View Filing Data

Due to investors related to terminated security purchase agreements

^[1]

421

559

477

938

Payable for purchasing of software technology *

^[1]

436

Taxes payable *

^[1]

3,199

3,168

Other payables *

^[1]

302

687

Total current liabilities

8,036

12,963

Long-term liabilities:

Long-term borrowing from a director

139

134

Warrant liabilities

801

Total Liabilities

8,976

13,097

Commitments and contingencies

Equity:

Common stock (US$0.001 par value; authorized 50,000,000 shares; issued and outstanding 16,132,543 shares and 13,982,542 shares at March 31, 2018 and December 31, 2017, respectively)

Additional paid-in capital

39,615

31,554

Statutory reserves

2,607

Accumulated deficit

(21,052)

(20,487)

Accumulated other comprehensive income

2,064

1,598

Total ChinaNet Online Holdings, Inc.’s stockholders’ equity

23,250

15,286

Noncontrolling interests

180

177

Total equity

23,430

15,463

Total Liabilities and Equity

$ 32,406

$ 28,560

[1]	All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company's general assets (Note 2).

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	16,132,543	13,982,542
Common stock, shares outstanding (in shares)	16,132,543	13,982,542

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues
Revenues	$ 8,260,000	$ 7,264,000
Cost of revenues	7,659,000	5,992,000
Gross profit	601,000	1,272,000
Operating expenses
Sales and marketing expenses	564,000	834,000
General and administrative expenses	1,389,000	1,092,000
Research and development expenses	193,000	395,000
Impairment on long-term investments	471,000
Total operating expenses	2,617,000	2,321,000
Loss from operations	(2,016,000)	(1,049,000)
Other income/(expenses)
Interest expense, net	(10,000)	(17,000)
Other expenses	(22,000)	(3,000)
Change in fair value of warrant liabilities	1,474,000
Total other income/(expense)	1,442,000	(20,000)
Loss before income tax benefit and noncontrolling interests	(574,000)	(1,069,000)
Income tax benefit	4,000
Net loss	(570,000)	(1,069,000)
Net loss/(income) attributable to noncontrolling interests	5,000	(18,000)
Net loss attributable to ChinaNet Online Holdings, Inc.	(565,000)	(1,087,000)
Net (loss)/income	(570,000)	(1,069,000)
Foreign currency translation gain	474,000	106,000
Comprehensive loss	(96,000)	(963,000)
Comprehensive (income)/loss attributable to noncontrolling interests	(3,000)	19,000
Comprehensive loss attributable to ChinaNet Online Holdings, Inc.	$ (99,000)	$ (944,000)
Loss per share
Basic and diluted (in dollars per share)	$ (0.04)	$ (0.09)
Weighted average number of common shares outstanding:
Basic and diluted (in shares)	15,484,082	11,982,504
Unrelated Parties [Member]
Revenues
Revenues	$ 8,260,000	$ 7,245,000
Related Parties [Member]
Revenues
Revenues		$ 19,000

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities
Net (loss)/income	$ (570,000)	$ (1,069,000)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	216,000	354,000
Share-based compensation expenses	75,000	211,000
Provision for/(reverse of) allowances for doubtful accounts	481,000	(29,000)
Impairment on long-term investments	471,000
Deferred taxes	(4,000)
Change in fair value of warrants	(1,474,000)
Changes in operating assets and liabilities
Accounts receivable	3,413,000	(903,000)
Other receivables	(47,000)	20,000
Prepayment and deposit to suppliers	(1,178,000)	(3,192,000)
Due from related parties	3,000	(870,000)
Accounts payable	(2,105,000)	295,000
Advances from customers	(1,668,000)	3,185,000
Accrued payroll and other accruals	147,000	90,000
Other payables	(553,000)	44,000
Taxes payable	(92,000)	37,000
Net cash used in operating activities	(3,179,000)	(2,007,000)
Cash flows from investing activities
Payment for purchase of office equipment	(1,000)
Short-term loan to an unrelated party	(2,000,000)
Repayment of short-term loan from an unrelated party	2,672,000
Prepayment for acquisition of noncontrolling interest	(1,179,000)
Prepayment for blockchain applications development	(1,200,000)
Payment for purchasing of software technology	(448,000)
Net cash used in investing activities	(2,156,000)
Cash flows from financing activities
Proceeds from issuance of common stock and warrant (net of cash issuance cost of US$809)	10,263,000
Repayment to investors related to terminated security purchase agreements	(493,000)
Net cash provided by financing activities	9,770,000
Effect of exchange rate fluctuation on cash and cash equivalents	116,000	19,000
Net increase/(decrease) in cash and cash equivalents	4,551,000	(1,988,000)
Cash and cash equivalents at beginning of the period	2,952,000	3,035,000
Cash and cash equivalents at end of the period	7,503,000	1,047,000
Supplemental disclosure of cash flow information
Income taxes paid
Interest expense paid	$ 127,000	$ 9,000

Condensed Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Issuance cost	$ 809

Note 1 - Organization and Nature of Operations

3 Months Ended

Mar. 31, 2018

Nature of Operations [Text Block]

1.	Organization and nature of operations

ChinaNet Online Holdings, Inc. (the “Company”) was incorporated in the State of Texas in

April 2006

and re-domiciled to become a Nevada corporation in

October 2006.

June 26, 2009,

the Company consummated a share exchange transaction with China Net Online Media Group Limited (the “Share Exchange”), a company organized under the laws of British Virgin Islands (“China Net BVI”). As a result of the Share Exchange, China Net BVI became a wholly owned subsidiary of the Company and the Company is now a holding company, which, through certain contractual arrangements with operating companies in the People’s Republic of China (the “PRC”), is engaged in providing advertising, precision marketing, online to offline (

O2O

) sales channel expansion and the related data services to small and medium enterprises (“SMEs”) and entrepreneurial management and networking services for entrepreneurs in the PRC. In

January 2018,

the Company announced its expansion into the blockchain industry and the related technology. The Company aims to develop credible, traceable and highly secured blockchain applications for the large demand from the SMEs and gradually shift from an information services provider to a transaction services provider for business opportunities in the near future.

As of

March 31, 2018,

the Company operated its business primarily in China through its PRC subsidiaries and operating entities, or Variable Interest Entities (“VIEs”) as discussed in the Company’s Annual Report on Form

-K for the fiscal year ended

December 31, 2017,

previously filed with the Securities and Exchange Commission (the

“2017

Form

-K”).

January 17, 2018,

the Company consummated a registered direct offering of

2,150,001

shares of the Company’s common stock to certain institutional investors at a purchase price of

$5.15

per share (“the Financing”). As part of the transaction, the Company also issued to the investors warrants for the purchase of up to

645,000

shares of the Company’s common stock at an exercise price of

$6.60

per share. The warrants have a term of

months from the date of issuance. The Company received gross proceeds of approximately

$11.1

million (See Note

Note 2 - Variable Interest Entities

3 Months Ended

Mar. 31, 2018

Variable Interest Entities Disclosure [Text Block]

2.	Variable interest entities

Summarized below is the information related to the VIEs’ assets and liabilities reported in the Company’s condensed consolidated balance sheets as of

March 31, 2018

and

December 31, 2017,

respectively:

	March 31, 2018		December 31, 2017
	US$(’000)		US$(’000)
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	2,008	$	2,904
Accounts receivable, net		3,567		7,215
Other receivables, net		56		2,629
Prepayment and deposit to suppliers		4,761		4,009
Due from related parties, net		-		14
Total current assets		10,392		16,771

Property and equipment, net		155		177
Intangible assets, net		2,076		2,112
Prepayment for acquisition of noncontrolling interest		1,193		-
Goodwill		5,483		5,277
Deferred tax assets, net		1,017		975
Total Assets	$	20,316	$	25,312

Liabilities
Current liabilities:
Short-term bank loan	$	795	$	765
Accounts payable		810		2,848
Advances from customers		2,010		3,559
Accrued payroll and other accruals		177		159
Due to Control Group		11		11
Payable for purchasing of software technology		-		436
Taxes payable		2,724		2,711
Other payables		139		155
Total current liabilities		6,666		10,644

Total Liabilities	$	6,666	$	10,644

All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do

not

represent additional claims on the Company’s general assets. See additional discussion related to restrictions on foreign currency exchange in the PRC in Note

and Note

23.

Summarized below is the information related to the financial performance of the VIEs reported in the Company’s condensed consolidated statements of operations and comprehensive loss for the

three

months ended

March 31, 2018

and

2017,

respectively:

	Three Months Ended March 31,
	2018			2017
	US$(’000)			US$(’000)
	(Unaudited)			(Unaudited)

Revenues	$	8,253		$	7,264
Cost of revenues		(7,659	)		(5,992	)
Total operating expenses		(1,262	)		(1,633	)
Net loss before allocation to noncontrolling interests		(678	)		(353	)

Note 3 - Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2018

Significant Accounting Policies [Text Block]

Summary of significant accounting policies

Basis of presentation

The unaudited condensed consolidated interim financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

The unaudited condensed consolidated interim financial information as of

March 31, 2018

and for the

three

months ended

March 31, 2018

and

2017

have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures, which are normally included in complete consolidated financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The unaudited condensed consolidated interim financial information should be read in conjunction with the financial statements and the notes thereto, included in the

2017

Form

-K.

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s condensed consolidated financial position as of

March 31, 2018,

its condensed consolidated results of operations for the

three

months ended

March 31, 2018

and

2017,

and its condensed consolidated cash flows for the

three

months ended

March 31, 2018

and

2017,

as applicable, have been made. The interim results of operations are

not

necessarily indicative of the operating results for the full fiscal year or any future periods.

Principles of consolidation

The condensed consolidated interim financial statements include the financial statements of all the subsidiaries and VIEs of the Company. All accounts and balances between the Company and its subsidiaries and VIEs have been eliminated upon consolidation.

Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of these condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company continually evaluates these estimates and assumptions based on the most recently available information, historical experience and various other assumptions that the Company believes to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates.

Foreign currency translation

The exchange rates used to translate amounts in RMB into US$ for the purposes of preparing the condensed consolidated financial statements are as follows:

	March 31, 2018		December 31, 2017

Balance sheet items, except for equity accounts		6.2881		6.5342

	Three Months Ended March 31,
	2018		2017

Items in the statements of operations and comprehensive loss, and statements of cash flows		6.3632		6.8861

representation is made that the RMB amounts could have been, or could be converted into US$ at the above rates.

Advertising costs

Advertising costs for the Company’s own brand building are

not

includable in cost of revenues, they are expensed when incurred and are included in “sales and marketing expenses” in the statements of operations and comprehensive loss. For the

three

months ended

March 31, 2018

and

2017,

advertising expenses for the Company’s own brand building were approximately

US$389,000

and

US$510,000,

respectively.

Research and development expenses

The Company accounts for the cost of developing and upgrading technologies and platforms and intellectual property that are used in its daily operations in research and development cost. Research and development costs are charged to expense when incurred. Expenses for research and development for the

three

months ended

March 31, 2018

and

2017

were approximately

US$193,000

and

US$395,000,

respectively.

Revenue recognition

January 1, 2018,

the Company adopted ASC Topic

606,

“Revenue from Contracts with Customers”, applying the modified retrospective method. The adoption didn’t result in a material adjustment to the accumulated deficit as of

January 1, 2018.

In accordance with ASC Topic

606,

revenues are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. In determining when and how much revenue is recognized from contracts with customers, the Company performs the following

five

-step analysis: (

) identify the contract(s) with a customer; (

) identify the performance obligations in the contract; (

) determine the transaction price; (

) allocate the transaction price to the performance obligations in the contract; (

) recognize revenue when (or as) the entity satisfies a performance obligation.

The Company’s contracts with customers do

not

include multiple performance obligations,

significant financing component, variable consideration, nor any clause concerning with returns, refunds or other similar obligations.

The Company does

not

believe that significant management judgements are involved in revenue recognition, but the amount and timing of the Company’s revenues could be different for any period if management made different judgments or utilized different estimates. Generally, the Company recognizes revenue under ASC Topic

606

for each type of its performance obligation either over time (generally, the transfer of a service) or at a point in time (generally, the transfer of a good (information)) as follows:

Online advertising placement service/TV advertising service

For online advertising placement service contracts and TV advertising service contracts that are established based on a fixed price scheme with the related advertisement placements obligation, the Company provides advertisement placements in specified locations on the Company’s advertising portals for agreed periods and/or place the advertisements onto the Company’s purchased advertisement time during specific TV programs for agreed periods. Revenue is recognized ratably over the period the advertising is provided and, as such, the Company considers the services to have been delivered (“over time”).

Sales of effective sales lead information

For advertising contracts related to purchase of effective sales lead information, revenue is recognized based on a fixed price per sales lead and the quantity of effective sales lead, when information is delivered and accepted by customers (“point in time”).

Search engine marketing and data service

Revenue from search engine marketing and data services is recognized on a monthly basis based on the direct cost consumed through search engines for providing such services with a premium (“over time”). The Company recognizes the revenue on a gross basis, because the Company determines that it is a principle in the transaction who control the goods or services before they are transferred to the customers.

All of the Company’s revenues are generated from the PRC. The following tables present the Company’s revenues disaggregated by products and services and timing of revenue recognition:

	Three Months Ended March 31,
	2018		2017
	US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)
Internet advertising and data service
--online advertising placement		1,597		1,902
--sales of effective sales lead information		122		390
Search engine marketing and data service		6,443		4,972
TV advertising service		91		-
Others		7		-
Total revenues		8,260		7,264

	Three Months Ended March 31,
	2018		2017
	US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)

Revenue recognized over time		8,138		6,874
Revenue recognized at a point in time		122		390
Total revenues		8,260		7,264

Contract costs

For the

three

months ended

March 31, 2018,

the Company did

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.

Contract balances

The Company evaluates overall economic conditions, its working capital status and customer specific credit and negotiates the payment terms of a contract with individual customer on a case by case basis in its normal course of business.

Advances received from customers related to unsatisfied performance obligations are recoded as contract liabilities (advance from customers), which will be realized as revenues upon the satisfaction of performance obligations through the transfer of related promised goods and services to customers.

For contracts without a full or any advance payments required, the Company bills the customers any unpaid contract price immediately upon satisfaction of the related performance obligations when revenue is recognized, and the Company normally receives payment from customers within

days after a bill is issued.

The Company does

not

have any contract assets (unbilled receivables) since revenue is recognized when control of the promised goods or services is transferred and the payment from customers is

not

contingent on a future event.

The Company’s contract liabilities consist of advance from customers related to unsatisfied performance obligations in relation to internet adverting service, search engine marketing service, as well as TV advertising service. The Company’s contract liabilities are reported in a net position on a customer-by-customer basis at the end of each reporting period. All contract liabilities are expected to be recognized as revenue within

one

year. The table below summarized the movement of the Company’s contract liabilities for the

three

months ended

March 31, 2018:

	Advance from customers
	US$(’000)

Balance as of January 1, 2018		3,559
Revenue recognized from beginning contract liability balance		(3,113	)
Advances received from customers related to unsatisfied performance obligations		1,564
Balance as of March 31, 2018 (Unaudited)		2,010

For the

three

months ended

March 31, 2018,

there is

revenue recognized from performance obligations that were satisfied in prior periods.

Transaction price allocated to remaining performance obligation

The Company has elected to apply the practical expedient in paragraph ASC Topic

606

and did

not

disclose the information related to transaction price allocated to the performance obligations that are unsatisfied or partially unsatisfied as of

March 31, 2018,

because all performance obligations of the Company’s contracts with customers have an original expected duration of

one

year or less.

Impact of recently issued accounting pronouncements

January 2017,

the FASB issued ASU

No.

2017

04,

“Intangibles-Goodwill and Others (Topic

350

)-Simplify the Test for Goodwill Impairment”. To simplify the subsequent measurement of goodwill, the amendments in this ASU eliminated Step

from the goodwill impairment test. In computing the implied fair value of goodwill under Step

an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should

not

exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The amendments in this ASU also eliminated the requirements for any reporting unit with a

zero

or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step

of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a

zero

or negative carrying amount of net assets. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. An entity should apply the amendments in this ASU on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. That disclosure should be provided in the

first

annual period and in the interim period within the

first

annual period when the entity initially adopts the amendments in this ASU. A public business entity that is a U.S. Securities and Exchange Commission (SEC) filer should adopt the amendments in this ASU for its annual or any interim goodwill impairment tests in fiscal years beginning after

December 15, 2019.

Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after

January 1, 2017.

The Company is currently evaluating the impact on its consolidated financial position and results of operations upon adopting these amendments.

July 2017,

the FASB issued ASU

No.

2017

11,

“Earnings Per Share (Topic

260

), Distinguishing Liabilities from Equity (Topic

480

), Derivatives and Hedging (Topic

815

)-I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception”. The amendments in part I of this ASU change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature

longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option)

longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic

260

to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic

470

20,

Debt—Debt with Conversion and Other Options), including related EPS guidance (in Topic

260

). The amendments in Part II of this ASU recharacterize the indefinite deferral of certain provisions of Topic

480

that now are presented as pending content in the Codification, to a scope exception. Those amendments do

not

have an accounting effect. For public business entities, the amendments in Part I of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2018.

For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after

December 15, 2019,

and interim periods within fiscal years beginning after

December 15, 2020.

Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part II of this ASU do

not

require any transition guidance because those amendments do

not

have an accounting effect. The Company has adopted the amendments in this ASU from

January 1, 2018,

when determining whether certain financial instruments issued by the Company after

January 1, 2018

should be classified as liabilities or equity instruments, a down round feature

longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The adoption of the amendments in this ASU did

not

have a material impact on the Company’s consolidated financial position and results of operations.

February 2018,

the FASB issued ASU

2018

02:

“Income Statement—Reporting Comprehensive Income (Topic

220

)-Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. The amendments in this ASU allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Act”). Consequently, the amendments eliminate the stranded tax effects resulting from the Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is

not

affected. The amendments in this ASU also require certain disclosures about stranded tax effects. The amendments in this ASU are effective for fiscal years beginning after

December 15, 2018,

and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact on its consolidated financial position and results of operations upon adopting these amendments.

March 2018,

the FASB issued ASU

2018

05:

“Income Taxes (Topic

740

)-Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin

No.

118”.

The amendments in this ASU add various SEC paragraphs pursuant to the issuance of SEC Staff Accounting Bulletin

No.

118,

which expresses the view of the staff regarding application of Topic

740,

Income Taxes, in the reporting period that includes

December 22, 2017 -

the date on which the Tax Cuts and Jobs Act was signed into law. The Company is currently evaluating the impact on its consolidated financial position and results of operations upon adopting these amendments.

Note 4 - Accounts Receivable, Net

3 Months Ended

Mar. 31, 2018

Accounts Receivable Disclosure [Text Block]

4.	Accounts receivable, net

	March 31, 2018			December 31, 2017
	US$(’000)			US$(’000)
	(Unaudited)

Accounts receivable		6,946			10,008
Allowance for doubtful accounts		(3,379	)		(2,793	)
Accounts receivable, net		3,567			7,215

All of the accounts receivable are non-interest bearing. Based on the assessment of the collectability of the accounts receivable as of

March 31, 2018

and

December 31, 2017,

the Company provided approximately

US$3,379,000

and

US$2,793,000

allowance for doubtful accounts, respectively, which were primarily related to the accounts receivable of the Company’s internet advertising and TV advertising business segment with an aging over

six

months. The Company evaluates its accounts receivable with an aging over

six

months and determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. For the

three

months ended

March 31, 2018,

approximately

US$0.47

million allowance for doubtful accounts was provided. For the

three

months ended

March 31, 2017,

allowance for doubtful accounts was provided or reversed.

Note 5 - Other Receivables, Net

3 Months Ended

Mar. 31, 2018

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

5.	Other receivables, net

Other receivables as of

March 31, 2018

primarily represented a

US$2.0

million short-term loan to an unrelated

third

party in

February 2018,

which was unsecured and non-interest bearing and has been fully collected by mid

May 2018.

Other receivables as of

December 31, 2017

primarily represented the remaining balance of a short-term working capital loan to another unrelated

third

party, which was fully repaid during the

three

months ended

March 31, 2018.

As of

March 31, 2018

and

December 31, 2017,

other receivables also included approximately

RMB5.8

million (

US$0.9

million) overdue contractual deposits, which were related to advertising resources purchase contracts that had been completed with

further cooperation. Based on the assessment of the collectability of these overdue deposits as of

March 31, 2018

and

December 31, 2017,

the Company had provided full allowance against these doubtful accounts.

For the

three

months ended

March 31, 2018,

allowance for doubtful accounts was provided or reversed against the Company’s other receivables. For the

three

months ended

March 31, 2017,

approximately

US$0.03

million allowance for doubtful accounts related to other receivables was reversed due to subsequent collection.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Note 6 - Prepayments and Deposit to Suppliers

3 Months Ended

Mar. 31, 2018

Prepayments and Deposits to Suppliers Disclosure [Text Block]

6.	Prepayments and deposit to suppliers

	March 31, 2018		December 31, 2017
	US$(’000)		US$(’000)
	(Unaudited)

Deposits to TV and internet resources providers		2,107		1,870
Prepayments to TV and internet resources providers		3,141		1,331
Deposits to other service providers		-		765
Other deposits and prepayments		176		107
		5,424		4,073

The Company purchases internet resources from large internet search engines and technical services from suppliers to attract more internet traffic to its advertising portals and provide value-added services to its clients. The Company also purchases TV advertising time slots for the broadcasting of infomercials to promote brands, business information, products and services of its clients.

Deposits to TV and internet resources providers are paid as contractual deposits to the Company’s resources and services suppliers. As of

March 31, 2018

and

December 31, 2017,

deposit to TV and internet resources providers primarily consisted of the contractual deposits paid for purchasing internet resources from

two

of the Company’s largest internet resources suppliers. The contractual deposits will be refunded to the Company upon expiration of the contracts.

According to the contracts signed between the Company and its suppliers, the Company is normally required to pay the contract amounts in advance. These prepayments will be transferred to cost of revenues when the related services are provided. As of

March 31, 2018

and

December 31, 2017,

prepayments to TV and internet resources providers primarily consisted of advance payments paid for purchasing internet resources from

two

of the Company’s largest internet resources suppliers.

As of

December 31, 2017,

deposits to other service provider represented the deposit for an advisory contract related to finding new investors for the Company, which expired on

December 31, 2017.

The service provider refunded the deposit to the Company in

March 2018.

Other deposits and prepayments as of

March 31, 2018

and

December 31, 2017

represented deposits and prepayments to the Company’s other service providers, which including but

not

limited to deposits for office lease contracts, prepayment for legal services, etc.

Note 7 - Due From Related Parties, Net

3 Months Ended

Mar. 31, 2018

Due from related parties, net

	March 31, 2018			December 31, 2017
	US$(’000)			US$(’000)
	(Unaudited)

Beijing Saimeiwei Food Equipment Technology Co., Ltd.		17			33
Chuangshi Meiwei (Beijing) International Investment Management Co., Ltd.		162			156
Guohua Shiji (Beijing) Communication Co., Ltd.		219			184
ChinaNet Chuang Tou (Shenzhen) Co., Ltd.		-			14
		398			387
Allowance for loan losses		(398	)		(373	)
Due from related parties, net		-			14

Related parties of the Company represented the Company’s direct or indirect unconsolidated investee companies. As of

March 31, 2018

and

December 31, 2017,

due from related parties primarily included a total amount of short-term working capital loans of

RMB2.38

million (approximately

US$0.38

million) and

RMB2.2

million (approximately

US$0.34

million) to Chuangshi Meiwei and Guohua Shiji, respectively. The working capital loans are advanced to supplement the short-term operational needs of these related parties to assist certain of their business developing projects. The working capital loans are non-interest bearing and needs to be repaid to the Company within

one

year.

Based on the assessment of the collectability of these related party balances as of

March 31, 2018

and

December 31, 2017,

the Company provided full allowance for doubtful accounts against its service fee receivables due from Saimeiwei, Chuangshi Meiwei and Guohua Shiji and its short-term working capital loans advanced to Guohua Shiji and Chuangshi Meiwei, as a result of the unfavorable facts related to the business status of these related parties, as discussed in Note

to the audited financial statements in the Company’s

2017

Form

-K.

For the

three

months ended

March 31, 2018,

the Company provided an additional of approximately

US$0.01

million allowance for doubtful accounts against the Company’s balances due from related parties. For the

three

months ended

March 31, 2017,

allowance for doubtful accounts was provided or reversed against the Company’s balances due from related parties.

Note 8 - Long-term Investments

3 Months Ended

Mar. 31, 2018

Equity Method Investments and Joint Ventures Disclosure [Text Block]

Long-term investments

	March 31, 2018			December 31, 2017
	US$(’000)			US$(’000)
	(Unaudited)
Equity method investments:
Investment in equity method investees		782			753
Advance to equity method investees		83			80
Impairment on equity method investments		(865	)		(833	)
Total equity method investments		-			-
Cost method investments:
Investment in cost method investees		1,168			1,125
Impairment on cost method investments		(691	)		(207	)
Total cost method investments		477			918

Total long-term investments		477			918

Equity method investments

As of

March 31, 2018

and

December 31, 2017,

the Company beneficially owned

23.18%

and

25.5%

equity interest in Shenzhen Mingshan and Zhao Shang Ke Hubei, respectively. The Company accounts for its investments in these companies under equity method of accounting. Based on the facts of the significant decline in level of business activities from

2015,

insufficient amount of working capital and the lack of commitment from majority shareholders, these

two

investment affiliates had become dormant and the possibility of the business recovery is remote. As a result, the Company reduced the carrying value of these investments to

zero

as of

December 31, 2015.

Cost method investments

As of

March 31, 2018

and

December 31, 2017,

the Company beneficially owned a

19%

equity interest in both ChinaNet Chuang Tou and Guohua Shiji, a

10%

equity interest in both Chuangshi Meiwei and Beijing Saturday, and a

15%

equity interest in ChinaNet Korea. The Company accounts for its investments in these companies under cost method of accounting. The Company adopted ASU

2016

and chose to measure its cost method investments which do

not

have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the Company.

As of

December 31, 2017,

the Company had reduced the carrying value of its investments in ChinaNet Korea, Chuangshi Meiwei, Guohua Shiji and Beijing Saturday to zero, due to the business activities of these companies had become dormant. The following table summarizes the movement of the Company’s investment in ChinaNet Chuang Tou for the

three

months ended

March 31, 2018:

	ChinaNet Chuang Tou
	US$(’000)

Balance as of January 1, 2018		918
Impairment on cost method investments		(477	)
Exchange translation adjustment		36
Balance as of March 31, 2018 (Unaudited)		477

As of the date hereof, the shareholders of ChinaNet Chuang Tou have decided to terminate the operation of this investee company within

2018.

As a result, the Company recognized approximately

US$0.47

million of other-than temporary impairment loss for the

three

months ended

March 31, 2018,

representing the amount expected

not

recoverable.

Note 9 - Property and Equipment, Net

3 Months Ended

Mar. 31, 2018

Property, Plant and Equipment Disclosure [Text Block]

Property and equipment, net

	March 31, 2018			December 31, 2017
	US$(’000)			US$(’000)
	(Unaudited)

Leasehold improvement		350			337
Vehicles		841			810
Office equipment		1,467			1,410
Electronic devices		1,209			1,164
Property and equipment, cost		3,867			3,721
Less: accumulated depreciation		(3,433	)		(3,258	)
Less: impairment loss on idle fixed assets		(170	)		(164	)
Property and equipment, net		264			299

Depreciation expenses for the

three

months ended

March 31, 2018

and

2017

were approximately

US$48,000

and

US$51,000,

respectively.

Note 10 - Intangible Assets, Net

3 Months Ended

Mar. 31, 2018

Intangible Assets Disclosure [Text Block]

10.	Intangible assets, net

	March 31, 2018			December 31, 2017
	US$(’000)			US$(’000)
	(Unaudited)
Intangible assets not subject to amortization:
Domain name		1,536			1,478
Intangible assets subject to amortization:
Customer relationship		2,118			2,038
Non-compete agreements		1,166			1,122
Software technologies		326			314
Cloud compute software technology		1,476			1,420
Internet safety, information exchange security and data encryption software		2,067			1,990
Intelligent marketing data service platform		5,135			4,942
Cloud video management system		1,511			1,454
Other computer software		125			120
Intangible assets, cost		15,460			14,878
Less: accumulated amortization		(6,865	)		(6,443	)
Less: accumulated impairment losses		(4,809	)		(4,627	)
Intangible assets, net		3,786			3,808

Amortization expenses for the

three

months ended

March 31, 2018

and

2017

were approximately

US$168,000

and

US$303,000,

respectively.

Based on the adjusted carrying value of the finite-lived intangible assets after the deduction of the impairment losses, which has a weighted average remaining useful life of

6.16

years as of

March 31, 2018,

and assuming

further subsequent impairment of the underlying intangible assets, the estimated future amortization expenses is approximately

US$511,000

for the

nine

months ending

December 31, 2018,

approximately

US$682,000

each year for the year ending

December 31, 2019

and

2020,

approximately

US$671,000

for the year ending

December 31, 2021

and approximately

US$516,000

for the year ending

December 31, 2022.

Note 11 - Prepayment For Purchasing of Software Technology

3 Months Ended

Mar. 31, 2018

Research, Development, and Computer Software Disclosure [Text Block]

11.	Prepayment for blockchain applications development

February 2018,

the Company entered into a contract with an unrelated

third

party to development certain blockchain technology based applications. Total amount of the contract was

US$4.5

million. As of

March 31, 2018,

the Company had paid

US$1.2

million in accordance with the payment schedule set forth in the contract.

Note 12 - Prepayment For Acquisition of Noncontrolling Interest

3 Months Ended

Mar. 31, 2018

Noncontrolling Interest Disclosure [Text Block]

12.	Prepayment for acquisition of noncontrolling interest

March 2018,

the Company entered into an agreement with the noncontrolling interest holder of Chuang Fu Tian Xia to purchase the remaining

49%

equity interest of Chuang Fu Tian Xia for a total consideration of

RMB15

million (approximately

US$2.4

million), of which

50%

of the total consideration need to be paid in cash and the remaining

50%

of the total consideration will be paid in form of the Company’s common stock. As of

March 31, 2018,

the Company had paid the cash part of the consideration,

RMB7.5

million (approximately

US$1.2

million), as a prepayment to the noncontrolling interest holder of Chuang Fu Tian Xia. The counterparty is required to complete the registration of the transfer of equity interest with the local branch of the State Administration of Industry and Commerce before the Company shall pay the remaining consideration in form of the Company’s common stock. This transaction is expected to be consummated in

June 2018.

The Company will account for this transaction as an equity transaction with

gain or loss to be recognized in its consolidated statement of operations. The carrying amount of the noncontrolling interest will be adjusted to reflect the change in its ownership interest in the subsidiary, any difference between the fair value of the consideration received or paid and the amount by which the noncontrolling interest is adjusted will be recognized in equity attributable to the parent and reallocated the subsidiary’s accumulated comprehensive income, if any, among the parent and the noncontrolling interest through an adjustment to the parent’s equity.

Note 13 - Goodwill

3 Months Ended

Mar. 31, 2018

Goodwill Disclosure [Text Block]

13.

Goodwill

	Amount
	US$(’000)

Balance as of January 1, 2018		5,277
Exchange translation adjustment		206
Balance as of March 31, 2018 (unaudited)		5,483

Note 14 - Short-term Bank Loan

3 Months Ended

Mar. 31, 2018

Short-term Debt [Text Block]

14.

Short-term bank loan

Short-term bank loan as of

March 31, 2018

and

December 31, 2017

represented short-term bank loans of

RMB5.0

million (approximately

US$0.8

million), in the aggregate, borrowed by

one

of the Company’s VIEs from a major financial institution in China to supplement its short-term working capital needs, of which

RMB

3.0

million (approximately

$0.5

million) was borrowed on

August 16, 2017

and will mature on

August 15, 2018,

the remaining

RMB

2.0

million (approximately

$0.3

million) was borrowed on

October 23, 2017

and will mature on

October 22, 2018.

The interest rate of these short-term bank loans was

5.655%

per annum as of

March 31, 2018

and

December 31, 2017,

which is

30%

over the benchmark rate of the People’s Bank of China (the “PBOC”).

Note 15 - Accrued Payroll and Other Accruals

3 Months Ended

Mar. 31, 2018

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

15.	Accrued payroll and other accruals

	March 31, 2018		December 31, 2017
	US$(’000)		US$(’000)
	(Unaudited)

Accrued payroll and staff welfare		229		203
Accrued operating expenses		192		356
		421		559

Note 16 - Due to Investors Related to Terminated Security Purchase Agreements

3 Months Ended

Mar. 31, 2018

Guarantee Payment and Prepayment from New Investors [Text Block]

16.	Due to investors related to terminated security purchase agreements

May 2015,

the Company entered into securities purchase agreements with Beijing Jinrun Fangzhou Science & Technology Co, Ltd. (“Jinrun Fangzhou”) and Dongsys Innovation (Beijing) Technology Development Co., Ltd. (“Dongsys Innovation”), public companies listed on the National Equities Exchange and Quotations of the PRC (the “NEEQ”), respectively, pursuant to which these companies agreed to purchase a certain number of shares of common stock of the Company. As of

December 31, 2017,

the Company had received the

10%

guarantee payment and

15%

prepayment in an aggregate amount equal to

US$819,000

from Jinrun Fangzhou, and the

10%

guarantee payment in an amount equal to

US$119,000

from Dongsys Innovation, respectively.

Due to certain restriction stipulated in the “Measures for Overseas Investment Management” issued by the Ministry of Commerce of the PRC (the “MOFCOM”), the Company and its investors experienced difficulties in obtaining approval for the transactions from the MOFCOM. As a result, on

May 12, 2016,

the Company terminated the security purchase agreements with these

two

investors, respectively. The Company did

not

make any repayment to these investors afterwards during

2016

and

2017.

As agreed by the parties, beginning on

January 1, 2017,

the outstanding balances bear a

12%

annualized interest rate and shall be refunded to the investors

later than

December 31, 2017.

February 2018,

the Company fully repaid Dongsys Innovation the principal and interest through

December 31, 2017

of approximately

US$0.14

million. In

March 2018,

the Company repaid approximately

RMB2.36

million (approximately

US$0.37

million) of principal and

RMB0.64

million (approximately

US$0.10

million) of total interest of

2017

to Jinrun Fangzhou, respectively. The Company repaid another

RMB1.0

million (approximately

US$0.16

million) of principal to Jinrun Fangzhou in

April 2018

and expects to settle the remaining principal balance of this liability before

June 2018.

Both Dongsys Innovation and Jinrun Fangzhou agreed

not

to charge additional interest in fiscal

2018.

Note 17 - Payable for Purchasing of Software Technology

3 Months Ended

Mar. 31, 2018

Accounts Payable and Accrued Liabilities for Software Disclosure [Text Block]

17.	Payable for purchasing of software technology

As of

December 31, 2017,

payable for purchasing of software technology presented the remaining outstanding payment balance of approximately

RMB2.85

million (approximately

US$0.4

million) for purchasing of software technology, which transaction consummated in the

fourth

fiscal quarter of

2016.

The Company settled the balance with the counterparty in

March 2018.

Note 18 - Taxation

3 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Text Block]

18.

Taxation

)

Income tax

The entities within the Company file separate tax returns in the respective tax jurisdictions in which they operate.

i). a. On

December 22, 2017,

the U.S. enacted the Tax Cuts and Jobs Act (“TCJA” or the “Act”) (which is commonly referred to as “U.S. tax reform”). The Act significantly changes U.S. corporate income tax laws including but

not

limited to reducing the U.S. corporate income tax rate from

35%

21%

beginning in

2018,

imposing a

one

-time transition tax on previously deferred foreign earnings and imposing a new tax on global intangible low-taxed income (“GILTI”) effective for tax years of non-U.S. corporations beginning after

December 31, 2017.

i). b. The Company is incorporated in the state of Nevada. Under the current law of Nevada, the Company is

not

subject to state corporate income tax. Following the Share Exchange, the Company became a holding company and does

not

conduct any substantial operations of its own.

provision for federal corporate income tax has been made in the financial statements as the Company has

assessable profits for the

three

ended

March 31, 2018,

or any prior periods. Before enactment of the Act, the Company did

not

provide for U.S. taxes or foreign withholding taxes on undistributed earnings from its non-U.S. subsidiaries because such earnings are intended to be reinvested indefinitely. If undistributed earnings were distributed, foreign tax credits could become available under current law to reduce the resulting U.S. income tax liability. Please see additional discussion regarding the assessment of the income tax effect of the Act in item i). d. below.

i). c. On

December 22, 2017,

the Securities and Exchange Commission staff issued Staff Accounting Bulletin

No.

118

(“SAB

118”

), which provides guidance on accounting for the tax effects of the Act. SAB

118

provides a measurement period that should

not

extend beyond

one

year from the Act enactment date for companies to complete the accounting under ASC

740

“Income Taxes”. In accordance with SAB

118,

a company must reflect the income tax effects of those aspects of the Act for which the accounting under ASC

740

is complete. To the extent that a company’s accounting for certain income tax effects of the Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements.

i). d. As disclosed in Note

to the audited financial statements in the Company’s

2017

Form

-K, based on a preliminary assessment, the Company concluded that

incremental income tax expense of the

one

-time transition tax on its previously deferred foreign earnings would be charged for the year ended

December 31, 2017.

Effective

January 1, 2018,

the Company is subject to the new GILTI tax rules. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of specified foreign corporations (“SFCs”), subject to the possible use of foreign tax credits and a deduction equal to

percent to offset the income tax liability, subject to some limitations. Under U.S. GAAP, the Company is allowed to make an accounting policy choice of either treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current period expense when incurred (the “period cost method”) or factoring such amounts into the Company’s measurement of its deferred taxes (the “deferred method”). According to the Company’s preliminary assessment based on its SFCs’ quarterly financial results, there was

taxable income related to GILTI for the

three

months ended

March 31, 2018.

However, due to complexity of the new tax rules under the Act, the Company did

not

have sufficient information currently to perform a comprehensive analysis on the historical operating results of each of its PRC subsidiaries to complete its assessment of the U.S. deferred tax assets that would have been utilized and or are expected to be utilizable under the Act and has

not

elected an accounting policy for the treatment of the taxes related to GILTI. In summary, the Company has

not

completed its accounting for the tax effects of enactment of the Act and is still analyzing certain aspects of the Act and is refining its calculations, which could potentially affect the measurement of the balances or potentially give rise to new deferred tax amounts. In addition, further regulatory guidance related to the Act is expected to be issued in

2018

which

may

result in changes to the Company’s estimates. Additional analysis of the law and the impact to the Company will be performed and any impact will be finalized

later than the

fourth

quarter of

2018.

ii). China Net BVI was incorporated in the British Virgin Islands (“BVI”). Under the current law of the BVI, China Net BVI is

not

subject to tax on income or capital gains. Additionally, upon payments of dividends by China Net BVI to its shareholders,

BVI withholding tax will be imposed.

iii). China Net HK was incorporated in Hong Kong and does

not

conduct any substantial operations of its own.

provision for Hong Kong profits tax has been made in the financial statements as China Net HK has

assessable profits for the

three

months ended

March 31, 2018

or any prior periods. Additionally, upon payments of dividends by China Net HK to its shareholders,

Hong Kong withholding tax will be imposed.

iv). The Company’s PRC operating subsidiaries and VIEs, being incorporated in the PRC, are governed by the income tax law of the PRC and is subject to PRC enterprise income tax (“EIT”). The EIT rate of PRC is

25%,

which applies to both domestic and foreign invested enterprises.

	•	In November 2015, Business Opportunity Online was re-approved by the related PRC governmental authorities as a High and New Technology Enterprise, which enabled the entity, as approved by the local tax authorities of Beijing, the PRC, to continue enjoying the preferential income tax rate of 15% until November 2018. Therefore, for the three months ended March 31, 2018 and 2017, the applicable income tax rate of Business Opportunity Online was 15%.

	•	The applicable income tax rate for other PRC operating entities of the Company was 25% for the three months ended March 31, 2018 and 2017.

•

The current EIT law also imposed a

10%

withholding income tax for dividends distributed by a foreign invested enterprise to its immediate holding company outside China. A lower withholding tax rate will be applied if there is a tax treaty arrangement between mainland China and the jurisdiction of the foreign holding company. Holding companies in Hong Kong, for example, will be subject to a

withholding tax rate.

For the

three

months ended

March 31, 2018

and

2017,

the preferential income tax treatment enjoyed by the Company’s PRC VIE, Business Opportunity Online was based on the current applicable laws and regulations of the PRC and approved by the related government regulatory authorities and local tax authorities where Business Opportunity Online operates in. The preferential income tax treatment is subject to change in accordance with the PRC government economic development policies and regulations. The preferential income tax treatment is primarily determined by the regulation and policies of the PRC government in the context of the overall economic policy and strategy. As a result, the uncertainty of the preferential income tax treatment is subject to, but

not

limited to, the PRC government policy on supporting any specific industry’s development under the outlook and strategy of overall macroeconomic development.

)

Turnover taxes and the relevant surcharges

Service revenues provided by the Company’s PRC operating subsidiaries and VIEs were subject to Value Added Tax (“VAT”). VAT rate for provision of modern services (other than lease of corporeal movables) is

and for small scale taxpayer,

3%.

Therefore, for the

three

months ended

March 31, 2018

and

2017,

the Company’s service revenues are subject to VAT at a rate of

6%,

after deducting the VAT paid for the services purchased from suppliers, or at a rate of

without any deduction of VAT paid for the services purchased from suppliers. The surcharges of the VAT in the aggregate is

12%

14%

of the VAT, depending on which tax jurisdiction the Company’s PRC operating subsidiaries and VIE operate in.

As of

March 31, 2018

and

December 31, 2017,

taxes payable consists of:

	March 31, 2018		December 31, 2017
	US$(’000)		US$(’000)
	(Unaudited)

PRC turnover tax and surcharge payable		1,253		1,295
PRC enterprise income tax payable		1,946		1,873
Total taxes payable		3,199		3,168

A reconciliation of the income tax benefit determined at the U.S. federal corporate income tax rate to the Company’s effective income tax benefit is as follows:

	Three Months Ended March 31,
	2018			2017
	US$(’000)			US$(’000)

Pre-tax loss		(574	)		(1,069	)
U.S. federal rate		21	%		35	%
Income tax benefit computed at U.S. federal rate		121			374
Reconciling items:
Rate differential for PRC earnings		74			(93	)
Preferential tax treatment effect		(52	)		(16	)
Tax effect on non-taxable change in fair value of warrant liabilities		310			-
Valuation allowance on deferred tax assets		(412	)		(272	)
Others		(37	)		7
Effective income tax benefit		4			-

For the

three

months ended

March 31, 2018

and

2017,

the Company’s income tax benefit consisted of:

	Three Months Ended March 31,
	2018		2017
	US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)

Current-PRC		-		-
Deferred-PRC		4		-
Income tax benefit		4		-

The Company’s deferred tax assets at

March 31, 2018

and

December 31, 2017

were as follows:

	March 31, 2018			December 31, 2017
	US$(’000)			US$(’000)
	(Unaudited)

Tax effect of net operating losses carried forward		8,146			7,657
Bad debts provision		1,035			879
Valuation allowance		(7,766	)		(7,178	)
Deferred tax assets, net		1,415			1,358

The U.S. holding company has incurred aggregate net operating losses (“NOLs”) of approximately

US$13,477,660

and

US$13,275,660

March 31, 2018

and

December 31, 2017,

respectively. The NOLs carryforwards as of

December 31, 2017

gradually expire over time, the last of which expires in

2037.

NOLs incurred after

December 31, 2017

will

longer be available to carry back, but will carry forward indefinitely. Furthermore, the Act imposes an annual limit of

80%

on the amount of taxable income that can be offset by NOLs arising in tax years ending after

December 31, 2017.

The Company maintains a full valuation allowance against its net U.S. deferred tax assets, since due to uncertainties surrounding future utilization, the Company estimates there will

not

be sufficient future earnings to utilize its U.S. deferred tax assets.

The NOLs carried forward incurred by the Company’s PRC subsidiaries and VIEs were approximately

US$25,180,000

and

US$23,959,000

March 31, 2018

and

December 31, 2017,

respectively. The losses carryforwards gradually expire over time, the last of which expires in

2023.

The related deferred tax assets were calculated based on the respective net operating losses incurred by each of the PRC subsidiaries and VIEs and the respective corresponding enacted tax rate that will be in effect in the period in which the losses are expected to be utilized.

The Company recorded approximately

US$7,766,000

and

US$7,178,000

valuation allowance as of

March 31, 2018

and

December 31, 2017,

respectively, because it is considered more likely than

not

that this portion of the deferred tax assets will

not

be realized through sufficient future earnings of the entities to which the operating losses related.

For the

three

months ended

March 31, 2018

and

2017,

the Company recorded approximately

US$412,000

and

US$272,000

deferred tax valuation allowance, respectively.

Note 19 - Long-term Borrowing From a Director

3 Months Ended

Mar. 31, 2018

Long-Term Borrowing from Director Disclosure [Text Block]

19.	Long-term borrowing from a director

Long-term borrowing from a director is a non-interest bearing loan from a director of the Company relating to the original paid-in capital contribution in the Company’s wholly-owned subsidiary Rise King WFOE, which is

not

expected to be repaid within

one

year.

Note 20 - The Financing and Warrants Liabilities

3 Months Ended

Mar. 31, 2018

Warrants Disclosure [Text Block]

20.	The Financing and warrant liabilities

January 17, 2018 (

the “Closing Date”), the Company consummated a registered direct offering of

2,150,001

shares of the Company’s common stock to certain institutional investors at a purchase price of

$5.15

per share (“the Financing”). As part of the transaction, the Company also issued to the investors warrants (the “Investor warrants”) for the purchase of up to

645,000

shares of the Company’s common stock at an exercise price of

$6.60

per share. The Investors warrants have a term of

months from the date of issuance. The Company received gross proceeds of approximately

$11.1

million.

The placement agent of the Financing received (i) a placement fee in the amount equal to

of the gross proceeds and (ii) warrants to purchase up to

129,000

shares of common stock at an exercise price of

US$6.60

per share, with a

three

-year term (“Placement agent warrants” and together with the Investor warrants, the “Warrants”). The Placement agent warrants is

not

exercisable for a period of

six

months and

one

day after the Closing Date.

The Warrants have an initial exercise price of

USS6.60

per share, which is subject to anti-dilution provisions that require adjustment of the number of shares of common stock that

may

be acquired upon exercise of the warrant, or to the exercise price of such shares, or both, to reflect stock dividends and splits, subsequent rights offerings, pro-rata distributions, and certain fundamental transactions. The Warrants also contain “full ratchet” price protection in the event of subsequent issuances below the applicable exercise price (the “Down round feature”).

The Warrants

may

not

be exercised if it would result in the holder beneficially owning more than

4.99%

of the Company’s outstanding common shares (the “Beneficial Ownership Limitation”). The holder of the Warrants, upon notice to the Company,

may

increase or decrease the Beneficial Ownership Limitation, provided that the Beneficial Ownership Limitation in

event exceeds

9.99%

of the Company’s outstanding common shares. Any increase in the Beneficial Ownership Limitation will

not

be effective until the

day after such notice is delivered to the Company.

Accounting for securities issued in the Financing

The Company determined that common stock issued in the Financing should be classified as permanent equity as there was

redemption provision at the option of the holders that is

not

within the control the Company on or after an agreed upon date.

The Company analyzed the Warrants issued in the Financing in accordance with ASC Topic

815

“Derivatives and Hedging”. In accordance with ASC Topic

815,

the Company determined that the Warrants should

not

be considered index to its own stock, as the strike price of the Warrants is dominated in a currency (U.S. dollar) other than the functional currency of the Company (Renminbi or Yuan). As a result, the Warrants does

not

meet the scope exception of ASC Topic

815,

therefore, should be accounted for as derivative liabilities and measure at fair value with changes in fair value be recorded in earnings in each reporting period.

Fair value of the warrants

The Company used Binomial model to determine the fair value of the Warrants based on the assumptions summarized as below:

	Investors warrants						Placement agent warrants
	As of January 17, 2018			As of March 31, 2018			As of January 17, 2018			As of March 31, 2018

Stock price	$	3.98		$	1.67		$	3.98		$	1.67
Years to maturity		2.5			2.3			3.0			2.8
Risk-free interest rate		2.22	%		2.35	%		2.39	%		2.50	%
Dividend yield		-			-			-			-
Expected volatility		158	%		164	%		147	%		152	%
Exercise Price	$	6.60		$	6.60		$	6.60		$	6.60

Fair value of the warrant	$	2.93		$	1.03		$	2.99		$	1.06

Stock price is the closing bid price of the Company’s common stock at the respective valuation date. Years to maturity is the respective remaining contract life of the warrants. Yield-to-maturities in continuous compounding of the United States Government Bonds with the time-to-maturities same as the respective warrant are adopted as the risk-free rate. Annualized historical stock price volatility of the Company at the respective valuation date is deemed to be appropriate to serve as the expected volatility of the stock price of the Company. The dividend yield is calculated based on management’s estimate of dividends to be paid on the underlying stock. Exercise price of the Warrants is the contractual exercise price of the Warrants.

Allocation of gross proceeds from the Financing

The Company allocated the total proceeds from the Financing as summarized below:

	Initial measurement
	(USD’000)

Investor warrants		1,890
Common Stock (par value and additional paid in capital)		9,183
Total proceeds from the Financing		11,073

Investor warrants issued in the Financing was initially measurement at fair value. The residual amount, representing difference between the total proceeds and the fair value of the Investor warrants as of the Closing Date was assigned as the carrying value of the common stock issued in the Financing.

Offering costs

Offering costs in the amount of approximately

US$1.2

million consisting of cash payment of approximately

US$0.66

million placement fee, approximately

US$0.15

million legal expense and fair value of placement agent warrants of approximately

US$0.39

million, which were charged to additional paid-in-capital.

Warrant Liabilities

The Company accounted for the Warrants issuing in the Financing as derivative liabilities which were measured at fair value with changes in fair value be recorded in earnings in each reporting period.

	As of March 31, 2018		As of January 17, 2018		Change in Fair Value (gain)/loss
	US$’000		US$’000		US$’000
Fair value of the Warrants:
Investor warrants		664		1,890		(1,226	)
Placement agent warrants		137		385		(248	)
Warrant liabilities		801		2,275		(1,474	)

Warrants issued and outstanding at

March 31, 2018

and their movements during the

three

months then ended are as follows:

	Warrants Outstanding						Warrants Exercisable
	Number of underlying shares		Weighted Average Exercise Price		Average Remaining Contractual Life (years)		Number of underlying shares		Weighted Average Exercise Price		Average Remaining Contractual Life (years)

Balance, January 1, 2018		-						-
Granted/Vested		774,000	$	6.60		2.58		645,000	$	6.60		2.50
Forfeited		-						-
Exercised		-						-
Balance, March 31, 2018 (Unaudited)		774,000	$	6.60		2.38		645,000	$	6.60		2.30

Note 21 - Restricted Net Assets

3 Months Ended

Mar. 31, 2018

Restricted Assets Disclosure [Text Block]

21.

Restricted net assets

As most of the Company’s operations are conducted through its PRC subsidiaries and VIEs, the Company’s ability to pay dividends is primarily dependent on receiving distributions of funds from its PRC subsidiaries and VIEs. Relevant PRC statutory laws and regulations permit payments of dividends by its PRC subsidiaries and VIEs only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations and after it has met the PRC requirements for appropriation to statutory reserves. Paid in capital of the PRC subsidiaries and VIEs included in the Company’s consolidated net assets are also non-distributable for dividend purposes.

In accordance with the PRC regulations on Enterprises with Foreign Investment, a WFOE established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A WFOE is required to allocate at least

10%

of its annual after-tax profit to the general reserve until such reserve has reached

50%

of its registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors. The aforementioned reserves can only be used for specific purposes and are

not

distributable as cash dividends. Rise King WFOE is subject to the above mandated restrictions on distributable profits. Additionally, in accordance with the Company Law of the PRC, a domestic enterprise is required to provide a statutory common reserve of at least

10%

of its annual after-tax profit until such reserve has reached

50%

of its registered capital based on the enterprise’s PRC statutory accounts. A domestic enterprise is also required to provide for a discretionary surplus reserve, at the discretion of the board of directors. The aforementioned reserves can only be used for specific purposes and are

not

distributable as cash dividends. All of the Company’s PRC VIEs are subject to the above mandated restrictions on distributable profits.

As a result of these PRC laws and regulations, the Company’s PRC subsidiaries and VIEs are restricted in their ability to transfer a portion of their net assets to the Company. As of

March 31, 2018

and

December 31, 2017,

net assets restricted in the aggregate, which include paid-in capital and statutory reserve funds of the Company’s PRC subsidiaries and VIEs that are included in the Company’s consolidated net assets, was approximately

US$11.3

million and

US$8.3

million, respectively.

The current PRC Enterprise Income Tax (“EIT”) Law also imposed a

10%

withholding tax rate.

The ability of the Company’s PRC subsidiaries and VIEs to make dividends and other payments to the Company

may

also be restricted by changes in applicable foreign exchange and other laws and regulations.

Foreign currency exchange regulation in China is primarily governed by the following rules:

	•	Foreign Exchange Administration Rules ( 1996 ), as amended in August 2008, or the Exchange Rules;

•

Administration Rules of the Settlement, Sale and Payment of Foreign Exchange (

1996

), or the Administration Rules.

Currently, under the Administration Rules, Renminbi is freely convertible for current account items, including the distribution of dividends, interest payments, trade and service related foreign exchange transactions, but

not

for capital account items, such as direct investments, loans, repatriation of investments and investments in securities outside of China, unless the prior approval of the State Administration of Foreign Exchange (the “SAFE”) is obtained and prior registration with the SAFE is made. Foreign-invested enterprises like Rise King WFOE that need foreign exchange for the distribution of profits to its shareholders

may

effect payment from their foreign exchange accounts or purchase and pay foreign exchange rates at the designated foreign exchange banks to their foreign shareholders by producing board resolutions for such profit distribution. Based on their needs, foreign-invested enterprises are permitted to open foreign exchange settlement accounts for current account receipts and payments of foreign exchange along with specialized accounts for capital account receipts and payments of foreign exchange at certain designated foreign exchange banks.

Although the current Exchange Rules allow the convertibility of Renminbi into foreign currency for current account items, conversion of Renminbi into foreign exchange for capital items, such as foreign direct investment, loans or securities, requires the approval of SAFE, which is under the authority of the People’s Bank of China. These approvals, however, do

not

guarantee the availability of foreign currency conversion. The Company cannot be sure that it will be able to obtain all required conversion approvals for its operations or the Chinese regulatory authorities will

not

impose greater restrictions on the convertibility of Renminbi in the future. Currently, most of the Company’s retained earnings are generated in Renminbi. Any future restrictions on currency exchanges

may

limit the Company’s ability to use its retained earnings generated in Renminbi to make dividends or other payments in U.S. dollars or fund possible business activities outside China.

As of

March 31, 2018

and

December 31, 2017,

there was approximately

US$7.4

million and

US$9.2

million retained earnings in the aggregate, respectively, which was generated by the Company’s PRC subsidiaries and VIEs in Renminbi included in the Company’s consolidated net assets, aside from

US$2.6

million statutory reserve funds as of

March 31, 2018

and

December 31, 2017,

that

may

be affected by increased restrictions on currency exchanges in the future and accordingly

may

further limit the Company’s PRC subsidiaries’ and VIEs’ ability to make dividends or other payments in U.S. dollars to the Company, in addition to the approximately

US$11.3

million and

US$8.3

million restricted net assets as of

March 31, 2018

and

December 31, 2017,

respectively, as discussed above.

Note 22 - Employee Defined Contribution Plan

3 Months Ended

Mar. 31, 2018

Pension and Other Postretirement Benefits Disclosure [Text Block]

22.

Employee defined contribution plan

Full time employees of the Company in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the PRC subsidiaries of the Company make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The employee benefits were expensed as incurred. The Company has

legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits were approximately

US$88,000

and

US$129,000

for the

three

months ended

March 31, 2018

and

2017,

respectively.

Note 23 - Concentration of Risk

3 Months Ended

Mar. 31, 2018

Concentration Risk Disclosure [Text Block]

23.	Concentration of risk

Credit risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable and other receivables. As of

March 31, 2018,

56%

of the Company’s cash and cash equivalents were held by major financial institutions located in Mainland China, the remaining

44%

was held by a financial institution located in the United States of America. The Company believes that these financial institutions located in Mainland China and the United States of America are of high credit quality.

For accounts receivable and other receivables, the Company extends credit based on an evaluation of the customer’s or other

third

parties’ financial condition, generally without requiring collateral or other security. In order to minimize the credit risk, the Company delegated a team responsible for credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. Further, the Company reviews the recoverable amount of each individual receivable at each balance sheet date to ensure that adequate allowances are made for doubtful accounts. In this regard, the Company considers that the Company’s credit risk for accounts receivable and other receivables is significantly reduced.

Risk arising from operations in foreign countries

All of the Company’s operations are conducted within the PRC. The Company’s operations in the PRC are subject to various political, economic, and other risks and uncertainties inherent in the PRC. Among other risks, the Company’s operations in the PRC are subject to the risks of restrictions on transfer of funds, changing taxation policies, foreign exchange restrictions; and political conditions and governmental regulations.

Currency convertibility risk

Significant part of the Company’s businesses is transacted in Renminbi, which is

not

freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices and signed contracts. These exchange control measures imposed by the PRC government authorities

may

restrict the ability of the Company’s PRC subsidiaries and VIEs to transfer its net assets, which to the Company through loans, advances or cash dividends.

Concentration of customers

For the

three

months ended

March 31, 2018,

one

customer accounted for

36%

of the Company’s revenues. For the

three

months ended

March 31, 2017,

one

customer accounted for

21%

of the Company’s revenues.

As of

March 31, 2018,

four

customers individually accounted for

20%,

19%,

13%

and

11%

of the Company’s accounts receivable, respectively. As of

December 31, 2017,

four

customers individually accounted for

22%,

14%,

14%

and

11%

of the Company’s accounts receivable, respectively.

Concentration of suppliers

For the

three

months ended

March 31, 2018,

two

suppliers individually accounted for

73%

and

21%

of the Company’s cost of revenues, respectively. For the

three

months ended

March 31, 2017,

the same

two

suppliers individually accounted for

68%

and

23%

of the Company’s cost of revenues, respectively.

Note 24 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Text Block]

24.

Commitments and contingencies

The following table sets forth the Company’s operating lease commitment as of

March 31, 2018:

	Office Rental
	US$(’000)
	(Unaudited)
Nine months ending December 31,
-2018		279
Year ending December 31,
-2019		91
Total		370

For the

three

months ended

March 31, 2018

and

2017,

rental expenses under operating leases were approximately

US$108,000

and

US$98,000,

respectively.

For the

three

months ended

March 31, 2018

and

2017,

rental expenses under operating leases were approximately

US$108,000

and

US$98,000,

respectively.

February 2018,

the Company entered into a contract with an unrelated

third

party to development certain blockchain technology based applications with a total contract amount of

US$4.5

million. As of

March 31, 2018,

the Company had paid

US$1.2

million in accordance with the payment schedule set forth in the contract and the remaining unpaid contract amount is expected to be paid in

2018.

In accordance with the agreement entered into between the Company and the noncontrolling interest holder of Chuang Fu Tian Xia as discussed in Note

above, the Company has agreed to pay the remaining consideration of

RMB7.5

million (approximately

US$1.2

million) in form of the Company’s common stock, which transaction is expected to be consummated in

June 2018.

The Company is currently

not

a party to any legal or administrative proceedings and are

not

aware of any pending or threatened legal or administrative proceedings against us in all material aspects. The Company

may

from time to time become a party to various legal or administrative proceedings arising in the ordinary course of our business.

Note 25 - Segment Reporting

3 Months Ended

Mar. 31, 2018

Segment Reporting Disclosure [Text Block]

25.	Segment reporting

The Company follows ASC Topic

280

“Segment Reporting”, which requires that companies disclose segment data based on how management makes decisions about allocating resources to segments and evaluating their performance. Reportable operating segments include components of an entity about which separate financial information is available and which operating results are regularly reviewed by the chief operating decision maker (“CODM”), the Company’s Chief Executive Officer, to make decisions about resources to be allocated to the segment and assess each operating segment’s performance.

Three Months Ended

March 31, 2018 (

Unaudited)

	Internet Ad. and data service			TV Ad.		Blockchain technology		Corporate			Inter- segment and reconciling item			Total
	US$ (‘000)			US$ (‘000)		US$ (‘000)		US$ (‘000)			US$ (‘000)			US$ (‘000)

Revenues		8,169			91		-		371			(371	)		8,260
Cost of revenues		7,621			38		-		-			-			7,659
Total operating expenses		1,622			22		-		1,344	(1)		(371	)		2,617
Depreciation and amortization expense included in total operating expenses		197			-		-		19			-			216
Impairment on long-term investments included in total operating expenses		-			-		-		471			-			471
Operating (loss)/income		(1,074	)		31		-		(973	)		-			(2,016	)

Change in fair value of warrant liabilities		-			-		-		1,474			-			1,474

Net (loss)/income		(1,073	)		20		-		483			-			(570	)

Expenditure for long-term assets		448			-		1,200		1			-			1,649

Total assets – March 31, 2018		23,631			390		1,200		18,480			(11,295	)		32,406
Total assets – December 31, 2017		28,524			402		-		11,013			(11,379	)		28,560

(

)

Including approximately

US$75,000

share-based compensation expenses.

Three Months Ended

March 31, 2017 (

Unaudited)

	Internet Ad. and data service			TV & Bank kiosks Ad.			Corporate			Inter- segment and reconciling item		Total
	US$ (‘000)			US$ (‘000)			US$ (‘000)			US$ (‘000)		US$ (‘000)

Revenues		7,264			-			-			-		7,264
Cost of revenues		5,992			-			-			-		5,992
Total operating expenses		1,561			28			732	(1)		-		2,321
Depreciation and amortization expense included in total operating expenses		329			-			25			-		354
Operating loss		(289	)		(28	)		(732	)		-		(1,049	)

Net loss		(309	)		(28	)		(732	)		-		(1,069	)

(

)

Including approximately

US$211,000

share-based compensation expenses.

Note 26 - Loss Per Share

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Text Block]

26.	Loss per share

Basic and diluted loss per share for each of the periods presented are calculated as follows (All amounts, except number of shares and per share data, are presented in thousands of U.S. dollars):

	Three Months Ended March 31,
	2018			2017
	US$(’000)			US$(’000)
	(Unaudited)			(Unaudited)

Net loss attributable to ChinaNet Online Holdings, Inc. (numerator for basic and diluted loss per share)	$	(565	)	$	(1,087	)

Weighted average number of common shares outstanding -Basic and diluted		15,484,082			11,982,504

Loss per share-Basic and diluted	$	(0.04	)	$	(0.09	)

For the

three

months ended

March 31, 2018,

the diluted loss per share calculation did

not

include warrants to purchase up to

774,000

shares of the Company’s common stock, because they were out of the money, and did

not

include options to purchase up to

835,216

shares of the Company’s common stock and

266,238

shares of unvested restricted common stock, because their effect was anti-dilutive, as the Company incurred a net loss for the period.

For the

three

months ended

March 31, 2017,

the diluted loss per share calculation did

not

include options to purchase up to

835,216

shares of the Company’s common stock, because they were out of the money, and did

not

include

266,238

shares of unvested restricted common stock, because their effect was anti-dilutive, as the Company incurred a net loss for the period.

Note 27 - Share-based Compensation Expenses

3 Months Ended

Mar. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

27.	Share-based compensation expenses

January 2017,

the Company granted

75,000

shares of the Company’s restricted common stock to its investor relations services provider, in exchange for its services to the Company for the year ended

December 31, 2017.

These shares were valued at

US$1.02

per share, the closing bid price of the Company’s common stock on the date of the earlier of the performance commitment date or the date service was completed. Total compensation expense recognized for the service was

US$19,125

for the

three

months ended

March 31, 2017.

February 2017,

the Company granted

20,000

shares of the Company’s restricted common stock to

one

of its independent directors in exchange for his services provided to the Company. These shares were valued at

US$1.12

per share, the closing bid price of the Company’s common stock on the date of grant. Total compensation expense recognized for the

three

months ended

March 31, 2017

was approximately

US$22,400.

July 2017,

the Company issued

75,000

shares of the Company’s restricted common stock to

two

management consulting service providers in exchange for its services to the Company for a

-month period commencing on

July 1, 2017.

These shares were valued at

US$1.67

per share, the closing bid price of the Company’s common stock on the earlier of the performance commitment date or the date service was completed. Total compensation expense recognized for the

three

months ended

March 31, 2018

was approximately

US$31,300.

April 1, 2016,

the Company granted

16,000

shares of the Company’s restricted common stock in aggregate to

two

marketing service providers in exchange for their services to the Company for a

-month period commencing on

April 1, 2016.

These shares were valued at

US$1.73

three

months ended

March 31, 2017

was approximately

US$6,900.

The Company granted

140,000

shares of the Company’s restricted common stock to a management consulting service provider in exchange for its services to the Company for a

-month period commencing on

May 1, 2015.

These shares were valued at

US$3.93

three

months ended

March 31, 2017

was approximately

US$68,700.

September 14, 2015,

under its

2015

Omnibus Securities and Incentive Plan, the Company granted its employees in the aggregate of

266,238

shares of the Company’s restricted common stock, which will be vested on the

third

anniversary of the date of the grant. These shares were valued at

US$2.10

per share, the closing bid price of the Company’s common stock on the date of grant. The Company adopted a

forfeiture rate for recognition of the related compensation expenses of these unvested shares, total compensation expenses recognized for the

three

months ended

March 31, 2018

and

2017

was approximately

US$43,600

for both periods.

September 14, 2015,

under its

2015

Omnibus Securities and Incentive Plan, the Company also granted

-year common stock purchase options to its employees, in the aggregate, to purchase up to

477,240

shares of the Company’s restricted common stock at an exercise price of

US$2.10

per share, of which

159,080

options vested upon the date of grant,

159,080

options vested on

September 14, 2016

and the remaining

159,080

options vested on

September 14, 2017.

These options were valuated at

US$1.03

US$1.39

per option. Total compensation expenses recognized for the

three

months ended

March 31, 2017

was approximately

US$50,700.

Options issued and outstanding at

March 31, 2018

and their movements during the

three

months then ended are as follows:

	Option Outstanding						Option Exercisable
	Number of underlying shares		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number of underlying shares		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price

Balance, January 1, 2018		835,216		3.04	$	2.49		835,216		3.04	$	2.49
Granted/Vested		-						-
Forfeited		-						-
Exercised		-						-
Balance, March 31, 2018 (unaudited)		835,216		2.79	$	2.49		835,216		2.79	$	2.49

The table below summarized share-based compensation expenses recorded for the

three

months ended

March 31, 2018

and

2017,

respectively:

	Three Months Ended March 31,
	2018		2017
	US$(’000) (Unaudited)		US$(’000) (Unaudited)

Sales and marketing expenses		13		28
General and administrative expenses		51		165
Research and development expenses		11		18
Total		75		211

The aggregate unrecognized share-based compensation expenses as of

March 31, 2018

and

2017

was approximately

US$79,000

and

US$431,000,

respectively. All unrecognized share-based compensation expenses as of

March 31, 2018

will be recognized for the year ending

December 31, 2018.

Note 28 - Subsequent Event

3 Months Ended

Mar. 31, 2018

Subsequent Events [Text Block]

28.

Subsequent event

The Company has performed an evaluation of subsequent events through the date the financial statements were issued, and has determined that there are

other events that are material to the financial statements except for those has discussed in below paragraphs.

February 2018,

the Company entered into a contract with an unrelated

third

party to development certain blockchain technology based applications with a total contract amount of

US$4.5

million. The Company made an additional payment of

US$

2.18

million, subsequently in

April

and

May 2018,

in accordance with the payment schedule set forth in the contract.

The Company has fully collected the

US$

2.0

million short-term loan lent to an unrelated

third

party which was recorded in other receivables as of

March 31, 2018

by mid

May 2018.

The Company received

RMB3.0

million (approximately

US$0.48

million) refund of deposit to suppliers in

May

subsequently due to termination of cooperation.

The Company repaid another

RMB1.0

million (approximately

US$0.16

million) of principal to Jinrun Fangzhou in

April 2018,

subsequently.

As of the date hereof, the purchase of the remaining equity interest in Chuang Fu Tian Xia has been registered with the local branch of the State Administration of Industry and Commerce.

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

a)	Basis of presentation

The unaudited condensed consolidated interim financial information as of

March 31, 2018

and for the

three

months ended

March 31, 2018

and

2017

Form

-K.

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s condensed consolidated financial position as of

March 31, 2018,

its condensed consolidated results of operations for the

three

months ended

March 31, 2018

and

2017,

and its condensed consolidated cash flows for the

three

months ended

March 31, 2018

and

2017,

as applicable, have been made. The interim results of operations are

not

necessarily indicative of the operating results for the full fiscal year or any future periods.

Consolidation, Policy [Policy Text Block]

Principles of consolidation

Use of Estimates, Policy [Policy Text Block]

c)	Use of estimates

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign currency translation

The exchange rates used to translate amounts in RMB into US$ for the purposes of preparing the condensed consolidated financial statements are as follows:

	March 31, 2018		December 31, 2017

Balance sheet items, except for equity accounts		6.2881		6.5342

	Three Months Ended March 31,
	2018		2017

Items in the statements of operations and comprehensive loss, and statements of cash flows		6.3632		6.8861

representation is made that the RMB amounts could have been, or could be converted into US$ at the above rates.

Advertising Costs, Policy [Policy Text Block]

Advertising costs

Advertising costs for the Company’s own brand building are

not

includable in cost of revenues, they are expensed when incurred and are included in “sales and marketing expenses” in the statements of operations and comprehensive loss. For the

three

months ended

March 31, 2018

and

2017,

advertising expenses for the Company’s own brand building were approximately

US$389,000

and

US$510,000,

respectively.

Research and Development Expense, Policy [Policy Text Block]

Research and development expenses

three

months ended

March 31, 2018

and

2017

were approximately

US$193,000

and

US$395,000,

respectively.

Revenue Recognition, Policy [Policy Text Block]

Revenue recognition

January 1, 2018,

the Company adopted ASC Topic

606,

“Revenue from Contracts with Customers”, applying the modified retrospective method. The adoption didn’t result in a material adjustment to the accumulated deficit as of

January 1, 2018.

In accordance with ASC Topic

606,

five

-step analysis: (

) identify the contract(s) with a customer; (

) identify the performance obligations in the contract; (

) determine the transaction price; (

) allocate the transaction price to the performance obligations in the contract; (

) recognize revenue when (or as) the entity satisfies a performance obligation.

The Company’s contracts with customers do

not

include multiple performance obligations,

significant financing component, variable consideration, nor any clause concerning with returns, refunds or other similar obligations.

The Company does

not

606

for each type of its performance obligation either over time (generally, the transfer of a service) or at a point in time (generally, the transfer of a good (information)) as follows:

Online advertising placement service/TV advertising service

Sales of effective sales lead information

Search engine marketing and data service

All of the Company’s revenues are generated from the PRC. The following tables present the Company’s revenues disaggregated by products and services and timing of revenue recognition:

	Three Months Ended March 31,
	2018		2017
	US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)
Internet advertising and data service
--online advertising placement		1,597		1,902
--sales of effective sales lead information		122		390
Search engine marketing and data service		6,443		4,972
TV advertising service		91		-
Others		7		-
Total revenues		8,260		7,264

	Three Months Ended March 31,
	2018		2017
	US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)

Revenue recognized over time		8,138		6,874
Revenue recognized at a point in time		122		390
Total revenues		8,260		7,264

Contract costs

For the

three

months ended

March 31, 2018,

the Company did

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.

Contract balances

days after a bill is issued.

The Company does

not

have any contract assets (unbilled receivables) since revenue is recognized when control of the promised goods or services is transferred and the payment from customers is

not

contingent on a future event.

one

year. The table below summarized the movement of the Company’s contract liabilities for the

three

months ended

March 31, 2018:

	Advance from customers
	US$(’000)

Balance as of January 1, 2018		3,559
Revenue recognized from beginning contract liability balance		(3,113	)
Advances received from customers related to unsatisfied performance obligations		1,564
Balance as of March 31, 2018 (Unaudited)		2,010

For the

three

months ended

March 31, 2018,

there is

revenue recognized from performance obligations that were satisfied in prior periods.

Transaction price allocated to remaining performance obligation

The Company has elected to apply the practical expedient in paragraph ASC Topic

606

and did

not

disclose the information related to transaction price allocated to the performance obligations that are unsatisfied or partially unsatisfied as of

March 31, 2018,

because all performance obligations of the Company’s contracts with customers have an original expected duration of

one

year or less.

New Accounting Pronouncements, Policy [Policy Text Block]

Impact of recently issued accounting pronouncements

January 2017,

the FASB issued ASU

No.

2017

04,

“Intangibles-Goodwill and Others (Topic

350

)-Simplify the Test for Goodwill Impairment”. To simplify the subsequent measurement of goodwill, the amendments in this ASU eliminated Step

from the goodwill impairment test. In computing the implied fair value of goodwill under Step

not

zero

or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step

zero

first

annual period and in the interim period within the

first

December 15, 2019.

Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after

January 1, 2017.

The Company is currently evaluating the impact on its consolidated financial position and results of operations upon adopting these amendments.

July 2017,

the FASB issued ASU

No.

2017

11,

“Earnings Per Share (Topic

260

), Distinguishing Liabilities from Equity (Topic

480

), Derivatives and Hedging (Topic

815

260

470

20,

Debt—Debt with Conversion and Other Options), including related EPS guidance (in Topic

260

). The amendments in Part II of this ASU recharacterize the indefinite deferral of certain provisions of Topic

480

that now are presented as pending content in the Codification, to a scope exception. Those amendments do

not

have an accounting effect. For public business entities, the amendments in Part I of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2018.

For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after

December 15, 2019,

and interim periods within fiscal years beginning after

December 15, 2020.

not

require any transition guidance because those amendments do

not

have an accounting effect. The Company has adopted the amendments in this ASU from

January 1, 2018,

when determining whether certain financial instruments issued by the Company after

January 1, 2018

should be classified as liabilities or equity instruments, a down round feature

longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The adoption of the amendments in this ASU did

not

have a material impact on the Company’s consolidated financial position and results of operations.

February 2018,

the FASB issued ASU

2018

02:

“Income Statement—Reporting Comprehensive Income (Topic

220

not

affected. The amendments in this ASU also require certain disclosures about stranded tax effects. The amendments in this ASU are effective for fiscal years beginning after

December 15, 2018,

March 2018,

the FASB issued ASU

2018

05:

“Income Taxes (Topic

740

)-Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin

No.

118”.

The amendments in this ASU add various SEC paragraphs pursuant to the issuance of SEC Staff Accounting Bulletin

No.

118,

which expresses the view of the staff regarding application of Topic

740,

Income Taxes, in the reporting period that includes

December 22, 2017 -

Note 2 - Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Variable Interest Entities [Table Text Block]

	March 31, 2018		December 31, 2017
	US$(’000)		US$(’000)
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	2,008	$	2,904
Accounts receivable, net		3,567		7,215
Other receivables, net		56		2,629
Prepayment and deposit to suppliers		4,761		4,009
Due from related parties, net		-		14
Total current assets		10,392		16,771

Property and equipment, net		155		177
Intangible assets, net		2,076		2,112
Prepayment for acquisition of noncontrolling interest		1,193		-
Goodwill		5,483		5,277
Deferred tax assets, net		1,017		975
Total Assets	$	20,316	$	25,312

Liabilities
Current liabilities:
Short-term bank loan	$	795	$	765
Accounts payable		810		2,848
Advances from customers		2,010		3,559
Accrued payroll and other accruals		177		159
Due to Control Group		11		11
Payable for purchasing of software technology		-		436
Taxes payable		2,724		2,711
Other payables		139		155
Total current liabilities		6,666		10,644

Total Liabilities	$	6,666	$	10,644

Financial Performance of VIEs [Table Text Block]

	Three Months Ended March 31,
	2018			2017
	US$(’000)			US$(’000)
	(Unaudited)			(Unaudited)

Revenues	$	8,253		$	7,264
Cost of revenues		(7,659	)		(5,992	)
Total operating expenses		(1,262	)		(1,633	)
Net loss before allocation to noncontrolling interests		(678	)		(353	)

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Note 3 - Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2018

Foreign Currency Exchange Rates [Table Text Block]

	March 31, 2018		December 31, 2017

Balance sheet items, except for equity accounts		6.2881		6.5342

	Three Months Ended March 31,
	2018		2017

Items in the statements of operations and comprehensive loss, and statements of cash flows		6.3632		6.8861

Disaggregation of Revenue [Table Text Block]

	Three Months Ended March 31,
	2018		2017
	US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)
Internet advertising and data service
--online advertising placement		1,597		1,902
--sales of effective sales lead information		122		390
Search engine marketing and data service		6,443		4,972
TV advertising service		91		-
Others		7		-
Total revenues		8,260		7,264

	Three Months Ended March 31,
	2018		2017
	US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)

Revenue recognized over time		8,138		6,874
Revenue recognized at a point in time		122		390
Total revenues		8,260		7,264

Contract with Customer, Asset and Liability [Table Text Block]

	Advance from customers
	US$(’000)

Balance as of January 1, 2018		3,559
Revenue recognized from beginning contract liability balance		(3,113	)
Advances received from customers related to unsatisfied performance obligations		1,564
Balance as of March 31, 2018 (Unaudited)		2,010

Note 4 - Accounts Receivable, Net (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Accounts Receivable [Table Text Block]

	March 31, 2018			December 31, 2017
	US$(’000)			US$(’000)
	(Unaudited)

Accounts receivable		6,946			10,008
Allowance for doubtful accounts		(3,379	)		(2,793	)
Accounts receivable, net		3,567			7,215

Note 6 - Prepayments and Deposit to Suppliers (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Prepayments and Deposit to Suppliers [Table Text Block]

	March 31, 2018		December 31, 2017
	US$(’000)		US$(’000)
	(Unaudited)

Deposits to TV and internet resources providers		2,107		1,870
Prepayments to TV and internet resources providers		3,141		1,331
Deposits to other service providers		-		765
Other deposits and prepayments		176		107
		5,424		4,073

Note 7 - Due From Related Parties, Net (Tables)

3 Months Ended

Mar. 31, 2018

Due From Related Parties [Member]

	March 31, 2018			December 31, 2017
	US$(’000)			US$(’000)
	(Unaudited)

Beijing Saimeiwei Food Equipment Technology Co., Ltd.		17			33
Chuangshi Meiwei (Beijing) International Investment Management Co., Ltd.		162			156
Guohua Shiji (Beijing) Communication Co., Ltd.		219			184
ChinaNet Chuang Tou (Shenzhen) Co., Ltd.		-			14
		398			387
Allowance for loan losses		(398	)		(373	)
Due from related parties, net		-			14

Note 8 - Long-term Investments (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Investment In and Advance to Equity Investment Affiliates [Table Text Block]

	March 31, 2018			December 31, 2017
	US$(’000)			US$(’000)
	(Unaudited)
Equity method investments:
Investment in equity method investees		782			753
Advance to equity method investees		83			80
Impairment on equity method investments		(865	)		(833	)
Total equity method investments		-			-
Cost method investments:
Investment in cost method investees		1,168			1,125
Impairment on cost method investments		(691	)		(207	)
Total cost method investments		477			918

Total long-term investments		477			918

Schedule of Cost Method Investments [Table Text Block]

	ChinaNet Chuang Tou
	US$(’000)

Balance as of January 1, 2018		918
Impairment on cost method investments		(477	)
Exchange translation adjustment		36
Balance as of March 31, 2018 (Unaudited)		477

Note 9 - Property and Equipment, Net (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Property and Equipment [Table Text Block]

	March 31, 2018			December 31, 2017
	US$(’000)			US$(’000)
	(Unaudited)

Leasehold improvement		350			337
Vehicles		841			810
Office equipment		1,467			1,410
Electronic devices		1,209			1,164
Property and equipment, cost		3,867			3,721
Less: accumulated depreciation		(3,433	)		(3,258	)
Less: impairment loss on idle fixed assets		(170	)		(164	)
Property and equipment, net		264			299

Note 10 - Intangible Assets, Net (Tables)	3 Months Ended
Note 10 - Intangible Assets, Net (Tables)	Mar. 31, 2018
Notes Tables
Schedule of Finite and Indefinite-Lived Intangible Assets [Table Text Block]	<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">March 31, <br />2018</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, <br />2017</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center"> </td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">US$(’000)</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">US$(’000)</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center"> </td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">(Unaudited)</td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: justify">Intangible assets not subject to amortization:</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 70%; font-size: 10pt; text-align: justify; text-indent: 10pt">Domain name</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,536</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 12%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,478</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: justify">Intangible assets subject to amortization:</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: justify; text-indent: 10pt">Customer relationship</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,118</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,038</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: justify; text-indent: 10pt">Non-compete agreements</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,166</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,122</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: justify; text-indent: 10pt">Software technologies</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">326</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">314</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: justify; text-indent: 10pt">Cloud compute software technology</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,476</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,420</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: justify; text-indent: 10pt">Internet safety, information exchange security and data encryption software</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,067</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,990</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: justify; text-indent: 10pt">Intelligent marketing data service platform</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,135</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,942</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: justify; text-indent: 10pt">Cloud video management system</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,511</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,454</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: justify; text-indent: 10pt">Other computer software</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">125</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">120</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: justify">Intangible assets, cost</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td style="font-size: 10pt; font-weight: bold; text-align: left"> </td> <td style="font-size: 10pt; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,460</div></td> <td style="font-size: 10pt; font-weight: bold; text-align: left"> </td> <td style="font-size: 10pt; font-weight: bold"> </td> <td style="font-size: 10pt; font-weight: bold; text-align: left"> </td> <td style="font-size: 10pt; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,878</div></td> <td style="font-size: 10pt; font-weight: bold; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: justify">Less: accumulated amortization</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(6,865</div></td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(6,443</div></td> <td style="font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: justify; padding-bottom: 1pt">Less: accumulated impairment losses</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(4,809</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(4,627</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: justify; padding-bottom: 2.25pt">Intangible assets, net</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,786</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; font-weight: bold; text-align: left"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,808</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; font-weight: bold; text-align: left"> </td> </tr> </table></div>

Note 13 - Goodwill (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Goodwill [Table Text Block]

	Amount
	US$(’000)

Balance as of January 1, 2018		5,277
Exchange translation adjustment		206
Balance as of March 31, 2018 (unaudited)		5,483

Note 15 - Accrued Payroll and Other Accruals (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Accrued Liabilities [Table Text Block]

	March 31, 2018		December 31, 2017
	US$(’000)		US$(’000)
	(Unaudited)

Accrued payroll and staff welfare		229		203
Accrued operating expenses		192		356
		421		559

Note 18 - Taxation (Tables)

3 Months Ended

Mar. 31, 2018

Schedule Of Taxes Payable [Table Text Block]

	March 31, 2018		December 31, 2017
	US$(’000)		US$(’000)
	(Unaudited)

PRC turnover tax and surcharge payable		1,253		1,295
PRC enterprise income tax payable		1,946		1,873
Total taxes payable		3,199		3,168

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Three Months Ended March 31,
	2018			2017
	US$(’000)			US$(’000)

Pre-tax loss		(574	)		(1,069	)
U.S. federal rate		21	%		35	%
Income tax benefit computed at U.S. federal rate		121			374
Reconciling items:
Rate differential for PRC earnings		74			(93	)
Preferential tax treatment effect		(52	)		(16	)
Tax effect on non-taxable change in fair value of warrant liabilities		310			-
Valuation allowance on deferred tax assets		(412	)		(272	)
Others		(37	)		7
Effective income tax benefit		4			-

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Three Months Ended March 31,
	2018		2017
	US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)

Current-PRC		-		-
Deferred-PRC		4		-
Income tax benefit		4		-

Schedule Of Deferred Tax Assets [Table Text Block]

	March 31, 2018			December 31, 2017
	US$(’000)			US$(’000)
	(Unaudited)

Tax effect of net operating losses carried forward		8,146			7,657
Bad debts provision		1,035			879
Valuation allowance		(7,766	)		(7,178	)
Deferred tax assets, net		1,415			1,358

Note 20 - The Financing and Warrants Liabilities (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

	Investors warrants						Placement agent warrants
	As of January 17, 2018			As of March 31, 2018			As of January 17, 2018			As of March 31, 2018

Stock price	$	3.98		$	1.67		$	3.98		$	1.67
Years to maturity		2.5			2.3			3.0			2.8
Risk-free interest rate		2.22	%		2.35	%		2.39	%		2.50	%
Dividend yield		-			-			-			-
Expected volatility		158	%		164	%		147	%		152	%
Exercise Price	$	6.60		$	6.60		$	6.60		$	6.60

Fair value of the warrant	$	2.93		$	1.03		$	2.99		$	1.06

Allocation of Proceeds from Issuance of Equity [Table Text Block]

	Initial measurement
	(USD’000)

Investor warrants		1,890
Common Stock (par value and additional paid in capital)		9,183
Total proceeds from the Financing		11,073

Schedule of Warrant Liabilities [Table Text Block]

	As of March 31, 2018		As of January 17, 2018		Change in Fair Value (gain)/loss
	US$’000		US$’000		US$’000
Fair value of the Warrants:
Investor warrants		664		1,890		(1,226	)
Placement agent warrants		137		385		(248	)
Warrant liabilities		801		2,275		(1,474	)

Schedule of Warrant Activity [Table Text Block]

	Warrants Outstanding						Warrants Exercisable
	Number of underlying shares		Weighted Average Exercise Price		Average Remaining Contractual Life (years)		Number of underlying shares		Weighted Average Exercise Price		Average Remaining Contractual Life (years)

Balance, January 1, 2018		-						-
Granted/Vested		774,000	$	6.60		2.58		645,000	$	6.60		2.50
Forfeited		-						-
Exercised		-						-
Balance, March 31, 2018 (Unaudited)		774,000	$	6.60		2.38		645,000	$	6.60		2.30

Note 24 - Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

	Office Rental
	US$(’000)
	(Unaudited)
Nine months ending December 31,
-2018		279
Year ending December 31,
-2019		91
Total		370

Note 25 - Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Internet Ad. and data service			TV Ad.		Blockchain technology		Corporate			Inter- segment and reconciling item			Total
	US$ (‘000)			US$ (‘000)		US$ (‘000)		US$ (‘000)			US$ (‘000)			US$ (‘000)

Revenues		8,169			91		-		371			(371	)		8,260
Cost of revenues		7,621			38		-		-			-			7,659
Total operating expenses		1,622			22		-		1,344	(1)		(371	)		2,617
Depreciation and amortization expense included in total operating expenses		197			-		-		19			-			216
Impairment on long-term investments included in total operating expenses		-			-		-		471			-			471
Operating (loss)/income		(1,074	)		31		-		(973	)		-			(2,016	)

Change in fair value of warrant liabilities		-			-		-		1,474			-			1,474

Net (loss)/income		(1,073	)		20		-		483			-			(570	)

Expenditure for long-term assets		448			-		1,200		1			-			1,649

Total assets – March 31, 2018		23,631			390		1,200		18,480			(11,295	)		32,406
Total assets – December 31, 2017		28,524			402		-		11,013			(11,379	)		28,560

	Internet Ad. and data service			TV & Bank kiosks Ad.			Corporate			Inter- segment and reconciling item		Total
	US$ (‘000)			US$ (‘000)			US$ (‘000)			US$ (‘000)		US$ (‘000)

Revenues		7,264			-			-			-		7,264
Cost of revenues		5,992			-			-			-		5,992
Total operating expenses		1,561			28			732	(1)		-		2,321
Depreciation and amortization expense included in total operating expenses		329			-			25			-		354
Operating loss		(289	)		(28	)		(732	)		-		(1,049	)

Net loss		(309	)		(28	)		(732	)		-		(1,069	)

Note 26 - Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended March 31,
	2018			2017
	US$(’000)			US$(’000)
	(Unaudited)			(Unaudited)

Net loss attributable to ChinaNet Online Holdings, Inc. (numerator for basic and diluted loss per share)	$	(565	)	$	(1,087	)

Weighted average number of common shares outstanding -Basic and diluted		15,484,082			11,982,504

Loss per share-Basic and diluted	$	(0.04	)	$	(0.09	)

Note 27 - Share-based Compensation Expenses (Tables)

3 Months Ended

Mar. 31, 2018

Share-based Compensation, Stock Options, Activity [Table Text Block]

	Option Outstanding						Option Exercisable
	Number of underlying shares		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number of underlying shares		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price

Balance, January 1, 2018		835,216		3.04	$	2.49		835,216		3.04	$	2.49
Granted/Vested		-						-
Forfeited		-						-
Exercised		-						-
Balance, March 31, 2018 (unaudited)		835,216		2.79	$	2.49		835,216		2.79	$	2.49

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

	Three Months Ended March 31,
	2018		2017
	US$(’000) (Unaudited)		US$(’000) (Unaudited)

Sales and marketing expenses		13		28
General and administrative expenses		51		165
Research and development expenses		11		18
Total		75		211

Note 1 - Organization and Nature of Operations (Details Textual) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Jan. 17, 2018	Mar. 31, 2018
Investor Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	645,000
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 6.60
Class of Warrant or Right, Term	2 years 180 days
Private Placement [Member]
Stock Issued During Period, Shares, New Issues	2,150,001
Shares Issued, Price Per Share	$ 5.15
Proceeds from Issuance or Sale of Equity, Total	$ 11,100	$ 11,073

Note 2 - Variable Interest Entities - Consolidated VIEs' Assets and Liabilities (Details)
¥ in Thousands, $ in Thousands

Mar. 31, 2018

USD ($)

Dec. 31, 2017

USD ($)

Dec. 31, 2017

CNY (¥)

Mar. 31, 2017

USD ($)

Dec. 31, 2016

USD ($)

Cash and cash equivalents

$ 7,503

$ 2,952

$ 1,047

$ 3,035

Accounts receivable, net

3,567

7,215

Other receivables, net

2,094

2,646

Prepayment and deposit to suppliers

5,424

4,073

Total current assets

18,588

16,900

Property and equipment, net

264

299

Intangible assets, net

3,786

3,808

Prepayment for acquisition of noncontrolling interest

1,193

Goodwill

5,483

5,277

Deferred tax assets, net

1,415

1,358

Total Assets

32,406

28,560

^[1]

795

765

Accounts payable

^[1]

832

2,851

Advances from customers

^[1]

2,010

3,559

Payable for purchasing of software technology *

^[1]

421

559

^[1]

436

¥ 2,850

Taxes payable

^[1]

3,199

3,168

Other payables

^[1]

302

687

Total current liabilities

8,036

12,963

Total Liabilities

8,976

13,097

VIEs [Member]

Cash and cash equivalents

2,008

2,904

Accounts receivable, net

3,567

7,215

Other receivables, net

2,629

Prepayment and deposit to suppliers

4,761

4,009

Total current assets

10,392

16,771

Property and equipment, net

155

177

Intangible assets, net

2,076

2,112

Prepayment for acquisition of noncontrolling interest

1,193

Goodwill

5,483

5,277

Deferred tax assets, net

1,017

975

Total Assets

20,316

25,312

795

765

Accounts payable

810

2,848

Advances from customers

2,010

3,559

Payable for purchasing of software technology *

177

159

Due to Control Group

436

Taxes payable

2,724

2,711

Other payables

139

155

Total current liabilities

6,666

10,644

Total Liabilities

$ 6,666

$ 10,644

[1]	All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company's general assets (Note 2).

Note 2 - Variable Interest Entities - Consolidated VIEs' Financial Performance (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues	$ 8,260	$ 7,264
Cost of revenues	(7,659)	(5,992)
Total operating expenses	(2,617)	(2,321)
Net loss	(570)	(1,069)
VIEs [Member]
Revenues	8,253	7,264
Cost of revenues	(7,659)	(5,992)
Total operating expenses	(1,262)	(1,633)
Net loss	$ (678)	$ (353)

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Note 3 - Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Advertising Expense	$ 389,000	$ 510,000
Research and Development Expense, Total	193,000	$ 395,000
Contract with Customer, Asset, Net, Total	0
Contract with Customer, Performance Obligation Satisfied in Previous Period	$ 0

Note 3 - Summary of Significant Accounting Policies- Exchange Rates Used to Translate Amounts In RMB Into US$ (Details)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Items in the statements of operations and comprehensive loss, and statements of cash flows	6.3632	6.8861
Balance Sheet Items, Except Equity Accounts [Member]
Balance sheet items, except for equity accounts	6.2881		6.5342

Note 3 - Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues	$ 8,260	$ 7,264
Online Advertising Placement [Member]
Revenues	1,597	1,902
Sales of Effective Sales Lead Information [Member]
Revenues	122	390
Search Engine Marketing and Data Service [Member]
Revenues	6,443	4,972
TV Advertising Service [Member]
Revenues	91
Product and Service, Other [Member]
Revenues	7
Transferred over Time [Member]
Revenues	8,138	6,874
Transferred at Point in Time [Member]
Revenues	$ 122	$ 390

Note 3 - Summary of Significant Accounting Policies - Contract liabilities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Balance as of January 1, 2018	$ 3,559
Revenue recognized from beginning contract liability balance	(3,113)
Advances received from customers related to unsatisfied performance obligations	1,564
Balance as of March 31, 2018 (Unaudited)	$ 2,010

Note 4 - Accounts Receivable, Net (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Allowance for Doubtful Accounts Receivable, Current, Ending Balance	$ 3,379,000		$ 2,793,000
Provision for Doubtful Accounts	481,000	$ (29,000)
Internet Advertising and TV Advertising [Member]
Allowance for Doubtful Accounts Receivable, Current, Ending Balance	$ 3,379,000		$ 2,793,000
Number of Months Past Due	180 days
Provision for Doubtful Accounts	$ 470,000	0
Provision for Doubtful Accounts Reversal		$ 0

Note 4 - Accounts Receivable, Net - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accounts receivable	$ 6,946	$ 10,008
Allowance for doubtful accounts	(3,379)	(2,793)
Accounts receivable, net	$ 3,567	$ 7,215

Note 5 - Other Receivables, Net (Details Textual) $ in Thousands, ¥ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)	Mar. 31, 2017 USD ($)	Mar. 31, 2018 CNY (¥)
Provision for Doubtful Accounts	$ 481	$ (29)
Internet Advertising And TV Advertising Contractual Deposit [Member]
Allowance for Doubtful Accounts Receivable, Ending Balance	900		¥ 5.8
Provision for Doubtful Accounts	0
Provision for Doubtful Accounts Reversal	0	$ 30
Short-term Working Capital Loan in US Dollars to an Unrelated Third Party [Member]
Loans Receivable, Net, Total	$ 2,000

Note 6 - Prepayments and Deposit to Suppliers (Details Textual)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Number of Largest Internet Resources Suppliers	2	2

Note 6 - Prepayments and Deposit to Suppliers - Prepayments and Deposit to Suppliers (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Prepayments and deposits to suppliers	$ 5,424	$ 4,073
Deposits to TV Ad and Internet Ad Resources Providers [Member]
Prepayments and deposits to suppliers	2,107	1,870
Prepayment to TV Ad and Internet Ad Resources Providers [Member]
Prepayments and deposits to suppliers	3,141	1,331
Deposits to Other Service Providers [Member]
Prepayments and deposits to suppliers		765
Other Deposits and Prepayments [Member]
Prepayments and deposits to suppliers	$ 176	$ 107

Note 7 - Due From Related Parties, Net (Details Textual) ¥ in Thousands, $ in Thousands	Mar. 31, 2018 USD ($)	Mar. 31, 2018 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Mar. 31, 2017 USD ($)
Due from Related Parties, Current, Total			$ 14
Related-party Working Capital Loans [Member] \| Chuangshi Meiwei and Guoshua Shiji [Member]
Due from Related Parties, Current, Total	380	¥ 2,380	$ 340	¥ 2,200
Allowance for Doubtful Accounts Receivable, Ending Balance	$ 10				$ 0

Note 7 - Due From Related Parties, Net - Due From Related Parties (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Due from related parties, gross	$ 398	$ 387
Allowance for loan losses	(398)	(373)
Due from related parties, net		14
Beijing Saimeiwei Food Equipment Technology [Member]
Due from related parties, gross	17	33
Chuangshi Meiwei [Member]
Due from related parties, gross	162	156
Guohua Shiji [Member]
Due from related parties, gross	219	184
ChinaNet Chuang Tou [Member]
Due from related parties, gross		$ 14

Note 8 - Long-term Investments (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2015
Equity Method Investments	$ 782	$ 753
Shenzhen Mingshan [Member]
Equity Method Investment, Ownership Percentage	23.18%	23.18%
Zhao Shang Ke Hubei [Member]
Equity Method Investment, Ownership Percentage	25.50%	25.50%
Shenzhen Mingshan and Zhao Shang Ke Hubei [Member]
Equity Method Investments			$ 0
ChinaNet Chuang Tou [Member]
Cost Method Investment Ownership Percentage	19.00%	19.00%
Cost-method Investments, Other than Temporary Impairment	$ 470
Chuangshi Meiwei [Member]
Cost Method Investment Ownership Percentage	10.00%	10.00%
ChinaNet Korea [Member]
Cost Method Investment Ownership Percentage	15.00%	15.00%
Guohua Shiji [Member]
Cost Method Investment Ownership Percentage	19.00%	19.00%
Beijing Saturday [Member]
Cost Method Investment Ownership Percentage	10.00%	10.00%

Note 8 - Long-term Investments - Summary of Investment in and Advance to Equity Investment Affiliates (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Investment in equity method investees	$ 782	$ 753
Advance to equity method investees	83	80
Impairment on equity method investments	(865)	(833)
Total equity method investments
Investment in cost method investees	1,168	1,125
Impairment on cost method investments	(691)	(207)
Total cost method investments	477	918
Total long-term investments	$ 477	$ 918

Note 8 - Long-term Investments - Movement in Cost Method Investments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Cost method investments, balance	$ 918
Cost method investments, balance	477
ChinaNet Korea [Member]
Cost method investments, balance	918
Impairment on cost method investments	(477)
Exchange translation adjustment	36
Cost method investments, balance	$ 477

Note 9 - Property and Equipment, Net (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Depreciation, Total	$ 48,000	$ 51,000

Note 9 - Property and Equipment, Net - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Property and equipment, gross	$ 3,867	$ 3,721
Less: accumulated depreciation	(3,433)	(3,258)
Less: impairment loss on idle fixed assets	(170)	(164)
Property and equipment, net	264	299
Leaseholds and Leasehold Improvements [Member]
Property and equipment, gross	350	337
Vehicles [Member]
Property and equipment, gross	841	810
Office Equipment [Member]
Property and equipment, gross	1,467	1,410
Electronic Devices [Member]
Property and equipment, gross	$ 1,209	$ 1,164

Note 10 - Intangible Assets, Net (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Amortization of Intangible Assets, Total	$ 168,000	$ 303,000
Finite-Lived Intangible Asset, Useful Life	6 years 58 days
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year	$ 511,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	682,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	671,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	516,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	$ 682,000

Note 10 - Intangible Assets, Net - Intangible Assets, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Finite-lived intangible assets	$ 15,460	$ 14,878
Less: accumulated amortization	(6,865)	(6,443)
Less: accumulated impairment losses	(4,809)	(4,627)
Intangible assets, net	3,786	3,808
Customer Relationships [Member]
Finite-lived intangible assets	2,118	2,038
Noncompete Agreements [Member]
Finite-lived intangible assets	1,166	1,122
Software Technologies [Member]
Finite-lived intangible assets	326	314
Cloud-Computing Based Software Platforms [Member]
Finite-lived intangible assets	1,476	1,420
Internet Safety, Information Exchange Security and Data Encryption Software [Member]
Finite-lived intangible assets	2,067	1,990
Intelligent Marketing Data Service Platform [Member]
Finite-lived intangible assets	5,135	4,942
Computer Software, Cloud Video Management System [Member]
Finite-lived intangible assets	1,511	1,454
Other Computer Software [Member]
Finite-lived intangible assets	125	120
Domain Name [Member]
Domain name	$ 1,536	$ 1,478

Note 11 - Prepayment For Purchasing of Software Technology (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Feb. 28, 2018
Development Blockchain Technology Based Applications, Contract Amount			$ 4.5
Payment for Blockchain Technology Based Applications Development Contract	$ 1.2

Note 12 - Prepayment For Acquisition of Noncontrolling Interest (Details Textual) - 1 months ended Mar. 31, 2018 - Acquisition of Chuang Fu Tian Xi [Member] ¥ in Millions, $ in Millions	USD ($)	CNY (¥)
Business Acquisition, Percentage of Voting Interests Acquired	49.00%	49.00%
Business Combination, Consideration Transferred, Total	$ 2.4	¥ 15.0
Business Combination, Percentage of Consideration Paid in Cash	50.00%	50.00%
Business Combination, Percentage of Consideration Paid in Common Stock	50.00%	50.00%
Payments to Acquire Businesses, Gross	$ 1.2	¥ 7.5

Note 13 - Goodwill - Goodwill (Details) $ in Thousands	3 Months Ended
Note 13 - Goodwill - Goodwill (Details) $ in Thousands	Mar. 31, 2018 USD ($)
Balance as of January 1, 2018	$ 5,277
Exchange translation adjustment	206
Balance	$ 5,483

Note 14 - Short-term Bank Loan (Details Textual)
$ in Thousands, ¥ in Millions

3 Months Ended

Mar. 31, 2018

USD ($)

Mar. 31, 2018

CNY (¥)

Dec. 31, 2017

USD ($)

Dec. 31, 2017

CNY (¥)

Short-term Debt, Weighted Average Interest Rate, at Point in Time

^[1]

$ 795

$ 765

5.655%

Debt Instrument, Basis Spread on Variable Rate

30.00%

VIEs [Member]

VIEs [Member] | Loans Payable [Member]

$ 795

765

VIEs [Member] | Loan Payable Maturing on August 15, 2018 [Member]

800

¥ 5

800

¥ 5

VIEs [Member] | Loan Payable Maturing on October 22, 2018 [Member]

500

$ 300

¥ 2

$ 300

¥ 2

[1]	All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company's general assets (Note 2).

Note 15 - Accrued Payroll and Other Accruals - Accrued Payroll and Other Accruals (Details) - USD ($)
$ in Thousands

Mar. 31, 2018

Dec. 31, 2017

Accrued Payroll and Staff Welfare [Member]

^[1]

$ 421

$ 559

Accrued Operating Expenses [Member]

229

203

Payable for Purchasing of Software Technology

$ 192

$ 356

[1]	All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company's general assets (Note 2).

Note 16 - Due to Investors Related to Terminated Security Purchase Agreements (Details Textual) ¥ in Thousands	1 Months Ended					3 Months Ended		12 Months Ended
	Apr. 30, 2018 USD ($)	Apr. 30, 2018 CNY (¥)	Mar. 31, 2018 USD ($)	Mar. 31, 2018 CNY (¥)	Feb. 28, 2018 USD ($)	Mar. 31, 2018 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	May 31, 2015
Number of Investors Security Purchase Agreement Terminated										2
Repayment for Security Purchase Agreement						$ 493,000		$ 0	$ 0
Security Purchase Agreement Termination Failure to Refund Amounts Annualized Interest Rate for Unpaid Amounts								12.00%
Jinrun Fangzhou [Member]
Common Stock Purchase Agreement Guarantee Payments Initial Payment Due Within Five Days Percentage								10.00%
Common Stock Purchase Agreement Guarantee Payment Due Within Thirty Days, Percentage								15.00%
Common Stock Purchase Agreement Guarantee Payment								$ 819,000
Jinrun Fangzhou [Member] \| Subsequent Event [Member]
Repayment for Security Purchase Agreement	$ 160,000	¥ 1,000
Dongsys Innovation [Member]
Common Stock Purchase Agreement Guarantee Payments Initial Payment Due Within Five Days Percentage								10.00%
Common Stock Purchase Agreement Guarantee Payment								$ 119,000
Repayment for Security Purchase Agreement			$ 370,000	¥ 2,360	$ 140,000
Security Purchase Agreement, Interest Paid			$ 100,000	¥ 640

Note 17 - Payable for Purchasing of Software Technology (Details Textual)
¥ in Thousands, $ in Thousands

Mar. 31, 2018

USD ($)

Dec. 31, 2017

USD ($)

Dec. 31, 2017

CNY (¥)

^[1]

$ 436

¥ 2,850

[1]	All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company's general assets (Note 2).

Note 18 - Taxation (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
Note 18 - Taxation (Details Textual) - USD ($)	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Nov. 30, 2015
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	35.00%		35.00%
Income Tax Withholding Rate Pursuant to EIT Law	10.00%
Operating Loss Carryforwards, Total	$ 13,477,660			$ 13,275,660
Operating Loss Carryforwards, Taxable Income Deduction Limitations	80.00%
Deferred Tax Assets, Valuation Allowance, Total	$ 7,766,000			7,178,000
Deferred Tax Assets, Bad Debts Provision [Member]
Deferred Tax Assets, Valuation Allowance, Total	$ 412,000			272,000
Minimum [Member]
PRC Value Added Tax Surcharge Rate	12.00%
Maximum [Member]
PRC Value Added Tax Surcharge Rate	14.00%
PRC Subsidiary And VIE's [Member]
Operating Loss Carryforwards, Total	$ 25,180,000			23,959,000
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	7,766,000			$ 7,178,000
British Virgin Islands [Member]
Other Tax Expense (Benefit)	0
Hong Kong [Member]
Other Tax Expense (Benefit)	0
Federal Income Tax Expense (Benefit), Continuing Operations, Total	0
Profits Assessable	$ 0
PRC [Member]
PRC Value Added Tax Rate for Modern Service Provided	6.00%	6.00%
PRC [Member] \| Provision of Modern Services Small Scale Tax Payer [Member]
PRC Value Added Tax Rate for Modern Service Provided Small Scale Tax Payer	3.00%	3.00%
PRC [Member] \| Other PRC Operating Entities [Member]
Applicable Income Tax Rate	25.00%	25.00%
PRC [Member] \| Business Opportunity Online [Member]
Applicable Income Tax Rate	15.00%	15.00%
PRC [Member] \| Business Opportunity Online [Member] \| Minimum [Member]
Enterprise Income Tax Rate In PRC					15.00%
Tax Treaty Agreement [Member]
Income Tax Withholding Rate Pursuant to EIT Law	5.00%
Scenario, Forecast [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			21.00%

Note 18 - Taxation - Taxes Payable (Details) - USD ($)
$ in Thousands

Mar. 31, 2018

Dec. 31, 2017

PRC turnover tax and surcharge payable

$ 1,253

$ 1,295

PRC enterprise income tax payable

1,946

1,873

Total taxes payable

^[1]

$ 3,199

$ 3,168

[1]	All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company's general assets (Note 2).

Note 18 - Taxation - Reconciliation of the Income Tax (Expense)/Benefit (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Pre-tax loss	$ (574)	$ (1,069)
U.S. federal rate	21.00%	35.00%	35.00%
Income tax benefit computed at U.S. federal rate	$ 121	$ 374
Rate differential for PRC earnings	74	(93)
Preferential tax treatment effect	(52)	(16)
Tax effect on non-taxable change in fair value of warrant liabilities	310
Valuation allowance on deferred tax assets	(412)	(272)
Others	(37)	7
Effective income tax benefit	$ 4

Note 18 - Taxation - Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Current-PRC
Deferred-PRC	4
Effective income tax benefit	$ 4

Note 18 - Taxation - Deferred Tax Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Tax effect of net operating losses carried forward	$ 8,146	$ 7,657
Bad debts provision	1,035	879
Valuation allowance	(7,766)	(7,178)
Deferred tax assets, net	$ 1,415	$ 1,358

Note 20 - The Financing and Warrants Liabilities (Details Textual) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Jan. 17, 2018	Mar. 31, 2018
Warrants and Rights Outstanding	$ 2,275	$ 801
Investor Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	645,000
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 6.60
Class of Warrant or Right, Term	2 years 180 days
Warrants and Rights Outstanding	$ 1,890	664
Placement Agent Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	129,000
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 6.60
Class of Warrant or Right, Term	3 years
Warrants and Rights Outstanding	$ 385	137
The Warrants [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 6.60
Private Placement [Member]
Stock Issued During Period, Shares, New Issues	2,150,001
Shares Issued, Price Per Share	$ 5.15
Proceeds from Issuance or Sale of Equity, Total	$ 11,100	$ 11,073
Placement Agent Fee, Percent of Gross Proceeds	6.00%
Placement Agent Fee	$ 660
Direct Legal Fees	$ 150

Note 20 - The Financing and Warrants Liabilities - Fair Value of Warrants (Details)	Mar. 31, 2018	Jan. 17, 2018
Measurement Input, Share Price [Member] \| Investor Warrants [Member]
Fair value of the warrants	1.67	3.98
Measurement Input, Share Price [Member] \| Placement Agent Warrants [Member]
Fair value of the warrants	1.67	3.98
Measurement Input, Expected Term [Member] \| Investor Warrants [Member]
Fair value of the warrants	2.3	2.5
Measurement Input, Expected Term [Member] \| Placement Agent Warrants [Member]
Fair value of the warrants	2.8	3
Measurement Input, Risk Free Interest Rate [Member] \| Investor Warrants [Member]
Fair value of the warrants	2.35	2.22
Measurement Input, Risk Free Interest Rate [Member] \| Placement Agent Warrants [Member]
Fair value of the warrants	2.5	2.39
Measurement Input, Expected Dividend Rate [Member] \| Investor Warrants [Member]
Fair value of the warrants
Measurement Input, Expected Dividend Rate [Member] \| Placement Agent Warrants [Member]
Fair value of the warrants
Measurement Input, Price Volatility [Member] \| Investor Warrants [Member]
Fair value of the warrants	164	158
Measurement Input, Price Volatility [Member] \| Placement Agent Warrants [Member]
Fair value of the warrants	152	147
Measurement Input, Exercise Price [Member] \| Investor Warrants [Member]
Fair value of the warrants	6.6	6.6
Measurement Input, Exercise Price [Member] \| Placement Agent Warrants [Member]
Fair value of the warrants	6.6	6.6
Measurement Input, Quoted Price [Member] \| Investor Warrants [Member]
Fair value of the warrants	1.03	2.93
Measurement Input, Quoted Price [Member] \| Placement Agent Warrants [Member]
Fair value of the warrants	1.06	2.99

Note 20 - The Financing and Warrants Liabilities - Allocation of Gross Proceeds From the Financing (Details) - Private Placement [Member] - USD ($) $ in Thousands		3 Months Ended
	Jan. 17, 2018	Mar. 31, 2018
Investor warrants		$ 1,890
Common Stock (par value and additional paid in capital)		9,183
Total proceeds from the Financing	$ 11,100	$ 11,073

Note 20 - The Financing and Warrants Liabilities - Warrant Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 17, 2018
Fair value of the Warrants	$ 801		$ 2,275
Change in fair value of warrants	(1,474)
Investor Warrants [Member]
Fair value of the Warrants	664		1,890
Change in fair value of warrants	(1,226)
Placement Agent Warrants [Member]
Fair value of the Warrants	137		$ 385
Change in fair value of warrants	$ (248)

Note 20 - The Financing and Warrants Liabilities - Warrant Activity (Details)	3 Months Ended
	Mar. 31, 2018 $ / shares shares
Balance, January 1, 2018 (in shares)
Granted/Vested (in shares)	774,000
Granted/Vested, weighted average exercise price (in dollars per share) \| $ / shares	$ 6.60
Granted/Vested, weighted average remaining contractual life (Year)	2 years 211 days
Granted/Vested, exercisable (in shares)	645,000
Granted/Vested, exercisable, weighted average exercise price (in dollars per share) \| $ / shares	$ 6.60
Granted/Vested, exercisable, weighted average remaining contractual life (Year)	2 years 182 days
Forfeited (in shares)
Exercised (in shares)
Balance, March 31, 2018 (Unaudited) (in shares)	774,000
Balance, March 31, 2018 (Unaudited), weighted average exercise price (in dollars per share) \| $ / shares	$ 6.60
Balance, March 31, 2018 (Unaudited), weighted average remaining contractual life (Year)	2 years 138 days
Balance, March 31, 2018 (Unaudited), exercisable (in shares)	645,000
Balance, March 31, 2018 (Unaudited), exercisable, weighted average exercise price (in dollars per share) \| $ / shares	$ 6.60
Balance, March 31, 2018 (Unaudited), exercisable, weighted average remaining contractual life (Year)	2 years 109 days

Note 21 - Restricted Net Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries	$ 11,300	$ 8,300
Withholding Tax Rate Pursuant To EIT Law	10.00%
Preferential Withholding Tax Rate	5.00%
Statutory Accounting Practices, Retained Earnings Not Available for Dividends	$ 2,607	2,607
PRC Subsidiary And VIE's [Member]
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries	7,400	9,200
Statutory Accounting Practices, Retained Earnings Not Available for Dividends	$ 2,600	$ 2,600
WFOE [Member]
Minimum Percentage Of Annual After-tax Profit For General Reserve	10.00%
Minimum Required Reserve As Percent Of Registered Capital	50.00%
Domestic Enterprise [Member]
Minimum Percentage Of Annual After-tax Profit For General Reserve	10.00%
Minimum Required Reserve As Percent Of Registered Capital	50.00%

Note 22 - Employee Defined Contribution Plan (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Defined Contribution Plan, Cost	$ 88,000	$ 129,000

Note 23 - Concentration of Risk (Details Textual)	3 Months Ended		12 Months Ended
Note 23 - Concentration of Risk (Details Textual)	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Sales Revenue, Net [Member] \| Customer Concentration Risk [Member]
Number of Customers	1	1
Sales Revenue, Net [Member] \| Customer Concentration Risk [Member] \| One Customer [Member]
Concentration Risk, Percentage	36.00%	21.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member]
Number of Customers	4		4
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Customer 1 [Member]
Concentration Risk, Percentage	20.00%		22.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Customer 2 [Member]
Concentration Risk, Percentage	19.00%		14.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Customer 3 [Member]
Concentration Risk, Percentage	13.00%		14.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Customer 4 [Member]
Concentration Risk, Percentage	11.00%		11.00%
Cost Of Sales Total [Member] \| Supplier Concentration Risk [Member]
Number of Suppliers	2		2
Cost Of Sales Total [Member] \| Supplier Concentration Risk [Member] \| Supplier 1 [Member]
Concentration Risk, Percentage	73.00%		68.00%
Cost Of Sales Total [Member] \| Supplier Concentration Risk [Member] \| Supplier 2 [Member]
Concentration Risk, Percentage	21.00%		23.00%
CHINA
Percent of Cash and Cash Equivalents Held by Major Financial Institutions	56.00%
UNITED STATES
Percent of Cash and Cash Equivalents Held by Major Financial Institutions	44.00%

Note 24 - Commitments and Contingencies (Details Textual) ¥ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)	Mar. 31, 2017 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2018 CNY (¥)	Feb. 28, 2018 USD ($)
Operating Leases, Rent Expense, Net, Total	$ 108,000	$ 98,000
Development Blockchain Technology Based Applications, Contract Amount					$ 4,500,000
Payment for Blockchain Technology Based Applications Development Contract	$ 1,200,000
Scenario, Forecast [Member]
Stock Issued During Period, Value, Issued for Blockchain Technology Based Applications Development Contract			$ 1,200,000	¥ 7.5

Note 24 - Commitments and Contingencies - Contractual Obligations (Details) - Office Rental [Member] $ in Thousands	Mar. 31, 2018 USD ($)
-2018	$ 279
-2019	91
Total	$ 370

Note 25 - Segment Reporting (Details Textual) - USD ($)	3 Months Ended
Note 25 - Segment Reporting (Details Textual) - USD ($)	Mar. 31, 2018	Mar. 31, 2017
Allocated Share-based Compensation Expense, Total	$ 75,000	$ 211,000

Note 25 - Segment Reporting - Summary of Segment Reporting Information (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2018

Mar. 31, 2017

Dec. 31, 2017

$ 8,260

$ 7,264

7,659

5,992

Depreciation and amortization expense included in total operating expenses

2,617

2,321

216

354

Impairment on long-term investments included in total operating expenses

471

(2,016)

(1,049)

1,474

(570)

(1,069)

1,649

Depreciation and amortization expense included in total operating expenses

32,406

$ 28,560

216

354

Intersegment Eliminations [Member]

(2,016)

(1,049)

(371)

Depreciation and amortization expense included in total operating expenses

(371)

Impairment on long-term investments included in total operating expenses

Depreciation and amortization expense included in total operating expenses

(11,295)

(11,379)

Internet Ad [Member] | Operating Segments [Member]

8,169

7,264

7,621

5,992

Depreciation and amortization expense included in total operating expenses

1,622

1,561

197

329

Impairment on long-term investments included in total operating expenses

(1,074)

(289)

(1,073)

(309)

448

Depreciation and amortization expense included in total operating expenses

23,631

28,524

197

329

TV Ad [Member] | Operating Segments [Member]

(1,074)

(289)

Depreciation and amortization expense included in total operating expenses

Impairment on long-term investments included in total operating expenses

(28)

(28)

Depreciation and amortization expense included in total operating expenses

390

402

Blockchain Technology [Member] | Operating Segments [Member]

(28)

Depreciation and amortization expense included in total operating expenses

Impairment on long-term investments included in total operating expenses

1,200

Depreciation and amortization expense included in total operating expenses

1,200

Others [Member] | Operating Segments [Member]

371

Depreciation and amortization expense included in total operating expenses

1,344

^[1]

732

^[2]

Impairment on long-term investments included in total operating expenses

471

(973)

(732)

1,474

483

(732)

Depreciation and amortization expense included in total operating expenses

18,480

$ 11,013