View Filing Data

Due to investors related to terminated security purchase agreements

^[1]

521

559

938

Payable for purchasing of software technology *

^[1]

436

Taxes payable *

^[1]

2,997

3,168

Other payables *

^[1]

118

687

Total current liabilities

8,440

12,963

Long-term liabilities:

Long-term borrowing from a director

128

134

Warrant liabilities

606

Total Liabilities

9,174

13,097

Commitments and contingencies

Equity:

Common stock (US$0.001 par value; authorized 50,000,000 shares; issued and outstanding 16,382,543 shares and 13,982,542 shares at December 31, 2018 and 2017, respectively)

Additional paid-in capital

38,275

31,554

Statutory reserves

2,607

Accumulated deficit

(34,512)

(20,487)

Accumulated other comprehensive income

1,457

1,598

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

7,843

15,286

Noncontrolling interests

(49)

177

Total equity

7,794

15,463

Total Liabilities and Equity

$ 16,968

$ 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).

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Allowance for doubtful accounts	$ 3,393	$ 2,793
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)	16,382,543	13,982,542
Common stock, shares outstanding (in shares)	16,382,543	13,982,542

Consolidated Statements of Operations and Comprehensive Loss - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenues
Revenues	$ 57,146,000	$ 46,633,000
Cost of revenues	54,728,000	42,020,000
Gross profit	2,418,000	4,613,000
Operating expenses
Sales and marketing expenses	1,970,000	2,734,000
General and administrative expenses	5,486,000	7,464,000
Research and development expenses	933,000	1,261,000
Impairment on intangible assets	3,330,000	2,552,000
Impairment on goodwill	5,211,000	0
Total operating expenses	16,930,000	14,011,000
Loss from operations	(14,512,000)	(9,398,000)
Other income/(expenses)
Change in fair value of warrant liabilities	1,669,000
Impairment on long-term investments	(453,000)	(44,000)
Interest expense, net	(37,000)	(107,000)
Other expenses	(30,000)	(211,000)
Total other income/(expense)	1,149,000	(362,000)
Loss before income tax expense and noncontrolling interests	(13,363,000)	(9,760,000)
Income tax expense	(764,000)	(251,000)
Net loss	(14,127,000)	(10,011,000)
Net loss/(income) attributable to noncontrolling interests	102,000	(114,000)
Net loss attributable to ChinaNet Online Holdings, Inc.	(14,025,000)	(10,125,000)
Net loss	(14,127,000)	(10,011,000)
Foreign currency translation (loss)/gain	(135,000)	907,000
Comprehensive Loss	(14,262,000)	(9,104,000)
Comprehensive loss/(income) attributable to noncontrolling interests	96,000	(123,000)
Comprehensive loss attributable to ChinaNet Online Holdings, Inc.	$ (14,166,000)	$ (9,227,000)
Loss per share
Basic and diluted (in dollars per share)	$ (0.88)	$ (0.84)
Weighted average number of common shares outstanding:
Basic and diluted (in shares)	15,863,894	12,116,783
Unrelated Parties [Member]
Revenues
Revenues	$ 57,146,000	$ 46,598,000
Related Parties [Member]
Revenues
Revenues		$ 35,000

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities
Net loss	$ (14,127,000)	$ (10,011,000)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	541,000	1,422,000
Share-based compensation expenses	233,000	2,271,000
Provision of allowances for doubtful accounts	1,523,000	1,462,000
Impairment on intangible assets	3,330,000	2,552,000
Impairment on goodwill	5,211,000	0
Impairment on long-term investments	453,000	44,000
Change in fair value of warrant liabilities	(1,669,000)
Loss on disposal of fixed assets		2,000
Deferred taxes	764,000	251,000
Changes in operating assets and liabilities
Accounts receivable	(232,000)	(4,848,000)
Other receivables	25,000	78,000
Prepayment and deposit to suppliers	1,345,000	948,000
Due from related parties	(178,000)	(7,000)
Accounts payable	161,000	2,654,000
Advances from customers	(2,414,000)	1,985,000
Accrued payroll and other accruals	28,000	141,000
Other payables	(307,000)	(58,000)
Taxes payable	(20,000)	76,000
Net cash used in operating activities	(5,389,000)	(1,320,000)
Cash flows from investing activities
Payment for office equipment	(11,000)	(4,000)
Withdraw long-term investment in an ownership interest investee	453,000	444,000
Short-term loan to unrelated parties	(2,107,000)	(2,814,000)
Collection of short-term loan from unrelated parties	4,676,000	296,000
Payment for acquisition of noncontrolling interest	(1,889,000)
Payment for blockchain application platform development costs	(3,738,000)
Purchase of software technology	(431,000)
Net cash used in investing activities	(3,047,000)	(2,078,000)
Cash flows from financing activities
Proceeds from issuance of common stock and warrant (net of cash offering cost of US$809)	10,263,000
Repayment to investors related to terminated security purchase agreements	(922,000)	0
Proceeds from short-term bank loan	907,000	741,000
Repayment of short-term bank loan	(756,000)	(741,000)
Net cash provided by financing activities	9,492,000
Effect of exchange rate fluctuation on cash, cash equivalents, and restricted cash	(266,000)	259,000
Net increase/(decrease) in cash, cash equivalents and restricted cash	790,000	(3,139,000)
Cash, cash equivalents, and restricted cash at beginning of the year	2,952,000	6,091,000
Cash, cash equivalents, and restricted cash at end of the year	3,742,000	2,952,000
Supplemental disclosure of cash flow information
Income taxes paid
Interest expense paid	157,000	38,000
Non-cash transactions:
Payable for purchasing of software technologies		$ 436,000

Consolidated Statements of Cash Flows (Parentheticals) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Issuance of common stock, cost	$ 809

Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Private Placement [Member] Common Stock [Member]	Private Placement [Member] Additional Paid-in Capital [Member]	Private Placement [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Statutory Reserves [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Noncontrolling Interest [Member]	Total
Balance (in shares) at Dec. 31, 2016				12,158,542
Balance at Dec. 31, 2016				$ 12	$ 29,285	$ 2,607	$ (10,362)	$ 700	$ 54	$ 22,296
Share-based compensation related to awards provided to employees and directors in 2017 (in shares)				1,650,000
Share-based compensation related to awards provided to employees and directors in 2017				$ 2	1,703					1,705
Share-based payment in exchange for services from nonemployees (in shares)				174,000
Share-based payment in exchange for services from nonemployees					234					234
Share-based compensation related to awards provided to employees and directors in 2015					332					332
Net loss							(10,125)		114	(10,011)
Foreign currency translation (loss)/gain								898	9	907
Balance (in shares) at Dec. 31, 2017				13,982,542
Balance at Dec. 31, 2017				$ 14	31,554	2,607	(20,487)	1,598	177	15,463
Share-based compensation related to awards provided to employees and directors in 2017 (in shares)
Share-based payment in exchange for services from nonemployees (in shares)				250,000
Share-based payment in exchange for services from nonemployees					421					421
Share-based compensation related to awards provided to employees and directors in 2015					152					152
Net loss							(14,025)		(102)	(14,127)
Foreign currency translation (loss)/gain								(141)	6	(135)
Issuance of common stock for private placement, net of $1.89 million proceeds allocated to investor warrants labilities and $1.20 million direct offering costs (including $0.39 million proceeds allocated to placement agent warrants liabilities), respectively (in shares)	2,150,001
Issuance of common stock for private placement, net of $1.89 million proceeds allocated to investor warrants labilities and $1.20 million direct offering costs (including $0.39 million proceeds allocated to placement agent warrants liabilities), respectively	$ 2	$ 7,986	$ 7,988
Purchase noncontrolling interests in a Variable Interest Entity					(1,838)				(130)	(1,968)
Balance (in shares) at Dec. 31, 2018				16,382,543
Balance at Dec. 31, 2018				$ 16	$ 38,275	$ 2,607	$ (34,512)	$ 1,457	$ (49)	$ 7,794

Consolidated Statements of Changes in Equity (Parentheticals) - USD ($) $ in Thousands		12 Months Ended
	Jan. 17, 2018	Dec. 31, 2018
Investor Warrants [Member] \| Private Placement [Member]
Proceeds allocated to warrant liabilities		$ 1,890
Investor Warrants [Member]
Proceeds allocated to warrant liabilities	$ 1,890	503
Placement Agent Warrants [Member] \| Private Placement [Member]
Proceeds allocated to warrant liabilities		390
Placement Agent Warrants [Member]
Proceeds allocated to warrant liabilities	385	103
Private Placement [Member]
Direct offering costs	1,200	1,200
Proceeds allocated to warrant liabilities	$ 2,275	$ 606

Note 1 - Organization and Nature of Operations

12 Months Ended

Dec. 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 sales channel expansion and the related data services to small and medium enterprises in the PRC, through distribution of the right to use

search engine marketing service the Company purchased from key search engines, online advertising placements on the Company’s advertising portals, sales of effective sales lead information and provision of TV advertising service. In early

2018,

the Company announced its expansion into the blockchain industry and the related technology. As of

December 31, 2018,

the Company was still in the process of developing its blockchain-powered marketing and advertising application platform (See Note

)

The Company’s wholly owned subsidiary, China Net BVI was incorporated in the British Virgin Islands on

August 13, 2007.

April 11, 2008,

China Net BVI became the parent holding company of a group of companies comprised of CNET Online Technology Limited, a Hong Kong company (“China Net HK”), which established and is the parent company of Rise King Century Technology Development (Beijing) Co., Ltd., a wholly foreign-owned enterprise (“WFOE”) established in the PRC (“Rise King WFOE”). The Company refers to the transactions that resulted in China Net BVI becoming an indirect parent company of Rise King WFOE as the “Offshore Restructuring.”

PRC regulations prohibit direct foreign ownership of business entities providing internet content, or ICP services in the PRC, and used to restrict foreign ownership of business entities engaging in the advertising business, which was subsequently lifted in

June 2015.

To satisfy PRC laws and regulations, the Company conducts certain business in the PRC through its Variable Interest Entities (“VIEs”). Through a series of contractual agreements (the “Contractual Agreements” or “VIE Agreements”) between Rise King WFOE and Business Opportunity Online (Beijing) Network Technology Co., Ltd. (“Business Opportunity Online”), Beijing CNET Online Advertising Co., Ltd. (“Beijing CNET Online”) (collectively the “PRC Operating Entities” or the “VIEs”) and its common individual owners (the “PRC Shareholders” or the “Control Group”), the Company, through Rise King WFOE, secures significant rights to influence the PRC Operating Entities’ business operations, policies and management, approve all matters requiring shareholder approval, and the right to receive the income earned by the PRC Operating Entities. In return, Rise King WFOE provides consulting services to the PRC Operating Entities. In addition, to ensure that the PRC Operating Entities and the PRC Shareholders perform their obligations under the Contractual Arrangements, the PRC Shareholders have pledged all of their equity interests in the PRC Operating Entities to Rise King WFOE. They also entered into an option agreement with Rise King WFOE which provides that at such time as when the restrictions under PRC law on foreign ownership of Chinese companies engaging in the Internet content, information services or advertising business in China are lifted, Rise King WFOE

may

exercise its option to purchase the equity interests in the PRC Operating Entities, directly.

Pursuant to the Contractual Agreements, all of the equity owners' rights and obligations of the VIEs were assigned to Rise King WFOE, which resulted in the equity owners lacking the ability to make decisions that have a significant effect on the VIEs, Rise King WFOE's ability to extract the profits from the operation of the VIEs and assume the residual benefits of the VIEs. Due to the fact that Rise King WFOE and its indirect parent are the sole interest holders of the VIEs, the Company included the assets, liabilities, revenues and expenses of the VIEs in its consolidated financial statements, which is consistent with the provisions of FASB Accounting Standards Codification ("ASC") Topic

810

“Consolidation”, subtopic

10.

As of

December 31, 2018,

the Company’s consolidated subsidiaries and VIEs are summarized as follows:

Name of the subsidiary or VIE	Place and date of incorporation	Percentage of ownership	Principal activities

China Net Online Media Group Limited (“China Net BVI”) (1)	British Virgin Islands, August 13, 2007	100%	Investment holding company

CNET Online Technology Limited (“China Net HK”) (1)	Hong Kong, September 4, 2007	100%	Investment holding company

ChinaNet Investment Holding Ltd. (“ChinaNet Investment BVI”) (1)	British Virgin Islands, January 12, 2015	100%	Investment holding company

Rise King Century Technology Development (Beijing) Co., Ltd. (“Rise King WFOE”) (1)	PRC, January 17, 2008	100%	Investment holding company

Business Opportunity Online (Beijing) Network Technology Co., Ltd. (“Business Opportunity Online”) (2)	PRC, December 8, 2004	100%	Providing online advertising, precision marketing and the related data services

Beijing CNET Online Advertising Co., Ltd. (“Beijing CNET” Online) (2)	PRC, January 27, 2003	100%	Providing TV advertising services

ChinaNet Online Holdings Co., Ltd. (“ChinaNet Online PRC”) (1)	PRC, August 31, 2015	100%	Investment holding company

Beijing Chuang Fu Tian Xia Network Technology Co., Ltd. (“Beijing Chuang Fu Tian Xia”) (2)	PRC, March 1, 2011	100%	Providing online advertising, precision marketing and the related data services

Business Opportunity Online (Hubei) Network Technology Co., Ltd. (“Business Opportunity Online Hubei”) (2)	PRC, January 28, 2011	100%	Providing online advertising, precision marketing and the related data services

Hubei CNET Advertising Media Co., Ltd. (“Hubei CNET”) (2)	PRC, April 18, 2011	100%	Providing TV advertising services

Sheng Tian Network Technology (Hubei) Co., Ltd. (“Sheng Tian Hubei”) (2)	PRC, July 1, 2011	100%	Providing online advertising, precision marketing and the related data services

Beijing Chuang Shi Xin Qi Advertising Media Co., Ltd. (“Beijing Chuang Shi Xin Qi”) (2)	PRC, April 16, 2014	100%	Providing online advertising, precision marketing and the related data services

Beijing Shi Ji Cheng Yuan Advertising Media Co., Ltd. (“Beijing Shi Ji Cheng Yuan”) (2)	PRC, May 22, 2014	100%	Providing online advertising, precision marketing and the related data services

Beijing Hong Da Shi Xing Network Technology Co., Ltd. (“Beijing Hong Da Shi Xing”) (2)	PRC, April 16, 2014	100%	Providing online advertising, precision marketing and the related data services

Business Opportunity Chain (Beijing) Technology Development Co., Ltd. (“Business Opportunity Chain”) (1)	PRC, May 11, 2018	51%	Providing research and develop and other technical support services for the blockchain business unit

(

)

A direct or indirect subsidiary of the Company.

(

)

The Company’s consolidated VIE, or a direct or indirect subsidiary of the Company’s consolidated VIE.

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. The Company also issued warrants for the purchase of up to

129,000

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

$6.60

per share to the placement agent as part of the placement fee. The warrants issued to the placement agent have a term of

months and is

not

exercisable for a period of

six

months and

one

day after the closing date of the Financing (See Note

Note 2 - Variable Interest Entities

12 Months Ended

Dec. 31, 2018

Variable Interest Entities Disclosure [Text Block]

Variable Interest Entities

To satisfy PRC laws and regulations, the Company conducts certain business in the PRC through its Variable Interest Entities (“VIEs”).

The significant terms of the VIE Agreements are summarized below:

Exclusive Business Cooperation Agreements:

Pursuant to the Exclusive Business Cooperation Agreements entered into by and between Rise King WFOE and each of the PRC Operating Entities, Rise King WFOE has the exclusive right to provide to the PRC Operating Entities complete technical support, business support and related consulting services during the term of these agreements, which includes but is

not

limited to technical services, business consultations, equipment or property leasing, marketing consultancy system integration, product research and development, and system maintenance. In exchange for such services, each PRC Operating Entity has agreed to pay a service fee consisting of a management fee and a fee for services provided, to Rise King WFOE, which shall be determined by Rise King WFOE according to the following factors: the complexity and difficulty of the services, seniority of and time consumed by the employees, specific contents, scope and value of the services, market price of the same type of services, and operation conditions of the PRC Operating Entities. Each agreement shall remain effective unless terminated in accordance with the provisions thereof or terminated in writing by Rise King WFOE.

Exclusive Option Agreements:

Under the Exclusive Option Agreements entered into by and among Rise King WFOE, each of the PRC Shareholders irrevocably granted to Rise King WFOE or its designated person an exclusive option to purchase, to the extent permitted by PRC law, a portion or all of their respective equity interest in any PRC Operating Entities for a purchase price of RMB

10,

or a purchase price to be adjusted to be in compliance with applicable PRC laws and regulations. Rise King WFOE, or its designated person, has the sole discretion to decide when to exercise the option, whether in part or in full. Each of these agreements shall become effective upon execution and remain effective until all equity interests held by the relevant PRC Shareholder(s) in the PRC Operating Entities have been transferred or assigned to Rise King WFOE and/or any other person designated by Rise King WFOE.

Equity Pledge Agreements:

Under the Equity Pledge Agreements entered into by and among Rise King WFOE, the PRC Operating Entities and each of the PRC Shareholders, the PRC Shareholders pledged all of their equity interests in the PRC Operating Entities to guarantee the PRC Operating Entities’ and the PRC Shareholders’ performance of the relevant obligations under the Exclusive Business Cooperation Agreements and other Contractual Agreements. If the PRC Operating Entities or any of the PRC Shareholders breaches its/his/her respective contractual obligations under these agreements, or upon the occurrence of

one

of the events regarded as an event of default under each such agreement, Rise King WFOE, as pledgee, will be entitled to certain rights, including the right to dispose of the pledged equity interests. The PRC Shareholders of the PRC Operating Entities agreed

not

to dispose of the pledged equity interests or take any actions that would prejudice Rise King WFOE's interest, and to notify Rise King WFOE of any events or upon receipt of any notices which

may

affect Rise King WFOE's interest in the pledge. Each of the equity pledge agreements will be valid until all the obligations under the Exclusive Business Cooperation Agreements and other Contractual Agreements have been fulfilled, including the service fee payments related to the Exclusive Business Cooperation Agreement are paid in full.

Irrevocable Powers of Attorney:

The PRC Shareholders have each executed an irrevocable power of attorney to appoint Rise King WFOE as their exclusive attorneys-in-fact to vote on their behalf on all PRC Operating Entities matters requiring shareholder approval. The term of each power of attorney is valid so long as such shareholder is a shareholder of the respective PRC Operating Entity.

As a result of these VIE Agreements, the Company through its wholly-owned subsidiary, Rise King WFOE, was granted with unconstrained decision making rights and power over key strategic and operational functions that would significantly impact the PRC Operating Entities or the VIEs’ economic performance, which includes, but is

not

limited to, the development and execution of the overall business strategy; important and material decision making; decision making for merger and acquisition targets and execution of merger and acquisition plans; business partnership strategy development and execution; government liaison; operation management and review; and human resources recruitment and compensation and incentive strategy development and execution. Rise King WFOE also provides comprehensive services to the VIEs for their daily operations, such as operational technical support, office automation technical support, accounting support, general administration support and technical support for products and services. As a result of the Exclusive Business Cooperation Agreements, the Equity Pledge Agreements and the Exclusive Option Agreements, the Company will bear all of the VIEs’ operating costs in exchange for the net income of the VIEs. Under these agreements, the Company has the absolute and exclusive right to enjoy economic benefits similar to equity ownership through the VIE Agreements with its PRC Operating Entities and their shareholders.

In the opinion of the Company’s PRC legal counsel, as of the date hereof, the Company’s current contractual arrangements with the VIEs and their respective shareholders are valid, binding and enforceable. However, there are uncertainties and risks in relation to the Company’s VIE Structure.

December 23, 2018,

the PRC State Council submitted the draft version of the Foreign Investment Law to the Standing Committee of the National People’s Congress, which was promulgated by the National People’s Congress on its official site on

December 26, 2018

for public consultation until

February 24, 2019.

March 15, 2019,

the National People’s Congress approved the Foreign Investment Law, which will come into effect on

January 1, 2020

and replace the trio of existing laws regulating foreign investment in China, namely, the Sino-foreign Equity Joint Venture Enterprise Law, the Sino-foreign Cooperative Joint Venture Enterprise Law and the Wholly Foreign-invested Enterprise Law, together with their implementation rules and ancillary regulations.

The Foreign Investment Law embodies an expected PRC regulatory trend to rationalize its foreign investment regulatory regime in line with prevailing international practice and the legislative efforts to unify the corporate legal requirements for both foreign and domestic investments. However, since it is relatively new, uncertainties still exist in relation to its interpretation and implementation. Though it does

not

explicitly classify contractual arrangements as a form of foreign investment, there is

assurance that foreign investment via contractual arrangement would

not

be interpreted as a type of indirect foreign investment activities under the definition in the future. In addition, the definition contains a catch-all provision which includes investments made by foreign investors through means stipulated in laws or administrative regulations or other methods prescribed by the State Council. Therefore, it still leaves leeway for future laws, administrative regulations or provisions promulgated by the State Council to provide for contractual arrangements as a form of foreign investment. In any of these cases, it will be uncertain whether the Company’s contractual arrangements will be deemed to be in violation of the market access requirements for foreign investment under the PRC laws and regulations. Furthermore, if future laws, administrative regulations or provisions prescribed by the State Council mandate further actions to be taken by companies with respect to existing contractual arrangements, the Company

may

face substantial uncertainties as to whether it can complete such actions in a timely manner, or at all. Failure to take timely and appropriate measures to cope with any of these or similar regulatory compliance challenges could materially and adversely affect the Company’s current corporate structure, corporate governance and business operations.

In addition, these contractual arrangements

may

not

be as effective in providing the Company with control over the VIEs as direct ownership. Due to its VIE structure, the Company has to rely on contractual rights to effect control and management of the VIEs, which exposes it to the risk of potential breach of contract by the shareholders of the VIEs for a number of reasons. For example, their interests as shareholders of the VIEs and the interests of the Company

may

conflict, and the Company

may

fail to resolve such conflicts; the shareholders

may

believe that breaching the contracts will lead to greater economic benefit for them; or the shareholders

may

otherwise act in bad faith. If any of the foregoing were to happen, the Company

may

have to rely on legal or arbitral proceedings to enforce its contractual rights, including specific performance or injunctive relief, and claiming damages. Such arbitral and legal proceedings

may

cost substantial financial and other resources, and result in a disruption of its business, and the Company cannot assure that the outcome will be in its favor. In addition, as all of these contractual arrangements are governed by PRC law and provide for the resolution of disputes through either arbitration or litigation in the PRC, they would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. The legal environment in the PRC is

not

as developed as in other jurisdictions, such as the United States. As a result, uncertainties in the PRC legal system could further limit the Company’s ability to enforce these contractual arrangements. Furthermore, these contracts

may

not

be enforceable in China if PRC government authorities or courts take a view that such contracts contravene PRC laws and regulations or are otherwise

not

enforceable for public policy reasons. In the event that the Company is unable to enforce any of these agreements, the Company would

not

be able to exert effective control over the affected VIEs and consequently, the results of operations, assets and liabilities of the affected VIEs and their subsidiaries would

not

be included in the Company's consolidated financial statements. If such were the case, the Company's cash flows, financial position and operating performance would be materially adversely affected.

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

December 31, 2018

and

2017,

respectively:

	As of December 31,
	2018		2017
	US$(’000)		US$(’000)
Assets
Current assets:
Cash and cash equivalents	$	2,328	$	2,904
Accounts receivable, net		6,359		7,215
Other receivables, net		11		2,629
Prepayment and deposit to suppliers		1,724		4,009
Due from related parties, net		26		14
Total current assets		10,448		16,771

Property and equipment, net		84		177
Intangible assets, net		42		2,112
Goodwill		-		5,277
Deferred tax assets		556		975
Total Assets	$	11,130	$	25,312

Liabilities
Current liabilities:
Short-term bank loan	$	874	$	765
Accounts payable		2,868		2,848
Advances from customers		1,059		3,559
Accrued payroll and other accruals		155		159
Due to Control Group		11		11
Payable for purchasing of software technology		-		436
Taxes payable		2,562		2,711
Other payables		55		155
Total current liabilities		7,584		10,644

Total Liabilities	$	7,584	$	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.

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

December 31, 2018

and

2017,

respectively:

	Year Ended December 31,
	2018		2017
	US$(’000)		US$(’000)

Revenues	$	57,133	$	46,576
Cost of revenues		54,728		42,019
Total operating expenses (including impairment on intangible assets and goodwill)		12,826		9,853
Net loss before allocation to noncontrolling interests		10,862		5,878

Note 3 - Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Significant Accounting Policies [Text Block]

Summary of significant accounting policies

Basis of presentation

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

Going concern

The Company incurred operating losses and had negative operating cash flows and

may

continue to incur operating losses and generate negative cash flows as the Company implements its future business plan. The Company’s net loss attributable to stockholders for the year ended

December 31, 2018

was approximately

US$14.03

million, compared with approximately

US$10.13

million for the year ended

December 31, 2017.

As of

December 31, 2018,

the Company has cash and cash equivalents of approximately

US$3.74

million and net cash used in operating activities during the year ended

December 31, 2018

was approximately

US$5.39

million.

The Company does

not

currently have sufficient cash or commitments for financing to sustain its operation for the

twelve

months from the issuance date of these financial statements. The Company plans to optimize its internet resources cost investment strategy to improve the gross profit margin of its core business and to further strengthen the accounts receivables collection management and negotiate with vendors for more favorable payment terms, all of which will help to substantially increase the cashflows from operations. If the Company fails to achieve these goals, the Company

may

need additional financing to execute its business plan. If additional financing is required, the Company cannot predict whether this additional financing will be in the form of equity, debt, or another form, and the Company

may

not

be able to obtain the necessary additional capital on a timely basis, on acceptable terms, or at all. In the event that financing sources are

not

available, or that the Company is unsuccessful in increasing its gross profit margin and reducing operating losses, the Company

may

be unable to implement its current plans for expansion, repay debt obligations or respond to competitive pressures, any of which would have a material adverse effect on the Company’s business, prospects, financial condition and results of operations. These factors raise substantial doubt about the Company's ability to continue as a going concern within

one

year after the date that the financial statements are issued.

The consolidated financial statements as of

December 31, 2018

have been prepared under the assumption that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and the satisfaction of liabilities in the normal course of business over a reasonable period of time. The Company's ability to continue as a going concern is dependent upon its uncertain ability to increase gross profit margin and reduce operating loss from its core business and/or obtain additional equity and/or debt financing. The accompanying financial statements as of

December 31, 2018

not

include any adjustments that might result from the outcome of these uncertainties. If the Company is unable to continue as a going concern, it

may

have to liquidate its assets and

may

receive less than the value at which those assets are carried on the financial statements.

Principles of consolidation

The consolidated financial statements include the accounts of all the subsidiaries and VIEs of the Company. All transactions 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 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 and transactions

The Company conducts substantially all of its operations through its PRC operating subsidiaries and VIEs, PRC is the primary economic environment in which the Company operates. For financial reporting purposes, the financial statements of the Company’s PRC operating subsidiaries and VIEs, which are prepared using the functional currency of the PRC, Renminbi (“RMB”), are translated into the Company’s reporting currency, the United States Dollar (“U.S. dollar”). Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and stockholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income in stockholders’ equity.

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. The resulting exchange differences are included in the determination of net loss of the consolidated statements of operations and comprehensive loss for the respective periods.

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

	As of December 31,
	2018		2017
Balance sheet items, except for equity accounts		6.8632		6.5342

	Year Ended December 31,
	2018		2017
Items in the statements of operations and comprehensive loss, and statements of cash flows		6.6174		6.7518

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

Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and bank deposits, which are unrestricted as to withdrawal and use. The Company considers all highly liquid investments with original maturities of

three

months or less at the time of purchase to be cash equivalents. As of

December 31, 2018,

the Company’s cash and cash equivalents also included an approximately

US$25,500

term deposit placed as a c

ollateral for the Company’s short-term bank loan for a

one

-year period, which will mature on

September 21, 2019.

Accounts receivable, net

Accounts receivable are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. For the years ended

December 31, 2018

and

2017,

the Company charged off approximately US$nil and

US$1.41

million account receivable balances against the related allowance for doubtful accounts, respectively. The Company did

not

have any off-balance-sheet credit exposure relating to its customers, suppliers or others. For the years ended

December 31, 2018

and

2017,

the Company recorded approximately

US$0.76

million and

US$1.28

million of allowances for doubtful accounts against its accounts receivable.

Other receivables, net

The Company’s other receivables primarily consists of overdue contractual deposits receivable from suppliers and short-term loans lent to

third

parties. Other receivables are recorded at carrying amount less an allowance for uncollectible accounts as needed. The loans lent by the Company to

third

parties are normally unsecured, range from

three

months to

twelve

months, and with an interest rate range from

nil

12%

per annum. The cash flows related to these loans are included within the cash flows from investing activities category in the consolidated statements of cash flows. The Company determines the allowance based on many factors, including but

not

limited to, aging data, historical collection experience, debtors’ specific facts and the general economic conditions. For the year ended

December 31, 2018,

approximately

US$0.80

million allowance for doubtful accounts was provided. For the year ended

December 31, 2017,

approximately

US$0.03

million allowance for doubtful accounts was reversed due to subsequent collection. As of

December 31, 2018

and

2017,

substantially all of the allowances for doubtful accounts are provided for the Company’s overdue contractual deposits.

Long-term investments

Equity method investments

The Company accounts for its investments in entities in which the Company can exercise significant influence but does

not

own a majority equity interest or control under the equity method of accounting in accordance with ASC Topic

323

“Investments-Equity Method and Joint Ventures”. An investment (direct or indirect) of

20%

or more of the voting stock shall lead to a presumption that in the absence of predominate evidence to the contrary an investor has the ability to exercise significant influence over an investee. Under the equity method of accounting, an investee company’s accounts are

not

reflected within the Company’s consolidated balance sheets and statements of operations and comprehensive loss; however, the Company’s pro-rata share of the income or losses of the investee company is included in the consolidated statements of operations and comprehensive loss. The Company’s carrying value (including advance to the investee) in equity method investee companies is recorded as “Long-term investments” in the Company’s consolidated balance sheets.

When the Company’s carrying value in an equity method investee company is reduced to zero,

further losses are recorded in the Company’s consolidated financial statements unless the Company guaranteed obligations of the investee company or has committed additional funding. When the investee company subsequently reports income, the Company will

not

record its share of such income until it equals the amount of its share of losses

not

previously recognized.

The Company assesses its equity method investments for other-than-temporary impairment in accordance with ASC

323

through

32A,

evidence of loss in value might include, but would

not

necessarily be limited to, absence of an ability to recover the carrying amount of the investment or inability of the investee to sustain an earnings capacity that would justify the carrying amount of the investment. The impairment to be recognized is measured by the amount by which the carrying value exceed its fair value.

For the years ended

December 31, 2018

and

2017,

other-than temporary impairment loss was recorded associated with the Company’s equity method investments.

Investments in equity securities and other ownership interests

The Company’s investments in equity securities and other ownership interests (except those accounted for under the equity method of accounting or those that resulted in consolidation of the investee), i.e. investments in investee companies that are

not

consolidated, and over which the Company does

not

exercise significant influence, are accounted for in accordance with ASC Topic

321:

“Investments-Equity securities”. The Company generally owns less than

20%

interest in the voting securities of these investee companies. In accordance with ASC

321

the Company chooses to measure these 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 and records the carrying value of these investments as “Long-term investments” in the Company’s consolidated balance sheets.

In accordance with ASC

321

the Company writes down the carrying value of these investments to its fair value if a qualitative assessment indicates that the investment is impaired, and the fair value of the investment is less than its carrying value, as determined using the guidance in ASC

321

For the years ended

December 31, 2018

and

2017,

the Company recorded approximately

US$0.45

million and

US$0.04

million of impairment loss, respectively, associated with its investments in other ownership interests that are

not

accounted for under the equity method of accounting.

Property and equipment, net

Property and equipment are recorded at cost less accumulated depreciation/amortization. Depreciation/amortization is calculated on the straight-line method after taking into account their respective estimated residual values over the following estimated useful lives:

Leasehold improvements (years)		3
Vehicles (years)		5
Office equipment (years)	3	-	5
Electronic devices (years)		5

Depreciation expenses are included in sales and marketing expenses, general and administrative expenses and research and development expenses. Leasehold improvements are amortized over the lesser of the lease term or estimated useful life.

When property and equipment are retired or otherwise disposed of, resulting gain or loss is included in net income or loss in the period of disposition. Maintenance and repairs which do

not

improve or extend the expected useful lives of the assets are charged to expenses as incurred, whereas the cost of renewals and betterments that extend the useful life of the assets are capitalized as additions to the related assets.

Intangible assets, net

The Company accounted for cost related to internal-used software in accordance with ASC Topic

350

“Intangibles-Goodwill and Other-Internal-Use Software”. Internal-use software is initially recorded at cost and amortized on a straight-line basis over the estimated useful economic life of

years.

Impairment of long-lived assets

In accordance with ASC

360

35,

long-lived assets, which include tangible long-lived assets and intangible long-lived assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset

may

not

be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment loss is recognized for the difference between the carrying amount of the asset and its fair value.

For the years ended

December 31, 2018

and

2017,

the Company recognized

US$3.33

million and

US$2.55

million impairment loss associated with its intangible assets, respectively. See Note

(p) and Note

for detailed disclosures about the impairment of intangible assets and the related valuation techniques and inputs used in the fair value measurement for the Company’s intangible assets.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Company's acquisitions of interests in its consolidated VIEs.

Goodwill is

not

depreciated or amortized but is tested for impairment at the reporting unit level at least on an annual basis, and between annual tests when an event occurs, or circumstances change that could indicate that the asset might be impaired. The Company early adopted ASU

2017

04,

“Intangibles-Goodwill and Other (Topic

350

)-Simplifying the Test for Goodwill Impairment” on

January 1, 2018,

which eliminated step

of the goodwill impairment test. After adopting the amendments in ASU

2017

04,

the Company performs its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and recognizes the goodwill impairment loss for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. In accordance with ASC

350

31,

if goodwill and another asset (or asset group) of a reporting unit are tested for impairment at the same time, the other asset (or asset group) shall be tested for impairment before goodwill. If the other asset (or asset group) was impaired, the impairment loss would be recognized prior to goodwill being test for impairment.

Application of a goodwill impairment test requires significant management judgments. The judgments in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit.

For the year ended

December 31, 2018,

after assessing the total events or circumstances as described in ASC

350

(a) through (g), the Company determined that it was more likely than

not

that the fair value of its internet advertising and data services reporting unit was less than its carrying amount. As a result, the Company performed interim goodwill impairment test as of

June 30, 2018

and recognized an approximately

US$5.21

million of goodwill impairment loss associated with this reporting unit. See Note

(p) and Note

for detailed disclosures about the impairment of goodwill and the related valuation techniques and inputs used in the fair value measurement for the Company’s goodwill.

Changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary

The Company accounted for changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary in accordance with ASC Topic

810

“Consolidation”, subtopic

10,

which requires the transaction be accounted for as an equity transaction. Therefore,

gain or loss shall be recognized in the Company’s consolidated statements of operations and comprehensive loss. The carrying amount of the noncontrolling interest shall 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 shall 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.

The Company acquired the remaining

49%

equity interest in Chuang Fu Tian Xia in

May 2018

and accounted for this transaction as an equity transaction with

gain or loss recognized in the consolidated statements of operations and comprehensive loss. The difference between the cash consideration paid and the amount by which the noncontrolling interest was adjusted to reflect the change in its ownership interest in the VIE of approximately

US$1.81

million and a reallocation of Chuang Fu Tian Xia’s accumulated comprehensive loss of approximately

US$0.03

million were recognized as losses in equity attributable to the Company included in additional paid-in capital for the year ended

December 31, 2018.

Noncontrolling interest

The Company accounts for noncontrolling interest in accordance with ASC Topic

810

45,

which requires the Company to present noncontrolling interests as a separate component of total shareholders’ equity on the consolidated balance sheet and the consolidated net income/(loss) attributable to the parent and the noncontrolling interest be clearly identified and presented on the face of the consolidated statement of operations and comprehensive loss. ASC Topic

810

also requires that losses attributable to the parent and the noncontrolling interest in a subsidiary be attributed to those interests even if it results in a deficit noncontrolling interest balance.

Fair value

The Company’s financial instruments primarily consist of cash and cash equivalents, accounts receivable, other receivables and accounts payable. The carrying values of these financial instruments approximate fair values due to their short maturities.

ASC Topic

820

"Fair Value Measurement and Disclosures," defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. There are

three

levels of inputs that

may

be used to measure fair value:

Level

- Quoted prices in active markets for identical assets or liabilities.

Level

- Observable inputs other than Level

prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are

not

active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level

- Unobservable inputs that are supported by little or

market activity and that are significant to the fair value of the assets or liabilities.

Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter.

Liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as of

December 31, 2018

is as follows:

Fair value measurement at reporting date using

As of
December 31, 2018

Quoted Prices
in Active Markets
for Identical Assets/Liabilities
(Level 1)

Significant
Other
Observable Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

US$(’000)

Warrant liabilities (Note 19)

606

Significant unobservable inputs utilized to determine the fair value of the Company’s warrant liabilities was disclosed in Note

19.

The Company’s intangible assets and goodwill are measured at fair value on a nonrecurring basis and they are recorded at fair value only when impairment is recognized.

The Company determined the fair value of intangible assets and goodwill using income approach. The following table summarizes the quantitative information about the Company’s Level

fair value measurements, which utilize significant unobservable internally-developed inputs:

	Valuation techniques	Unobservable inputs	Value/Range of Inputs

Year Ended December 31, 2018
		Remaining useful life (years)		7.75
Intangible assets (Note 10)	Multi-period Excess Earning	Discount rate		24%
		Contributory asset charge	8.90%	-	24%

Goodwill (Note 12)	Discounted Cash Flow	Base projection period (years)		5
		Discount rate		20%
		Terminal growth rate		3.50%

Year Ended December 31, 2017
		Remaining useful life (years)	3.25	-	8.5
Intangible assets (Note 10)	Multi-period Excess Earning	Discount rate		24%
		Contributory asset charge	15.90%	-	24%


		Base projection period (years)		5
Goodwill (Note 12)	Discounted Cash Flow	Discount rate		20%
		Terminal growth rate		3.50%

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.

Multiple performance obligations included in the Company’s contracts with customers for the distribution of the right to use search engine marketing service are neither capable of being distinct, that is, can benefit the customer on its own or together with other readily available resources, nor is distinct within the context of the contract, that is, the promise to transfer the service separately identifiable from other promises in the contract.

The Company’s contract with customers do

not

include significant financing component and any variable consideration.

Advance from customers related to unsatisfied performance obligations are generally refundable. Refund of advance from cu

stomers was insignifi

cant for both the years ended

December 31, 2018

and

2017.

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 principal 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:

	Year Ended December 31,
	2018		2017
	US$(’000)		US$(’000)
Internet advertising and data service
--distribution of the right to use search engine marketing service		47,423		37,355
--online advertising placements		9,094		7,534
--sales of effective sales lead information		494		1,345
TV advertising service		121		342
Others		14		57
Total revenues		57,146		46,633

	Year Ended December 31,
	2018		2017
	US$(’000)		US$(’000)

Revenue recognized over time		56,652		45,288
Revenue recognized at a point in time		494		1,345
Total revenues		57,146		46,633

Contract costs

For the year ended

December 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, distribution of the right to use search engine marketing service, as well as TV advertising service. 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 year ended

December 31, 2018:

	Advance from customers
	US$(’000)

Balance as of January 1, 2018		3,559
Exchange translation adjustment		(171	)
Revenue recognized from beginning contract liability balance		(3,338	)
Advances received from customers related to unsatisfied performance obligations		1,011
Balance as of December 31, 2018		1,061

For the year ended

December 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

December 31, 2018,

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

one

year or less.

Cost of revenues

Cost of revenues primarily includes the cost of internet advertising related resources, TV advertising time slots and other technical services purchased from

third

parties and other direct cost associated with providing services.

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 statement of operations and comprehensive loss. For the years ended

December 31, 2018

and

2017,

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

US$1,097,000

and

US$1,717,000,

respectively.

Research and development expenses

The Company accounts for expenses for the enhancement, maintenance and technical support to the Company’s Internet platforms and intellectual properties that are used in its daily operations in research and development expenses. Research and development costs are charged to expense when incurred. Expenses for research and development for the years ended

December 31, 2018

and

2017

were approximately

US$933,000

and

US$1,261,000,

respectively.

Income taxes

The Company follows the guidance of ASC Topic

740

“Income taxes” and uses liability method to account for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets, if based on the weight of available evidence, it is more-likely-than-

not

that some portion, or all, of the deferred tax assets will

not

be realized. The effect on deferred taxes of a change in tax rates is recognized in statement of operations and comprehensive loss in the period that includes the enactment date.

Uncertain tax positions

The Company follows the guidance of ASC Topic

740

“Income taxes”, which prescribes a more likely than

not

threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As a result, the impact of an uncertain income tax position is recognized at the largest amount that is more-likely-than-

not

to be sustained upon audit by the relevant tax authority. An uncertain income tax position will

not

be recognized if it has less than a

50%

likelihood of being sustained.

The Company recognizes interest on non-payment of income taxes under requirement by tax law and penalties associated with tax positions when a tax position does

not

meet the minimum statutory threshold to avoid payment of penalties. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. The tax returns of the Company’s PRC subsidiaries and VIEs are subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is

three

years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to

five

years under special circumstances, where the underpayment of taxes is more than

RMB100,000.

In the case of transfer pricing issues, the statute of limitation is

ten

years. There is

statute of limitation in the case of tax evasion. The Company did

not

have any material interest or penalties associated with tax positions for the years ended

December 31, 2018

and

2017

and did

not

have any significant unrecognized uncertain tax positions as of

December 31, 2018

and

2017,

respectively.

Share-based Compensation

The Company accounts for share-based compensation to employees in accordance with ASC Topic

718

“Compensation-Stock Compensation” which requires that share-based payment transactions be measured based on the grant-date fair value of the equity instrument issued, net of an estimated forfeiture rate, if applicable, and therefore only recognizes compensation expenses for those equity instruments expected to vest over the requisite service period, or vesting period. Forfeitures are estimated at the time of grant and revised in the subsequent periods if actual forfeitures differ from those estimates.

The Company accounts for equity-based payment to non-employees in accordance with ASC Topic

505,

subtopic

50.

Cost of services received from non-employees is measured at fair value at the earlier of the performance commitment date or the date service is completed and recognized over the period the service is provided. If fully vested, nonforfeitable equity instrument are issued at the date an agreement for goods or services is entered into (

specific performance is required by the grantee to retain the equity instruments), then, because of the elimination of any obligation on the part of the counterparty to earn the equity instruments, a measurement date has been reached. Under such circumstances, the Company recognizes the equity instruments when they are issued (in most cases, when the agreement is entered into), the corresponding cost is recorded as a prepayment on the balance sheet in accordance with ASC

505

and amortized as share-based compensation expenses over the requisite service period. Share-based compensation expenses were recorded in sales and marketing expenses, general and administrative expenses and research and development expenses.

)

Comprehensive income (loss)

The Company accounts for comprehensive income (loss) in accordance with ASC Topic

220

“Comprehensive Income”, which establishes standards for reporting and displaying comprehensive income (loss) and its components in the consolidated financial statements. Comprehensive income (loss) is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Accumulated other comprehensive income, as presented in the Company’s consolidated balance sheets are the cumulative foreign currency translation adjustments.

Earnings (loss) per share

Earnings (loss) per share are calculated in accordance with ASC Topic

260,

“Earnings Per Share”. Basic earnings (loss) per share is computed by dividing income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Common shares issuable upon the conversion of the convertible preferred shares are included in the computation of diluted earnings per share on an “if-converted” basis when the impact is dilutive. The dilutive effect of outstanding common stock warrants and options are reflected in the diluted earnings per share by application of the treasury stock method when the impact is dilutive.

Commitments and contingencies

The Company has adopted ASC Topic

450

“Contingencies” subtopic

20,

in determining its accruals and disclosures with respect to loss contingencies. Accordingly, estimated losses from loss contingencies are accrued by a charge to income when information available before financial statements are issued or are available to be issued indicates that it is probable that an asset had been impaired, or a liability had been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is

not

probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred.

aa)

Recent issued or adopted accounting standards

January 2016,

the FASB issued ASU

No.

2016

01,

“Financial Instruments—Overall (Subtopic

825

): Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this ASU, among other things, required that equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity

may

choose to measure equity investments that 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 same issuer. This ASU also simplified the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. For public business entities, the amendments in this ASU are effective for fiscal years beginning after

December 15, 2017,

including interim periods within those fiscal years. The Company has adopted the amendments in this ASU on

January 1, 2018

and the adoption of this ASU did

not

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

February 2016,

the FASB issued ASU

No.

2016

02,

“Leases (Topic

842

)”. The amendments in this ASU requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of

months or less, a lessee is permitted to make an accounting policy election by class of underlying asset

not

to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. For public business entities, the amendments in this ASU are effective for fiscal years beginning after

December 15, 2018,

including interim periods within those fiscal years. Early application of the amendments in this ASU is permitted for all entities. In

July 2018,

the FASB issued ASU

No.

2018

11,

“Leases (Topic

842

)–Targeted Improvements”, which provide another transition method in addition to the existing transition method by allowing entities to initially apply the new leases standard at the adoption date (such as

January 1, 2019,

for calendar year-end public business entities) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, and provide lessors with a practical expedient, by class of underlying asset, to

not

separate nonlease components from the associated lease component and, instead, to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue guidance (Topic

606

). The Company adopted the amendments in these ASUs on

January 1, 2019

using the additional modified retrospective transition method provided by ASU

No.

2018

11.

The adoption didn’t result in a material adjustment to the Company’s accumulated deficit as of

January 1, 2019.

Based on the Company’s current office space lease agreements as of

December 31, 2018,

the amounts of the right-of-use asset and related lease payment liability to be recognized in

2019

was insignificant.

June 2016,

the FASB issued ASU

No.

2016

13,

“Financial Instruments-Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments”. The amendments in this ASU require the measurement and recognition of expected credit losses for financial assets held at amortized cost. The amendments in this ASU replace the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. In

November 2018,

the FASB issued ASU

No.

2018

19,

“Codification Improvements to Topic

326,

Financial Instruments-Credit Losses”, which among other things, clarifies that receivables arising from operating leases are

not

within the scope of Subtopic

326

20.

Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic

842,

Leases. For public entities, the amendments in these ASU are effective for fiscal years beginning after

December 15, 2019,

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

November 2016,

the FASB issued ASU

No.

2016

18,

“Statement of Cash Flows (Topic

230

): Restricted Cash”. The amendments in this ASU require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this ASU are effective for public business entities for fiscal years beginning after

December 15, 2017,

and interim periods within those fiscal years, and should be applied using a retrospective transition method to each period presented. The Company adopted the amendments in the ASU on

January

2018

using the retrospective transition method, which resulted in an approximately

US$3.1

million term deposit held by the Company as of

December 31, 2016

and matured during the year ended

December 31, 2017

being reclassified from a cash inflow from investing activities to the beginning balance of cash, cash equivalents, and restricted cash shown on the statement of cash flows for the year ended

December 31, 2017.

The adoption of ASU

No.

2016

had

impact on the Company’s statement of cash flows for the year ended

December 31, 2018.

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. 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 has early adopted the amendments in this ASU on

January 1, 2018,

and the adoption of this ASU did

not

have a material impact on its consolidated financial position and results of operations.

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 on

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

No.

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. Based on the Company’s evaluation, the Company does

not

expect the adoption of the amendments in this ASU to have a material impact on its consolidated financial position and results of operations.

June 2018,

the FASB issued ASU

No.

2018

07:

“Compensation—Stock Compensation (Topic

718

)-Improvements to Nonemployee Share-Based Payment Accounting”. The Board is issuing this Update as part of its Simplification Initiative. The amendments in this Update expand the scope of Topic

718

to include share based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic

718

to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that Topic

718

applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic

718

does

not

apply to share-based payments used to effectively provide (

) financing to the issuer or (

) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic

606,

Revenue from Contracts with Customers. The amendments in this Update are effective for public business entities for fiscal years beginning after

December 15, 2018,

including interim periods within that fiscal year. For all other entities, the amendments 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, but

earlier than an entity’s adoption date of Topic

606.

An entity should only remeasure liability-classified awards that have

not

been settled by the date of adoption and equity-classified awards for which a measurement date has

not

been established through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. Upon transition, the entity is required to measure these nonemployee awards at fair value as of the adoption date. The entity must

not

remeasure assets that are completed. Disclosures required at transition include the nature of and reason for the change in accounting principle and, if applicable, quantitative information about the cumulative effect of the change on retained earnings or other components of equity. Based on the Company’s evaluation, the Company does

not

expect the adoption of the amendments in this ASU to have a material impact on its consolidated financial position and results of operations.

August

2018,

the FASB issued ASU

No.

2018

13,

“Fair Value Measurement (Topic

820

): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”. The amendments in this ASU eliminate, add and modify certain disclosure requirements for fair value measurements. The amendments in this ASU, among other things, require public companies to disclose the range and weighted average used to develop significant unobservable inputs for Level

fair value measurements. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2019,

and entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The Company does

not

expect the adoption of these amendments to have a material impact on its consolidated financial position and results of operations.

Note 4 - Accounts Receivable, Net

12 Months Ended

Dec. 31, 2018

Accounts Receivable Disclosure [Text Block]

Accounts receivable, net

	As of December 31,
	2018			2017
	US$(’000)			US$(’000)

Accounts receivable		9,752			10,008
Allowance for doubtful accounts		(3,393	)		(2,793	)
Accounts receivable, net		6,359			7,215

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

December 31, 2018

and

2017,

the Company provided approximately

US$3,393,000

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 years ended

December 31, 2018

and

2017,

approximately

US$0.76

million and

US$1.28

million allowance for doubtful accounts was provided. For the years ended

December 31, 2018

and

2017,

the Company also charged off approximately US$

nil

and

US$1.41

million account receivable balances against the related allowance for doubtful accounts, respectively, as all means of collection of these balances have been exhausted and the potential for recovery is considered remote.

Note 5 - Other Receivables, Net

12 Months Ended

Dec. 31, 2018

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

Other receivables, net

	As of December 31,
	2018			2017
	US$(’000)			US$(’000)

Short-term working capital loan to unrelated parties		146			2,602
Staff advances for normal business purpose		19			44
Overdue deposits		1,619			893
		1,784			3,539
Allowance for doubtful accounts		(1,765	)		(893	)
Other receivables, net		19			2,646

Other receivables as of

December 31, 2017

primarily represented a short-term working capital loan of approximately

RMB17.0

million (approximately

US$2.6

million) to an unrelated

third

party, which was fully repaid during the

first

fiscal quarter of

2018.

Short-term working capital loan to unrelated parties as of

December 31, 2018

represented a loan of approximately

RMB1.0

million (approximately

US$0.15

million) lent to a former unconsolidated investee of the Company and was reclassified from due from related parties as the Company disposed its investment in this entity during

2018.

The Company had provided full allowance against this loan before the reclassification (See Note

As of

December 31, 2018

and

2017,

other receivables also included an approximately

RMB11.1

million (approximately

US$1.62

million) and

RMB5.8

million (

US$0.89

million) overdue contractual deposits, respectively, 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

December 31, 2018

and

2017,

the Company had provided full allowance against these doubtful accounts.

For the year ended

December 31, 2018,

approximately

US$0.80

million allowance for doubtful accounts was provided to against the Company’s other receivables. For the year ended

December 31, 2017,

approximately

US$0.03

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

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

12 Months Ended

Dec. 31, 2018

Prepayments and Deposits to Suppliers Disclosure [Text Block]

Prepayments and deposit to suppliers

	As of December 31,
	2018		2017
	US$(’000)		US$(’000)

Deposits to internet and TV resources providers		963		1,870
Prepayments to internet and TV resources providers		727		1,331
Deposits to other service provider		-		765
Other deposits and prepayments		464		107
		2,154		4,073

The Company purchases internet resources from large internet search engines for distribution of the right to use the search engine marketing service to its clients and attraction of the internet traffic to its advertising portals. The Company also purchases TV advertising time slots for the broadcasting of infomercials to promote brands, business information, products and services of its clients.

As of

December 31, 2018

and

2017,

contractual deposits were primarily paid to the same

two

of the Company’s largest internet resources suppliers. The contractual deposits will be refunded to the Company upon expiration of the contracts, which are generally for a

one

-year period.

According to the contracts signed between the Company and its suppliers, the Company is 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

December 31, 2018

and

2017,

prepayments primarily paid for purchasing internet resources from the Company’s major 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

December 31, 2018

and

2017

represented deposits and prepayments to the Company’s other services providers, which primarily included deposits for office lease contracts, prepayment for various kinds of professional consulting services, etc.

Note 7 - Due From Related Parties, Net

12 Months Ended

Dec. 31, 2018

Due from related parties, net

	As of December 31,
	2018			2017
	US$(’000)			US$(’000)

Beijing Saimeiwei Food Equipment Technology Co., Ltd.		-			33
Chuangshi Meiwei (Beijing) International Investment Management Co., Ltd.		-			156
Guohua Shiji (Beijing) Communication Co., Ltd.		201			184
ChinaNet Chuang Tou (Shenzhen) Co., Ltd.		-			14
An officer of the Company		200			-
		401			387
Allowance for doubtful accounts		(175	)		(373	)
Due from related parties, net		226			14

Related parties of the Company represented the Company’s direct or indirect unconsolidated investee companies as well as an officer of the Company.

As of

December 31, 2018,

due from related parties included a short-term working capital loan of

RMB1.38

million (approximately

US$0.20

million) to Guohua Shiji (Beijing) Communication Co., Ltd. (“Guohua Shiji”), of which

RMB0.18

million (approximately

US$0.03

million) was subsequently collected in the

first

fiscal quarter of

2019,

and a

US$0.20

million fund advanced to

one

of the Company’s officers, which is discussed in a separate paragraph below.

As of

December 31, 2017,

due from related parties included short-term working capital loans of

RMB1.0

million (approximately

US$0.15

million) and

RMB1.2

million (approximately

US$0.18

million) to Chuangshi Meiwei (Beijing) International Investment Management Co., Ltd. (“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, the Company had provided full allowance for doubtful accounts to against these loans as of

December 31, 2017.

As discussed in Note

above, the amount and the related allowance related to the short-term loan lent to Chuangshi Meiwei were transferred to other receivables account as the Company disposed its investment in the entity during

2018.

For the year ended

December 31, 2018,

the Company reversed approximately

US$0.04

million allowance for doubtful accounts against the Company’s balances due from related parties, because of subsequent collection of service fee receivables. For the year ended

December 31, 2017,

an approximately

US$0.21

million allowance for doubtful accounts was provided, primarily to against the Company’s loan to Guohua Shiji.

Due from an officer of the Company as of

December 31, 2018

represented a

US$0.20

million fund advanced to

one

of the Company’s officers during the

third

fiscal quarter of

2018

for the purpose of setting up and providing finance to a proposed business entity in Taiwan. The Company intends to set up and expand its business in Taiwan through establishing the VIE arrangements with this Taiwan entity. This Taiwan entity was incorporated in

September 2017

and is wholly-owned by the officer referred above, as of

December 31, 2018,

this entity has

fund and business activities. Based on the fact that there are still legal obstacles to establish the VIE agreements between an entity that is ultimately controlled by the PRC citizens with an entity duly organized under the law of Taiwan, the Company terminated the plan, and the

US$0.2

million fund advanced was fully returned to the Company subsequently in

April 2019.

Note 8 - Long-term Investments

12 Months Ended

Dec. 31, 2018

Equity Method Investments and Joint Ventures Disclosure [Text Block]

Long-term investments

Equity method investments

As of

December 31, 2018

and

2017,

the Company beneficially owned

23.18%

and

25.5%

equity interest in ShenZhen City Mingshan Network Technology Co., Ltd. (‘Shenzhen Mingshan”) and Zhao Shang Ke Network Technology (Hubei) Co., Ltd. (“Zhao Shang Ke Hubei”), respectively. The Company accounted 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.

Other ownership interest investments

As of

December 31, 2018,

the Company beneficially owned a

19%

equity interest in both Guohua Shiji and ChinaNet Chuang Tou (Shenzhen) Co., Ltd. (“ChinaNet Chuang Tou), a

15%

equity interest in ChinaNet Online Holdings Korea (“ChinaNet Korea”), a

10%

equity interest in Beijing Saturday Education Technology Co., Ltd. (“Beijing Saturday”) and a

4.9%

equity interest in Local Chain (Xi’an) Information Technology Co., Ltd. (“Local Chain Xi’an).

The following table summarizes the movement of the Company’s other ownership interest investments for the

two

years ended

December 31, 2018:

	ChinaNet Chuang Tou			Guohua Shiji			Beijing Saturday			Total
	US$(’000)			US$(’000)			US$(’000)			US$(’000)

Balance as of January 1, 2017		1,297			27			16			1,340
Cash investment returned during the year		(459	)		-			-			(459	)
Impairment on the investments		-			(29	)		(17	)		(46	)
Exchange translation adjustment		80			2			1			83
Balance as of December 31, 2017		918			-			-			918
Cash investment returned during the year		(437	)		-			-			(437	)
Impairment on the investments		(437	)		-			-			(437	)
Exchange translation adjustment		(44	)		-			-			(44	)
Balance as of December 31, 2018		-			-			-			-

As of

December 31, 2017,

except for its ownership investment in ChinaNet Chuang Tou, the Company had reduced the carrying value of its investments in all other investee companies to zero, due to the business activities of these companies had become dormant. In

2018,

the Company disposed its investment in Chuangshi Meiwei for

nil

consideration.

Due to reduce of business scale in recent years, the shareholders of ChinaNet Chuang Tou decided to reduce the investment scale accordingly and had terminated the operation of this entity in

2018,

as a result, the Company received an

RMB3.0

million (approximately

US$0.4

million) investment return in cash in both

2018

and

2017

and recognized full impairment loss to against the remaining carrying value of this investment in

2018.

For the year ended

December 31, 2018,

the Company recognized approximately

US$0.45

million impairment loss associated with its investment in ChinaNet Chuang Tou. For the year ended

December 31, 2017,

the Company recognized approximately

US$0.04

million impairment loss associated with its investments in Guohua Shiji and Beijing Saturday.

October 2018,

the Company acquired a

4.9%

equity interest in a new entity, Local Chain Xi’an, upon incorporation of this entity. The registered capital of Local Chain Xi’an is

RMB5.0

million (approximately

US$0.73

million), the Company contributed its pro-rata share of cash investment to the entity of approximately

RMB0.25

million (approximately

US$0.04

million) in

January 2019.

As of

December 31, 2018,

Local Chain

i’an was still in

its start-up stage.

Note 9 - Property and Equipment, Net

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment Disclosure [Text Block]

Property and equipment, net

	As of December 31,
	2018			2017
	US$(’000)			US$(’000)

Leasehold improvement		321			337
Vehicles		771			810
Office equipment		1,353			1,410
Electronic devices		952			1,000
Property and equipment, cost		3,397			3,557
Less: accumulated depreciation		(3,255	)		(3,258	)
Property and equipment, net		142			299

Depreciation expenses in the aggregate for the years ended

December 31, 2018

and

2017

were approximately

US$159,000

and

US$196,000,

respectively.

Note 10 - Intangible Assets, Net

12 Months Ended

Dec. 31, 2018

Intangible Assets Disclosure [Text Block]

10.	Intangible assets, net

	As of December 31, 2018
Items	Gross Carrying Value		Accumulated Amortization			Impairment			Net Carrying Value
	US$(’000)		US$(’000)			US$(’000)			US$(’000)
Intangible assets not subject to amortization:
Domain name		1,408		-			(1,408	)		-
Intangible assets subject to amortization:
Customer relationship		1,941		(1,941	)		-			-
Non-compete agreements		1,068		(580	)		(488	)		-
Software technologies		299		(299	)		-			-
Cloud compute software technology		1,353		(896	)		(415	)		42
Intelligent marketing data service platform		4,705		(1,906	)		(2,799	)		-
Internet safety, information exchange security and data encryption software		1,894		(426	)		(1,468	)		-
Cloud video management system		1,383		(343	)		(1,040	)		-
Other computer software		114		(111	)		-			3
Total	$	14,165	$	(6,502	)	$	(7,618	)	$	45

	As of December 31, 2017
Items	Gross Carrying Value		Accumulated Amortization			Impairment			Net Carrying Value
	US$(’000)		US$(’000)			US$(’000)			US$(’000)
Intangible assets not subject to amortization:
Domain name		1,478		-			(1,478	)		-
Intangible assets subject to amortization:
Customer relationship		2,038		(2,038	)		-			-
Non-compete agreements		1,122		(610	)		(512	)		-
Software technologies		314		(314	)		-			-
Cloud compute software technology		1,420		(923	)		(435	)		62
Intelligent marketing data service platform		4,942		(1,853	)		(1,600	)		1,489
Internet safety, information exchange security and data encryption software		1,990		(299	)		-			1,691
Cloud video management system		1,454		(291	)		(602	)		561
Other computer software		120		(115	)		-			5
Total	$	14,878	$	(6,443	)	$	(4,627	)	$	3,808

Amortization expenses in aggregate for the years ended

December 31, 2018

and

2017

were approximately

US$382,000

and

US$1,226,000,

respectively.

The Company performs impairment analysis on its intangible assets whenever events or changes in circumstances indicate that the carrying amount of an intangible asset

may

not

be recoverable and recognizes impairment loss for the difference between the carrying amount and the fair value of the assets. The fair value of intangible assets was determined using Multi-period Excess Earning Method (the “MPEEM method”). As an application of income approach, the MPEEM method is a widely-used valuation method, it determines the fair value of the asset as the present value of the cash flows attributable to it. As the asset will generally earn cash flows through interaction with other tangible and intangible assets, the contributions to cash flows of those other assets must be removed. Those assets are referred to as contributory assets which are defined as all assets that are utilized in the realization of expected future cash flows for the target asset. (See Note

(p) for significant unobservable internally-developed inputs used in the intangible assets fair value measurement).

For the years ended

December 31, 2018

and

2017,

the Company provided approximately

US$3.33

million and

US$2.55

million impairment losses, respectively, associated with intelligent marketing data service platform, cloud video management system, cloud compute software technology and Internet safety, information exchange security and data encryption software of its internet advertising and data service business segment, due to insufficient estimated future cash flows expected to be generated by these assets.

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

2.48

years as of

December 31, 2018,

and assuming

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

US$18,000

each year for the year ending

December 31, 2019

and

2020,

and approximately

US$9,000

for the year ending

December 31, 2021.

Note 11 - Blockchain Software Application Platform Development Costs

12 Months Ended

Dec. 31, 2018

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

11.

Blockchain software application platform development costs

February 2018,

the Company entered into a contract with an unrelated entity to develop certain blockchain technology-based software application platform for internal use. Total amount of the contract was

US$4.5

million. In

March 2018,

the Company entered into a

RMB3.0

million (approximately

US$0.44

million) social network-based software application development contract with another unrelated entity, which software application the Company had further decided to be combined into the current under developing blockchain technology-based application platform, as discussed above. As of

December 31, 2018,

in accordance with ASC

350

“Intangibles-Goodwill and Other-Internal-Use Software”, the Company had capitalized approximately

US$3.73

million software development costs in the aggregate for these

two

contracts. The Company is currently testing the partially-finished beta modules of the blockchain technology-based applications. The complete combined beta version of the platform is expected to be ready for trial in mid-

2019,

and the development project is expected to be completed by the end of

2019.

According to the development contracts the Company signed with the counter parties, the Company will

not

bear any development risk related loss unless the counter party has

fault during the development and the causes for failure is considered reasonable as consented by both parties. In the latter case, the related development loss will be shared by both parties based on further negotiation. As of the date hereof, the Company does

not

aware of any technical risks or other factors that

may

lead to failure or partial failure of these development projects.

Note 12 - Goodwill

12 Months Ended

Dec. 31, 2018

Goodwill Disclosure [Text Block]

12.

Goodwill

	Amount
	US$(’000)

Balance as of January 1, 2017		4,970
Exchange translation adjustment		307
Balance as of December 31, 2017		5,277
Impairment on goodwill		(5,024	)
Exchange translation adjustment		(253	)
Balance as of December 31, 2018		-

As of

December 31, 2018

and

2017,

the Company’s goodwill was attributable to its internet advertising and data service reporting unit. The Company performs impairment test on goodwill at least on an annual basis, and between annual tests when an event occurs, or circumstances change that could indicate that the asset might be impaired. The fair value of reporting units was determined using the income approach by a discounted cash flow analysis. The discounted cash flow method is premised on the concept that the value is based on the present value of all future cash flows by applying an appropriate discount rate. The future benefits generating cash flows consist of current income distributions, appreciation in the asset, or a combination of both. In essence, this valuation method requires a forecast to be made of cash flow, going out far enough into the future until an assumed stabilization occurs for the assets being appraised. This methodology assumes that the forecasted income/cash flow will

not

necessarily be stable in the near term but will stabilize in the future (See Note

(p) for significant unobservable internally-developed inputs used in the fair value measurement).

Due to significant decrease in overall gross profit margin and continued operating losses incurred from the Company’s internet advertising and data services reporting unit, the Company performed interim goodwill impairment test on

June 30, 2018.

In accordance with ASU

2017

04,

which the Company has adopted on

January 1, 2018,

by comparing the fair value of the reporting unit, which was approximately

US$1.0

million, with its carrying amount, including goodwill, which was approximately

US$6.2

million, the Company recognized an approximately

US$5.2

million full impairment on its goodwill for the year ended

December 31, 2018

due to insufficient estimated future cash flows expected to be generated by the reporting unit. For the years ended

December 31, 2017,

the Company did

not

record any impairment loss associated with its goodwill.

Note 13 - Short-term Bank Loan and Credit Facility

12 Months Ended

Dec. 31, 2018

Short-term Debt [Text Block]

13.	Short-term bank loan and credit facility

As of

December 31, 2018,

the Company had a revolving credit facility of

RMB5.0

million (approximately

US$0.7

million) for short-term working capital loans granted by a major financial institution in China, which currently available to the Company until

January 2, 2020.

Under the revolving credit facility, the Company borrowed

RMB3.0

million (approximately

US$0.44

million) short-term loan, which was repaid on

January 14, 2019.

As of

December 31, 2018,

the Company borrowed another

RMB3.0

million (approximately

US$0.44

million) short-term working capital loan from the same financial institution, of which

RMB1.5

million (approximately

US$0.22

million) will mature on

July 29, 2019

and the remaining

RMB1.5

million (approximately

US$0.22

million) will mature on

September 29, 2019.

Short-term loans outstanding as of

December 31, 2017

was borrowed under the same revolving credit facility, which consisted of a

RMB3.0

million (approximately

US$0.5

million) short-term loan which was repaid on

July 13, 2018

and a

RMB2.0

million (approximately

US$0.3

million) short-term loan which was repaid on

October 19, 2018.

Collateral for the above discussed revolving credit facility and short-term bank loans included an unlimited guarantee from Mr. Handong Cheng (Chairman and Chief Executive Officer of the Company) and his spouse and an approximately

US$25,500

term deposit, which will mature on

September 21, 2019.

Interest rate of the short-term working capital loans borrowed was

5.22%

5.655%

per annum for the years ended

December 31, 2018

and

2017,

which is

20%

30%

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

Note 14 - Accrued Payroll and Other Accruals

12 Months Ended

Dec. 31, 2018

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

14.

Accrued payroll and other accruals

	As of December 31,
	2018		2017
	US$(’000)		US$(’000)

Accrued payroll and staff welfare		208		203
Accrued operating expenses		313		356
		521		559

Note 15 - Due to Investors Related to Terminated Security Purchase Agreements

12 Months Ended

Dec. 31, 2018

Guarantee Payment and Prepayment from New Investors [Text Block]

15.

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 bore a

12%

annualized interest rate.

The Company had fully repaid Dongsys Innovation and Jinrun Fangzhou their principal and the related interest through

December 31, 2017

February 2018

and

June 2018,

respectively. Both Dongsys Innovation and Jinrun Fangzhou agreed

not

to charge additional interest in fiscal

2018.

Note 16 - Payable for Purchasing of Software Technology

12 Months Ended

Dec. 31, 2018

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

16.

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 paid the outstanding amount to the counterparty in

March 2018.

Note 17 - Taxation

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Text Block]

17.

Taxation

)

Income tax

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

i). a. 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. Before enactment of the Tax Cuts and Jobs Act (“TCJA” or the “Act”) in

December 2017,

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.

i). b. On

December 22, 2017,

the U.S. enacted 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 mandatory 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.

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 (the “grace period”) that should

not

extend beyond

one

year from the Act enactment date through

December 21, 2018,

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.

i). c. The Company has completed its assessment of the

one

-time transition tax on its previously deferred foreign earnings during the

third

fiscal quarter of

2018,

based on which, the Company concluded that

incremental income tax expense of the

one

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

December 31, 2017,

as the Company had sufficient U.S. net operating losses carryforwards to offset the resulting incremental taxable income related to the deferred foreign earnings, which assessment was consistent with that disclosed in the Company’s

2017

Form

-K. Based on the final assessment, the Company recognized an adjustment of approximately

US$0.46

million for the year ended

December 31, 2018,

to revise the provisional estimated amount of net operating loss utilized through toll charge income it recognized for the year ended

December 31, 2017,

from approximately

US$1.40

million to approximately

US$1.86

million. The Company also remeasured its U.S. deferred tax assets based on the new tax rate upon enactment of the Act.

i). d. Effective from

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 controlled foreign corporations (“CFCs”), 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 has made an accounting policy choice of 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”), instead of factoring such amounts into the Company’s measurement of its deferred taxes (the “deferred method”). For the year ended

December 31, 2018,

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

aggregated positive tested income.

ii). China Net BVI and ChinaNet Investment BVI were incorporated in the British Virgin Islands (“BVI”). Under the current law of the BVI, these BVI companies are

not

subject to tax on income or capital gains. Additionally, upon payments of dividends by these BVI companies to its respective 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 year ended

December 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.

Business Opportunity Online was 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 enjoying the preferential EIT rate of

15%

until

November 2018.

Business Opportunity Online re-applied the qualification of High and New technology Enterprise in

September 2018

and has obtained the approval in

February 2019.

As a result, Business Opportunity Online is entitled to continue enjoying the

15%

preferential EIT rate until

November 2021.

Therefore, for the years ended

December 31, 2018

and

2017,

the applicable EIT rate of Business Opportunity Online was

15%.

August 2018,

the PRC State Administration of Taxation (the “SAT”) issued a Bulletin (

2018

Bulletin

No.

), which extended the net operating losses (NOLs) carryforward period for High and New Technology Enterprise and Small and Medium-sized Tech Enterprises from the PRC standard NOL carryforward period of

years to

years. In accordance with the

2018

Bulletin

No.

45,

which come into effect from

January 1, 2018,

an enterprise that obtains qualification as or remains as a High and New Technology Enterprise or Small and Medium-sized Tech Enterprise in any time of

2018

and afterwards, is allowed to carry forward all its previous

five

years’ NOLs (starting from NOL of

2013

) to up to

ten

years.

The applicable EIT rate for other PRC operating entities of the Company is

25%

for the years ended

December 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, subject to approval from the related PRC tax authorities.

For the years ended

December 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

6%,

and for small scale taxpayer,

3%.

Therefore, for the years ended

December 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

December 31, 2018,

and

2017,

taxes payable consists of:

	As of December 31,
	2018		2017
	US$(’000)		US$(’000)

PRC turnover tax and surcharge payable		1,215		1,295
PRC enterprise income tax payable		1,782		1,873
Taxes payable		2,997		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 expense is as follows:

	Year Ended December 31,
	2018			2017
	US$(’000)			US$(’000)

Pre-tax loss		(13,363	)		(9,760	)
U.S. federal rate		21	%		35	%
Income tax benefit computed at U.S. federal rate		2,806			3,416
Reconciling items:
Rate differential for PRC earnings		561			(724	)
Preferential tax treatment effect		(231	)		(238	)
Tax effect on non-taxable change in fair value of warrant liabilities		350			-
Tax effect on non-deductible impairment on goodwill		(1,303	)		-
Tax effect on change of net operating loss treatment		1,130			-
Tax effect on enactment of new tax rate		-			(1,859	)
Tax effect on toll charge income from the Act		-			(492	)
Tax effect on adjustment to provisional amount of toll charge income from the Act		(96	)		-
Provision/reverse of valuation allowance on deferred tax assets		(3,504	)		90
Expired tax attribute carryforwards		(365	)		(524	)
Tax effect on other non-deductible expenses/non-taxable income		(112	)		80
Effective income tax expense		(764	)		(251	)

For the years ended

December 31, 2018

and

2017,

the Company’s income tax expense consisted of:

	Year Ended December 31,
	2018			2017
	US$(’000)			US$(’000)

Current-PRC		-			(1	)
Deferred-PRC		(764	)		(250	)
Income tax expense		(764	)		(251	)

The Company’s deferred tax assets at

December 31, 2018

and

2017

were as follows:

	As of December 31,
	2018			2017
	US$(’000)			US$(’000)

Tax effect of net operating losses carried forward		9,243			7,115
Bad debts provision		1,188			879
Valuation allowance		(9,875	)		(6,636	)
Total net deferred tax assets		556			1,358

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

US$19.2

million and

US$13.3

million at

December 31, 2018

and

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 can be carried 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$25.2

million and

US$19.9

million at

December 31, 2018

and

2017,

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

2028.

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$9.9

million and

US$6.6

million valuation allowance as of

December 31, 2018

and

2017,

respectively, because it is considered more likely than

not

that a 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 year ended

December 31, 2018,

total valuation allowance increased by approximately

US$3.5

million. For the year ended

December 31, 2017,

a net reverse of approximately

US$0.09

million valuation allowance was recorded, as the Company remeasured its U.S. deferred tax assets using the new statutory rate of

21%

and resulted in a reduction of approximately

US$1.9

million deferred tax assets, which was fully offset by a decrease in valuation allowance, therefore, there is

effective tax rate impact to the Company.

Note 18 - Long-term Borrowing From a Director

12 Months Ended

Dec. 31, 2018

Long-Term Borrowing from Director Disclosure [Text Block]

18.

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 19 - The Financing and Warrant Liabilities

12 Months Ended

Dec. 31, 2018

Warrants Disclosure [Text Block]

19.	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
	January 17, 2018			December 31, 2018			January 17, 2018			December 31, 2018

Stock price	$	3.98		$	1.34		$	3.98		$	1.34
Years to maturity		2.50			1.55			3.00			2.05
Risk-free interest rate		2.22	%		2.50	%		2.39	%		2.50	%
Dividend yield		-			-			-			-
Expected volatility		158	%		199	%		147	%		176	%
Exercise Price	$	6.60		$	6.60		$	6.60		$	6.60

Fair value of the warrant	$	2.93		$	0.78		$	2.99		$	0.80

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 remeasured at fair value with changes in fair value be recorded in earnings in each reporting period.

	As of December 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		503		1,890		(1,387	)
Placement agent warrants		103		385		(282	)
Warrant liabilities		606		2,275		(1,669	)

Warrants issued and outstanding at

December 31, 2018

and their movements during the year then ended are as follows:

	Warrant Outstanding						Warrant 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		-						-
Granted/Vested		774,000		2.58	$	6.60		774,000		2.58	$	6.60
Forfeited		-						-
Exercised		-						-
Balance, December 31, 2018		774,000		1.63	$	6.60		774,000		1.63	$	6.60

Note 20 - Restricted Net Assets

12 Months Ended

Dec. 31, 2018

Restricted Assets Disclosure [Text Block]

20.

Restricted Net Assets

As all 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 other PRC subsidiaries and 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

December 31, 2018

and

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$12.0

million and

US$8.3

million, respectively.

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

10%

withholding tax rate, subject to approval from the related PRC tax authorities.

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 Chinese Renminbi into foreign currency for current account items, conversion of Chinese 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 Chinese 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

December 31, 2018

and

2017,

there was approximately US$nil 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

December 31, 2018

and

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$12.0

million and

US$8.3

million restricted net assets as of

December 31, 2018

and

2017,

respectively, as discussed above.

Note 21 - Employee Defined Contribution Plan

12 Months Ended

Dec. 31, 2018

Pension and Other Postretirement Benefits Disclosure [Text Block]

21.

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$372,000

and

US$405,000

for the years ended

December 31, 2018

and

2017,

respectively.

Note 22 - Concentration of Risk

12 Months Ended

Dec. 31, 2018

Concentration Risk Disclosure [Text Block]

22.

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

December 31, 2018,

74%

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

26%

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 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 RMB, 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

The following tables summarized the information about the Company’s concentration of customers for the years ended

December 31, 2018

and

2017,

respectively:

	Customer A	Customer B	Customer C	Customer D
Year Ended December 31, 2018
Revenues, customer concentration risk	17%	*	*	*

Year Ended December 31, 2017
Revenues, customer concentration risk	12%	12%	10%	*

As of December 31, 2018
Accounts receivable, customer concentration risk	74%	12%	-	-

As of December 31, 2017
Accounts receivable, customer concentration risk	30%	*	20%	16%

* Less than

10%.

Concentration of suppliers

The following tables summarized the information about the Company’s concentration of suppliers for the years ended

December 31, 2018

and

2017,

respectively:

	Supplier A	Supplier B
Year Ended December 31, 2018
Cost of revenues, supplier concentration risk	85%	11%

Year Ended December 31, 2017
Cost of revenues, supplier concentration risk	64%	26%

Note 23 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Text Block]

23.

Commitments and contingencies

The Company leases an office in Beijing, China under a

three

-year agreement expired on

March 31, 2019.

The Company is currently negotiating the new lease terms for the same location. The Company also leases an office in Hubei, China, under a

one

-year lease expiring

March 15, 2020.

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

December 31, 2018:

	Office Rental
	US$(’000)
Year ending December 31,
-2019		92
-2020		2
Total		94

For the years ended

December 31, 2018

and

2017,

rental expenses under operating leases were approximately

US$406,000

and

US$409,000,

respectively.

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 24 - Segment Reporting

12 Months Ended

Dec. 31, 2018

Segment Reporting Disclosure [Text Block]

24.	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.

For the Year Ended

December 31, 2018

	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		57,025			121			-			356			(356	)		57,146
Cost of revenues		54,633			95			-			-			-			54,728
Total operating expenses		14,658			126			102			2,400	(1)		(356	)		16,930
Depreciation and amortization expense included in total operating expenses		469			1			-			71			-			541
Impairment on goodwill included in total operating expenses		5,211			-			-			-			-			5,211
Impairment on intangible assets included in total operating expenses		3,330			-			-			-			-			3,330
Operating loss		(12,266	)		(100	)		(102	)		(2,044	)		-			(14,512	)

Change in fair value of warrant liabilities		-			-			-			1,669			-			1,669

Impairment on long-term investments		-			-			-			453			-			453

Net loss		(12,708	)		(100	)		(102	)		(1,217	)		-			(14,127	)

Expenditure for long-term assets		431			-			3,746			3			-			4,180

Total assets – December 31, 2018		12,756			207			3,396			17,155			(16,546	)		16,968

(

) Including approximately

US$233,000

share-based compensation expenses.

For the Year Ended

December 31, 2017

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

Revenues		46,291			342			247			(247	)		46,633
Cost of revenues		41,747			273			-			-			42,020
Total operating expenses		9,730			74			4,454	(1)		(247	)		14,011
Impairment on intangible assets included in total operating expenses		2,552			-			-			-			2,552
Depreciation and amortization expense included in total operating expenses		1,333			1			88			-			1,422
Operating loss		(5,186	)		(5	)		(4,207	)		-			(9,398	)

Impairment on long-term investments		28			16			-			-			44

Net loss		(5,752	)		(21	)		(4,238	)		-			(10,011	)

Expenditure for long-term assets		1			1			2			-			4

Total assets – December 31, 2017		28,524			402			11,013			(11,379	)		28,560

(

) Including approximately

US$2,271,000

share-based compensation expenses.

Note 25 - Loss Per Share

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Text Block]

25.

Loss per share

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

	Year Ended December 31,
	2018			2017
	US$(’000)			US$(’000)

Net loss attributable to ChinaNet Online Holdings, Inc. (numerator for basic and diluted loss per share)	$	(14,025	)	$	(10,125	)

Weighted average number of common shares outstanding – Basic and diluted		15,863,894			12,116,783

Loss per share -Basic and diluted from continuing operations	$	(0.88	)	$	(0.84	)

For the year ended

December 31, 2018,

the diluted loss per share calculation did

not

include warrants and options to purchase up to

774,000

and

835,216

shares of the Company’s common stock, respectively, and did

not

include

266,238

shares of unvested restricted common stock before they were vested during the

third

quarter of

2018,

because their effect was anti-dilutive, as the Company incurred a loss for the year.

For the year ended

December 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, and did

not

include

266,238

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

Note 26 - Share-based Compensation Expenses

12 Months Ended

Dec. 31, 2018

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

26.

Share-based compensation expenses

December 2018,

the Company granted and issued

250,000

shares of the Company restricted common stock to a management

consulting and advisor service provider in exchange for its service for a

one

-year period. According to the service agreement, these shares are fully-vested upon issuance at the contract inception and shall

not

be subject to forfeiture upon termination of the agreement. The Company valued these shares at

US$1.43

per share, the closing bid price of the Company’s common stock on the grant date of these shares and recorded the related cost of approximately

US$358,000

as a prepayment asset in prepayment and deposit to suppliers upon grant and issuance of these fully-vested and nonforfeitable shares and amortized approximately

US$18,000

to share-based compensation expenses for the year ended

December 31, 2018

For the year ended

December 31, 2017,

the Company granted and issued in the aggregate of

1,650,000

fully-vested shares of the Company’s restricted common stock to its employees and directors for their services provided to the Company. These shares were valued at the closing bid price of the Company’s common stock on their respective grant dates, which ranged from

US$1.03

US$1.12

per share. Total compensation expenses recognized was approximately

US$1,705,000

for the year ended

December 31, 2017.

For the year ended

December 31, 2017,

the Company granted and issued in the aggregate of

174,000

shares of the Company’s restricted common stock to nonemployees in exchange for their services, which subject to forfeiture upon termination of the service contracts. These shares were valued at the closing bid price of the Company’s common stock on their respective earlier of the performance commitment date or the date service was completed, which ranged from

US$1.09

US$1.67

per share. Total compensation expenses recognized for share-based payment to nonemployee was approximately

US$63,000

and

US$234,000

for the years ended

December 31, 2018

and

2017,

respectively.

For the year ended

December 31, 2018

and

2017,

the Company also recognized approximately

US$152,000

and

US$332,000

share-based compensation expenses, respectively, relating to the Company’s restricted common stock and common stock purchase options granted to its employees in

September 2015.

Options issued and outstanding at

December 31, 2018

and their movements for the

two

years 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, 2017		835,216		4.04	$	2.49		676,136		4.11	$	2.59
Granted/Vested		-						159,080		2.70	$	2.10
Forfeited		-						-
Exercised		-						-
Balance, December 31, 2017		835,216		3.04	$	2.49		835,216		3.04	$	2.49
Granted/Vested		-						-
Forfeited		-						-
Exercised		-						-
Balance, December 31, 2018		835,216		2.04	$	2.49		835,216		2.04	$	2.49

The aggregate intrinsic value of the above options was

zero

as of

December 31, 2018

and

2017,

as their respective exercise prices were all lower than the Company’s closing stock price on the last trading day of each year.

The aggregate unrecognized share-based compensation expenses as of

December 31, 2018

and

2017

is approximately

US$340,000

and

US$154,000,

respectively. All unrecognized share-based compensation expenses as of

December 31, 2018

will be recognized for the year ending

December 31, 2019.

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

December 31, 2018

and

2017,

respectively:

	Year Ended December 31,
	2018		2017
	US$(’000)		US$(’000)

Sales and marketing expenses		47		86
General and administrative expenses		149		2,120
Research and development expenses		37		65
Total		233		2,271

Note 27 - Subsequent Event

12 Months Ended

Dec. 31, 2018

Subsequent Events [Text Block]

27.	Subsequent event

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

such events that are material to the financial statements except for those have discussed in Note

and Note

13.

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of presentation

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

Going Concern [Policy Text Block]

Going concern

The Company incurred operating losses and had negative operating cash flows and

may

continue to incur operating losses and generate negative cash flows as the Company implements its future business plan. The Company’s net loss attributable to stockholders for the year ended

December 31, 2018

was approximately

US$14.03

million, compared with approximately

US$10.13

million for the year ended

December 31, 2017.

As of

December 31, 2018,

the Company has cash and cash equivalents of approximately

US$3.74

million and net cash used in operating activities during the year ended

December 31, 2018

was approximately

US$5.39

million.

The Company does

not

currently have sufficient cash or commitments for financing to sustain its operation for the

twelve

may

not

be able to obtain the necessary additional capital on a timely basis, on acceptable terms, or at all. In the event that financing sources are

not

available, or that the Company is unsuccessful in increasing its gross profit margin and reducing operating losses, the Company

may

one

year after the date that the financial statements are issued.

The consolidated financial statements as of

December 31, 2018

not

include any adjustments that might result from the outcome of these uncertainties. If the Company is unable to continue as a going concern, it

may

have to liquidate its assets and

may

receive less than the value at which those assets are carried on the financial statements.

Consolidation, Policy [Policy Text Block]

Principles of consolidation

Use of Estimates, Policy [Policy Text Block]

Use of estimates

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign currency translation and transactions

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

	As of December 31,
	2018		2017
Balance sheet items, except for equity accounts		6.8632		6.5342

	Year Ended December 31,
	2018		2017
Items in the statements of operations and comprehensive loss, and statements of cash flows		6.6174		6.7518

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

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and bank deposits, which are unrestricted as to withdrawal and use. The Company considers all highly liquid investments with original maturities of

three

months or less at the time of purchase to be cash equivalents. As of

December 31, 2018,

the Company’s cash and cash equivalents also included an approximately

US$25,500

term deposit placed as a c

ollateral for the Company’s short-term bank loan for a

one

-year period, which will mature on

September 21, 2019.

Trade and Other Accounts Receivable, Policy [Policy Text Block]

Accounts receivable, net

December 31, 2018

and

2017,

the Company charged off approximately US$nil and

US$1.41

million account receivable balances against the related allowance for doubtful accounts, respectively. The Company did

not

have any off-balance-sheet credit exposure relating to its customers, suppliers or others. For the years ended

December 31, 2018

and

2017,

the Company recorded approximately

US$0.76

million and

US$1.28

million of allowances for doubtful accounts against its accounts receivable.

Finance, Loan and Lease Receivables, Held-for-investment, Policy [Policy Text Block]

Other receivables, net

The Company’s other receivables primarily consists of overdue contractual deposits receivable from suppliers and short-term loans lent to

third

parties. Other receivables are recorded at carrying amount less an allowance for uncollectible accounts as needed. The loans lent by the Company to

third

parties are normally unsecured, range from

three

months to

twelve

months, and with an interest rate range from

nil

12%

not

limited to, aging data, historical collection experience, debtors’ specific facts and the general economic conditions. For the year ended

December 31, 2018,

approximately

US$0.80

million allowance for doubtful accounts was provided. For the year ended

December 31, 2017,

approximately

US$0.03

million allowance for doubtful accounts was reversed due to subsequent collection. As of

December 31, 2018

and

2017,

substantially all of the allowances for doubtful accounts are provided for the Company’s overdue contractual deposits.

Investment, Policy [Policy Text Block]

Long-term investments

Equity method investments

The Company accounts for its investments in entities in which the Company can exercise significant influence but does

not

own a majority equity interest or control under the equity method of accounting in accordance with ASC Topic

323

“Investments-Equity Method and Joint Ventures”. An investment (direct or indirect) of

20%

not

When the Company’s carrying value in an equity method investee company is reduced to zero,

not

record its share of such income until it equals the amount of its share of losses

not

previously recognized.

The Company assesses its equity method investments for other-than-temporary impairment in accordance with ASC

323

through

32A,

evidence of loss in value might include, but would

not

For the years ended

December 31, 2018

and

2017,

other-than temporary impairment loss was recorded associated with the Company’s equity method investments.

Investments in equity securities and other ownership interests

not

consolidated, and over which the Company does

not

exercise significant influence, are accounted for in accordance with ASC Topic

321:

“Investments-Equity securities”. The Company generally owns less than

20%

interest in the voting securities of these investee companies. In accordance with ASC

321

the Company chooses to measure these 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 and records the carrying value of these investments as “Long-term investments” in the Company’s consolidated balance sheets.

In accordance with ASC

321

For the years ended

December 31, 2018

and

2017,

the Company recorded approximately

US$0.45

million and

US$0.04

million of impairment loss, respectively, associated with its investments in other ownership interests that are

not

accounted for under the equity method of accounting.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and equipment, net

Leasehold improvements (years)		3
Vehicles (years)		5
Office equipment (years)	3	-	5
Electronic devices (years)		5

When property and equipment are retired or otherwise disposed of, resulting gain or loss is included in net income or loss in the period of disposition. Maintenance and repairs which do

not

Intangible Assets, Finite-Lived, Policy [Policy Text Block]

k)	Intangible assets, net

The Company accounted for cost related to internal-used software in accordance with ASC Topic

350

“Intangibles-Goodwill and Other-Internal-Use Software”. Internal-use software is initially recorded at cost and amortized on a straight-line basis over the estimated useful economic life of

years.

Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block]

Impairment of long-lived assets

In accordance with ASC

360

35,

may

not

For the years ended

December 31, 2018

and

2017,

the Company recognized

US$3.33

million and

US$2.55

million impairment loss associated with its intangible assets, respectively. See Note

(p) and Note

for detailed disclosures about the impairment of intangible assets and the related valuation techniques and inputs used in the fair value measurement for the Company’s intangible assets.

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill

Goodwill is

not

2017

04,

“Intangibles-Goodwill and Other (Topic

350

)-Simplifying the Test for Goodwill Impairment” on

January 1, 2018,

which eliminated step

of the goodwill impairment test. After adopting the amendments in ASU

2017

04,

350

31,

For the year ended

December 31, 2018,

after assessing the total events or circumstances as described in ASC

350

(a) through (g), the Company determined that it was more likely than

not

that the fair value of its internet advertising and data services reporting unit was less than its carrying amount. As a result, the Company performed interim goodwill impairment test as of

June 30, 2018

and recognized an approximately

US$5.21

million of goodwill impairment loss associated with this reporting unit. See Note

(p) and Note

for detailed disclosures about the impairment of goodwill and the related valuation techniques and inputs used in the fair value measurement for the Company’s goodwill.

Changes in a Parent's Ownership Interest While the Parent Retains Controlling Interest in Its Subsidiary, Policy [Policy Text Block]

n)	Changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary

The Company accounted for changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary in accordance with ASC Topic

810

“Consolidation”, subtopic

10,

which requires the transaction be accounted for as an equity transaction. Therefore,

The Company acquired the remaining

49%

equity interest in Chuang Fu Tian Xia in

May 2018

and accounted for this transaction as an equity transaction with

US$1.81

million and a reallocation of Chuang Fu Tian Xia’s accumulated comprehensive loss of approximately

US$0.03

million were recognized as losses in equity attributable to the Company included in additional paid-in capital for the year ended

December 31, 2018.

Noncontrolling Interest [Policy Text Block]

Noncontrolling interest

The Company accounts for noncontrolling interest in accordance with ASC Topic

810

45,

810

also requires that losses attributable to the parent and the noncontrolling interest in a subsidiary be attributed to those interests even if it results in a deficit noncontrolling interest balance.

Fair Value Measurement, Policy [Policy Text Block]

Fair value

ASC Topic

820

three

levels of inputs that

may

be used to measure fair value:

Level

- Quoted prices in active markets for identical assets or liabilities.

Level

- Observable inputs other than Level

prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are

not

active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level

- Unobservable inputs that are supported by little or

market activity and that are significant to the fair value of the assets or liabilities.

Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter.

Liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as of

December 31, 2018

is as follows:

Fair value measurement at reporting date using

As of
December 31, 2018

Quoted Prices
in Active Markets
for Identical Assets/Liabilities
(Level 1)

Significant
Other
Observable Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

US$(’000)

Warrant liabilities (Note 19)

606

Significant unobservable inputs utilized to determine the fair value of the Company’s warrant liabilities was disclosed in Note

19.

The Company’s intangible assets and goodwill are measured at fair value on a nonrecurring basis and they are recorded at fair value only when impairment is recognized.

The Company determined the fair value of intangible assets and goodwill using income approach. The following table summarizes the quantitative information about the Company’s Level

fair value measurements, which utilize significant unobservable internally-developed inputs:

	Valuation techniques	Unobservable inputs	Value/Range of Inputs

Year Ended December 31, 2018
		Remaining useful life (years)		7.75
Intangible assets (Note 10)	Multi-period Excess Earning	Discount rate		24%
		Contributory asset charge	8.90%	-	24%

Goodwill (Note 12)	Discounted Cash Flow	Base projection period (years)		5
		Discount rate		20%
		Terminal growth rate		3.50%

Year Ended December 31, 2017
		Remaining useful life (years)	3.25	-	8.5
Intangible assets (Note 10)	Multi-period Excess Earning	Discount rate		24%
		Contributory asset charge	15.90%	-	24%


		Base projection period (years)		5
Goodwill (Note 12)	Discounted Cash Flow	Discount rate		20%
		Terminal growth rate		3.50%

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 contract with customers do

not

include significant financing component and any variable consideration.

Advance from customers related to unsatisfied performance obligations are generally refundable. Refund of advance from cu

stomers was insignifi

cant for both the years ended

December 31, 2018

and

2017.

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:

	Year Ended December 31,
	2018		2017
	US$(’000)		US$(’000)
Internet advertising and data service
--distribution of the right to use search engine marketing service		47,423		37,355
--online advertising placements		9,094		7,534
--sales of effective sales lead information		494		1,345
TV advertising service		121		342
Others		14		57
Total revenues		57,146		46,633

	Year Ended December 31,
	2018		2017
	US$(’000)		US$(’000)

Revenue recognized over time		56,652		45,288
Revenue recognized at a point in time		494		1,345
Total revenues		57,146		46,633

Contract costs

For the year ended

December 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 year ended

December 31, 2018:

	Advance from customers
	US$(’000)

Balance as of January 1, 2018		3,559
Exchange translation adjustment		(171	)
Revenue recognized from beginning contract liability balance		(3,338	)
Advances received from customers related to unsatisfied performance obligations		1,011
Balance as of December 31, 2018		1,061

For the year ended

December 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

December 31, 2018,

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

one

year or less.

Cost of Sales, Policy [Policy Text Block]

Cost of revenues

Cost of revenues primarily includes the cost of internet advertising related resources, TV advertising time slots and other technical services purchased from

third

parties and other direct cost associated with providing services.

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 statement of operations and comprehensive loss. For the years ended

December 31, 2018

and

2017,

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

US$1,097,000

and

US$1,717,000,

respectively.

Research and Development Expense, Policy [Policy Text Block]

t)	Research and development expenses

December 31, 2018

and

2017

were approximately

US$933,000

and

US$1,261,000,

respectively.

Income Tax, Policy [Policy Text Block]

Income taxes

The Company follows the guidance of ASC Topic

740

not

that some portion, or all, of the deferred tax assets will

not

be realized. The effect on deferred taxes of a change in tax rates is recognized in statement of operations and comprehensive loss in the period that includes the enactment date.

Income Tax Uncertainties, Policy [Policy Text Block]

Uncertain tax positions

The Company follows the guidance of ASC Topic

740

“Income taxes”, which prescribes a more likely than

not

to be sustained upon audit by the relevant tax authority. An uncertain income tax position will

not

be recognized if it has less than a

50%

likelihood of being sustained.

The Company recognizes interest on non-payment of income taxes under requirement by tax law and penalties associated with tax positions when a tax position does

not

three

years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to

five

years under special circumstances, where the underpayment of taxes is more than

RMB100,000.

In the case of transfer pricing issues, the statute of limitation is

ten

years. There is

statute of limitation in the case of tax evasion. The Company did

not

have any material interest or penalties associated with tax positions for the years ended

December 31, 2018

and

2017

and did

not

have any significant unrecognized uncertain tax positions as of

December 31, 2018

and

2017,

respectively.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Share-based Compensation

The Company accounts for share-based compensation to employees in accordance with ASC Topic

718

The Company accounts for equity-based payment to non-employees in accordance with ASC Topic

505,

subtopic

50.

505

Comprehensive Income, Policy [Policy Text Block]

)

Comprehensive income (loss)

The Company accounts for comprehensive income (loss) in accordance with ASC Topic

220

Earnings Per Share, Policy [Policy Text Block]

Earnings (loss) per share

Earnings (loss) per share are calculated in accordance with ASC Topic

260,

Commitments and Contingencies, Policy [Policy Text Block]

Commitments and contingencies

The Company has adopted ASC Topic

450

“Contingencies” subtopic

20,

not

probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred.

New Accounting Pronouncements, Policy [Policy Text Block]

aa)	Recent issued or adopted accounting standards

January 2016,

the FASB issued ASU

No.

2016

01,

“Financial Instruments—Overall (Subtopic

825

may

choose to measure equity investments that 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 same issuer. This ASU also simplified the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. For public business entities, the amendments in this ASU are effective for fiscal years beginning after

December 15, 2017,

including interim periods within those fiscal years. The Company has adopted the amendments in this ASU on

January 1, 2018

and the adoption of this ASU did

not

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

February 2016,

the FASB issued ASU

No.

2016

02,

“Leases (Topic

842

months or less, a lessee is permitted to make an accounting policy election by class of underlying asset

not

December 15, 2018,

including interim periods within those fiscal years. Early application of the amendments in this ASU is permitted for all entities. In

July 2018,

the FASB issued ASU

No.

2018

11,

“Leases (Topic

842

January 1, 2019,

not

606

). The Company adopted the amendments in these ASUs on

January 1, 2019

using the additional modified retrospective transition method provided by ASU

No.

2018

11.

The adoption didn’t result in a material adjustment to the Company’s accumulated deficit as of

January 1, 2019.

Based on the Company’s current office space lease agreements as of

December 31, 2018,

the amounts of the right-of-use asset and related lease payment liability to be recognized in

2019

was insignificant.

June 2016,

the FASB issued ASU

No.

2016

13,

“Financial Instruments-Credit Losses (Topic

326

November 2018,

the FASB issued ASU

No.

2018

19,

“Codification Improvements to Topic

326,

Financial Instruments-Credit Losses”, which among other things, clarifies that receivables arising from operating leases are

not

within the scope of Subtopic

326

20.

Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic

842,

Leases. For public entities, the amendments in these ASU are effective for fiscal years beginning after

December 15, 2019,

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

November 2016,

the FASB issued ASU

No.

2016

18,

“Statement of Cash Flows (Topic

230

December 15, 2017,

and interim periods within those fiscal years, and should be applied using a retrospective transition method to each period presented. The Company adopted the amendments in the ASU on

January

2018

using the retrospective transition method, which resulted in an approximately

US$3.1

million term deposit held by the Company as of

December 31, 2016

and matured during the year ended

December 31, 2017

being reclassified from a cash inflow from investing activities to the beginning balance of cash, cash equivalents, and restricted cash shown on the statement of cash flows for the year ended

December 31, 2017.

The adoption of ASU

No.

2016

had

impact on the Company’s statement of cash flows for the year ended

December 31, 2018.

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

December 15, 2019.

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

January 1, 2017.

The Company has early adopted the amendments in this ASU on

January 1, 2018,

and the adoption of this ASU did

not

have a material impact on its consolidated financial position and results of operations.

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 on

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

No.

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,

and interim periods within those fiscal years. Early adoption is permitted. Based on the Company’s evaluation, the Company does

not

expect the adoption of the amendments in this ASU to have a material impact on its consolidated financial position and results of operations.

June 2018,

the FASB issued ASU

No.

2018

07:

“Compensation—Stock Compensation (Topic

718

)-Improvements to Nonemployee Share-Based Payment Accounting”. The Board is issuing this Update as part of its Simplification Initiative. The amendments in this Update expand the scope of Topic

718

to include share based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic

718

does

not

apply to share-based payments used to effectively provide (

) financing to the issuer or (

) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic

606,

Revenue from Contracts with Customers. The amendments in this Update are effective for public business entities for fiscal years beginning after

December 15, 2018,

including interim periods within that fiscal year. For all other entities, the amendments 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, but

earlier than an entity’s adoption date of Topic

606.

An entity should only remeasure liability-classified awards that have

not

been settled by the date of adoption and equity-classified awards for which a measurement date has

not

expect the adoption of the amendments in this ASU to have a material impact on its consolidated financial position and results of operations.

August

2018,

the FASB issued ASU

No.

2018

13,

“Fair Value Measurement (Topic

820

fair value measurements. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2019,

and entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The Company does

not

expect the adoption of these amendments to have a material impact on its consolidated financial position and results of operations.

Note 1 - Organization and Nature of Operations (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Consolidated Subsidiaries and VIEs [Table Text Block]

Name of the subsidiary or VIE	Place and date of incorporation	Percentage of ownership	Principal activities

China Net Online Media Group Limited (“China Net BVI”) (1)	British Virgin Islands, August 13, 2007	100%	Investment holding company

CNET Online Technology Limited (“China Net HK”) (1)	Hong Kong, September 4, 2007	100%	Investment holding company

ChinaNet Investment Holding Ltd. (“ChinaNet Investment BVI”) (1)	British Virgin Islands, January 12, 2015	100%	Investment holding company

Rise King Century Technology Development (Beijing) Co., Ltd. (“Rise King WFOE”) (1)	PRC, January 17, 2008	100%	Investment holding company

Business Opportunity Online (Beijing) Network Technology Co., Ltd. (“Business Opportunity Online”) (2)	PRC, December 8, 2004	100%	Providing online advertising, precision marketing and the related data services

Beijing CNET Online Advertising Co., Ltd. (“Beijing CNET” Online) (2)	PRC, January 27, 2003	100%	Providing TV advertising services

ChinaNet Online Holdings Co., Ltd. (“ChinaNet Online PRC”) (1)	PRC, August 31, 2015	100%	Investment holding company

Beijing Chuang Fu Tian Xia Network Technology Co., Ltd. (“Beijing Chuang Fu Tian Xia”) (2)	PRC, March 1, 2011	100%	Providing online advertising, precision marketing and the related data services

Business Opportunity Online (Hubei) Network Technology Co., Ltd. (“Business Opportunity Online Hubei”) (2)	PRC, January 28, 2011	100%	Providing online advertising, precision marketing and the related data services

Hubei CNET Advertising Media Co., Ltd. (“Hubei CNET”) (2)	PRC, April 18, 2011	100%	Providing TV advertising services

Sheng Tian Network Technology (Hubei) Co., Ltd. (“Sheng Tian Hubei”) (2)	PRC, July 1, 2011	100%	Providing online advertising, precision marketing and the related data services

Beijing Chuang Shi Xin Qi Advertising Media Co., Ltd. (“Beijing Chuang Shi Xin Qi”) (2)	PRC, April 16, 2014	100%	Providing online advertising, precision marketing and the related data services

Beijing Shi Ji Cheng Yuan Advertising Media Co., Ltd. (“Beijing Shi Ji Cheng Yuan”) (2)	PRC, May 22, 2014	100%	Providing online advertising, precision marketing and the related data services

Beijing Hong Da Shi Xing Network Technology Co., Ltd. (“Beijing Hong Da Shi Xing”) (2)	PRC, April 16, 2014	100%	Providing online advertising, precision marketing and the related data services

Business Opportunity Chain (Beijing) Technology Development Co., Ltd. (“Business Opportunity Chain”) (1)	PRC, May 11, 2018	51%	Providing research and develop and other technical support services for the blockchain business unit

Note 2 - Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Variable Interest Entities [Table Text Block]

	As of December 31,
	2018		2017
	US$(’000)		US$(’000)
Assets
Current assets:
Cash and cash equivalents	$	2,328	$	2,904
Accounts receivable, net		6,359		7,215
Other receivables, net		11		2,629
Prepayment and deposit to suppliers		1,724		4,009
Due from related parties, net		26		14
Total current assets		10,448		16,771

Property and equipment, net		84		177
Intangible assets, net		42		2,112
Goodwill		-		5,277
Deferred tax assets		556		975
Total Assets	$	11,130	$	25,312

Liabilities
Current liabilities:
Short-term bank loan	$	874	$	765
Accounts payable		2,868		2,848
Advances from customers		1,059		3,559
Accrued payroll and other accruals		155		159
Due to Control Group		11		11
Payable for purchasing of software technology		-		436
Taxes payable		2,562		2,711
Other payables		55		155
Total current liabilities		7,584		10,644

Total Liabilities	$	7,584	$	10,644

Financial Performance of VIEs [Table Text Block]

	Year Ended December 31,
	2018		2017
	US$(’000)		US$(’000)

Revenues	$	57,133	$	46,576
Cost of revenues		54,728		42,019
Total operating expenses (including impairment on intangible assets and goodwill)		12,826		9,853
Net loss before allocation to noncontrolling interests		10,862		5,878

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)

12 Months Ended

Dec. 31, 2018

Foreign Currency Exchange Rates [Table Text Block]

	As of December 31,
	2018		2017
Balance sheet items, except for equity accounts		6.8632		6.5342

	Year Ended December 31,
	2018		2017
Items in the statements of operations and comprehensive loss, and statements of cash flows		6.6174		6.7518

Property, Plant and Equipment, Useful Life [Table Text Block]

Leasehold improvements (years)		3
Vehicles (years)		5
Office equipment (years)	3	-	5
Electronic devices (years)		5

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

Fair value measurement at reporting date using

As of
December 31, 2018

Quoted Prices
in Active Markets
for Identical Assets/Liabilities
(Level 1)

Significant
Other
Observable Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

US$(’000)

Warrant liabilities (Note 19)

606

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

	Valuation techniques	Unobservable inputs	Value/Range of Inputs

Year Ended December 31, 2018
		Remaining useful life (years)		7.75
Intangible assets (Note 10)	Multi-period Excess Earning	Discount rate		24%
		Contributory asset charge	8.90%	-	24%

Goodwill (Note 12)	Discounted Cash Flow	Base projection period (years)		5
		Discount rate		20%
		Terminal growth rate		3.50%

Year Ended December 31, 2017
		Remaining useful life (years)	3.25	-	8.5
Intangible assets (Note 10)	Multi-period Excess Earning	Discount rate		24%
		Contributory asset charge	15.90%	-	24%


		Base projection period (years)		5
Goodwill (Note 12)	Discounted Cash Flow	Discount rate		20%
		Terminal growth rate		3.50%

Disaggregation of Revenue [Table Text Block]

	Year Ended December 31,
	2018		2017
	US$(’000)		US$(’000)
Internet advertising and data service
--distribution of the right to use search engine marketing service		47,423		37,355
--online advertising placements		9,094		7,534
--sales of effective sales lead information		494		1,345
TV advertising service		121		342
Others		14		57
Total revenues		57,146		46,633

	Year Ended December 31,
	2018		2017
	US$(’000)		US$(’000)

Revenue recognized over time		56,652		45,288
Revenue recognized at a point in time		494		1,345
Total revenues		57,146		46,633

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

	Advance from customers
	US$(’000)

Balance as of January 1, 2018		3,559
Exchange translation adjustment		(171	)
Revenue recognized from beginning contract liability balance		(3,338	)
Advances received from customers related to unsatisfied performance obligations		1,011
Balance as of December 31, 2018		1,061

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Note 4 - Accounts Receivable, Net (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Accounts Receivable [Table Text Block]

	As of December 31,
	2018			2017
	US$(’000)			US$(’000)

Accounts receivable		9,752			10,008
Allowance for doubtful accounts		(3,393	)		(2,793	)
Accounts receivable, net		6,359			7,215

Note 5 - Other Receivables, Net (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Other Receivables [Table Text Block]

	As of December 31,
	2018			2017
	US$(’000)			US$(’000)

Short-term working capital loan to unrelated parties		146			2,602
Staff advances for normal business purpose		19			44
Overdue deposits		1,619			893
		1,784			3,539
Allowance for doubtful accounts		(1,765	)		(893	)
Other receivables, net		19			2,646

Note 6 - Prepayments and Deposit to Suppliers (Tables)

12 Months Ended

Dec. 31, 2018

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

	As of December 31,
	2018		2017
	US$(’000)		US$(’000)

Deposits to internet and TV resources providers		963		1,870
Prepayments to internet and TV resources providers		727		1,331
Deposits to other service provider		-		765
Other deposits and prepayments		464		107
		2,154		4,073

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

12 Months Ended

Dec. 31, 2018

Due From Related Parties [Member]

	As of December 31,
	2018			2017
	US$(’000)			US$(’000)

Beijing Saimeiwei Food Equipment Technology Co., Ltd.		-			33
Chuangshi Meiwei (Beijing) International Investment Management Co., Ltd.		-			156
Guohua Shiji (Beijing) Communication Co., Ltd.		201			184
ChinaNet Chuang Tou (Shenzhen) Co., Ltd.		-			14
An officer of the Company		200			-
		401			387
Allowance for doubtful accounts		(175	)		(373	)
Due from related parties, net		226			14

Note 8 - Long-term Investments (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Investments in and Advances to Affiliates, Schedule of Investments [Table Text Block]

	ChinaNet Chuang Tou			Guohua Shiji			Beijing Saturday			Total
	US$(’000)			US$(’000)			US$(’000)			US$(’000)

Balance as of January 1, 2017		1,297			27			16			1,340
Cash investment returned during the year		(459	)		-			-			(459	)
Impairment on the investments		-			(29	)		(17	)		(46	)
Exchange translation adjustment		80			2			1			83
Balance as of December 31, 2017		918			-			-			918
Cash investment returned during the year		(437	)		-			-			(437	)
Impairment on the investments		(437	)		-			-			(437	)
Exchange translation adjustment		(44	)		-			-			(44	)
Balance as of December 31, 2018		-			-			-			-

Note 9 - Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Property and Equipment [Table Text Block]

	As of December 31,
	2018			2017
	US$(’000)			US$(’000)

Leasehold improvement		321			337
Vehicles		771			810
Office equipment		1,353			1,410
Electronic devices		952			1,000
Property and equipment, cost		3,397			3,557
Less: accumulated depreciation		(3,255	)		(3,258	)
Property and equipment, net		142			299

Note 10 - Intangible Assets, Net (Tables)	12 Months Ended
Note 10 - Intangible Assets, Net (Tables)	Dec. 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 style="border-collapse: collapse; margin-left: 23px; min-; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: justify"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="15" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">As of December 31, 2018</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Items</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">Gross <br />Carrying <br />Value</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">Accumulated <br />Amortization</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">Impairment</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">Net <br />Carrying <br />Value</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: justify"> </td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">US$(’000)</div></div></td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">US$(’000)</div></div></td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">US$(’000)</div></div></td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">US$(’000)</div></div></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> <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: 48%; font-size: 10pt; text-align: justify; text-indent: 8.6pt">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: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,408</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,408</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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> <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: left; text-indent: 8.6pt">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;">1,941</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">(1,941</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">-</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">-</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; text-indent: 8.6pt">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;">1,068</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">(580</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">(488</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">-</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 8.6pt">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;">299</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">(299</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">-</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">-</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; text-indent: 8.6pt">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;">1,353</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">(896</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">(415</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">42</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: -7.1pt; padding-left: 15.75pt">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;">4,705</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">(1,906</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">(2,799</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">-</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; text-indent: -7.1pt; padding-left: 15.75pt">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;">1,894</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">(426</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">(1,468</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">-</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 8.6pt">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;">1,383</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">(343</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">(1,040</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">-</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 8.6pt">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;">114</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">(111</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">-</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">3</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: justify; padding-bottom: 2.5pt; text-indent: 1.6pt">Total</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,165</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(6,502</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(7,618</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">45</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> </table></div><div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="border-collapse: collapse; margin-left: 23px; min-; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: justify"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="15" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">As of December 31, 2017</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Items</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">Gross <br />Carrying <br />Value</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">Accumulated <br />Amortization</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">Impairment</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">Net <br />Carrying <br />Value</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: justify"> </td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">US$(’000)</div></div></td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">US$(’000)</div></div></td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">US$(’000)</div></div></td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">US$(’000)</div></div></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> <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: 48%; font-size: 10pt; text-align: justify; text-indent: 8.6pt">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: 10%; 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"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; 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"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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> <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: left; text-indent: 8.6pt">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;">2,038</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">-</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">-</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; text-indent: 8.6pt">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;">1,122</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">(610</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">(512</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">-</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 8.6pt">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;">314</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">-</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">-</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; text-indent: 8.6pt">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;">1,420</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">(923</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">(435</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">62</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: -7.1pt; padding-left: 15.75pt">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;">4,942</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">(1,853</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">(1,600</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">1,489</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; text-indent: -7.1pt; padding-left: 15.75pt">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;">1,990</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">(299</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">-</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">1,691</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 8.6pt">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;">1,454</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">(291</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">(602</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">561</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 8.6pt">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;">120</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">(115</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></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;">-</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></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;">5</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt; text-indent: 8.65pt">Total</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,878</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(6,443</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(4,627</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</td> <td style="border-bottom: Black 2.5pt 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 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> </tr> </table></div>

Note 12 - Goodwill (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Goodwill [Table Text Block]

	Amount
	US$(’000)

Balance as of January 1, 2017		4,970
Exchange translation adjustment		307
Balance as of December 31, 2017		5,277
Impairment on goodwill		(5,024	)
Exchange translation adjustment		(253	)
Balance as of December 31, 2018		-

Note 14 - Accrued Payroll and Other Accruals (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Accrued Liabilities [Table Text Block]

	As of December 31,
	2018		2017
	US$(’000)		US$(’000)

Accrued payroll and staff welfare		208		203
Accrued operating expenses		313		356
		521		559

Note 17 - Taxation (Tables)

12 Months Ended

Dec. 31, 2018

Schedule Of Taxes Payable [Table Text Block]

	As of December 31,
	2018		2017
	US$(’000)		US$(’000)

PRC turnover tax and surcharge payable		1,215		1,295
PRC enterprise income tax payable		1,782		1,873
Taxes payable		2,997		3,168

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

	Year Ended December 31,
	2018			2017
	US$(’000)			US$(’000)

Pre-tax loss		(13,363	)		(9,760	)
U.S. federal rate		21	%		35	%
Income tax benefit computed at U.S. federal rate		2,806			3,416
Reconciling items:
Rate differential for PRC earnings		561			(724	)
Preferential tax treatment effect		(231	)		(238	)
Tax effect on non-taxable change in fair value of warrant liabilities		350			-
Tax effect on non-deductible impairment on goodwill		(1,303	)		-
Tax effect on change of net operating loss treatment		1,130			-
Tax effect on enactment of new tax rate		-			(1,859	)
Tax effect on toll charge income from the Act		-			(492	)
Tax effect on adjustment to provisional amount of toll charge income from the Act		(96	)		-
Provision/reverse of valuation allowance on deferred tax assets		(3,504	)		90
Expired tax attribute carryforwards		(365	)		(524	)
Tax effect on other non-deductible expenses/non-taxable income		(112	)		80
Effective income tax expense		(764	)		(251	)

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

	Year Ended December 31,
	2018			2017
	US$(’000)			US$(’000)

Current-PRC		-			(1	)
Deferred-PRC		(764	)		(250	)
Income tax expense		(764	)		(251	)

Schedule Of Deferred Tax Assets [Table Text Block]

	As of December 31,
	2018			2017
	US$(’000)			US$(’000)

Tax effect of net operating losses carried forward		9,243			7,115
Bad debts provision		1,188			879
Valuation allowance		(9,875	)		(6,636	)
Total net deferred tax assets		556			1,358

Note 19 - The Financing and Warrant Liabilities (Tables)

12 Months Ended

Dec. 31, 2018

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

	Valuation techniques	Unobservable inputs	Value/Range of Inputs

Year Ended December 31, 2018
		Remaining useful life (years)		7.75
Intangible assets (Note 10)	Multi-period Excess Earning	Discount rate		24%
		Contributory asset charge	8.90%	-	24%

Goodwill (Note 12)	Discounted Cash Flow	Base projection period (years)		5
		Discount rate		20%
		Terminal growth rate		3.50%

Year Ended December 31, 2017
		Remaining useful life (years)	3.25	-	8.5
Intangible assets (Note 10)	Multi-period Excess Earning	Discount rate		24%
		Contributory asset charge	15.90%	-	24%


		Base projection period (years)		5
Goodwill (Note 12)	Discounted Cash Flow	Discount rate		20%
		Terminal growth rate		3.50%

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 December 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		503		1,890		(1,387	)
Placement agent warrants		103		385		(282	)
Warrant liabilities		606		2,275		(1,669	)

Schedule of Warrant Activity [Table Text Block]

	Warrant Outstanding						Warrant 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		-						-
Granted/Vested		774,000		2.58	$	6.60		774,000		2.58	$	6.60
Forfeited		-						-
Exercised		-						-
Balance, December 31, 2018		774,000		1.63	$	6.60		774,000		1.63	$	6.60

Warrant [Member]

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

	Investors Warrants						Placement Agent Warrants
	January 17, 2018			December 31, 2018			January 17, 2018			December 31, 2018

Stock price	$	3.98		$	1.34		$	3.98		$	1.34
Years to maturity		2.50			1.55			3.00			2.05
Risk-free interest rate		2.22	%		2.50	%		2.39	%		2.50	%
Dividend yield		-			-			-			-
Expected volatility		158	%		199	%		147	%		176	%
Exercise Price	$	6.60		$	6.60		$	6.60		$	6.60

Fair value of the warrant	$	2.93		$	0.78		$	2.99		$	0.80

Note 22 - Concentration of Risk (Tables)

12 Months Ended

Dec. 31, 2018

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

	Customer A	Customer B	Customer C	Customer D
Year Ended December 31, 2018
Revenues, customer concentration risk	17%	*	*	*

Year Ended December 31, 2017
Revenues, customer concentration risk	12%	12%	10%	*

As of December 31, 2018
Accounts receivable, customer concentration risk	74%	12%	-	-

As of December 31, 2017
Accounts receivable, customer concentration risk	30%	*	20%	16%

	Supplier A	Supplier B
Year Ended December 31, 2018
Cost of revenues, supplier concentration risk	85%	11%

Year Ended December 31, 2017
Cost of revenues, supplier concentration risk	64%	26%

Note 23 - Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2018

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

	Office Rental
	US$(’000)
Year ending December 31,
-2019		92
-2020		2
Total		94

Note 24 - Segment Reporting (Tables)

12 Months Ended

Dec. 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		57,025			121			-			356			(356	)		57,146
Cost of revenues		54,633			95			-			-			-			54,728
Total operating expenses		14,658			126			102			2,400	(1)		(356	)		16,930
Depreciation and amortization expense included in total operating expenses		469			1			-			71			-			541
Impairment on goodwill included in total operating expenses		5,211			-			-			-			-			5,211
Impairment on intangible assets included in total operating expenses		3,330			-			-			-			-			3,330
Operating loss		(12,266	)		(100	)		(102	)		(2,044	)		-			(14,512	)

Change in fair value of warrant liabilities		-			-			-			1,669			-			1,669

Impairment on long-term investments		-			-			-			453			-			453

Net loss		(12,708	)		(100	)		(102	)		(1,217	)		-			(14,127	)

Expenditure for long-term assets		431			-			3,746			3			-			4,180

Total assets – December 31, 2018		12,756			207			3,396			17,155			(16,546	)		16,968

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

Revenues		46,291			342			247			(247	)		46,633
Cost of revenues		41,747			273			-			-			42,020
Total operating expenses		9,730			74			4,454	(1)		(247	)		14,011
Impairment on intangible assets included in total operating expenses		2,552			-			-			-			2,552
Depreciation and amortization expense included in total operating expenses		1,333			1			88			-			1,422
Operating loss		(5,186	)		(5	)		(4,207	)		-			(9,398	)

Impairment on long-term investments		28			16			-			-			44

Net loss		(5,752	)		(21	)		(4,238	)		-			(10,011	)

Expenditure for long-term assets		1			1			2			-			4

Total assets – December 31, 2017		28,524			402			11,013			(11,379	)		28,560

Note 25 - Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2018

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

	Year Ended December 31,
	2018			2017
	US$(’000)			US$(’000)

Net loss attributable to ChinaNet Online Holdings, Inc. (numerator for basic and diluted loss per share)	$	(14,025	)	$	(10,125	)

Weighted average number of common shares outstanding – Basic and diluted		15,863,894			12,116,783

Loss per share -Basic and diluted from continuing operations	$	(0.88	)	$	(0.84	)

Note 26 - Share-based Compensation Expenses (Tables)

12 Months Ended

Dec. 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, 2017		835,216		4.04	$	2.49		676,136		4.11	$	2.59
Granted/Vested		-						159,080		2.70	$	2.10
Forfeited		-						-
Exercised		-						-
Balance, December 31, 2017		835,216		3.04	$	2.49		835,216		3.04	$	2.49
Granted/Vested		-						-
Forfeited		-						-
Exercised		-						-
Balance, December 31, 2018		835,216		2.04	$	2.49		835,216		2.04	$	2.49

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

	Year Ended December 31,
	2018		2017
	US$(’000)		US$(’000)

Sales and marketing expenses		47		86
General and administrative expenses		149		2,120
Research and development expenses		37		65
Total		233		2,271

Note 1 - Organization and Nature of Operations (Details Textual) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Jan. 17, 2018	Dec. 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
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
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 1 - Organization and Nature of Operations - Consolidated Subsidiaries and VIEs (Details)

12 Months Ended

Dec. 31, 2018

Business Opportunity Online [Member]

Beijing CNET Online [Member]

100.00%

^[1]

Beijing Chuang Fu Tian Xia [Member]

100.00%

^[1]

Business Opportunity Online Hubei [Member]

100.00%

^[1]

100.00%

^[1]

Hubei CNET [Member]

Sheng Tian Hubei [Member]

100.00%

^[1]

Beijing Chuang Shi Xin Qi [Member]

100.00%

^[1]

Beijing Shi Ji Cheng Yuan [Member]

100.00%

^[1]

Beijing Hong Da Shi Xing [Member]

100.00%

^[1]

100.00%

^[1]

ChinaNet BVI [Member]

100.00%

^[2]

China Net HK [Member]

ChinaNet Investment BVI [Member]

100.00%

^[2]

100.00%

^[2]

Rise King WFOE [Member]

ChinaNet Online PRC [Member]

100.00%

^[2]

Business Opportunity Chain [Member]

100.00%

^[2]

Cash and cash equivalents

51.00%

^[2]

[1]	The Company's consolidated VIE, or a direct or indirect subsidiary of the Company's consolidated VIE.
[2]	A direct or indirect subsidiary of the Company.

Note 2 - Variable Interest Entities (Details Textual)	Dec. 31, 2018 CNY (¥)
PRC Operating Entities Business Operations, VIE [Member] \| Rise King WFOE [Member]
Exclusive Option Agreements, Option to Purchase Equity Interests, Price Per Equity Interest in Any Operating Entity	¥ 10

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

Dec. 31, 2018

USD ($)

Dec. 31, 2017

USD ($)

Dec. 31, 2017

CNY (¥)

Dec. 31, 2016

USD ($)

Dec. 31, 2016

CNY (¥)

Current assets:

$ 3,742

$ 2,952

Accounts receivable, net

6,359

7,215

Other receivables, net

2,646

Prepayment and deposit to suppliers

2,154

4,073

Due from related parties, net

226

Total current assets

12,500

16,900

Property and equipment, net

142

299

Intangible assets, net

3,808

Goodwill

5,277

$ 4,970

Deferred tax assets

556

1,358

Total Assets

16,968

28,560

Current liabilities:

Accrued payroll and other accruals

^[1]

874

765

Accounts payable

^[1]

2,869

2,851

Advances from customers

^[1]

1,061

3,559

^[1]

521

559

Payable for Purchasing of Software Technology

^[1]

436

¥ 2,850

$ 400

¥ 2,850

Taxes payable

^[1]

2,997

3,168

Other payables

^[1]

118

687

Total current liabilities

8,440

12,963

Total Liabilities

9,174

13,097

VIEs [Member]

Current assets:

Cash and cash equivalents

2,328

2,904

Accounts receivable, net

6,359

7,215

Other receivables, net

2,629

Prepayment and deposit to suppliers

1,724

4,009

Due from related parties, net

Total current assets

10,448

16,771

Property and equipment, net

177

Intangible assets, net

2,112

Goodwill

5,277

Deferred tax assets

556

975

Total Assets

11,130

25,312

Current liabilities:

Accrued payroll and other accruals

874

765

Accounts payable

2,868

2,848

Advances from customers

1,059

3,559

155

159

Due to Control Group

Payable for Purchasing of Software Technology

436

Taxes payable

2,562

2,711

Other payables

155

Total current liabilities

7,584

10,644

Total Liabilities

$ 7,584

$ 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	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenues	$ 57,146	$ 46,633
Cost of revenues	54,728	42,020
Total operating expenses (including impairment on intangible assets and goodwill)	16,930	14,011
Net loss	(14,127)	(10,011)
VIEs [Member]
Revenues	57,133	46,576
Cost of revenues	54,728	42,019
Total operating expenses (including impairment on intangible assets and goodwill)	12,826	9,853
Net loss	$ 10,862	$ 5,878

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
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+ Details

Note 3 - Summary of Significant Accounting Policies (Details Textual)	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2018 CNY (¥)	May 31, 2018	Dec. 31, 2017 CNY (¥)	Jan. 01, 2017 USD ($)	Dec. 31, 2016 USD ($)
Net Income (Loss) Attributable to Parent, Total	$ (14,025,000)	$ (10,125,000)
Cash and Cash Equivalents, at Carrying Value, Ending Balance	3,742,000	2,952,000
Net Cash Provided by (Used in) Operating Activities, Total	(5,389,000)	(1,320,000)
Restricted Cash and Cash Equivalents, Total	25,500
Allowance for Doubtful Accounts Receivable, Write-offs		1,410,000
Allowance for Doubtful Accounts Receivable, Ending Balance	760,000	1,280,000
Provision for Doubtful Accounts	1,523,000	1,462,000
Equity Method Investment, Other than Temporary Impairment	0	0
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Total	$ 450,000	40,000
Finite-Lived Intangible Asset, Useful Life	2 years 175 days
Impairment of Intangible Assets (Excluding Goodwill), Total	$ 3,330,000	2,550,000
Goodwill, Impairment Loss	5,211,000	0
Contract with Customer, Asset, Net, Total	0
Contract with Customer, Performance Obligation Satisfied in Previous Period	0
Advertising Expense	1,097,000	1,717,000
Research and Development Expense, Total	933,000	1,261,000
Statute of Limitations, Special Circumstances, Underpayment of Taxes Threshold \| ¥			¥ 100,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense, Total	0	0
Unrecognized Tax Benefits, Ending Balance	0	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations, Ending Balance		2,952,000					$ 6,091,000
Accounting Standards Update 2016-18 [Member]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations, Ending Balance						$ 3,100,000
Beijing Chuang Fu Tian Xia [Member]
Variable Interest Entity, Remaining Ownership Percentage Acquired				49.00%
Income (Loss) from Acquisition of Variable Interest Entity	(1,810,000)
Reallocation of Variable Interest Entity’s Accumulated Comprehensive Loss to the Parent's Equity	30,000
Internet Advertising And TV Advertising Contractual Deposit [Member]
Allowance for Doubtful Accounts Receivable, Ending Balance	1,620,000	890,000	¥ 11,100,000		¥ 5,800,000
Provision for Doubtful Accounts	$ 800,000
Provision for Doubtful Accounts Reversal		$ 30,000
Minimum [Member] \| Purchased Software and Software Platform [Member]
Finite-Lived Intangible Asset, Useful Life	2 years
Maximum [Member]
Loans Receivable, Interest Rate, Stated Percentage	12.00%		12.00%
Maximum [Member] \| Purchased Software and Software Platform [Member]
Finite-Lived Intangible Asset, Useful Life	10 years

Note 3 - Summary of Significant Accounting Policies - Exchange Rates Used to Translate Amounts In RMB Into US$ (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Items in the statements of operations and comprehensive loss, and statements of cash flows	6.6174	6.7518
Balance Sheet Items, Except Equity Accounts [Member]
Balance sheet items, except for equity accounts	6.8632	6.5342

Note 3 - Summary of Significant Accounting Policies - Estimated Useful Lives of Property, Plant, and Equipment (Details)	12 Months Ended
	Dec. 31, 2018
Leasehold Improvements [Member]
Property and equipment, useful life (Year)	3 years
Vehicles [Member]
Property and equipment, useful life (Year)	5 years
Office Equipment [Member] \| Minimum [Member]
Property and equipment, useful life (Year)	3 years
Office Equipment [Member] \| Maximum [Member]
Property and equipment, useful life (Year)	5 years
Electronic Devices [Member]
Property and equipment, useful life (Year)	5 years

Note 3 - Summary of Significant Accounting Policies - Summary of Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis (Details) - Fair Value, Measurements, Recurring [Member] $ in Thousands	Dec. 31, 2018 USD ($)
Warrant liabilities (Note 19)	$ 606
Fair Value, Inputs, Level 1 [Member]
Warrant liabilities (Note 19)
Fair Value, Inputs, Level 2 [Member]
Warrant liabilities (Note 19)
Fair Value, Inputs, Level 3 [Member]
Warrant liabilities (Note 19)	$ 606

Note 3 - Summary of Significant Accounting Policies - Quantitative Information About Level 3 Fair Value Measurements (Details) - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Nonrecurring [Member]	Dec. 31, 2018	Dec. 31, 2017
Valuation, Income Approach [Member] \| Measurement Input, Expected Term [Member]
Intangible assets	0.0775
Valuation, Income Approach [Member] \| Measurement Input, Discount Rate [Member]
Intangible assets	0.24	0.24
Valuation, Income Approach [Member] \| Measurement Input, Terminal Growth Rate [Member]
Goodwill	3.5
Goodwill	3.5
Valuation, Income Approach [Member] \| Measurement Input, Terminal Growth Rate [Member] \| Minimum [Member]
Goodwill
Goodwill
Valuation, Income Approach [Member] \| Measurement Input, Terminal Growth Rate [Member] \| Maximum [Member]
Goodwill
Goodwill
Valuation Technique, Discounted Cash Flow [Member] \| Measurement Input, Expected Term [Member]
Goodwill	0.05	5
Goodwill	0.05	5
Valuation Technique, Discounted Cash Flow [Member] \| Measurement Input, Expected Term [Member] \| Minimum [Member]
Intangible assets		3.25
Valuation Technique, Discounted Cash Flow [Member] \| Measurement Input, Expected Term [Member] \| Maximum [Member]
Intangible assets		8.5
Valuation Technique, Discounted Cash Flow [Member] \| Measurement Input, Discount Rate [Member]
Goodwill	0.2	0.2
Goodwill	0.2	0.2
Valuation Technique, Discounted Cash Flow [Member] \| Measurement Input, Contributory Asset Charge [Member] \| Minimum [Member]
Intangible assets	8.9	0.159
Valuation Technique, Discounted Cash Flow [Member] \| Measurement Input, Contributory Asset Charge [Member] \| Maximum [Member]
Intangible assets	24	0.24
Valuation Technique, Discounted Cash Flow [Member] \| Measurement Input, Terminal Growth Rate [Member]
Goodwill		3.5
Goodwill		3.5

Note 3 - Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenues	$ 57,146	$ 46,633
Search Engine Marketing and Data Service [Member]
Revenues	47,423	37,355
Online Advertising Placement [Member]
Revenues	9,094	7,534
Sales of Effective Sales Lead Information [Member]
Revenues	494	1,345
TV Advertising Service [Member]
Revenues	121	342
Product and Service, Other [Member]
Revenues	14	57
Transferred over Time [Member]
Revenues	56,652	45,288
Transferred at Point in Time [Member]
Revenues	$ 494	$ 1,345

Note 3 - Summary of Significant Accounting Policies - Contract liabilities (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
Balance as of January 1, 2018	$ 3,559
Exchange translation adjustment	(171)
Revenue recognized from beginning contract liability balance	(3,338)
Advances received from customers related to unsatisfied performance obligations	1,011
Balance as of December 31, 2018	$ 1,061

Note 4 - Accounts Receivable, Net (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Allowance for Doubtful Accounts Receivable, Current, Ending Balance	$ 3,393,000	$ 2,793,000
Provision for Doubtful Accounts	1,523,000	1,462,000
Allowance for Doubtful Accounts Receivable, Write-offs		1,410,000
Internet Advertising and TV Advertising [Member]
Allowance for Doubtful Accounts Receivable, Current, Ending Balance	$ 3,393,000	2,793,000
Number of Months Past Due	180 days
Provision for Doubtful Accounts	$ 760,000	1,280,000
Allowance for Doubtful Accounts Receivable, Write-offs		$ 1,410,000

Note 4 - Accounts Receivable, Net - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Accounts receivable	$ 9,752	$ 10,008
Allowance for doubtful accounts	(3,393)	(2,793)
Accounts receivable, net	$ 6,359	$ 7,215

Note 5 - Other Receivables, Net (Details Textual) ¥ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Allowance for Doubtful Accounts Receivable, Ending Balance	$ 760,000	$ 1,280,000
Provision for Doubtful Accounts	1,523,000	1,462,000
Internet Advertising And TV Advertising Contractual Deposit [Member]
Allowance for Doubtful Accounts Receivable, Ending Balance	1,620,000	890,000	¥ 11.1	¥ 5.8
Provision for Doubtful Accounts	800,000
Provision for Doubtful Accounts Reversal		30,000
Short-term Working Capital Loan to an Unrelated Third Party [Member]
Loans Receivable, Net, Total	$ 150,000	$ 2,600,000	¥ 1.0	¥ 17.0

Note 5 - Other Receivables, Net - Summary of Other Receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Other receivables, gross	$ 1,784	$ 3,539
Allowance for doubtful accounts	(1,765)	(893)
Other receivables, net	19	2,646
Short-term Working Capital Loan to an Unrelated Third Party [Member]
Other receivables, gross	146	2,602
TV Advertisement Deposit and Prepayment [Member]
Other receivables, gross	19	44
Overdue Deposits [Member]
Other receivables, gross	$ 1,619	$ 893

Note 6 - Prepayments and Deposit to Suppliers - Prepayments and Deposit to Suppliers (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Prepayment and deposit to suppliers	$ 2,154	$ 4,073
Deposits to TV Ad and Internet Ad Resources Providers [Member]
Prepayment and deposit to suppliers	963	1,870
Prepayment to TV Ad and Internet Ad Resources Providers [Member]
Prepayment and deposit to suppliers	727	1,331
Deposits to Other Service Providers [Member]
Prepayment and deposit to suppliers		765
Other Deposits and Prepayments [Member]
Prepayment and deposit to suppliers	$ 464	$ 107

Note 7 - Due From Related Parties, Net (Details Textual) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Apr. 07, 2019 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)
Due from Related Parties, Current, Total	$ 226				$ 14
Allowance for Doubtful Accounts Receivable, Related Party, Current	175				373
Related-party Working Capital Loans [Member] \| Chuangshi Meiwei and Guoshua Shiji [Member]
Due from Related Parties, Current, Total	200			¥ 1,380
Proceeds from Collection of Short-term Loans to Related Parties	30	¥ 180
Allowance for Doubtful Accounts, Related Party, Reversal	40
Allowance for Doubtful Accounts Receivable, Related Party, Current					210
Related-party Working Capital Loans [Member] \| Chuangshi Meiwei [Member]
Due from Related Parties, Current, Total					150	¥ 1,000
Related-party Working Capital Loans [Member] \| Guohua Shiji [Member]
Due from Related Parties, Current, Total					$ 180	¥ 1,200
Fund Advanced to Company Management [Member] \| Officer [Member]
Due from Related Parties, Total	$ 200
Fund Advanced to Company Management [Member] \| Officer [Member] \| Subsequent Event [Member]
Due from Related Parties, Amount Returned			$ 200

Note 7 - Due From Related Parties, Net - Due From Related Parties (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Due from related parties, gross	$ 401	$ 387
Allowance for doubtful accounts	(175)	(373)
Due from Related Parties, Current, Total	226	14
Beijing Saimeiwei Food Equipment Technology [Member]
Due from related parties, gross		33
Chuangshi Meiwei [Member]
Due from related parties, gross		156
Guohua Shiji [Member]
Due from related parties, gross	201	184
ChinaNet Chuang Tou [Member]
Due from related parties, gross		14
Officer [Member]
Due from related parties, gross	$ 200

Note 8 - Long-term Investments (Details Textual) ¥ in Thousands, $ in Thousands	1 Months Ended		12 Months Ended
	Jan. 31, 2019 USD ($)	Jan. 31, 2019 CNY (¥)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 USD ($)	Oct. 31, 2018 USD ($)	Oct. 31, 2018 CNY (¥)	Dec. 31, 2015 USD ($)
Investments, Cash Returned			$ 437		$ 459
Local Chain Xi’an [Member]
Common Stock, Value, Outstanding						$ 730	¥ 5,000
Shenzhen Mingshan and Zhao Shang Ke Hubei [Member]
Equity Method Investment, Ownership Percentage			23.18%	23.18%	25.50%
Equity Method Investments								$ 0
ChinaNet Chuang Tou [Member]
Equity Securities without Readily Determinable Fair Value, Percent			19.00%	19.00%
Investments, Cash Returned			$ 437	¥ 3,000	$ 459
Equity Securities without Readily Determinable Fair Value, Impairment Loss, Annual Amount			$ 450
ChinaNet Korea [Member]
Equity Securities without Readily Determinable Fair Value, Percent			15.00%	15.00%
Equity Securities without Readily Determinable Fair Value, Amount					0
Beijing Saturday [Member]
Equity Securities without Readily Determinable Fair Value, Percent			10.00%	10.00%
Investments, Cash Returned
Equity Securities without Readily Determinable Fair Value, Amount					0
Local Chain Xi’an [Member]
Equity Securities without Readily Determinable Fair Value, Percent			4.90%	4.90%		4.90%	4.90%
Local Chain Xi’an [Member] \| Subsequent Event [Member]
Payments to Acquire Investments, Total	$ 40	¥ 250
Chuangshi Meiwei [Member]
Equity Securities without Readily Determinable Fair Value, Amount					0
Guohua Shiji and Beijing Saturday [Member]
Equity Securities without Readily Determinable Fair Value, Impairment Loss, Annual Amount					$ 40
Shenzhen Mingshan [Member]
Equity Method Investment, Ownership Percentage					23.18%
Zhao Shang Ke Hubei [Member]
Equity Method Investment, Ownership Percentage					25.50%
Guohua Shiji [Member]
Investments, Cash Returned
Equity Securities without Readily Determinable Fair Value, Amount					$ 0

Note 8 - Long-term Investments - Movement in Other Ownership Interest Investments (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 USD ($)
Investments, balance	$ 918		$ 1,340
Cash investment returned during the year	(437)		(459)
Impairment on the investments	(437)		(46)
Exchange translation adjustment	(44)		83
Investments, balance			918
ChinaNet Chuang Tou [Member]
Investments, balance	918		1,297
Cash investment returned during the year	(437)	¥ (3,000)	(459)
Impairment on the investments	(437)
Exchange translation adjustment	(44)		80
Investments, balance			918
Guohua Shiji [Member]
Investments, balance			27
Cash investment returned during the year
Impairment on the investments			(29)
Exchange translation adjustment			2
Investments, balance
Beijing Saturday [Member]
Investments, balance			16
Cash investment returned during the year
Impairment on the investments			(17)
Exchange translation adjustment			1
Investments, balance

Note 9 - Property and Equipment, Net (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Depreciation, Total	$ 159,000	$ 196,000

Note 9 - Property and Equipment, Net - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Property and equipment, gross	$ 3,397	$ 3,557
Less: accumulated depreciation	(3,255)	(3,258)
Property and equipment, net	142	299
Leaseholds and Leasehold Improvements [Member]
Property and equipment, gross	321	337
Vehicles [Member]
Property and equipment, gross	771	810
Office Equipment [Member]
Property and equipment, gross	1,353	1,410
Electronic Devices [Member]
Property and equipment, gross	$ 952	$ 1,000

Note 10 - Intangible Assets, Net (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Amortization of Intangible Assets, Total	$ 382,000	$ 1,226,000
Impairment of Intangible Assets, Finite-lived	$ 3,330,000	$ 2,552,000
Finite-Lived Intangible Asset, Useful Life	2 years 175 days
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	$ 18,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	9,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	$ 18,000

Note 10 - Intangible Assets, Net - Intangible Assets, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Finite-lived intangible assets, Impairment	$ (7,618)	$ (4,627)
Finite-lived intangible assets	14,165	14,878
Finite-lived intangible assets, Accumulated amortization	(6,502)	(6,443)
Intangible assets, net	45	3,808
Customer Relationships [Member]
Finite-lived intangible assets, Impairment
Finite-lived intangible assets	1,941	2,038
Finite-lived intangible assets, Accumulated amortization	(1,941)	(2,038)
Intangible assets, net
Noncompete Agreements [Member]
Finite-lived intangible assets, Impairment	(488)	(512)
Finite-lived intangible assets	1,068	1,122
Finite-lived intangible assets, Accumulated amortization	(580)	(610)
Intangible assets, net
Software Technologies [Member]
Finite-lived intangible assets, Impairment
Finite-lived intangible assets	299	314
Finite-lived intangible assets, Accumulated amortization	(299)	(314)
Intangible assets, net
Cloud-Computing Based Software Platforms [Member]
Finite-lived intangible assets, Impairment	(415)	(435)
Finite-lived intangible assets	1,353	1,420
Finite-lived intangible assets, Accumulated amortization	(896)	(923)
Intangible assets, net	42	62
Intelligent Marketing Data Service Platform [Member]
Finite-lived intangible assets, Impairment	(2,799)	(1,600)
Finite-lived intangible assets	4,705	4,942
Finite-lived intangible assets, Accumulated amortization	(1,906)	(1,853)
Intangible assets, net		1,489
Internet Safety, Information Exchange Security and Data Encryption Software [Member]
Finite-lived intangible assets, Impairment	(1,468)
Finite-lived intangible assets	1,894	1,990
Finite-lived intangible assets, Accumulated amortization	(426)	(299)
Intangible assets, net		1,691
Computer Software, Cloud Video Management System [Member]
Finite-lived intangible assets, Impairment	(1,040)	(602)
Finite-lived intangible assets	1,383	1,454
Finite-lived intangible assets, Accumulated amortization	(343)	(291)
Intangible assets, net		561
Other Computer Software [Member]
Finite-lived intangible assets, Impairment
Finite-lived intangible assets	114	120
Finite-lived intangible assets, Accumulated amortization	(111)	(115)
Intangible assets, net	3	5
Domain Name [Member]
Domain name	1,408	1,478
Finite-lived intangible assets, Impairment	$ (1,408)	$ (1,478)

Note 11 - Blockchain Software Application Platform Development Costs (Details Textual) $ in Thousands, ¥ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Mar. 31, 2018 USD ($)	Mar. 31, 2018 CNY (¥)	Feb. 28, 2018 USD ($)
Payment for Blockchain Technology Based Applications Development Costs	$ 3,738
Contract to Develop Blockchain Technology Based Applications [Member]
Application Development Contracts, Contract Amount					$ 4,500
Contract to Develop Social Network Based Applications [Member]
Application Development Contracts, Contract Amount			$ 440	¥ 3

Note 12 - Goodwill (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Goodwill, Impairment Loss	$ 5,211	$ 0
Internet Ad [Member]
Reporting Unit, Amount of Fair Value	1,000
Reporting Unit, Amount of Carrying Amount	$ 6,200

Note 12 - Goodwill - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Balance	$ 5,277	$ 4,970
Exchange translation adjustment	(253)	307
Impairment on goodwill	(5,024)
Balance		$ 5,277

Note 13 - Short-term Bank Loan and Credit Facility (Details Textual)
¥ in Millions

12 Months Ended

Sep. 29, 2019

USD ($)

Sep. 29, 2019

CNY (¥)

Jul. 29, 2019

USD ($)

Jul. 29, 2019

CNY (¥)

Dec. 31, 2018

USD ($)

Dec. 31, 2017

USD ($)

Dec. 31, 2018

CNY (¥)

Sep. 30, 2018

USD ($)

Dec. 31, 2017

CNY (¥)

Restricted Cash and Cash Equivalents, Total

^[1]

$ 874,000

$ 765,000

$ 25,500

Minimum [Member]

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

5.22%

Debt Instrument, Basis Spread on Variable Rate

20.00%

Maximum [Member]

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

5.655%

Debt Instrument, Basis Spread on Variable Rate

30.00%

VIEs [Member]

VIEs [Member] | Loans Payable [Member]

$ 874,000

$ 765,000

VIEs [Member] | Loan Payable Borrowed on August 16, 2017 [Member]

700,000

¥ 5.0

VIEs [Member] | Loan Payable Borrowed on September 30, 2018 [Member]

$ 440,000

3.0

VIEs [Member] | Loan Payable Borrowed on September 30, 2018 [Member] | Scenario, Forecast [Member]

¥ 3.0

$ 440,000

Repayments of Short-term Debt, Total

$ 220,000

¥ 1.5

$ 220,000

¥ 1.5

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

VIEs [Member] | Loan Payable Maturing on October 18, 2017 [Member]

500,000

¥ 3.0

$ 300,000

¥ 2.0

[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 14 - Accrued Payroll and Other Accruals - Accrued Payroll and Other Accruals (Details) - USD ($)
$ in Thousands

Dec. 31, 2018

Dec. 31, 2017

Accrued Payroll and Staff Welfare [Member]

^[1]

$ 521

$ 559

Accrued Operating Expenses [Member]

208

203

Payable for Purchasing of Software Technology

$ 313

$ 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 15 - Due to Investors Related to Terminated Security Purchase Agreements (Details Textual)	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jan. 01, 2017	May 12, 2016
Number of Investors Security Purchase Agreement Terminated					2
Repayment for Security Purchase Agreement	$ 922,000	$ 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
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

Note 16 - Payable for Purchasing of Software Technology (Details Textual)
¥ in Thousands, $ in Thousands

Dec. 31, 2018

USD ($)

Dec. 31, 2017

USD ($)

Dec. 31, 2017

CNY (¥)

Dec. 31, 2016

USD ($)

Dec. 31, 2016

CNY (¥)

^[1]

$ 436

¥ 2,850

$ 400

¥ 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 17 - Taxation (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	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%
Increase (Decrease) in Amount of Toll Charge Income From the Act	$ 460
Amount of Toll Charge Income From the Act	1,860	$ 1,400
Federal Income Tax Expense (Benefit), Continuing Operations, Total	$ 0
Income Tax Withholding Rate Pursuant to EIT Law	10.00%
Operating Loss Carryforwards, Total	$ 19,200	13,300
Operating Loss Carryforwards, Taxable Income Deduction Limitations	80.00%
Deferred Tax Assets, Valuation Allowance, Total	$ 9,875	6,636
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability	1,900
Deferred Tax Assets, Bad Debts Provision [Member]
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	$ 3,500	$ (90)
Minimum [Member]
PRC Value Added Tax Surcharge Rate	12.00%
Maximum [Member]
PRC Value Added Tax Surcharge Rate	14.00%
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%
Tax Treaty Agreement [Member]
Income Tax Withholding Rate Pursuant to EIT Law	5.00%
HONG KONG
Federal Income Tax Expense (Benefit), Continuing Operations, Total	$ 0
Profits Assessable	0
ChinaNet BVI [Member]
Other Tax Expense (Benefit)	$ 0
Other PRC Operating Entities [Member] \| PRC [Member]
Applicable Income Tax Rate	25.00%
Business Opportunity Online [Member] \| PRC [Member]
Applicable Income Tax Rate	15.00%
Business Opportunity Online [Member] \| PRC [Member] \| Minimum [Member]
Enterprise Income Tax Rate In PRC			15.00%
PRC Subsidiary And VIE's [Member]
Operating Loss Carryforwards, Total	$ 25,200	$ 19,900

Note 17 - Taxation - Taxes Payable (Details) - USD ($)
$ in Thousands

Dec. 31, 2018

Dec. 31, 2017

PRC turnover tax and surcharge payable

$ 1,215

$ 1,295

PRC enterprise income tax payable

1,782

1,873

Taxes payable

^[1]

$ 2,997

$ 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 17 - Taxation - Reconciliation of the Income Tax (Expense)/Benefit (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Pre-tax loss	$ (13,363)	$ (9,760)
U.S. federal rate	21.00%	35.00%
Income tax benefit computed at U.S. federal rate	$ 2,806	$ 3,416
Rate differential for PRC earnings	561	(724)
Preferential tax treatment effect	(231)	(238)
Tax effect on non-taxable change in fair value of warrant liabilities	350
Tax effect on non-deductible impairment on goodwill	(1,303)
Tax effect on change of net operating loss treatment	1,130
Tax effect on enactment of new tax rate		(1,859)
Tax effect on toll charge income from the Act		(492)
Tax effect on adjustment to provisional amount of toll charge income from the Act	(96)
Provision/reverse of valuation allowance on deferred tax assets	(3,504)	90
Expired tax attribute carryforwards	(365)	(524)
Tax effect on other non-deductible expenses/non-taxable income	(112)	80
Effective income tax expense	$ (764)	$ (251)

Note 17 - Taxation - Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Current-PRC		$ (1)
Deferred-PRC	(764)	(250)
Effective income tax expense	$ (764)	$ (251)

Note 17 - Taxation - Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Tax effect of net operating losses carried forward	$ 9,243	$ 7,115
Bad debts provision	1,188	879
Valuation allowance	(9,875)	(6,636)
Total net deferred tax assets	$ 556	$ 1,358

Note 19 - The Financing and Warrant Liabilities (Details Textual) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Jan. 17, 2018	Dec. 31, 2018
Warrants and Rights Outstanding	$ 2,275	$ 606
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	503
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	103
The Warrants [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 6.60
The Warrants [Member] \| Minimum [Member]
Class of Warrant or Right, Beneficial Ownership Percentage	4.99%
The Warrants [Member] \| Maximum [Member]
Class of Warrant or Right, Beneficial Ownership Percentage	9.99%
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%
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs	$ 1,200	1,200
Placement Agent Fee	660
Direct Legal Fees	$ 150
Private Placement [Member] \| Investor Warrants [Member]
Warrants and Rights Outstanding		1,890
Private Placement [Member] \| Placement Agent Warrants [Member]
Warrants and Rights Outstanding		$ 390

Note 19 - The Financing and Warrant Liabilities - Fair Value of Warrants (Details)	Dec. 31, 2018 yr	Jan. 17, 2018 yr
Measurement Input, Share Price [Member] \| Investor Warrants [Member]
Fair value of the warrants	1.34	3.98
Measurement Input, Share Price [Member] \| Placement Agent Warrants [Member]
Fair value of the warrants	1.34	3.98
Measurement Input, Expected Term [Member] \| Investor Warrants [Member]
Fair value of the warrants	1.55	2.5
Measurement Input, Expected Term [Member] \| Placement Agent Warrants [Member]
Fair value of the warrants	2.05	3
Measurement Input, Risk Free Interest Rate [Member] \| Investor Warrants [Member]
Fair value of the warrants	0.025	0.0222
Measurement Input, Risk Free Interest Rate [Member] \| Placement Agent Warrants [Member]
Fair value of the warrants	0.025	0.0239
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	1.99	1.58
Measurement Input, Price Volatility [Member] \| Placement Agent Warrants [Member]
Fair value of the warrants	1.76	1.47
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	0.78	2.93
Measurement Input, Quoted Price [Member] \| Placement Agent Warrants [Member]
Fair value of the warrants	0.8	2.99

Note 19 - The Financing and Warrant Liabilities - Allocation of Gross Proceeds From the Financing (Details) - Private Placement [Member] - USD ($) $ in Thousands		12 Months Ended
	Jan. 17, 2018	Dec. 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 19 - The Financing and Warrant Liabilities - Warrant Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Jan. 17, 2018
Proceeds allocated to warrant liabilities	$ 606		$ 2,275
Change in fair value of warrants	(1,669)
Investor Warrants [Member]
Proceeds allocated to warrant liabilities	503		1,890
Change in fair value of warrants	(1,387)
Placement Agent Warrants [Member]
Proceeds allocated to warrant liabilities	103		$ 385
Change in fair value of warrants	$ (282)

Note 19 - The Financing and Warrant Liabilities - Warrant Activity (Details)	12 Months Ended
	Dec. 31, 2018 $ / shares shares
Balance (in shares) \| shares	0
Balance, January 1, 2018 (in dollars per share)
Balance, exercisable (in shares) \| shares	0
Balance, January 1, 2018 (in dollars per share)
Balance, exercisable, weighted average exercise price (in dollars per share)
Granted/Vested (in shares) \| shares	774,000
Granted/Vested, weighted average remaining contractual life (Year)	2 years 211 days
Granted/Vested, weighted average exercise price (in dollars per share)	$ 6.60
Granted/Vested, exercisable (in shares) \| shares	774,000
Granted/Vested, exercisable, weighted average remaining contractual life (Year)	2 years 211 days
Granted/Vested, exercisable, weighted average exercise price (in dollars per share)	$ 6.60
Forfeited (in shares) \| shares
Forfeited (in dollars per share)
Exercised (in shares) \| shares
Exercised (in dollars per share)
Balance (in shares) \| shares	774,000
Balance, weighted average remaining contractual life (Year)	1 year 229 days
Balance, weighted average exercise price (in dollars per share)	$ 6.60
Balance, exercisable (in shares) \| shares	774,000
Balance, exercisable, weighted average remaining contractual life (Year)	1 year 229 days
Balance, exercisable, weighted average exercise price (in dollars per share)	$ 6.60

Note 20 - Restricted Net Assets (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries	$ 12,000	$ 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		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 21 - Employee Defined Contribution Plan (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Defined Contribution Plan, Cost	$ 372,000	$ 405,000

Note 22 - Concentration of Risk (Details Textual)	Dec. 31, 2018
CHINA
Percent of Cash and Cash Equivalents Held by Major Financial Institutions	74.00%
UNITED STATES
Percent of Cash and Cash Equivalents Held by Major Financial Institutions	26.00%

Note 22 - Concentration of Risk - Company's Concentration of Customers and Suppliers (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cost Of Sales Total [Member] \| Supplier Concentration Risk [Member] \| Supplier A [Member]
Revenues, customer concentration risk	85.00%	64.00%
Cost Of Sales Total [Member] \| Supplier Concentration Risk [Member] \| Supplier B [Member]
Revenues, customer concentration risk	11.00%	26.00%
Customer A [Member] \| Sales Revenue, Net [Member] \| Customer Concentration Risk [Member]
Revenues, customer concentration risk	17.00%	12.00%
Customer A [Member] \| Accounts Receivable [Member] \| Customer Concentration Risk [Member]
Revenues, customer concentration risk	74.00%	30.00%
Customer B [Member] \| Sales Revenue, Net [Member] \| Customer Concentration Risk [Member]
Revenues, customer concentration risk		12.00%
Customer B [Member] \| Accounts Receivable [Member] \| Customer Concentration Risk [Member]
Revenues, customer concentration risk	12.00%
Customer C [Member] \| Sales Revenue, Net [Member] \| Customer Concentration Risk [Member]
Revenues, customer concentration risk		10.00%
Customer C [Member] \| Accounts Receivable [Member] \| Customer Concentration Risk [Member]
Revenues, customer concentration risk		20.00%
Customer D [Member] \| Accounts Receivable [Member] \| Customer Concentration Risk [Member]
Revenues, customer concentration risk		16.00%

Note 23 - Commitments and Contingencies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Operating Leases, Rent Expense, Net, Total	$ 406,000	$ 409,000

Note 23 - Commitments and Contingencies - Contractual Obligations (Details) - Office Rental [Member] $ in Thousands	Dec. 31, 2018 USD ($)
-2019	$ 92
-2020	2
Total	$ 94

Note 24 - Segment Reporting (Details Textual) - USD ($)	12 Months Ended
Note 24 - Segment Reporting (Details Textual) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Allocated Share-based Compensation Expense, Total	$ 233,000	$ 2,271,000

Note 24 - Segment Reporting - Summary of Segment Reporting Information (Details) - USD ($)

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

$ 57,146,000

$ 46,633,000

54,728,000

42,020,000

Depreciation and amortization expense included in total operating expenses

16,930,000

14,011,000

541,000

1,422,000

Impairment on goodwill included in total operating expenses

5,211,000

Impairment on intangible assets included in total operating expenses

3,330,000

2,552,000

(14,512,000)

(9,398,000)

1,669,000

453,000

44,000

(14,127,000)

(10,011,000)

4,180,000

4,000

Corporate, Non-Segment [Member]

16,968,000

28,560,000

356,000

247,000

Depreciation and amortization expense included in total operating expenses

^[1]

2,400,000

4,454,000

71,000

88,000

Impairment on goodwill included in total operating expenses

Impairment on intangible assets included in total operating expenses

(2,044,000)

(4,207,000)

1,669,000

453,000

(1,217,000)

(4,238,000)

3,000

2,000

Intersegment Eliminations [Member]

17,155,000

11,013,000

(356,000)

(247,000)

Depreciation and amortization expense included in total operating expenses

(356,000)

(247,000)

Impairment on goodwill included in total operating expenses

Impairment on intangible assets included in total operating expenses

Internet Ad [Member] | Operating Segments [Member]

(16,546,000)

(11,379,000)

57,025,000

46,291,000

54,633,000

41,747,000

Depreciation and amortization expense included in total operating expenses

14,658,000

9,730,000

469,000

1,333,000

Impairment on goodwill included in total operating expenses

5,211,000

Impairment on intangible assets included in total operating expenses

3,330,000

2,552,000

(12,266,000)

(5,186,000)

28,000

(12,708,000)

(5,752,000)

431,000

1,000

TV Ad [Member] | Operating Segments [Member]

12,756,000

28,524,000

121,000

342,000

95,000

273,000

Depreciation and amortization expense included in total operating expenses

126,000

74,000

1,000

Impairment on goodwill included in total operating expenses

Impairment on intangible assets included in total operating expenses

(100,000)

(5,000)

16,000

(100,000)

(21,000)

1,000

Blockchain Technology [Member] | Operating Segments [Member]

207,000

$ 402,000

Depreciation and amortization expense included in total operating expenses

102,000

Impairment on goodwill included in total operating expenses

Impairment on intangible assets included in total operating expenses

(102,000)

(102,000)

3,746,000