 149,046 | 152,086 | 132,918 |
Customized content production revenue [Member] | |||
Category of Revenue: | |||
Category of Revenue | 5,326 | ||
Copyrights revenue [Member] | |||
Category of Revenue: | |||
Category of Revenue | 3,035 | 4,217 | 7,478 |
CHEERS e-Mall marketplace service revenue [Member] | |||
Category of Revenue: | |||
Category of Revenue | 232 | 306 | 6,807 |
Other revenue [Member] | |||
Category of Revenue: | |||
Category of Revenue | $ 14 | $ 470 | $ 483 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of Accounts Receivable - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Accounts Receivable [Abstract] | ||
Accounts receivable | $ 81,990 | $ 99,040 |
Less: allowance for doubtful accounts | (820) | (1,006) |
Accounts receivables, net | $ 81,170 | $ 98,034 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Allowance for Doubtful Accounts [Abstract] | |||
Opening balance | $ 1,006 | $ 635 | $ 886 |
Provision (reversal of provision) for doubtful accounts | (167) | 440 | (268) |
Foreign exchange adjustment | (19) | (69) | 17 |
Ending balance | $ 820 | $ 1,006 | $ 635 |
Prepayment and Other Current _3
Prepayment and Other Current and Non-Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Prepayment and Other Current and Non-Current Assets [Abstract] | |||
Allowance for doubtful accounts | $ 2,263 |
Prepayment and Other Current _4
Prepayment and Other Current and Non-Current Assets (Details) - Schedule of Prepayment and Other Current and Non-Current Assets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of prepayment and other current and non-current assets [Abstract] | ||
Advances to vendors | $ 33,295 | $ 15,272 |
Prepayment for outsourced production cost | 36 | |
Staff advance | 98 | 14 |
Others | 43 | 8 |
Subtotal | 33,736 | 15,330 |
Less: allowance for doubtful accounts | (2,257) | |
Prepayment and other assets, net | 31,179 | 15,330 |
Including: | ||
Prepayment and other current assets, net | 31,179 | 15,329 |
Prepayment and other non-current assets, net | $ 1 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment Net [Abstract] | |||
Depreciation expense | $ 74 | $ 90 | $ 82 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Details) - Schedule of Property, Plant and Equipment - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,072 | $ 1,116 |
Less: accumulated depreciation | (987) | (956) |
Property and equipment, net | 85 | 160 |
Electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 820 | 864 |
Office equipment and furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 70 | 66 |
Leasehold improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 182 | $ 186 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible Assets, Net [Abstract] | |||
Intangible asset, useful life | 7 years | ||
Amortization expense | $ 3,311 | $ 2,794 | $ 2,008 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of Intangible Assets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Intangible Assets [Abstract] | ||
Intangible assets | $ 30,187 | $ 27,055 |
Less: accumulated amortization | (9,932) | (6,758) |
Total Intangible assets | $ 20,255 | $ 20,297 |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of Amortization Amount of Intangible Asset - Other Intangible Assets [Member] $ in Thousands | Dec. 31, 2023 USD ($) |
Intangible Assets, Net (Details) - Schedule of Amortization Amount of Intangible Asset [Line Items] | |
2024 | $ 3,302 |
2025 | 3,302 |
2026 | 3,302 |
2027 | 3,302 |
Thereafter | 7,047 |
Total Intangible assets | $ 20,255 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Payables (Details) - Schedule of Accrued Liabilities and Other Payables - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of accrued liabilities and other payables [Abstract] | ||
Payroll payables | $ 1,233 | $ 1,444 |
Other payables | 2,531 | 720 |
Payable to merchants of Cheers e-Mall | 1 | |
Co-invest online series production fund | 467 | |
Total | $ 3,764 | $ 2,632 |
Other Taxes Payable (Details) -
Other Taxes Payable (Details) - Schedule of Other Taxes Payable - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Other Taxes Payable [Abstract] | ||
VAT payable | $ 22,916 | $ 15,266 |
Income tax payable | 2,455 | 2,505 |
Business tax payable | 2,791 | 1,319 |
Others | 16 | |
Total | $ 28,178 | $ 19,090 |
Bank Loans, Current and Non C_3
Bank Loans, Current and Non Current (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Bank Loans, Current and Non Current (Details) [Line Items] | |||
Loan from the banks | $ 4,660 | $ 6,096 | |
Repaid an aggregate of banks | $ 4,802 | $ 6,244 | $ 6,818 |
Short-term bank loans [Member] | Minimum [Member] | |||
Bank Loans, Current and Non Current (Details) [Line Items] | |||
Loan bore interest rates, percentage | 4.50% | 3.65% | 3.80% |
Short-term bank loans [Member] | Maximum [Member] | |||
Bank Loans, Current and Non Current (Details) [Line Items] | |||
Loan bore interest rates, percentage | 6% | 6% | 6.09% |
Long-Term Bank Loans [Member] | |||
Bank Loans, Current and Non Current (Details) [Line Items] | |||
Loan from the banks | $ 1,412 | ||
Loan bore interest rates, percentage | 3.95% | ||
Short-term bank loans [Member] | |||
Bank Loans, Current and Non Current (Details) [Line Items] | |||
Loan from the banks | $ 5,114 |
Bank Loans, Current and Non C_4
Bank Loans, Current and Non Current (Details) - Schedule of Bank Loans Represent the Amounts Due to Various Banks - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Bank Loans Represent the Amounts Due to Various Banks [Abstract] | ||
Short-term bank loans | $ 4,216 | $ 4,421 |
Long-term bank loans: | ||
Loan from China Construction Bank | 1,408 | |
Total long term bank loan | 1,408 | |
Short-term bank loans [Member] | Loan from Huaxia Bank [Member] | ||
Schedule of Bank Loans Represent the Amounts Due to Various Banks [Abstract] | ||
Short-term bank loans | 707 | |
Short-term bank loans [Member] | Loan from China Merchants Bank [Member] | ||
Schedule of Bank Loans Represent the Amounts Due to Various Banks [Abstract] | ||
Short-term bank loans | 2,103 | 2,144 |
Short-term bank loans [Member] | Loan from Xiamen International Bank [Member] | ||
Schedule of Bank Loans Represent the Amounts Due to Various Banks [Abstract] | ||
Short-term bank loans | 2,113 | 431 |
Short-term bank loans [Member] | Loan from Bank of Beijing [Member] | ||
Schedule of Bank Loans Represent the Amounts Due to Various Banks [Abstract] | ||
Short-term bank loans | $ 1,139 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases (Details) [Line Items] | |||
Operating lease expenses | $ 363 | $ 454 | $ 535 |
Minimum [Member] | |||
Leases (Details) [Line Items] | |||
Operating leases terms | 1 year | ||
Maximum [Member] | |||
Leases (Details) [Line Items] | |||
Operating leases terms | 5 years |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Supplemental Balance Sheet Information Related to Operating Lease - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Supplemental Balance Sheet Information Related to Operating Lease [Abstract] | ||
Right-of-use assets | $ 377 | $ 750 |
Lease liabilities current | 330 | 208 |
Lease liabilities non-current | 471 | |
Total operating lease liabilities | $ 330 | $ 679 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of Remaining Lease Term and Discount Rate | Dec. 31, 2023 |
Remaining lease term and discount rate: | |
Weighted average remaining lease term (years) | 1 year 29 days |
Weighted average discount rate | 5.55% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||||
Feb. 14, 2021 | Oct. 31, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | Feb. 14, 2020 | Dec. 31, 2019 | Sep. 06, 2019 | |
Related Party Transactions (Details) [Line Items] | |||||||
Converted into loans | $ 1,408 | ||||||
Warrant per share (in Dollars per share) | $ 0.5 | ||||||
GS Holdings [Member] | |||||||
Related Party Transactions (Details) [Line Items] | |||||||
Principal amount | $ 1,100 | ||||||
Converted into loans | $ 350 | ||||||
Description of sponsor note | Up to $1,000 of the loans under the Sponsor Note could be converted into warrants, each warrant entitling the holders to receive one half of one ordinary share, at $0.50 per warrant. | ||||||
Received additional amount | $ 750 | ||||||
Aggregate amount | $ 1,100 | ||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | $ 1,400 | ||||||
Conversion price (in Dollars per share) | $ 5 | $ 5 | |||||
Long-Term Debt, Maturity Date | Feb. 14, 2021 | ||||||
Conversion share (in Shares) | 280,000 |
Income Taxes (Details)
Income Taxes (Details) $ / shares in Units, $ in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Mar. 21, 2018 HKD ($) | Dec. 31, 2025 | Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares | |
Income Taxes [Line Items] | |||||
Favorable tax rate amounted (in Dollars) | $ 21,841 | $ 6,894 | $ 7,999 | ||
Effect of favorable tax rate (in Dollars per share) | $ / shares | $ 2.5 | $ 1 | $ 1.2 | ||
Withholding income tax rate | 10% | ||||
Subject to withholding tax rate | 5% | ||||
Minimum [Member] | |||||
Income Taxes [Line Items] | |||||
Profit tax (in Dollars) | $ 2 | ||||
Profit tax rate | 8.25% | ||||
Maximum [Member] | |||||
Income Taxes [Line Items] | |||||
Profit tax rate | 16.50% | ||||
Forecast [Member] | |||||
Income Taxes [Line Items] | |||||
Preferential income tax rate | 15% | ||||
Beijing Leshare [Member] | |||||
Income Taxes [Line Items] | |||||
Preferential income tax rate | 15% | ||||
PRC [Member] | |||||
Income Taxes [Line Items] | |||||
Profits tax rates, description | The law applies a uniform 25% enterprise income tax rate to both foreign invested enterprises and domestic enterprises. Beijing Leshare was recognized as a high-tech enterprise and received a preferential income tax rate of 15%. Horgos, Horgos Glory Prosperity and Horgos Glary Wisdom were eligible to enjoy a preferential income tax rate of 15% that are expected to last from 2021 to 2025. Horgos Technology is eligible to be exempted from income tax from 2020 to 2024, and expected to enjoy a preferential income tax rate of 15% from 2025 to 2029, as they are all incorporated in the Horgos Economic District, Xinjiang province. |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Effective Income Tax Rate - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Schedule of Effective Income Tax Rate [Abstract] | ||||
Net income before provision for income taxes | $ 30,589 | $ 26,853 | $ 36,328 | |
PRC statutory tax rate | 25% | 25% | 25% | |
Income tax at statutory tax rate | $ 7,647 | $ 6,713 | $ 9,082 | |
Expenses not deductible for tax purpose | 385 | 11 | 96 | |
Changes in valuation allowance | 11,953 | 567 | ||
Effect of warrant liability revaluation | (22) | 16 | (203) | |
Effect of preferential tax rates granted to the PRC entities | [1] | (19,902) | (6,894) | (7,999) |
Income tax expense | $ 61 | $ 413 | $ 976 | |
Effective income tax rate | 0.20% | 1.54% | 2.69% | |
[1] The Company’s subsidiary Horgos, Horgos Glory Prosperity, Horgos Glary Wisdom were eligible to enjoy a preferential income tax rate of 15% for five years ended December 31, 2025. Horgos Technology is eligible to be exempted from income tax from 2020 to 2024. Beijing Leshare was recognized as a high-tech enterprise and received a preferential income tax rate of 15%. For the years ended December 31, 2023, 2022 and 2021 , the tax saving as the result of the favorable tax rate amounted to $21,841, $6,894 and $7,999, respectively, and per share effect of the favorable tax rate were $2.5, $1.0 and $1.2 (after giving effect to share consolidation effected in November 2023. See Note 14). |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Deferred Tax Asset - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Deferred Tax Asset [Abstract] | ||
Allowance for doubtful accounts | $ 41 | $ 103 |
Total deferred tax assets, net | $ 41 | $ 103 |
Share-Based Compensation to E_3
Share-Based Compensation to Employees (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 14, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation to Employees (Details) [Line Items] | ||||
Share-based compensation expenses | $ 2 | $ 4 | ||
Mr. Ke Chen [Member] | ||||
Share-Based Compensation to Employees (Details) [Line Items] | ||||
Granted shares pursuant to the award agreement (in Shares) | 200 | |||
Mr. Zhihong Tan [Member] | ||||
Share-Based Compensation to Employees (Details) [Line Items] | ||||
Granted shares pursuant to the award agreement (in Shares) | 200 |
Share-Based Compensation to E_4
Share-Based Compensation to Employees (Details) - Schedule of Restricted Ordinary Shares Activities - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Restricted Ordinary Shares Activities [Abstract] | ||
Number of shares | 200 | |
Weighted average grant date fair value | $ 30.1 | |
Number of shares Vested | 200 | 200 |
Weighted average grant date fair value Vested | $ 9.7 | $ 30.1 |
Number of shares Forfeited or canceled | ||
Weighted average grant date fair value Forfeited or canceled | ||
Number of shares | ||
Weighted average grant date fair value | ||
Number of shares Granted | 200 | |
Weighted average grant date fair value Granted | $ 9.7 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||
Nov. 24, 2023 | Sep. 05, 2023 | May 09, 2023 | Apr. 07, 2022 | Aug. 30, 2021 | Aug. 26, 2021 | Mar. 25, 2021 | Feb. 28, 2021 | Apr. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 | ||
Equity (Details) [Line Items] | |||||||||||||
Preferred shares outstanding | |||||||||||||
Ordinary shares authorized | [1] | 200,000,000 | 200,000,000 | ||||||||||
Ordinary par value (in Dollars per share) | [1] | $ 0.001 | $ 0.001 | ||||||||||
Ordinary shares divided | 20,000,000 | ||||||||||||
Common stock, shares issued | [1] | 10,070,012 | 6,812,440 | ||||||||||
Common stock, shares outstanding | [1] | 10,070,012 | 6,812,440 | ||||||||||
Price per share (in Dollars per share) | $ 15.5 | ||||||||||||
Underwriting agreement, description | On February 22, 2021, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Univest Securities, LLC (“Univest”), as the representative of the several underwriters named therein (collectively, the “Underwriters”), pursuant to which the Company agreed to issue and sell (i) 381,098 ordinary shares of the Company (“Offered Shares”) (after giving effect to share consolidation effected in November 2023), par value of $0.001 per share (the “Ordinary Shares”) and (ii) warrants (the “Warrants”) to purchase an aggregate of 381,098 Ordinary Shares (the “Warrant Shares”) (after giving effect to share consolidation effected in November 2023) in an underwritten public offering (the “Offering”). In addition, the Company has granted the Underwriters a 45-day option (the “Over-Allotment Option”) to purchase up to an additional 57,165 Ordinary Shares (the “Option Shares”) (after giving effect to share consolidation effected in November 2023) and Warrants to purchase up to 57,165 Ordinary Shares (after giving effect to share consolidation effected in November 2023) at the public offering price, less underwriting discounts and commissions. The Offered Shares and Warrants are delivered on February 24, 2021, at a public offering price of $32.8 per share (after giving effect to share consolidation effected in November 2023) and associated warrant to purchase one ordinary share, as set forth in the Underwriting Agreement, subject to the satisfaction of certain closing conditions. | ||||||||||||
Additional ordinary shares | 57,143 | ||||||||||||
Warrants to purchase | 57,143 | ||||||||||||
Issuance of additional shares | 500,000 | ||||||||||||
Sale of ordinary shares | 285,714 | ||||||||||||
Total gross proceeds (in Dollars) | $ 10,000,000 | ||||||||||||
Exercise price per share (in Dollars per share) | $ 44 | ||||||||||||
Fixed combined purchase price (in Dollars per share) | $ 35 | ||||||||||||
Ordinary shares vested | 200 | ||||||||||||
Gross proceeds (in Dollars) | $ 20,000,000 | $ 60,000,000 | |||||||||||
Price per share (in Dollars per share) | $ 0.0001 | $ 24.8 | |||||||||||
Issued additional ordinary shares | 31,766 | ||||||||||||
Public Warrants Years | 5 years | ||||||||||||
Public warrants, description | The Company may redeem the Public Warrants: ●in whole and not in part; ●at a price of $0.01 per warrant; ●at any time while the Public Warrants are exercisable; ●upon no less than 30 days’ prior written notice of redemption to each Public Warrant holder; ●if, and only if, the reported last sale price of the Company’s ordinary shares equals or exceeds $18.00 per share, for any 20 trading days within a 30 trading day period ending on the third business day prior to the notice of redemption to the warrant holders; and ●if, and only if, there is a current registration statement in effect with respect to the ordinary shares underlying such warrants at the time of redemption and for the entire 30-day trading period referred to above and continuing each day thereafter until the date of redemption. | ||||||||||||
Issued shares in connection exchange of public rights | 250,433 | ||||||||||||
Net profit , percentage | 10% | ||||||||||||
Statutory reserve capital percentage | 50% | ||||||||||||
Horgos Glary Wisdom [Member] | |||||||||||||
Equity (Details) [Line Items] | |||||||||||||
Non controlling interest rate | 49% | 49% | |||||||||||
Public Warrants [Member] | |||||||||||||
Equity (Details) [Line Items] | |||||||||||||
Public warrants outstanding | 2,500,000 | 2,500,000 | |||||||||||
Over-Allotment Option [Member] | |||||||||||||
Equity (Details) [Line Items] | |||||||||||||
Price per share (in Dollars per share) | $ 32.8 | ||||||||||||
Additional ordinary shares | 57,165 | ||||||||||||
Warrants to purchase | 57,165 | ||||||||||||
IPO [Member] | |||||||||||||
Equity (Details) [Line Items] | |||||||||||||
Warrant, description | Pursuant to the Initial Public Offering, TKK sold 2,500,000 Units (after giving effect to share consolidation effected in November 2023) at a purchase price of $100.00 per Unit (after giving effect to share consolidation effected in November 2023), inclusive of 300,000 Units (after giving effect to share consolidation effected in November 2023) sold to the underwriters on August 22, 2018 upon the underwriters’ election to partially exercise their over-allotment option. Each Unit consists of one ordinary share, one warrant (“Public Warrant”) and one right (“Public Right”). Each Public Warrant entitles the holder to purchase one-half of one ordinary share at an exercise price of $115.00 per whole share. Each Public Right entitles the holder to receive one-tenth of one ordinary share at the closing of a Business Combination. | ||||||||||||
Preferred Stock [Member] | |||||||||||||
Equity (Details) [Line Items] | |||||||||||||
Preferred stock, shares authorized | 2,000,000 | ||||||||||||
Preferred stock, par value (in Dollars per share) | $ 0.0001 | ||||||||||||
Preferred shares issued | |||||||||||||
Preferred shares outstanding | |||||||||||||
Ordinary Shares [Member] | |||||||||||||
Equity (Details) [Line Items] | |||||||||||||
Preferred stock, shares authorized | 2,000,000 | ||||||||||||
Preferred stock, par value (in Dollars per share) | $ 0.0001 | ||||||||||||
Ordinary shares authorized | 20,200 | 200,000,000 | |||||||||||
Ordinary par value (in Dollars per share) | $ 0.0001 | $ 0.001 | $ 0.001 | $ 0.0001 | |||||||||
Ordinary shares vote | one | ||||||||||||
Ordinary shares divided | 20,000,000 | ||||||||||||
Common stock, shares issued | 806,451 | 2,419,355 | 10,070,012 | 10,070,012 | 5,788,635 | ||||||||
Common stock, shares outstanding | 6,812,440 | 6,812,440 | 5,788,635 | ||||||||||
Price per share (in Dollars per share) | $ 50 | ||||||||||||
Ordinary Shares [Member] | Equity [Member] | |||||||||||||
Equity (Details) [Line Items] | |||||||||||||
Ordinary par value (in Dollars per share) | $ 0.001 | ||||||||||||
Ordinary Shares [Member] | |||||||||||||
Equity (Details) [Line Items] | |||||||||||||
Ordinary par value (in Dollars per share) | $ 0.001 | $ 0.001 | |||||||||||
TKK [Member] | Ordinary Shares [Member] | |||||||||||||
Equity (Details) [Line Items] | |||||||||||||
Ordinary shares issuable upon the conversion | 28,000 | ||||||||||||
[1] Retroactively restated to give effect to a share consolidation at a ratio of one-for-tenth ordinary shares effective on November 24, 2023 (Note 1). |
Private Placement Warrants (Det
Private Placement Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Aug. 22, 2018 | Dec. 31, 2023 | Dec. 31, 2022 | |
Private Placement Warrants (Details) [Line Items] | |||
Warrant per share (in Dollars per share) | $ 0.5 | ||
Private Placement Warrant [Member] | |||
Private Placement Warrants (Details) [Line Items] | |||
Warrants outstanding shares | 1,300,000 | 1,300,000 | |
Warrant [Member] | |||
Private Placement Warrants (Details) [Line Items] | |||
Description of private placement warrant | Each Private Placement Warrant is exercisable to purchase one-half of one ordinary share at an exercise price of $115.00 per whole share. | ||
Warrant [Member] | Private Placement Warrant [Member] | |||
Private Placement Warrants (Details) [Line Items] | |||
Additional sale of shares | 120,000 | 1,180,000 | |
Warrant per share (in Dollars per share) | $ 5 | $ 5 | |
Aggregate purchase price amount (in Dollars) | $ 5,900 | ||
Private Placement Warrant [Member] | |||
Private Placement Warrants (Details) [Line Items] | |||
Generating gross proceeds (in Dollars) | $ 600 |
Private Placement Warrants (D_2
Private Placement Warrants (Details) - Schedule of Change in Fair Value of Warrant Liability - Warrant Liability [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Estimated fair value at beginning | $ 86 | $ 24 | $ 833 |
Warrant liability assumed from the Business Combination | |||
Change in estimated fair value | (86) | 62 | (809) |
Estimated fair value at ending | $ 86 | $ 24 |
Private Placement Warrants (D_3
Private Placement Warrants (Details) - Schedule of Inputs and Significant Assumptions Including Volatility - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Inputs and Significant Assumptions Including Volatility [Abstract] | |||
Stock price (in Dollars per share) | $ 2.87 | $ 14.6 | $ 11.8 |
Exercise price (in Dollars per share) | $ 115 | $ 115 | $ 115 |
Risk-free interest rate | 4.23% | 4.39% | 0.99% |
Expected term (in years) | 1 year 1 month 13 days | 2 years 1 month 13 days | 3 years 1 month 13 days |
Expected dividend yield | |||
Expected volatility | 95.10% | 60% | 48.30% |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended |
Dec. 31, 2023 segments | |
Segment Information [Abstract] | |
Operating segments | 2 |
Segment Information (Details) -
Segment Information (Details) - Schedule of Segment Information - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Net revenues: | ||||
Net revenues | $ 152,327 | $ 157,079 | $ 153,012 | |
Operating income: | ||||
Operating income | 29,285 | 26,726 | 36,287 | |
Cheers App Internet Business [Member] | ||||
Net revenues: | ||||
Net revenues | 141,005 | 144,045 | 135,263 | |
Operating income: | ||||
Operating income | 27,108 | 24,510 | 32,081 | |
Traditional Media Business [Member] | ||||
Net revenues: | ||||
Net revenues | 11,322 | 13,034 | 17,749 | |
Operating income: | ||||
Operating income | 2,177 | 2,218 | 4,210 | |
Segment Operating Income [Member] | ||||
Operating income: | ||||
Operating income | 29,285 | 26,728 | 36,291 | |
Unallocated item [Member] | ||||
Operating income: | ||||
Operating income | [1] | $ (2) | $ (4) | |
[1] The unallocated item for the years ended December 31, 2023, 2022 and 2021 presents the share-based compensation for employees, which is not allocated to segments. |
Commitments (Details)
Commitments (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Commitments [Abstract] | |
Capital expenditures totaling | $ 7,056 |
Subsequent Events (Details)
Subsequent Events (Details) | Feb. 29, 2024 USD ($) |
Subsequent Event [Member] | |
Subsequent Events (Details) [Line Items] | |
Repaid bank borrowings | $ 2,103 |