Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2016shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | FY |
Trading Symbol | GIGM |
Entity Registrant Name | GIGAMEDIA Ltd |
Entity Central Index Key | 1,105,101 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 11,052,235 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS | ||
Cash and cash equivalents (Note 8) | $ 65,711 | $ 71,432 |
Marketable securities - current (Note 9) | 3 | 4 |
Accounts receivable - net (Note 10) | 871 | 1,246 |
Prepaid expenses | 547 | 545 |
Restricted cash (Notes 8 and 15) | 500 | 1,000 |
Other current assets (Note 11) | 1,250 | 271 |
Total Current Assets | 68,882 | 74,498 |
Equity investments (Note 13) | 72 | 4,524 |
PROPERTY, PLANT AND EQUIPMENT (Note 14) | ||
Land and buildings | 1,100 | |
Information and communication equipment | 3,783 | |
Office furniture and fixtures | 166 | |
Leasehold improvements | 116 | |
Other | 7 | |
Property, Plant and Equipment, Gross, Total | 7 | 5,165 |
Less: Accumulated depreciation | (3,774) | |
Net long-lived assets | 7 | 1,391 |
INTANGIBLE ASSETS - NET (Note 5) | 88 | |
OTHER ASSETS | ||
Refundable deposits | 245 | 272 |
Prepaid licensing and royalty fees (Note 6) | 1,020 | 239 |
Other (Note 18) | 101 | 183 |
TOTAL ASSETS | 70,327 | 81,195 |
CURRENT LIABILITIES | ||
Short-term borrowings (Note 15) | 2,480 | 6,093 |
Accounts payable | 266 | 320 |
Accrued compensation | 210 | 759 |
Accrued expenses (Note 16) | 3,828 | 3,037 |
Deferred revenue | 1,868 | 1,750 |
Other current liabilities (Note 17) | 346 | 1,523 |
Total Current Liabilities | 8,998 | 13,482 |
NONCURRENT LIABILITIES | ||
Accrued pension liabilities (Note 18) | 0 | 0 |
Other (Notes 19 and 23) | 1,671 | 1,722 |
Total Liabilities | 10,669 | 15,204 |
GigaMedia Shareholders’ Equity: | ||
Common shares, no par value, and additional paid-in capital; issued and outstanding 11,052 thousand shares in 2015 and 2016 | 308,754 | 308,745 |
Accumulated deficit | (226,485) | (220,419) |
Accumulated other comprehensive loss | (22,611) | (22,335) |
Total GigaMedia Shareholders’ Equity | 59,658 | 65,991 |
COMMITMENTS AND CONTINGENCIES (Note 25) | ||
TOTAL LIABILITIES AND EQUITY | $ 70,327 | $ 81,195 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Common shares, no par value | ||
Common shares, issued | 11,052 | 11,052 |
Common shares, outstanding | 11,052 | 11,052 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING REVENUES | |||
Sales Revenue Net | $ 8,971 | $ 10,251 | $ 9,779 |
COSTS OF REVENUES | |||
Cost of goods and services sold | (4,138) | (8,889) | (7,835) |
GROSS PROFIT | 4,833 | 1,362 | 1,944 |
OPERATING EXPENSES | |||
Product development and engineering expenses | (1,045) | (688) | (892) |
Selling and marketing expenses | (5,513) | (8,655) | (6,708) |
General and administrative expenses | (3,456) | (5,759) | (6,378) |
Impairment loss on property, plant and equipment (Note 7) | (471) | (60) | (28) |
Impairment loss on intangible assets (Note 7) | (57) | (5) | (115) |
Impairment loss on prepaid licensing and royalty fees (Notes 6 and 7) | (1,386) | (4,187) | (1,259) |
Termination of proposed acquisition (Note 3) | (2,000) | ||
Other (Note 10) | (35) | (3) | (37) |
Operating Expenses | (11,963) | (21,357) | (15,417) |
LOSS FROM OPERATIONS | (7,130) | (19,995) | (13,473) |
NON-OPERATING INCOME (EXPENSES) | |||
Interest income | 302 | 333 | 682 |
Gain on sales of marketable securities (Notes 9 and 12) | 19,939 | 8,621 | |
Gain on disposal of property, plant and equipment - net (Note 14) | 751 | 2 | |
Interest expense | (81) | (182) | (243) |
Foreign exchange loss, net | (301) | (397) | (556) |
Equity in net losses on equity investments- net (Note 13) | (1,731) | (600) | (531) |
Impairment loss on investments (Note 7) | (1,290) | ||
Gain on sale of subsidiary and equity method investments (Note 4) | 849 | 37 | |
Other | 126 | (547) | 435 |
Nonoperating Income (Expense), Total | (85) | 17,293 | 8,410 |
LOSS BEFORE INCOME TAXES | (7,215) | (2,702) | (5,063) |
INCOME TAX BENEFIT (Note 23) | 1,149 | 414 | 73 |
NET LOSS | (6,066) | (2,288) | (4,990) |
LESS: NET LOSS (INCOME) ATTRIBUTABLE TO THE NONCONTROLLING INTERESTS | 45 | (165) | |
NET LOSS ATTRIBUTABLE TO SHAREHOLDERS OF GIGAMEDIA | $ (6,066) | $ (2,243) | $ (5,155) |
LOSS PER SHARE ATTRIBUTABLE TO GIGAMEDIA | |||
Basic and Diluted: | $ (0.55) | $ (0.20) | $ (0.48) |
WEIGHTED AVERAGE SHARES USED TO COMPUTE LOSS PER SHARE ATTRIBUTABLE TO GIGAMEDIA SHAREHOLDERS (Note 2) | |||
Basic | 11,052 | 11,052 | 10,785 |
Diluted | 11,052 | 11,052 | 10,785 |
Asian online game and service | |||
OPERATING REVENUES | |||
Sales Revenue Net | $ 8,971 | $ 8,545 | $ 8,199 |
COSTS OF REVENUES | |||
Cost of goods and services sold | $ (4,138) | (7,018) | (6,010) |
Other Revenues | |||
OPERATING REVENUES | |||
Sales Revenue Net | 1,706 | 1,580 | |
COSTS OF REVENUES | |||
Cost of goods and services sold | $ (1,871) | $ (1,825) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
NET LOSS | $ (6,066) | $ (2,288) | $ (4,990) |
OTHER COMPREHENSIVE INCOME (LOSS) - NET OF TAX: | |||
Unrealized gain on marketable securities | (1) | 8,553 | 906 |
Realized gain on marketable securities reclassified into income | (19,939) | (8,621) | |
Defined benefit pension plan adjustment | (58) | ||
Foreign currency translation adjustments | (217) | 538 | (171) |
Other comprehensive income (loss) | (276) | (10,848) | (7,886) |
COMPREHENSIVE LOSS | (6,342) | (13,136) | (12,876) |
COMPREHENSIVE (INCOME) LOSS ATTRIBUTABLE TO THE NONCONTROLLING INTERESTS | 45 | (163) | |
COMPREHENSIVE LOSS ATTRIBUTABLE TO GIGAMEDIA SHAREHOLDERS | $ (6,342) | $ (13,091) | $ (13,039) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common shares and additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Noncontrolling interest |
Balance (in shares) at Dec. 31, 2013 | 10,145 | ||||
Balance at Dec. 31, 2013 | $ 88,301 | $ 305,072 | $ (213,021) | $ (3,603) | $ (147) |
Issuance of common shares from exercise of stock options and RSUs (in shares) | 907 | ||||
Issuance of common shares from exercise of stock options and RSUs | 3,593 | $ 3,593 | |||
Stock-based compensation | 17 | $ 17 | |||
Liquidation of Dragongate Enterprises Ltd. | (6) | (6) | |||
Net income (loss) | (4,990) | (5,155) | 165 | ||
Other comprehensive loss | (7,886) | (7,884) | (2) | ||
Balance (in shares) at Dec. 31, 2014 | 11,052 | ||||
Balance at Dec. 31, 2014 | 79,029 | $ 308,682 | (218,176) | (11,487) | 10 |
Stock-based compensation | 63 | $ 63 | |||
Deconsolidation of FingerRockz (Note 4) | 35 | 35 | |||
Net income (loss) | (2,288) | (2,243) | $ (45) | ||
Other comprehensive loss | $ (10,848) | (10,848) | |||
Balance (in shares) at Dec. 31, 2015 | 11,052 | 11,052 | |||
Balance at Dec. 31, 2015 | $ 65,991 | $ 308,745 | (220,419) | (22,335) | |
Stock-based compensation | 9 | $ 9 | |||
Net income (loss) | (6,066) | (6,066) | |||
Other comprehensive loss | $ (276) | (276) | |||
Balance (in shares) at Dec. 31, 2016 | 11,052 | 11,052 | |||
Balance at Dec. 31, 2016 | $ 59,658 | $ 308,754 | $ (226,485) | $ (22,611) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
NET LOSS | $ (6,066) | $ (2,288) | $ (4,990) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | 162 | 294 | 306 |
Amortization | 111 | 245 | 1,211 |
Stock-based compensation | 9 | 65 | 21 |
Gain on sales of subsidiary and equity method investments | (849) | (37) | |
Impairment loss on property, plant and equipment | 471 | 60 | 28 |
Impairment losses on intangible assets | 57 | 5 | 115 |
Impairment losses on prepaid licensing and royalty fees | 1,386 | 4,187 | 1,259 |
Bad debt expenses | 35 | 3 | 37 |
Gains on disposals of property, plant and equipment - net | (751) | (2) | |
Gains on sales of marketable securities | (19,939) | (8,621) | |
Equity in net losses on equity investments - net | 1,731 | 600 | 531 |
Impairment losses on marketable securities and investments | 1,290 | ||
Deferred income tax benefits | (41) | (216) | |
Other | (11) | (306) | |
Net changes in: | |||
Accounts receivable | 341 | 47 | 692 |
Prepaid expenses | (12) | 17 | 186 |
Other current assets | 49 | 82 | (260) |
Accounts payable | (24) | (451) | (407) |
Accrued expenses | 1,071 | (396) | 848 |
Accrued compensation | (331) | (28) | 416 |
Other current liabilities | (916) | (267) | (711) |
Accrued pension liabilities / Prepaid pension assets | 46 | (64) | (215) |
Prepaid licensing and royalty fees | (2,167) | (43) | (976) |
Net cash used in operating activities | (5,688) | (16,845) | (10,838) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Cash dividends received from investees | 1,438 | 247 | |
Proceeds from disposals of marketable debt securities | 42,583 | 18,692 | |
Divestiture of business, net of cash transferred | (482) | (78) | |
Purchases of property, plant and equipment | (496) | (158) | (420) |
Proceeds from disposals of property, plant and equipment | 1,950 | 23 | 2 |
Proceeds from disposals of businesses, net of transaction costs | 872 | ||
Purchases of marketable securities | (26,042) | ||
Purchase of cost method investments | (1,000) | ||
Purchases of intangible assets | (86) | (112) | (110) |
Decrease in refundable deposits | 27 | 27 | 3 |
Other | 30 | (111) | (7) |
Net cash provided by (used in) investing activities | 3,253 | 41,174 | (7,635) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net proceeds from (repayments of) short-term borrowings | (3,722) | (12,281) | 15,232 |
Cash received from the exercise of stock options | 0 | 0 | 3,593 |
Other | (10) | ||
Net cash provided by (used in) financing activities | (3,732) | (12,281) | 18,825 |
Net foreign currency exchange differences on cash and cash equivalents | (54) | 753 | 478 |
NET INCREASE (DECREASE) IN CASH, RESTRICTED CASH AND CASH EQUIVALENTS | (6,221) | 12,801 | 830 |
CASH, RESTRICTED CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 72,432 | 59,631 | 58,801 |
CASH, RESTRICTED CASH AND CASH EQUIVALENTS AT END OF YEAR | 66,211 | 72,432 | 59,631 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Interest paid during the year | 83 | 190 | 237 |
Income tax paid (refunded) during the year | $ 46 | $ 44 | $ (84) |
Principal Activities, Basis of
Principal Activities, Basis of Presentation, and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principal Activities, Basis of Presentation, and Summary of Significant Accounting Policies | NOTE 1. Principal Activities, Basis of Presentation, and Summary of Significant Accounting Policies (a) Principal Activities GigaMedia Limited (referred to hereinafter as GigaMedia, our Company, we, us, or our) is a diversified provider of online and mobile games and cloud computing services, with headquarters in Taipei, Taiwan. Our Asian online game and service business operates a suite of play-for-fun online games and provides related services, mainly targeting online and mobile game players across Asia, including Greater China and Southeast Asia. Our cloud business aimed at providing an integrated platform of services and tools for medium-to-larger enterprises in Greater China to increase flexibility, efficiency and competitiveness, as well as in bidding for government contracts in Taiwan. After reviewing the business plan, we combined in 2016 our cloud service and Asian online game businesses to optimize the allocation of resources. On December 16, 2015, the Extraordinary General Meeting of our Company approved to effect a reverse share split of our Ordinary Shares by a ratio of five to one. We executed reverse splits of the issued and outstanding shares including but not limited to common shares, shares granted by employee plans, options, restricted stock awards, and units, warrants and convertible or exchange securities, effective at the open of the market on December 16, 2015. Based upon the Reverse Share Split Scheme, proportionate adjustments are generally required to be made to the per share exercise price and the number of shares issuable upon the exercise or conversion of all outstanding options. These consolidated financial statements reflect retroactive effect to such reverse split and all share and per share amounts have been adjusted accordingly. (b) Basis of Presentation The accompanying consolidated financial statements of our Company have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). (c) Summary of significant accounting policies Principles of Consolidation The consolidated financial statements include the accounts of GigaMedia and subsidiaries after elimination of all significant inter-company accounts and transactions. The accounting policies for other less than majority-owned investments are described in Note 1 below within the paragraphs headed “Marketable Securities” and “Investments”. Foreign Currency Translation and Transactions Assets and liabilities denominated in non-U.S. dollars are translated to U.S. dollars at year-end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the year. Cumulative translation adjustments resulting from this process are charged or credited to other comprehensive income. Gains and losses on foreign currency transactions are included in other income and expenses. Use of Estimates The preparation of consolidated 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 disclosures of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management bases its estimates on historical experience and also on assumptions that it believes are reasonable. Management assesses these estimates on a regular basis; however, actual results could differ from those estimates. Significant items subject to such estimates and assumptions include but not limit to the useful lives of property, plant and equipment; allowances for doubtful accounts; the valuation of deferred tax assets, long-lived assets, inventory, investments and share-based compensation; and accrued pension liabilities, income tax uncertainties and other contingencies. We believe the critical accounting policies listed below affect significant judgments and estimates used in the preparation of the financial statements. Revenue Recognition General Revenues are recognized when persuasive evidence of an arrangement exists, delivery occurs and the customer takes ownership and assumes risks or services are rendered, the sales price is fixed or determinable and collectability is reasonably assured. Sales taxes assessed by governmental authorities on our revenue transactions are presented on a net basis and therefore are excluded from revenues in our consolidated financial statements. Multiple-Element Arrangements Our Company enters into multiple-element revenue arrangements, which may include any combination of services, software, and/or products. To the extent that a deliverable in a multiple-element arrangement is subject to specific accounting guidance, whether and/or how to separate multiple deliverable arrangements into separate units of accounting (separability) and how to allocate the arrangement consideration among those separate units of accounting (allocation) for that deliverable is accounted for in accordance with such specific guidance. In addition to the aforementioned general policies, the following are the specific revenue recognition policies for each major category of revenue. Asian Online Game and Service Revenues Online game revenues are earned through the sale of online game points, prepaid cards, game packs, through the sublicensing of certain games to distributors and through licensing fee revenues. Virtual online game points are sold to distributors or end-users who can make the payments through credit cards, Internet ATMs or telecommunication service operators. Physical prepaid cards and game packs are sold through distributors and convenience stores. Proceeds from sales of physical cards and game packs, net of sales discounts, and online game points are deferred when received and revenue is recognized upon the actual usage of the playing time or in-game virtual items by the end-users; over the estimated useful life of virtual items; or when the sold game points expire and can no longer be used to access the online games or products in accordance with our published game points expiration policy. Sublicensing revenues from the distributors are recognized based on end-users’ activation to the game system and when the performance obligations have been completed. Licensing fee revenues are recognized when the delivery of licensed products has occurred and the fee is fixed or determinable. Sales of virtual online game points and licensing fee revenues are reported on a gross basis. In the sales of virtual online game points and game licenses, we act as principal and we have latitude in establishing price. Fixed percentage fees retained by service providers for payment processing related to our online game services are recognized as cost of online game revenues. We report sublicensing revenues on a net basis. In the sublicense agreements, we act as agent and the distributors are responsible for the operating and the marketing. Online game and service revenues also include revenues derived from online advertising arrangements, sponsorship arrangements, or a combination of both. These service arrangements allow advertisers to place advertisements on particular areas of our Company’s websites and online game platforms over a stated period of time. Service revenues from online advertising arrangements are recognized ratably over the period of the contract when the collectability is reasonably assured. Cloud Product and Service Revenues Cloud service revenues are related to cloud computing services provided by our Company. Revenues are recorded net of discounts. Cloud service revenues are recognized upon acceptance for project services provided, or for the period of time for which we provide services to the customer. Customers of subscriptions have a choice of paying either monthly or in advance for a certain period of time, for which they receive corresponding discounts. Our Company records any such advanced payment receipts as other current liabilities and amortizes such revenues over the subscription period. Revenues from the sales of equipment and other related products are recognized upon acceptance. Deferred Revenues Deferred revenues consist mainly of the prepaid income related to our Asian online game and service business. Deferred revenue represents proceeds received relating to the sale of game points and in-game items which are activated or charged to the respective player game account by players, but which have not been consumed by the players or expired. Deferred revenue is credited to profit or loss when the game points and in-game items are consumed or expired. Pursuant to relevant new requirements in Taiwan, as of December 31, 2015 and 2016, cash totaling $1 million and $0.5 million, respectively, has been deposited in an escrow account in a bank as a performance bond for the players’ game points, and is included within restricted cash in the consolidated balance sheets. Prepaid Licensing and Royalty Fees Our Company, through our subsidiaries, routinely enters into agreements with licensors to acquire licenses for using, marketing, distributing, selling and publishing multi-player online games. Prepaid licensing fees paid to licensors are amortized on a straight-line basis over the shorter of the estimated useful economic life of the relevant online game or license period, which is usually within one to five years. The annual amortization is modified if the amount computed on the ratio of current gross revenues for a game license over the total of current and anticipated future gross revenues for that game license is greater than the amount computed using the straight-line method. Prepaid royalty fees and related costs are initially deferred when paid to licensors and amortized as operating costs based on certain percentage of revenues generated by the licensee from operating the related online game in the specific country or region over the contract period. Fair Value Measurements Our Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. We determine fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: • Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. • Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. Our Company generally determines or calculates the fair value of financial instruments using quoted market prices in active markets when such information is available; otherwise we apply appropriate present value or other valuation techniques, such as discounted cash flow analyses, incorporating adjusted available market discount rate information and our Company’s estimates for non-performance and liquidity risk. These techniques rely extensively on the use of a number of assumptions, including the discount rate, credit spreads, and estimates of future cash flows. (See Note 7, “Fair Value Measurements”, for additional information.) Cash Equivalents, Restricted Cash and Presentation of Statements of Cash Flows Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and so near to their maturity that they present relatively insignificant risk from changes in interest rates. Commercial paper, negotiable certificates of deposit, time deposits and bank acceptances with original maturities of three months or less are considered to be cash equivalents. Pledged time deposits are excluded from cash and cash equivalents for purposes of the consolidated statements of cash flows. The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash Marketable Securities Our Company’s investments in marketable securities are classified either as available-for-sale or trading. For the marketable securities classified as available-for-sale, the investments are stated at fair value with any unrealized gains or losses reported in accumulated other comprehensive income (loss) within equity until realized. For the marketable security classified as trading, we recognize the changes of the fair value of the investment in our consolidated statements of operations. Other-than-temporary impairments, if any, are charged to non-operating expense in the period in which the loss occurs. In determining whether an other-than-temporary impairment has occurred, our Company primarily considers, among other factors, the length of the time and the extent to which the fair value of an investment has been at a value less than cost. When an other-than-temporary loss is recognized, the fair value of the investment becomes the new cost basis of the investment and is not adjusted for subsequent recoveries in fair value. Realized gains and losses also are included in non-operating income and expense in the consolidated statements of operations. (See Note 7, “Fair Value Measurements”, for additional information.) Investments Equity investments in non-publicly traded securities of companies over which our Company has no ability to exercise significant influence are accounted for under the cost method. For equity investments accounted for as available-for-sale or trading, cash dividends are recognized as investment income. Stock dividends are recognized as an increase in the number of shares held and do not affect investment income. The cost per share is recalculated based on the new total number of shares. For equity investments accounted under equity method, stock dividends received from investees as a result of appropriation of net earnings and additional paid-in capital are recognized as an increase in the number of shares held and do not affect investment income. The cost per share is recalculated based on the weighted-average method. Cash dividends are accounted for as a reduction to the carrying value of the investment. Equity investments in companies over which our Company has the ability to exercise significant influence but does not hold a controlling financial interest are accounted for under the equity method. We recognize our share of the earnings or losses of the investee. Under the equity method, the difference between the cost of the acquisition and our Company’s share of the fair value of the net identifiable assets is recognized as goodwill and is included in the carrying amount of the investment. When our Company’s carrying value in an equity method investee is reduced to zero, no further losses are recorded in our consolidated financial statements unless our Company guaranteed obligations of the investee or has committed to additional funding. When the investee subsequently reports income, our Company will not record its share of such income until it equals the amount of its share of losses not previously recognized. Unrealized losses that are considered other-than-temporary, if any, are charged to non-operating expenses. Realized gains and losses, measured against carrying amount, are also included in non-operating income and expenses. (See Note 7, “Fair Value Measurements”, for additional information.) Receivables Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. Our Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and our customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is recorded on a straight-line basis over useful lives that correspond to categories as follows: Categories Years Buildings 50 Information and communication equipment 2 to 5 Office furniture and equipment 3 to 5 Leasehold improvements 3 to 5 Leasehold improvements are amortized over the shorter of the term of the lease or the economic useful life of the assets. Improvements and replacements are capitalized and depreciated over their estimated useful lives, while ordinary repairs and maintenance are expensed as incurred. We had entered into agreements to lease certain of our Company’s land and buildings to a third party under operating leases, which were renewed in September and October 2013 and expired in 2016. As of December 31, 2015, the carrying amount of the land and buildings under lease was $1.1 million. In January 2016, we entered into disposal agreements to sell these land and buildings. The closing of the disposal occurred in March 2016. (See Note 14, “Property, Plant and Equipment”, for additional information.)The rental income under the operating lease amounted to $73 thousand, $69 thousand and $9 thousand for 2014, 2015 and 2016, respectively. Business Acquisitions Our Company accounts for its business acquisitions using the acquisition method. Under this method, our Company recognizes and measures the identifiable assets acquired, the liabilities assumed and any noncontrolling interest at their acquisition-date fair values, with limited exceptions. Acquisition-related costs are generally expensed as incurred. Intangible Assets and Goodwill Intangible assets with finite lives are amortized by the straight-line method over their estimated useful lives, typically three years. Intangible assets with indefinite useful lives are not amortized. Goodwill is not amortized. Impairment of Intangible Assets, Goodwill and Long-Lived Assets Goodwill is reviewed for impairment annually or sooner when circumstances indicate an impairment may exist, using a fair-value approach at the reporting unit level. A reporting unit is the operating segment, or a business, which is one level below that operating segment (the “component” level) if discrete financial information is prepared and regularly reviewed by management at the segment level. Components are aggregated as a single reporting unit if they have similar economic characteristics. In connection with our goodwill impairment test, we first assess qualitative factors as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If the two-step goodwill impairment test is required, first, the fair value of the reporting unit is compared with its carrying amount (including goodwill). If the fair value of the reporting unit is less than its carrying amount, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying amount, step two does not need to be performed. Intangible assets with indefinite useful lives are tested for impairment at the reporting unit level, at least annually, or whenever events or changes in circumstances indicate that the carrying value of an asset might not be recoverable from its related future discounted cash flows. Impairment is measured as the difference between the carrying amounts and the fair value of the assets, and is recognized as a loss from operations. In connection with our impairment test for the intangible assets with indefinite useful lives, we first assess qualitative factors as a basis for determining whether it is necessary to perform the quantitative impairment test. Long-lived assets other than goodwill and intangible assets not being amortized are reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the carrying value of an asset might not be recoverable from its related future undiscounted cash flows. If such assets are considered to be impaired, the impairment to be recognized is measured by the extent to which the carrying amount of the assets exceeds the fair value of the assets. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. When impairment is identified, the carrying amount of the asset is reduced to its estimated fair value, and is recognized as a loss from operations. (See Note 7, “Fair Value Measurements”, for additional information.) Software Cost Costs to develop our Asian online game products are capitalized after technological feasibility has been established, and when the product is available for general release to customers, costs are expensed. Costs incurred prior to the establishment of technological feasibility are expensed when incurred and are included in product development and engineering expenses. Capitalized amounts are amortized using the straight-line method, which is applied over the estimated useful economic life of the software, typically three years. The annual amortization is modified if the amount computed using the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product is greater than the amount computed using the straight-line method. We capitalize certain costs incurred to purchase or to internally create and implement internal-use computer software, which includes software coding, installation, testing and certain data conversion. These capitalized costs are amortized on a straight-line basis over the shorter of the useful economic life of the software or its contractual license period, which is typically three years. Product Development and Engineering Product development and engineering expenses primarily consist of research compensation, depreciation and amortization, and are expensed as incurred. Advertising Direct-response advertising costs incurred in relation to the acquisition or origination of a customer relationship are capitalized and deferred. The deferred costs are recognized as expense in the consolidated statements of operations over the estimated lives of customer relationships. Costs of broadcast advertising are recorded as expenses as advertising airtime is used. Other advertising expenditures are expensed as incurred. Advertising expenses incurred in 2014, 2015 and 2016 totaled $888 thousand, $3.1 million and $3.3 million, respectively. As of December 31, 2015 and 2016, prepaid advertising amounted to $5 thousand and $42 thousand, respectively. Leases Leases for which substantially all of the risks and rewards of ownership remain with the leasing company are accounted for as operating leases. Payments made under operating leases, net of any incentives received by our Company from the leasing company, are charged to the consolidated statements of operations on a straight-line basis over the lease periods. Leases are classified as capital leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. Assets held under capital leases are recognized as assets of our Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a lease obligation. Lease payments are apportioned between finance charges and a reduction of the lease obligation in order to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly to profit or loss. Share-Based Compensation Share-based compensation represents the cost related to share-based awards granted to employees. We measure share-based compensation cost at the grant date, based on the estimated fair value of the award. Share-based compensation is recognized for the portion of the award that is ultimately expected to vest, and the cost is amortized on a straight-line basis (net of estimated forfeitures) over the vesting period. Our Company estimates the fair value of stock options using the Black-Scholes valuation model. The cost is recorded in operating costs and operating expenses in the consolidated statements of operations on the date of grant based on the employees’ respective function. For shares and stock options granted to non-employees, we measure the fair value of the equity instruments granted at the earlier of the performance commitment date or when the performance is completed. Retirement Plan and Net Periodic Pension Cost Under our defined benefit pension plan, net periodic pension cost, which includes service cost, interest cost, expected return on plan assets, amortization of unrecognized net transition obligation and gains or losses on plan assets, is recognized based on an actuarial valuation report. We recognize the funded status of pension plans and non-pension post-retirement benefit plans (retirement-related benefit plans) as an asset or a liability in the consolidated balance sheets. Under our defined contribution pension plans, net periodic pension cost is recognized as incurred. Income Taxes The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between financial reporting and tax bases of assets and liabilities. We recognize the investment tax credit associated with the purchase of intangible assets and technology, research and development expenditures, employee compensation and certain equity investments using the flow-through method. Deferred tax assets and liabilities are measured using the enacted tax rate and laws that will be in effect when the related temporary differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amount that will more-likely-than-not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences and loss carryforwards become deductible. In addition, we recognize the financial statement impact of a tax position when it is more-likely-than-not that the position will be sustained upon examination. If the tax position meets the more-likely-than-not recognition threshold, the tax effect is measured at the largest amount that is greater than a 50 percent likely of being realized upon settlement. Interest and penalties on an underpayment of income taxes are reflected as income tax expense in the consolidated financial statements. Loss Per Share Basic loss per share is computed by dividing the net loss attributable to common shareholders for the period by the weighted average number of common shares outstanding during the period. Diluted earnings loss per share is computed by dividing the net loss for the period by the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares, composed of incremental common shares issuable upon the exercise of warrants and options in all periods, are included in the computation of diluted loss per share to the extent such shares are dilutive. Diluted loss per share also takes into consideration the effect of dilutive securities issued by subsidiaries. In a period in which a loss is incurred, only the weighted average number of common shares issued and outstanding is used to compute the diluted loss per share, as the inclusion of potential common shares would be anti-dilutive. Therefore, for the years ended December 31, 2014, 2015 and 2016, basic and diluted loss per share are the same. Noncontrolling Interest Noncontrolling interest in the equity of a subsidiary is accounted for and reported as equity. Changes in our Company’s ownership interest in a subsidiary that do not result in deconsolidation are accounted for as equity transactions. Any retained noncontrolling equity investment upon the deconsolidation of a subsidiary is initially measured at fair value. Segment Reporting We use the management approach in determining reportable operating segments. The management approach considers the internal organization and reporting used by our Company’s chief operating decision maker for making operating decisions, allocating resources and assessing performance as the source for determining our operating segments. Our Company’s chief operating decision maker (“CODM”) has been identified as the Chief Executive Officer. Segment profit and loss is determined on a basis that is consistent with how our Company reports operating loss in its consolidated statements of operations. Our Company does not report segment asset information to the CODM. Consequently, no asset information by segment is presented. There are no intersegment transactions. (d) Recent Accounting Pronouncements Not Yet Adopted The FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net) The FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients The FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing The FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers We expect to adopt Topic 606 as of January 1, 2018. While we are still in the process of completing the evaluation of our revenue streams and processes relating to the requirements of Topic 606, based on the analysis performed to date, we do not expect the adoption of this new standard to have a material impact on our Company’s financial position, results or cash flows. The FASB issued ASU No. 2017-07, Compensation— Benefits (Topic 715) services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The amendments in this Update also allow only the service cost component to be eligible for capitalization when applicable (for example, as a cost of internally manufactured inventory or a self-constructed asset). Our company will adopt this ASU on January 1, 2018, retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the statement of operations, and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The adoption will only affect the presentation of our consolidate |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | NOTE 2. LOSS PER SHARE The following table provides a reconciliation of the denominators of the basic and diluted per share computations: (in thousand shares) 2014 2015 2016 Weighted average number of outstanding shares Basic 10,785 11,052 11,052 Effect of dilutive securities Employee share-based compensation — — — Diluted 10,785 11,052 11,052 Options to purchase 137 thousand, 0 thousand and 0 thousand shares of common stock were not included in dilutive securities for the years ended December 31, 2014, 2015 and 2016, respectively, as the effect would be anti-dilutive. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
ACQUISITIONS | NOTE 3. ACQUISITIONS Strawberry Cosmetics On June 26, 2015, we entered into a share purchase agreement to acquire a 70% equity interest in Strawberry Cosmetics Holding Limited (“Strawberry Cosmetics”), a global cosmetics e-commerce company with a total consideration of approximately $93.1 million. The proposed acquisition was then duly approved by the Extraordinary General Meeting of our Company held on August 5, 2015. However, in light of the drastic slowdown in global economy and turmoil in stock markets beginning in late August 2015 that resulted in a change in business development strategy on the part of GigaMedia, our board of directors concluded that the mutual termination of the acquisition was in the best interests of GigaMedia stockholders. Accordingly, in October 2015, our Company entered into a mutual termination agreement with the shareholders of Strawberry Cosmetics to terminate the share purchase agreement, whereby GigaMedia paid US$2.0 million consideration to the shareholders of Strawberry Cosmetics and the parties, in turn, released each other from any claims relating to the proposed acquisition. The payment was reported in operating expenses in our consolidated statements of operations. |
DIVESTITURES
DIVESTITURES | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
DIVESTITURES | NOTE 4. DIVESTITURES PerfectPairs In January 2016, we entered into an agreement to sell our 100% ownership interest in PerfectPairs Gaming Co., Ltd. (“PerfectPairs), a Taiwan-based subsidiary of our Asian online game and service business operations, to two Taiwanese individuals unrelated to our Group for total cash consideration of $760 thousand. Upon the disposal, we deconsolidated the results of PerfectPairs’ operations. The disposal gain was as follows: (In US$ thousand) Amount The fair value of consideration received, net of any transaction costs $ 760 The carrying amount of PerfectPairs Cash 482 Receivables and other current assets 40 Property, plant and equipment 71 Intangible and other noncurrent assets 13 Accounts payable and accrued expenses (528 ) Other payable and other current liabilities (144 ) The carrying amount of PerfectPairs at the date of deconsolidation (66 ) Exchange difference 1 Gain on sale of PerfectPairs $ 827 East Gate As the term of the East Gate fund will expire in August 2017, the fund had stopped entering into new investments and in September 2016, it distributed excess cash to its investors. We received $1,438 thousand from the distribution. In November 2016, we entered into an agreement to sell a 17.65% partnership interest in East Gate to a Korean investor unrelated to our Group. The disposal gain was as follows: (In US$ thousand) Amount The fair value of consideration received, net of any transaction costs $ 112 The fair value of consideration receivable, net of any transaction costs 1,058 1,170 The carrying amount of investment in East Gate at the date of disposal 1,398 Exchange difference 250 Gain on disposal of investment in East Gate $ 22 The consideration receivable of $1.1 million is recorded as other receivable (Note 11) and will be collected within 12 months from closing. Up to March 31, 2017, we have received approximately $232 thousand, slightly ahead of the payment schedule specified in the agreement. FingerRockz In September 2015, we entered into an agreement to sell all the ownership for a consideration of NT$1 we held in FingerRockz to its management. Upon the closing of the agreement, we deconsolidated the results of FingerRockz’ operations. The deconsolidation gain was as follows: (In US$ thousand) Amount The fair value of consideration received and receivable, net of any transaction costs $ — The carrying amount of FingerRockz at the date of deconsolidation (37 ) Gain on sale of FingerRockz $ 37 |
INTANGIBLE ASSETS - NET
INTANGIBLE ASSETS - NET | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS - NET | NOTE 5. INTANGIBLE ASSETS - NET The following table summarizes our Company’s intangible assets, by major asset class: December 31, 2015 (In US$ thousands) Gross carrying amount Accumulated amortization Net With finite-life intangible assets Capitalized software cost $ 775 $ 687 $ 88 Intangible assets with finite lives are amortized over their estimated useful lives, typically 3 years, with the overall weighted-average life of 3.0 years. For the years ended December 31, 2014, 2015 and 2016, total amortization expense of intangible assets were $1.2 million, $236 thousand and $106 thousand, respectively, which includes amortization of capitalized software development costs of $494 thousand, $217 thousand and $89 thousand. At the end of 2016, we recognized an impairment loss of $57 thousand on intangible assets as a result of consecutive operating losses in recent years that are expected to continue and therefore the carrying amounts of those intangible assets would not be recoverable based on cash flow projections from current games, which typically have shorter lives. |
PREPAID LICENSING AND ROYALTY F
PREPAID LICENSING AND ROYALTY FEES | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
PREPAID LICENSING AND ROYALTY FEES | NOTE 6. PREPAID LICENSING AND ROYALTY FEES The following table summarizes changes to our Company’s prepaid licensing and royalty fees: (in US$ thousands) 2014 2015 2016 Balance at beginning of year $ 4,666 $ 4,383 $ 239 Addition 1,498 1,801 2,581 Amortization and usage (264 ) (1,743 ) (416 ) Exchange difference (258 ) (15 ) 2 Impairment charges (Note 7) (1,259 ) (4,187 ) (1,386 ) Balance at end of year $ 4,383 $ 239 $ 1,020 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 7. FAIR VALUE MEASUREMENTS The following table presents the carrying amounts and estimated fair values of our Company’s financial instruments at December 31, 2015 and 2016. (in US$ thousands) 2015 2016 Carrying amount Fair value Carrying amount Fair value Financial assets Cash and cash equivalents $ 71,432 $ 71,432 $ 65,711 $ 65,711 Marketable securities - current 4 4 3 3 Accounts receivable 1,246 1,246 871 871 Restricted cash 1,000 1,000 500 500 Refundable deposits 272 272 245 245 Financial liabilities Short-term borrowings 6,093 6,093 2,480 2,480 Accounts payable 320 320 266 266 Accrued compensation 759 759 210 210 Accrued expenses 3,037 3,037 3,828 3,828 The carrying amounts shown in the table are included in the consolidated balance sheets under the indicated captions. The fair values of the financial instruments shown in the above table as of December 31, 2015 and 2016 represent the amounts that would be received to sell those assets or that would be paid to transfer those liabilities in an arm’s length transaction between market participants at that date. Those fair value measurements maximize the use of observable inputs. In situations where there is little market activity for the asset or liability at the measurement date, the fair value measurement reflects our Company’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by us based on the best information available in the circumstances, including expected cash flows and appropriately risk-adjusted discount rates, available observable and unobservable inputs. The following methods and assumptions were used to estimate the fair value of each class of financial instruments: • Cash and cash equivalents, accounts receivable, restricted cash, accounts payable, accrued compensation and expenses, and short-term borrowings: The carrying amounts, at face value or cost plus accrued interest, approximate fair value because of the short maturity of these instruments. • Marketable securities: Equity securities are measured using quoted market prices at the reporting date multiplied by the quantity held. Redeemable preferred shares are measured using valuation techniques. • Refundable deposits: Measurement of refundable deposits with no fixed maturities is based on carrying amounts. Assets and Liabilities that are Measured at Fair Value on a Recurring Basis Our Company has segregated all financial assets and liabilities that are measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below. Assets and liabilities measured at fair value on a recurring basis are summarized as below: (in US$ thousands) Fair Value Measurement Using Year Ended Level 1 Level 2 Level 3 December 31, 2016 Assets Cash equivalents - time deposits $ — $ 6 $ — $ 6 Restricted cash - time deposits — 500 — 500 Marketable securities - current Equity securities 3 — — 3 $ 3 $ 506 $ — $ 509 (in US$ thousands) Fair Value Measurement Using Year Ended Level 1 Level 2 Level 3 December 31, 2015 Assets Cash equivalents - time deposits $ — $ 6 $ — $ 6 Restricted cash - time deposits — 1,000 — 1,000 Marketable securities - current Equity securities 4 — — 4 $ 4 $ 1,006 $ — $ 1,010 Our Company’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers into or out of Level 1 for the years ended December 31, 2015 and 2016. Level 1 and 2 measurements: Cash equivalents – time deposits and restricted cash – time deposits are convertible into a known amount of cash and are subject to an insignificant risk of change in value. Certain marketable securities are valued using a market approach based on the quoted market prices of identical instruments when available, or other observable inputs such as trading prices of identical instruments in inactive markets. The fair values of the marketable equity securities that have publicly quoted trading prices are valued using those observable prices, unless adjustments are required to available observable inputs. In 2014, 2015 and 2016, we recognized unrealized gains of $101 thousand, $4.8 million and $0 thousand, respectively, on marketable securities valued using market observable inputs, which are included in other comprehensive income. Level 3 measurements: For assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during 2015 and 2016, a reconciliation of the beginning and ending balances are presented as follows: (in US$ thousands) Marketable Securities - Debt Securities 2015 2016 Balance at beginning of year $ 4,744 $ — Total gains or (losses) (realized/unrealized) included in earnings (2,017 ) — included in other comprehensive income — — Sale (2,727 ) — Balance at end of year $ — $ — The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date. $ — $ — Realized and unrealized gains (or losses) included in the consolidated financial statements for 2014, 2015 and 2016 for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are reported in the consolidated financial statements as follows: (in US$ thousands) Gain on sales of marketable securities Impairment loss on marketable securities and investments Total gains (losses) included in earnings for 2014 $ — $ — for 2015 5,845 — for 2016 — — Change in unrealized gains (losses) relating to assets still held at the reporting date for 2014 $ 805 $ — for 2015 — — for 2016 — — The fair values of the marketable debt and equity securities are derived using a discounted cash flow method with unobservable inputs or adopting a market approach using observable inputs of guideline public companies that market participants would use in pricing the securities. The discounted cash flow method incorporates adjusted available market discount rate information and our Company’s estimates of liquidity risk, and other cash flow model related assumptions. Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis Assets and liabilities measured at fair value on a nonrecurring basis include measuring impairment when required for long-lived assets. For GigaMedia, long-lived assets measured at fair value on a nonrecurring basis include investments accounted for under the equity method and cost method, property, plant, and equipment, intangible assets, prepaid licensing and royalty fees, and goodwill. Assets and liabilities measured at fair value on a nonrecurring basis that were determined to be impaired as of December 31, 2015 and 2016 are summarized as below: (in US$ thousands) Fair Value measurement Using Assets Level 1 Level 2 Level 3 Year Ended December 31, 2016 Total Impairment Losses (b) Property, plant and equipment $ — $ — $ — $ — $ 471 (c) Intangible assets — — — — 57 (d) Prepaid licensing and royalty fees — — 820 820 1,386 Total $ — $ — $ 820 $ 820 $ 1,914 (in US$ thousands) Fair Value measurement Using Assets Level 1 Level 2 Level 3 Year Ended December 31, 2015 Total Impairment Losses (a) Investments - Cost-method $ — $ — $ — $ — $ 1,000 (a) Investments - Equity-method — — 188 188 290 (b) Property, plant and equipment - Information and communication equipment — — — — 60 (c) Intangible assets - Capitalized software cost — — — — 5 (d) Prepaid licensing and royalty fees — — — — 4,187 Total $ — $ — $ 188 $ 188 $ 5,542 (a) Impairment losses on certain cost method and equity method investments which were determined to be impaired: (b) Impairment losses on certain property, plant, and equipment which were determined to be impaired: (c) Impairment losses on certain intangible assets which were determined to be impaired: (d) Impairment losses on certain prepaid licensing and royalty fees which were determined to be impaired: |
CASH, RESTRICTED CASH AND CASH
CASH, RESTRICTED CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2016 | |
Cash And Cash Equivalents [Abstract] | |
CASH, RESTRICTED CASH AND CASH EQUIVALENTS | NOTE 8. CASH, RESTRICTED CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of the following: December 31 (in US$ thousands) 2015 2016 Cash and savings accounts $ 71,426 $ 65,705 Time deposits 6 6 Cash and cash equivalents reported on the consolidated balance sheets 71,432 65,711 Cash restricted as collateral and performance bond 1,000 500 Total cash, restricted cash and cash equivalents reported on the consolidated statements of cash flows $ 72,432 $ 66,211 As of December 31, 2015 and 2016, cash amounting to $1.0 million and $500 thousand, respectively, has been deposited in an escrow account in a bank as a performance bond for our players’ game points. These deposits are restricted and are included in restricted cash in the consolidated balance sheets. We maintain cash and cash equivalents, as well as restricted cash, in bank accounts with major financial institutions with high credit ratings located in the following jurisdictions: December 31 (in US$ thousands) 2015 2016 Taiwan $ 69,879 $ 65,093 Hong Kong 1,120 1,102 China 16 16 Singapore 1,417 — $ 72,432 $ 66,211 |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2016 | |
MARKETABLE SECURITIES | NOTE 9. MARKETABLE SECURITIES – CURRENT Marketable securities – current consist of the following: December 31 (in US$ thousands) 2015 2016 Equity securities $ 4 $ 3 As of December 31, 2015 and 2016, the balances of unrealized gains for marketable securities - current were $3 thousand and $2 thousand, respectively. During 2014, 2015 and 2016, realized gains from the disposal of marketable securities - current amounted to $8.8 million, $14.1 million, and $0, respectively. The costs for calculating gains on disposal were based on each security’s average cost. |
Noncurrent Assets | |
MARKETABLE SECURITIES | NOTE 12. MARKETABLE DEBT SECURITIES – NONCURRENT Our Company’s marketable securities - noncurrent were invested in convertible preferred shares and were classified as available-for-sale securities. We had considered and determined whether our investments in preferred shares were in-substance common shares which should be accounted for under the equity method. Given that our convertible preferred shares had substantive redemption rights and thus did not meet the criteria of in-substance common shares, we had accounted for them as debt securities. During 2014 and 2015, realized gains (losses) from the disposal of marketable securities - non-current amounted to ($171) thousand and $5.8 million, respectively. Gains (losses) on disposal were based on the security’s average cost. |
ACCOUNTS RECEIVABLE - NET
ACCOUNTS RECEIVABLE - NET | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE - NET | NOTE 10. ACCOUNTS RECEIVABLE – NET Accounts receivable consist of the following: December 31 (in US$ thousands) 2015 2016 Accounts receivable $ 1,275 $ 903 Less: Allowance for doubtful accounts (29 ) (32 ) $ 1,246 $ 871 The following is a summary of the changes in our Company’s allowance for doubtful accounts during the years ended December 31, 2014, 2015 and 2016: (in US$ thousands) 2014 2015 2016 Balance at beginning of year $ 55 $ 56 $ 29 Additions: Bad debt expense 37 3 35 Less: Write-offs (33 ) (28 ) (33 ) Translation adjustment (3 ) (2 ) 1 Balance at end of year $ 56 $ 29 $ 32 |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | NOTE 11. OTHER CURRENT ASSETS Other current assets consist of the following: December 31 (in US$ thousands) 2015 2016 Loans receivable - current 64 65 Less: Allowance for loans receivable - current (28 ) (28 ) Other receivables (Note 4) 9 1,062 Other 226 151 $ 271 $ 1,250 The following is a reconciliation of changes in our Company’s allowance for loans receivable - current during the years ended December 31, 2014, 2015 and 2016: (in US$ thousands) 2014 2015 2016 Balance at beginning of year $ 3,394 $ 27 $ 28 Writes-offs (3,359 ) — — Reversal for collection of bad debt — 2 — Translation adjustment (8 ) (1 ) — Balance at end of year $ 27 $ 28 $ 28 |
EQUITY INVESTMENTS
EQUITY INVESTMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Investments Schedule [Abstract] | |
EQUITY INVESTMENTS | NOTE 13. EQUITY INVESTMENTS Equity investments consist of the following: December 31 (in US$ thousands) 2015 2016 Investments accounted for under the equity method $ 4,524 $ 72 Our Company’s investments accounted for under the equity method primarily consist of the following: (a) from August 2010 to November 2016, a 17.65 percent equity interest investment in East Gate Media Contents & Technology Fund (“East Gate”), a Korean Fund Limited Partnership that invests in online game businesses and films (See Note 4 “Divestitures”, for additional information); and (b) a 22.86 percent equity interest investment in Double2 Network Technology Co., Ltd. (“Double2”), a Taiwanese company that mainly engaged in development of causal gaming software. In November 2016, we entered into an agreement to sell a 17.65 percent partnership interest in East Gate to a Korean investor unrelated to our Group. (See Note 4, “Divestitures” for additional information.) East Gate Our Company had a 17.65 percent interest in East Gate, a Korean fund partnership. Before the disposal of such interest, we accounted for our investment in this limited partnership under the equity method accounting since we had the ability to exercise significant influence over partnership operating and financial policies based on the terms of the partnership agreement. East Gate was considered an investment company that primarily invests in: (1) Equity securities of small, medium-sized companies or venture companies, mainly Korean game companies, and (2) funding for specific projects, mainly Korean films, of an entrepreneur or venture company in return for the rights to a future revenue stream from the income generated by the entrepreneur or venture company from the film and related products. Summarized U.S. GAAP financial information of East Gate as of December 31, 2015 and November 30, 2016 (right before we disposed of it), and for the years ended December 31, 2014, 2015 and the eleven-month period ended November 30, 2016 is presented below (in US$ thousands): 2015 2016 Investments and other related assets $ 21,833 $ 7,911 Other assets 3,212 332 Total assets $ 25,045 $ 8,243 Total liabilities $ 478 $ 318 Total net assets of the fund $ 24,567 $ 7,925 2014 2015 2016 Investment and related income (loss) $ 8,351 $ 5,419 $ (1,513 ) Impairment loss (480 ) — (105 ) Other costs and expenses (10,642 ) (8,219 ) (7,513 ) Net loss $ (2,771 ) $ (2,800 ) $ (9,131 ) |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 14. PROPERTY, PLANT AND EQUIPMENT In January 2016, we entered into disposal agreements to sell certain office premises which were not used for our principal business to several counterparties unrelated to our Group, for total cash considerations approximating $1.9 million. The closing of the disposal occurred in March 2016. Upon the closing, we recognized disposal gains of approximately $798 thousand. At the end of 2016, we recognized an impairment loss of $471 thousand on property, plant and equipment as a result of consecutive operating losses in recent years that are expected to continue and therefore the carrying amounts of those long-lived assets would not be recoverable based on cash flow projections from current games, which are typically with shorter lives. A reconciliation of the beginning and ending amounts of our property, plant and equipment for the year ended December 31, 2016 is as follows: (in US$ thousands) Cost Accumulated depreciation Net Balance at beginning of year $ 5,165 $ 3,774 $ 1,391 Purchase 496 — 496 Depreciation — 162 (162 ) Disposal of office premises (1,120 ) (44 ) (1,076 ) Disposal of other property, plant and equipment (1,092 ) (969 ) (123 ) Deconsolidation (Note 4) (104 ) (33 ) (71 ) Impairment (Note 7) (3,423 ) (2,952 ) (471 ) Exchange differences 85 62 23 Balance at end of year $ 7 $ — $ 7 |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS | NOTE 15. SHORT-TERM BORROWINGS As of December 31, 2015 and 2016, short-term borrowings totaled $6.1 million and $2.5 million, respectively. These amounts were borrowed from certain financial institutions. The annual interest rates on these borrowings ranged from 1.81 percent to 1.90 percent for 2015 and from 1.70 percent to 2.13 percent for 2016. The maturity dates fell in January, February and May 2016 as of December 31, 2015, and fell in January and May 2017 as of December 31, 2016. As of December 31, 2015 and 2016, the weighted-average interest rate on total short-term borrowings was 1.89 percent and 1.86 percent, respectively. As of December 31, 2015 and 2016, the total amount of unused lines of credit available for borrowing under these agreements was approximately $12.9 million and $17.0 million, respectively. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |
ACCRUED EXPENSES | NOTE 16. ACCRUED EXPENSES Accrued expenses consist of the following: December 31 (in US$ thousands) 2015 2016 Accrued advertising expenses $ 811 $ 1,961 Accrued professional fees 865 765 Accrued royalties 313 350 Accrued director compensation and liability insurance 238 272 Accrued outsourced development 52 75 Accrued incentive to distributors 63 57 Other 695 348 $ 3,037 $ 3,828 |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Current [Abstract] | |
OTHER CURRENT LIABILITIES | NOTE 17. OTHER CURRENT LIABILITIES Other current liabilities consist of the following: December 31 (in US$ thousands) 2015 2016 Income taxes payable (Note 23) $ 1,252 $ — Other 271 346 $ 1,523 $ 346 |
PENSION BENEFITS
PENSION BENEFITS | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
PENSION BENEFITS | NOTE 18. PENSION BENEFITS Our Company and our subsidiaries have defined benefit and defined contribution pension plans that cover substantially all of our employees. Defined Benefit Pension Plan We have a defined benefit pension plan in accordance with the Labor Standards Law of the Republic of China (R.O.C.) for our employees located in Taiwan, covering substantially all full-time employees for services provided prior to July 1, 2005, and employees who have elected to remain in the defined benefit pension plan subsequent to the enactment of the Labor Pension Act on July 1, 2005. Under the defined benefit pension plan, employees are entitled to a lump sum retirement benefit upon retirement equivalent to the aggregate of 2 months’ pensionable salary for each of the first 15 years of service and 1 month’s pensionable salary for each year of service thereafter subject to a maximum of 45 months’ pensionable salary. The pensionable salary is the monthly average salary or wage of the final six months prior to approved retirement. We use a December 31 measurement date for our defined benefit pension plan. As of December 31, 2015 and 2016, the accumulated benefit obligation amounted to $153 thousand and $185 thousand, respectively, and the funded status of prepaid pension assets amounted to $109 thousand and $62 thousand, respectively. The fair value of plan assets amounted to $310 thousand and $325 thousand as of December 31, 2015 and 2016, respectively. The accumulated other comprehensive income (loss) amounted to $0 and $(58) thousand as of December 31, 2015 and 2016, respectively. The net periodic benefit cost (income) for 2014, 2015 and 2016 amounted to ($199) thousand, ($58) thousand and ($2) thousand, respectively. The following table sets forth the plan’s benefit obligations, fair value of plan assets, and funded status at December 31, 2015 and 2016: December 31 (in US$ thousands) 2015 2016 Benefit Obligation $ 201 $ 263 Fair value of plan assets 310 325 $ (109 ) $ (62 ) Amounts recognized in the balance sheet consist of: Noncurrent liabilities (assets) $ (109 ) $ (62 ) Accumulated other comprehensive income — — Net amount recognized $ (109 ) $ (62 ) Amounts recognized in accumulated comprehensive income consist of: Unrecognized net gain (loss) $ — $ (58 ) For the years ended December 31, 2015 and 2016, the net period pension cost consisted of the following: December 31 (in US$ thousands) 2015 2016 Service cost $ — $ — Interest cost 5 4 Expected return on plan assets (6 ) (6 ) Amortization of prior service cost — — Amortization of net loss — — Curtailment gain (57 ) — $ (58 ) $ (2 ) Weighted average assumptions used to determine benefit obligations for 2015 and 2016 were as follows: December 31 2015 2016 Discount rate 1.875 % 1.375 % Rate of compensation increase 1.50 % 2.00 % Weighted average assumptions used to determine net periodic benefit cost for end of fiscal year were as follows: 2015 2016 Discount rate 2.00 % 1.875 % Rate of return on plan assets 2.00 % 1.875 % Rate of compensation increase 1.50 % 2.00 % Management determines the discount rate and rate of return on plan assets based on the yields of twenty year ROC central government bonds which is in line with the respective employees remaining service period and the historical rate of return on the above mentioned Fund mandated by the ROC Labor Standard Law. We have contributed an amount equal to 2 percent of the salaries and wages paid to all qualified employees located in Taiwan to a pension fund (the “Fund”). The Fund is administered by a pension fund monitoring committee (the “Committee”) and deposited in the Committee’s name in the Bank of Taiwan. Our Company makes pension payments from our account in the Fund unless the Fund is insufficient, in which case we make payments from internal funds as payments become due. We seek to maintain a normal, highly liquid working capital balance to ensure payments are made timely. We expect to make a contribution of $8 thousand to the Fund in 2017. We expect to make benefit payments of $1 thousand from 2017 to 2021 and $4 thousand from 2022 to 2026. Defined Contribution Pension Plans We have provided defined contribution plans for employees located in Taiwan and Hong Kong. Contributions to the plans are expensed as incurred. Taiwan Pursuant to the new “Labor Pension Act” enacted on July 1, 2005, our Company has a defined contribution pension plan for our employees located in Taiwan. For eligible employees who elect to participate in the defined contribution pension plan, we contribute no less than 6 percent of an employee’s monthly salary and wage and up to the maximum amount of NT$9 thousand (approximately $279), to each of the eligible employees’ individual pension accounts at the Bureau of Labor Insurance each month. Pension payments to employees are made either by monthly installments or in a lump sum from the accumulated contributions and earnings in employees’ individual accounts. Hong Kong According to the relevant Hong Kong regulations, we provide a contribution plan for the eligible employees in Hong Kong. We must contribute at least 5 percent of the employees’ total salaries. For this purpose, the monthly relevant contribution to their individual contribution accounts is subject to a cap of HK$1.5 thousand (approximately $193). After the termination of employment, the benefits still belong to the employees in any circumstances. The total amount of defined contribution pension expenses pursuant to our defined contribution plans for the years ended December 31, 2014, 2015, and 2016 were $364 thousand, $318 thousand, and $183 thousand, respectively. |
OTHER LIABILITIES - OTHER
OTHER LIABILITIES - OTHER | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LIABILITIES - OTHER | NOTE 19. OTHER LIABILITIES - OTHER Other liabilities consist of the following: December 31 (in US$ thousands) 2015 2016 Deferred tax liabilities (Note 23) $ 1,712 $ 1,671 Other 10 — $ 1,722 $ 1,671 |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
EQUITY | NOTE 20. EQUITY In accordance with Singapore law, the holders of ordinary shares that do not have par value, are entitled to receive dividends as declared from time to time and are entitled to one vote per share at the general meeting of our company. All shares rank equally with regard to our company’s residual assets. In addition, we are not required to have a number of authorized common shares to be issued. A 1-for-5 reverse stock split was approved by our shareholders at a special shareholders meeting held on December 16, 2015. The reverse stock split was effective as of December 16, 2015, which resulted in our common stock trading on a split-adjusted basis at market open on December 16, 2015. Upon completion of the reverse stock split, every five shares of common stock owned by a shareholder were combined into one share of common stock, with a proportionate adjustment made to the per-share value of common stock. In accordance with R.O.C. law, an appropriation for legal reserve amounting to 10 percent of a company’s net profit is required until the reserve equals the aggregate par value of such Taiwan company’s issued capital stock. As of December 31, 2015 and 2016, the legal reserves of Hoshin GigaMedia Center Inc. (“Hoshin GigaMedia”) were $3.0 million and $1.5 million, respectively. The reserve can only be used to offset a deficit or be distributed as a stock dividend of up to 50 percent of the reserve balance when the reserve balance has reached 50 percent of the aggregate paid-in capital of Hoshin GigaMedia. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 21. ACCUMULATED OTHER COMPREHENSIVE LOSS The accumulated balances for each component of other comprehensive income (loss) are as follows: (in US$ thousands) Foreign currency items Unrealized gain on securities Pension and post retirement benefit plans Accumulated other comprehensive loss Balance at January 1, 2014 $ (22,707 ) $ 19,104 $ — $ (3,603 ) Net current period change (176 ) 906 — 730 Reclassification adjustments for gains reclassified into income 7 (8,621 ) — (8,614 ) Balance at December 31, 2014 (22,876 ) 11,389 — (11,487 ) Net current period change (118 ) 8,553 — 8,435 Reclassification adjustments for gains reclassified into income 656 (19,939 ) — (19,283 ) Balance at December 31, 2015 (22,338 ) 3 — (22,335 ) Net current period change 5 (1 ) (58 ) (54 ) Reclassification adjustments for gains reclassified into income (222 ) — — (222 ) Balance at December 31, 2016 $ (22,555 ) $ 2 $ (58 ) $ (22,611 ) There were no significant tax effects allocated to each component of other comprehensive income for the years ended December 31, 2014, 2015 and 2016. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 22. SHARE-BASED COMPENSATION The following table summarizes the total stock-based compensation expense recognized in our consolidated statements of operations: (in US$ thousands) 2014 2015 2016 Cost of online game and service revenues $ — $ — $ — Product development & engineering expenses — — — Selling and marketing expenses — — — General and administrative expenses 21 65 9 Total stock-based compensation expense reported in continuing operations $ 21 $ 65 $ 9 Total stock-based compensation expense reported in discontinued operations, net of tax $ — $ — $ — There were no significant capitalized stock-based compensation costs at December 31, 2015 and 2016. There was no recognized stock-based compensation tax benefit for the years ended December 31, 2015 and 2016, as our Company recognized a full valuation allowance on net deferred tax assets as of December 31, 2015 and 2016. (a) Overview of Stock-Based Compensation Plans 2004 Employee Share Option Plan At the June 2004 annual general meeting of shareholders, the shareholders of our Company approved the GigaMedia Limited 2004 Employee Share Option Plan (the “2004 Plan”) under which up to 1.4 million common shares of our Company have been reserved for issuance. All employees, officers, directors, supervisors, advisors, and consultants of our Company are eligible to participate in the 2004 Plan. The 2004 Plan is administered by a committee designated by the board of directors. The committee as plan administrator has complete discretion to determine the exercise price for the option grants, the eligible individuals who are to receive option grants, the time or times when options grants are to be made, the number of shares subject to grant and the vesting schedule. The maximum contractual term for the options under the 2004 Plan is 10 years. 2006 Equity Incentive Plan At the June 2006 annual general meeting of shareholders, the shareholders of our Company approved the GigaMedia Limited 2006 Equity Incentive Plan (the “2006 Plan”) under which up to 200 thousand common shares of our Company have been reserved for issuance. The 2006 Plan is administered by a committee designated by the board of directors. The committee as plan administrator has complete discretion to determine the grant of awards under the 2006 Plan. The maximum contractual term for the options under the 2006 Plan is 10 years. 2007 Equity Incentive Plan At the June 2007 annual general meeting of shareholders, the shareholders of our Company approved the GigaMedia Limited 2007 Equity Incentive Plan (the “2007 Plan”) under which up to 400 thousand common shares of our Company have been reserved for issuance. The 2007 Plan is administered by a committee designated by the board of directors. The committee as plan administrator has complete discretion to determine the grant of awards under the 2007 Plan. The maximum contractual term for the options under the 2007 Plan is 10 years. 2008 Equity Incentive Plan At the June 2008 annual general meeting of shareholders, the shareholders of our Company approved the GigaMedia Limited 2008 Equity Incentive Plan (the “2008 Plan”) under which up to 200 thousand common shares of our Company have been reserved for issuance. The 2008 Plan is administered by a committee designated by the board of directors. The committee as plan administrator has complete discretion to determine the grant of awards under the 2008 Plan. The maximum contractual term for the options under the 2008 Plan is 10 years. 2008 Employee Share Purchase Plan At the June 2008 annual general meeting of shareholders, the shareholders of our Company approved the GigaMedia Limited 2008 Employee Share Purchase Plan (the “2008 ESPP”) under which up to 40 thousand common shares of our Company were reserved for issuance. Any person who is regularly employed by our Company or our designated subsidiaries shall be eligible to participate in the 2008 ESPP. Pursuant to the 2008 ESPP, our Company would offer the shares to qualified employees on favorable terms. Employees are also subject to certain restrictions on the amount that may be invested to purchase the shares and to other terms and conditions of the 2008 ESPP. The 2008 ESPP is administered by a committee designated by the board of directors. As of December 31, 2016, no shares have been subscribed by qualified employees under the 2008 ESPP. 2009 Equity Incentive Plan At the June 2009 annual general meeting of shareholders, the shareholders of our Company approved the GigaMedia Limited 2009 Equity Incentive Plan (the “2009 Plan”) under which up to 300 thousand common shares of our Company have been reserved for issuance. The 2009 Plan is administered by a committee designated by the board of directors. The committee as plan administrator has complete discretion to determine the grant of awards under the 2009 Plan. The maximum contractual term for the options under the 2009 Plan is 10 years. 2009 Employee Share Purchase Plan At the June 2009 annual general meeting of shareholders, the shareholders of our Company approved the GigaMedia Limited 2009 Employee Share Purchase Plan (the “2009 ESPP”) under which up to 40 thousand common shares of our Company have been reserved for issuance. To be eligible, employees must be regularly employed by us or our designated subsidiaries. Employees are also subject to certain restrictions on the amount that may be invested to purchase the shares and to other terms and conditions of the 2009 ESPP. The 2009 ESPP is administered by a committee designated by the board of directors. As of December 31, 2016, no shares were issued to employees under the 2009 ESPP. 2010 Equity Incentive Plan At the June 2010 annual general meeting of shareholders, the shareholders of our Company approved the GigaMedia Limited 2010 Equity Incentive Plan (the “2010 Plan”) under which up to 200 thousand common shares of our Company have been reserved for issuance. The 2010 Plan is administered by a committee designated by the board of directors. The committee as plan administrator has complete discretion to determine the grant of awards under the 2010 Plan. The maximum contractual term for the options under the 2010 Plan is 10 years. 2010 Employee Share Purchase Plan At the June 2010 annual general meeting of shareholders, the shareholders of our Company approved the GigaMedia Limited 2010 Employee Share Purchase Plan (the “2010 ESPP”) under which up to 40 thousand common shares of our Company have been reserved for issuance. To be eligible, employees must be regularly employed by us or our designated subsidiaries. Employees are also subject to certain restrictions on the amount that may be invested to purchase the shares and to other terms and conditions of the 2010 ESPP. The 2010 ESPP is administered by a committee designated by the board of directors. As of December 31, 2016, no shares were issued to employees under the 2010 ESPP. Summarized below are the general terms of our stock-based compensation plans, for which awards have been granted as of December 31, 2016. Stock-Based compensation plan Granted awards Vesting schedule Options’ exercise price RSUs’ grant date fair value 2004 plan 1,575,037 (1) immediately upon granting to four years $3.95~$12.75 — 2006 Plan 256,716 (2) immediately upon granting to four years $3.85~$83 $14.55~$80.05 2007 Plan 671,057 (3) immediately upon granting to four years $4.9885~$90.85 $12.35~$76.75 2008 Plan 200,000 immediately upon granting to six years $12.35~$21.2 — 2009 Plan 500,000 (4) immediately upon granting to four years $4.775~$12.35 — 2010 Plan 440,000 (5) three years $4.0505~$5.7 — (1) The granted awards, net of forfeited or canceled shares, were within reserved shares of 1,400 thousand common shares. (2) The granted awards, net of forfeited or canceled shares, were within reserved shares of 200 thousand common shares. (3) The granted awards, net of forfeited or canceled shares, were within reserved shares of 400 thousand common shares. (4) The granted awards, net of forfeited or canceled shares, were within reserved shares of 300 thousand common shares. (5) The granted awards, net of forfeited or canceled shares, were within reserved shares of 200 thousand common shares. Options and Restricted Stock Units (“RSUs”) generally vest over the schedule described above. Certain RSUs provide for accelerated vesting if there is a change in control. All options and RSUs are expected to be settled by issuing new shares. (b) Options In 2014, 2015 and 2016, approximately 907 thousand, nil and nil options were exercised, and cash received from the exercise of stock options was approximately $3.6 million, $0 and $0, respectively, which resulted in no significant tax benefit realized on a consolidated basis. Our Company uses the Black-Scholes option-pricing model to estimate the fair value of stock options granted to employees on the grant date. No options were granted to employees during 2016. The following table summarizes the assumptions used in the model for options granted during 2015: 2015 Option term (years) 5.75 Volatility 49.239% Weighted-average volatility 49% Risk-free interest rate 1.506% Dividend yield 0% Weighted-average fair value of option granted $ 1.80 Option term. The expected term of the options granted represents the period of time that they are expected to be outstanding. Our Company estimates the expected term of options granted based on historical experience with grants and option exercises. Expected volatility rate. An analysis of historical volatility was used to develop the estimate of expected volatility. Risk-free interest rate. The risk-free interest rate is based on yields of U.S. Treasury bonds for the expected term of the options. Expected dividend yield. The dividend yield is based on our Company’s current dividend yield. Option transactions during the last three years are summarized as follows: 2014 2015 2016 Weighted Avg. Exercise Price No. of Shares (in thousands) Weighted Avg. Exercise Price No. of Shares (in thousands) Weighted Avg. Exercise Price No. of Shares (in thousands) Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Balance at January 1 $ 9.75 1,844 $ 20.30 626 $ 20.51 617 Options granted 6.15 66 3.85 12 — — Options exercised 3.95 (907 ) — — — — Options Forfeited / canceled / expired 5.65 (377 ) 5.31 (21 ) 3.85 (4 ) Balance at December 31 $ 20.30 626 $ 20.51 617 $ 20.63 613 $ 4.18 — Exercisable at December 31 $ 23.35 519 $ 21.28 586 $ 20.57 606 $ 3.95 — Vested and expected to vest at December 31 $ 20.30 626 $ 20.51 617 $ 20.63 613 $ 3.15 — The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between GigaMedia’s closing stock price on the last trading day of 2016 and the fair value of the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they exercised their options on December 31, 2016. This amount changes based on the fair market value of GigaMedia’s stock. The total intrinsic value of options exercised for the years ended December 31, 2014, 2015, and 2016 were $1.9 million, $0, and $0, respectively. As of December 31, 2016, there was approximately $2 thousand of unrecognized compensation cost related to nonvested options. That cost is expected to be recognized over a period of 0.25 years. The following table sets forth information about stock options outstanding at December 31, 2016: Options outstanding Option currently exercisable Exercise price No. of Shares (in thousands) Weighted average remaining contractual life Exercise price No. of Shares (in thousands) Under $5 112 6.04 years Under $5 108 $5~$50 378 3.11 years $5~$50 375 $50~$100 123 0.64 years $50~$100 123 613 606 (c) RSUs The fair value of RSUs is determined and fixed on the grant date based on our stock price. No RSUs were granted during the years ended December 31, 2014, 2015 and 2016. As of December 31 2015 and 2016, there was no unrecognized compensation cost related to nonvested RSUs. Our Company received no cash from employees as a result of employee stock award vesting and the forfeiture of RSUs during 2014, 2015 and 2016. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 23. INCOME TAXES Income (loss) before income taxes by geographic location is as follows: (in US$ thousands ) 2014 2015 2016 Taiwan operations $ (13,158 ) $ (13,177 ) $ (1,119 ) Non-Taiwan operations 8,095 10,475 (6,096 ) $ (5,063 ) $ (2,702 ) $ (7,215 ) The components of income tax benefit (expense) by taxing jurisdiction are as follows: ( in US$ thousands ) 2014 2015 2016 Taiwan: Current $ 74 $ 198 $ 1,108 Deferred — — — $ 74 $ 198 $ 1,108 Non-Taiwan: Current $ (1 ) $ — $ — Deferred — 216 41 $ (1 ) $ 216 $ 41 Total current income tax benefit $ 73 $ 198 $ 1,108 Total deferred income tax benefit $ — $ 216 $ 41 Total income tax benefit $ 73 $ 414 $ 1,149 Our ultimate parent company is based in Singapore. A reconciliation of our effective tax rate related to the statutory tax rate in Taiwan, where our major operations are based, is as follows: 2014 2015 2016 Taiwan statutory rate, including taxes on income and retained earnings 23.85 % 23.85 % 23.85 % Foreign tax differential 42.23 % 183.28 % (12.37 )% Tax-exempt income 0.00 % 2.71 % 3.28 % Non-deductible items - bad debts (5.16 )% (57.91 )% (3.08 )% Other non-deductible expenses 0.00 % (17.47 )% (1.65 )% Changes in unrecognized tax benefits (3.15 )% 6.84 % 1.10 % Adjustment for prior year payable 1.81 % 0.00 % 0.04 % Change in valuation allowance (52.97 )% (130.14 )% 6.87 % Other (5.16 )% 4.17 % (2.12 )% Effective rate 1.45 % 15.33 % 15.92 % The significant components of our deferred tax assets consist of the following: (in US$ thousands) December 31 2015 2016 Net operating loss carryforwards $ 8,475 $ 9,730 Prepaid licensing and royalty fees 1,035 952 Investments 814 501 Intangible assets and goodwill 282 226 Share-based compensation 271 276 Other 148 167 11,025 11,852 Less: valuation allowance (11,025 ) (11,852 ) Deferred tax assets - net $ — $ — The significant components of our deferred tax liabilities consist of the following: (in US$ thousands) December 31 2015 2016 Investment in subsidiaries, principally due to undistributed income $ 1,712 $ 1,671 A reconciliation of the beginning and ending amounts of our valuation allowance on deferred tax assets for the years ended December 31, 2014, 2015 and 2016 are as follows: (in US$ thousands) 2014 2015 2016 Balance at beginning of year $ 4,754 $ 7,147 $ 11,025 Subsequent reversal and utilization of valuation allowance — — (753 ) Additions to valuation allowance 2,682 4,185 1,739 Divestitures — — (312 ) Exchange differences (289 ) (307 ) 153 Balance at end of year $ 7,147 $ 11,025 $ 11,852 Under ROC Income Tax Acts, the tax loss carryforward in the preceding ten years would be deducted from income tax for Taiwan operations. The statutory losses from Taiwan operations would be deducted from undistributed earnings when calculating the tax on the undistributed earnings and were not subject to expiration. As of December 31, 2016, we had net operating loss carryforwards available to offset future taxable income, shown below by major jurisdictions: Jurisdiction Amount Expiring year Hong Kong $ 14,930 indefinite Taiwan 24,843 2020~2026 $ 39,773 As of December 31, 2016, we had accumulated statutory losses from Taiwan operations available to offset future undistributed earnings: Jurisdiction Amount Expiring year Taiwan $ 44,431 indefinite Unrecognized Tax Benefits A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding the effects of accrued interest) for the years 2014, 2015 and 2016 are as follows: (in US$ thousands) 2014 2015 2016 Balance at beginning of year $ 8,798 $ 8,287 $ 1,203 Increase related to prior year tax positions — — 1,025 Decrease related to prior year tax positions — (185 ) — Settlement — (6,830 ) — Expiration of statute of limitations — — (1,225 ) Exchange differences (511 ) (69 ) 21 Balance at end of year $ 8,287 $ 1,203 $ 1,024 As of December 31, 2014, 2015 and 2016, there were $8.3 million, $1.2 million and $0 of unrecognized tax benefits that if recognized would affect the effective tax rate. As of December 31, 2014, 2015 and 2016, $6.4 million, $0 million and $1.0 million of the total unrecognized tax benefit were presented as a reduction of a deferred tax asset that, if recognized, would be offset by a valuation allowance. There were no interest and penalties related to income tax liabilities recognized for the years ended December 31, 2014, 2015 and 2016. Our major tax paying components are all located in Taiwan. As of December 31, 2016, the income tax filings in Taiwan have been examined for the years through 2013, but we have filed appeals for the 2009, 2011, 2012 and 2013 tax filings. In 2014 and 2015, our unrecognized tax benefits were related to amortization of goodwill and intangible assets resulting from the acquisition of FunTown in 2006. The income tax authority has made decisions on the amortization for our tax filings through 2014. We had filed appeals against the unfavorable parts of the decision regarding these amortization adjustments, but all were rejected by the tax authority. As court decisions in precedent cases were mostly unfavorable, we decided not to bring the case to the court and considered the tax position settled. In 2016, our unrecognized tax benefits were related to intercompany charges in 2014 and 2015. The income tax authority has made decisions on the intercompany charges for our tax filings through 2014. We had filed appeals against the unfavorable parts of the decision regarding these intercompany charge adjustments, pending the tax authority’s re-examination. The amount of unrecognized tax benefits may increase or decrease in the future for various reasons such as current year tax positions, expiration of statutes of limitations, litigation, legislative activity, or other changes in facts regarding realizability. Taiwanese entities are customarily examined by the tax authorities and it is reasonably possible that a future examination may result in positive or negative adjustment to our unrecognized tax benefit within the next 12 months. As for the intercompany charges tax matters, we cannot estimate a range of reasonably possible changes in these uncertain tax positions at this time. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | NOTE 24. RELATED-PARTY TRANSACTIONS During 2014 and 2015, we have outsourced certain development of software to Double2 Network Technology Co., Ltd., an equity-method investee. The operating costs amounted to $113 thousand and $108 thousand for the years ended December 31, 2014 and 2015, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 25. COMMITMENTS AND CONTINGENCIES Commitments (a) Operating Leases We rent certain properties which are used as office premises under lease agreements that expire at various dates through 2021. The following table sets forth our future aggregate minimum lease payments required under these operating leases, as of December 31, 2016: (in US$ thousands) Amount 2017 $ 549 2018 497 2019 496 2020 496 2021 83 $ 2,121 Rental expense for operating leases amounted to $1.0 million, $909 thousand and $821 thousand for the years ended December 31, 2014, 2015 and 2016, respectively. (b) License Agreements We have contractual obligations under various license agreements to pay the licensors license fees and minimum guarantees against future royalties. The following table summarizes the committed license fees and minimum guarantees against future royalties set forth in our significant license agreements as of December 31, 2016. (in US$ thousands) License fees Minimum guarantees against future royalties Total Minimum required payments: In 2017 $ — $ 60 $ 60 After 2017 — — — $ — $ 60 $ 60 The minimum guarantees against future royalties and license fees are generally not required to be paid until the licensed games are commercially released or until certain milestones are achieved, as stipulated in the individual license agreements. Contingencies We are subject to legal proceedings and claims that arise in the normal course of business. Currently there are no outstanding claims or litigation against us. |
SEGMENT, PRODUCT, GEOGRAPHIC AN
SEGMENT, PRODUCT, GEOGRAPHIC AND OTHER INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT, PRODUCT, GEOGRAPHIC AND OTHER INFORMATION | NOTE 26. SEGMENT, PRODUCT, GEOGRAPHIC AND OTHER INFORMATION In 2014 and 2015, we had two operating segments: an Asian online game and service business segment, and a cloud service business segment. The Asian online game and service business segment mainly derives its revenues from recognizing the usage of game playing time or in-game items by the end-users. The cloud service business segment mainly derived its revenues from providing cloud products and services to medium-to-larger enterprises as well as public sectors. After reviewing the business plan, we combined in 2016 our cloud and game business to optimize the allocation of resources. Financial information for each operating segment was as follows for the years ended December 31, 2014, 2015, and 2016: (in US$ thousands) Asian online game and service Cloud service business Total 2014: Net revenue from external customers $ 8,199 $ 1,580 $ 9,779 Loss from operations $ (8,639 ) $ (1,510 ) $ (10,149 ) Share-based compensation $ 93 $ 7 $ 100 Impairment loss on property, plant and equipment $ — $ 28 $ 28 Impairment loss on intangible assets $ — $ 115 $ 115 Impairment loss on prepaid licensing and royalty fees $ 1,259 $ — $ 1,259 Interest income $ 31 $ — $ 31 Interest expense $ 243 $ — $ 243 Gain on sales of marketable securities - net $ 8,792 $ — $ 8,792 Foreign exchange gain (loss) $ (306 ) $ — $ (306 ) Gain (loss) on equity method investments - net $ (531 ) $ — $ (531 ) Depreciation $ 239 $ 28 $ 267 Amortization, including intangible assets $ 1,124 $ 71 $ 1,195 Income tax expense (benefits) $ (92 ) $ — $ (92 ) (in US$ thousands) Asian online game and service Cloud service business Total 2015: Net revenue from external customers $ 8,545 $ 1,706 $ 10,251 Loss from operations $ (12,735 ) $ (1,240 ) $ (13,975 ) Share-based compensation $ 6 $ (23 ) $ (17 ) Impairment loss on property, plant and equipment $ — $ 60 $ 60 Impairment loss on intangible assets $ — $ 5 $ 5 Impairment loss on prepaid licensing and royalty fees $ 4,187 $ — $ 4,187 Interest income $ 12 $ — $ 12 Interest expense $ 128 $ 1 $ 129 Gain on sales of marketable securities - net $ 19,939 $ — $ 19,939 Foreign exchange gain (loss) $ (145 ) $ — $ (145 ) Gain (loss) on equity method investments - net $ (600 ) $ — $ (600 ) Impairment loss on marketable securities and investments $ 1,290 $ — $ 1,290 Depreciation $ 233 $ 40 $ 273 Amortization, including intangible assets $ 212 $ 32 $ 244 Income tax expense (benefits) $ (14 ) $ — $ (14 ) (in US$ thousands) Asian online game and service 2016: Net revenue from external customers $ 8,971 Loss from operations $ (3,924 ) Share-based compensation $ 3 Impairment loss on property, plant and equipment $ 288 Impairment loss on intangible assets $ 53 Impairment loss on prepaid licensing and royalty fees $ 1,386 Interest income $ 2 Interest expense $ 0 Gain on sales of marketable securities - net $ 0 Foreign exchange gain (loss) $ (174 ) Gain (loss) on equity method investments - net $ (1,731 ) Impairment loss on marketable securities and investments $ 0 Depreciation $ 142 Amortization, including intangible assets $ 93 Income tax expense (benefits) $ 0 The reconciliations of segment information to GigaMedia’s consolidated totals are as follows: (in US$ thousands) 2014 2015 2016 Loss from operations: Total segments $ (10,149 ) $ (13,975 ) $ (3,924 ) Adjustment* (3,324 ) (6,020 ) (3,206 ) Total GigaMedia consolidated $ (13,473 ) $ (19,995 ) $ (7,130 ) Share-based compensation Total segments $ 100 $ (17 ) $ 3 Adjustment* (79 ) 82 6 Total GigaMedia consolidated $ 21 $ 65 $ 9 Impairment loss on property, plant and equipment: Total segments $ 28 $ 60 $ 288 Adjustment* — — 183 Total GigaMedia consolidated $ 28 $ 60 $ 471 Impairment loss on intangible assets: Total segments $ 115 $ 5 $ 53 Adjustment* — — 4 Total GigaMedia consolidated $ 115 $ 5 $ 57 Impairment loss on prepaid licensing and royalty fees: Total segments $ 1,259 $ 4,187 $ 1,386 Adjustment* — — — Total GigaMedia consolidated $ 1,259 $ 4,187 $ 1,386 Interest income: Total segments $ 31 $ 12 $ 2 Adjustment* 651 321 300 Total GigaMedia consolidated $ 682 $ 333 $ 302 Interest expense: Total segments $ 243 $ 129 $ — Adjustment* — 53 81 Total GigaMedia consolidated $ 243 $ 182 $ 81 Gain (loss) on sales of marketable securities - net: Total segments $ 8,792 $ 19,939 $ — Adjustments* (171 ) — — Total GigaMedia consolidated $ 8,621 $ 19,939 $ — Foreign exchange gain (loss): Total segments $ (306 ) $ (145 ) $ (174 ) Adjustments* (250 ) (252 ) (127 ) Total GigaMedia consolidated $ (556 ) $ (397 ) $ (301 ) (in US$ thousands) 2014 2015 2016 Gain (loss) on equity method investments - net: Total segments $ (531 ) $ (600 ) $ (1,731 ) Adjustment* — — — Total GigaMedia consolidated $ (531 ) $ (600 ) $ (1,731 ) Impairment loss on marketable securities and investments: Total segments $ — $ 1,290 $ — Adjustment* — — — Total GigaMedia consolidated $ — $ 1,290 $ — Depreciation: Total segments $ 267 $ 273 $ 142 Adjustments* 39 21 20 Total GigaMedia consolidated $ 306 $ 294 $ 162 Amortization: Total segments $ 1,195 $ 244 $ 93 Adjustments* 16 1 18 Total GigaMedia consolidated $ 1,211 $ 245 $ 111 Income tax expense (benefit): Total segments $ (92 ) $ (14 ) $ — Adjustments* 19 (400 ) (1,149 ) Total GigaMedia consolidated $ (73 ) $ (414 ) $ (1,149 ) * Adjustment items include corporate and certain back-office costs and expenses not attributable to any specific segment. As of December 31, 2014, 2015 and 2016, the compensation related was approximately $1.7 million $1.3 million and $1.6 million, respectively; professional fees was approximately $174 thousand $587 thousand and $612 thousand, respectively. The termination charge of proposed acquisition of $2.0 million in 2015 is also included in the adjustments. Major Product Lines Revenues from the Company’s major product lines are summarized as follow: (in US$ thousands) 2014 2015 2016 MahJong and casino casual games $ 4,301 $ 3,113 $ 2,459 PC massively multiplayer online games 1,908 1,670 1,560 Mobile role playing games 1,914 2,807 4,674 Other games and game related revenues 76 955 278 Cloud computing services 1,580 1,706 — $ 9,779 $ 10,251 $ 8,971 Major Customers No single customer represented 10 percent or more of GigaMedia’s consolidated total net revenues in any period presented. Geographic Information Revenues by geographic area are attributed by country of the server location. Revenue from by geographic region is as follows: (in US$ thousands) Geographic region / country 2014 2015 2016 Taiwan $ 7,413 $ 6,889 $ 2,664 Hong Kong 2,366 3,362 6,307 $ 9,779 $ 10,251 $ 8,971 Net tangible long-lived assets by geographic region are as follows: (in US$ thousands) December 31, Geographic region / country 2014 2015 2016 Taiwan $ 1,641 $ 1,320 $ 7 Hong Kong 22 71 0 $ 1,663 $ 1,391 $ 7 |
Principal Activities, Basis o33
Principal Activities, Basis of Presentation, and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions Assets and liabilities denominated in non-U.S. dollars are translated to U.S. dollars at year-end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the year. Cumulative translation adjustments resulting from this process are charged or credited to other comprehensive income. Gains and losses on foreign currency transactions are included in other income and expenses. |
Use of Estimates | Use of Estimates The preparation of consolidated 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 disclosures of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management bases its estimates on historical experience and also on assumptions that it believes are reasonable. Management assesses these estimates on a regular basis; however, actual results could differ from those estimates. Significant items subject to such estimates and assumptions include but not limit to the useful lives of property, plant and equipment; allowances for doubtful accounts; the valuation of deferred tax assets, long-lived assets, inventory, investments and share-based compensation; and accrued pension liabilities, income tax uncertainties and other contingencies. We believe the critical accounting policies listed below affect significant judgments and estimates used in the preparation of the financial statements. |
Revenue Recognition | Revenue Recognition General Revenues are recognized when persuasive evidence of an arrangement exists, delivery occurs and the customer takes ownership and assumes risks or services are rendered, the sales price is fixed or determinable and collectability is reasonably assured. Sales taxes assessed by governmental authorities on our revenue transactions are presented on a net basis and therefore are excluded from revenues in our consolidated financial statements. Multiple-Element Arrangements Our Company enters into multiple-element revenue arrangements, which may include any combination of services, software, and/or products. To the extent that a deliverable in a multiple-element arrangement is subject to specific accounting guidance, whether and/or how to separate multiple deliverable arrangements into separate units of accounting (separability) and how to allocate the arrangement consideration among those separate units of accounting (allocation) for that deliverable is accounted for in accordance with such specific guidance. In addition to the aforementioned general policies, the following are the specific revenue recognition policies for each major category of revenue. Asian Online Game and Service Revenues Online game revenues are earned through the sale of online game points, prepaid cards, game packs, through the sublicensing of certain games to distributors and through licensing fee revenues. Virtual online game points are sold to distributors or end-users who can make the payments through credit cards, Internet ATMs or telecommunication service operators. Physical prepaid cards and game packs are sold through distributors and convenience stores. Proceeds from sales of physical cards and game packs, net of sales discounts, and online game points are deferred when received and revenue is recognized upon the actual usage of the playing time or in-game virtual items by the end-users; over the estimated useful life of virtual items; or when the sold game points expire and can no longer be used to access the online games or products in accordance with our published game points expiration policy. Sublicensing revenues from the distributors are recognized based on end-users’ activation to the game system and when the performance obligations have been completed. Licensing fee revenues are recognized when the delivery of licensed products has occurred and the fee is fixed or determinable. Sales of virtual online game points and licensing fee revenues are reported on a gross basis. In the sales of virtual online game points and game licenses, we act as principal and we have latitude in establishing price. Fixed percentage fees retained by service providers for payment processing related to our online game services are recognized as cost of online game revenues. We report sublicensing revenues on a net basis. In the sublicense agreements, we act as agent and the distributors are responsible for the operating and the marketing. Online game and service revenues also include revenues derived from online advertising arrangements, sponsorship arrangements, or a combination of both. These service arrangements allow advertisers to place advertisements on particular areas of our Company’s websites and online game platforms over a stated period of time. Service revenues from online advertising arrangements are recognized ratably over the period of the contract when the collectability is reasonably assured. Cloud Product and Service Revenues Cloud service revenues are related to cloud computing services provided by our Company. Revenues are recorded net of discounts. Cloud service revenues are recognized upon acceptance for project services provided, or for the period of time for which we provide services to the customer. Customers of subscriptions have a choice of paying either monthly or in advance for a certain period of time, for which they receive corresponding discounts. Our Company records any such advanced payment receipts as other current liabilities and amortizes such revenues over the subscription period. Revenues from the sales of equipment and other related products are recognized upon acceptance. |
Deferred Revenues | Deferred Revenues Deferred revenues consist mainly of the prepaid income related to our Asian online game and service business. Deferred revenue represents proceeds received relating to the sale of game points and in-game items which are activated or charged to the respective player game account by players, but which have not been consumed by the players or expired. Deferred revenue is credited to profit or loss when the game points and in-game items are consumed or expired. Pursuant to relevant new requirements in Taiwan, as of December 31, 2015 and 2016, cash totaling $1 million and $0.5 million, respectively, has been deposited in an escrow account in a bank as a performance bond for the players’ game points, and is included within restricted cash in the consolidated balance sheets. |
Prepaid Licensing and Royalty Fees | Prepaid Licensing and Royalty Fees Our Company, through our subsidiaries, routinely enters into agreements with licensors to acquire licenses for using, marketing, distributing, selling and publishing multi-player online games. Prepaid licensing fees paid to licensors are amortized on a straight-line basis over the shorter of the estimated useful economic life of the relevant online game or license period, which is usually within one to five years. The annual amortization is modified if the amount computed on the ratio of current gross revenues for a game license over the total of current and anticipated future gross revenues for that game license is greater than the amount computed using the straight-line method. Prepaid royalty fees and related costs are initially deferred when paid to licensors and amortized as operating costs based on certain percentage of revenues generated by the licensee from operating the related online game in the specific country or region over the contract period. |
Fair Value Measurements | Fair Value Measurements Our Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. We determine fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: • Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. • Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. Our Company generally determines or calculates the fair value of financial instruments using quoted market prices in active markets when such information is available; otherwise we apply appropriate present value or other valuation techniques, such as discounted cash flow analyses, incorporating adjusted available market discount rate information and our Company’s estimates for non-performance and liquidity risk. These techniques rely extensively on the use of a number of assumptions, including the discount rate, credit spreads, and estimates of future cash flows. (See Note 7, “Fair Value Measurements”, for additional information.) |
Cash Equivalents, Restricted Cash and Presentation of Statements of Cash Flows | Cash Equivalents, Restricted Cash and Presentation of Statements of Cash Flows Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and so near to their maturity that they present relatively insignificant risk from changes in interest rates. Commercial paper, negotiable certificates of deposit, time deposits and bank acceptances with original maturities of three months or less are considered to be cash equivalents. Pledged time deposits are excluded from cash and cash equivalents for purposes of the consolidated statements of cash flows. The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash |
Marketable Securities | Marketable Securities Our Company’s investments in marketable securities are classified either as available-for-sale or trading. For the marketable securities classified as available-for-sale, the investments are stated at fair value with any unrealized gains or losses reported in accumulated other comprehensive income (loss) within equity until realized. For the marketable security classified as trading, we recognize the changes of the fair value of the investment in our consolidated statements of operations. Other-than-temporary impairments, if any, are charged to non-operating expense in the period in which the loss occurs. In determining whether an other-than-temporary impairment has occurred, our Company primarily considers, among other factors, the length of the time and the extent to which the fair value of an investment has been at a value less than cost. When an other-than-temporary loss is recognized, the fair value of the investment becomes the new cost basis of the investment and is not adjusted for subsequent recoveries in fair value. Realized gains and losses also are included in non-operating income and expense in the consolidated statements of operations. (See Note 7, “Fair Value Measurements”, for additional information.) |
Investments | Investments Equity investments in non-publicly traded securities of companies over which our Company has no ability to exercise significant influence are accounted for under the cost method. For equity investments accounted for as available-for-sale or trading, cash dividends are recognized as investment income. Stock dividends are recognized as an increase in the number of shares held and do not affect investment income. The cost per share is recalculated based on the new total number of shares. For equity investments accounted under equity method, stock dividends received from investees as a result of appropriation of net earnings and additional paid-in capital are recognized as an increase in the number of shares held and do not affect investment income. The cost per share is recalculated based on the weighted-average method. Cash dividends are accounted for as a reduction to the carrying value of the investment. Equity investments in companies over which our Company has the ability to exercise significant influence but does not hold a controlling financial interest are accounted for under the equity method. We recognize our share of the earnings or losses of the investee. Under the equity method, the difference between the cost of the acquisition and our Company’s share of the fair value of the net identifiable assets is recognized as goodwill and is included in the carrying amount of the investment. When our Company’s carrying value in an equity method investee is reduced to zero, no further losses are recorded in our consolidated financial statements unless our Company guaranteed obligations of the investee or has committed to additional funding. When the investee subsequently reports income, our Company will not record its share of such income until it equals the amount of its share of losses not previously recognized. Unrealized losses that are considered other-than-temporary, if any, are charged to non-operating expenses. Realized gains and losses, measured against carrying amount, are also included in non-operating income and expenses. (See Note 7, “Fair Value Measurements”, for additional information.) |
Receivables | Receivables Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. Our Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and our customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is recorded on a straight-line basis over useful lives that correspond to categories as follows: Categories Years Buildings 50 Information and communication equipment 2 to 5 Office furniture and equipment 3 to 5 Leasehold improvements 3 to 5 Leasehold improvements are amortized over the shorter of the term of the lease or the economic useful life of the assets. Improvements and replacements are capitalized and depreciated over their estimated useful lives, while ordinary repairs and maintenance are expensed as incurred. We had entered into agreements to lease certain of our Company’s land and buildings to a third party under operating leases, which were renewed in September and October 2013 and expired in 2016. As of December 31, 2015, the carrying amount of the land and buildings under lease was $1.1 million. In January 2016, we entered into disposal agreements to sell these land and buildings. The closing of the disposal occurred in March 2016. (See Note 14, “Property, Plant and Equipment”, for additional information.)The rental income under the operating lease amounted to $73 thousand, $69 thousand and $9 thousand for 2014, 2015 and 2016, respectively. |
Business Acquisitions | Business Acquisitions Our Company accounts for its business acquisitions using the acquisition method. Under this method, our Company recognizes and measures the identifiable assets acquired, the liabilities assumed and any noncontrolling interest at their acquisition-date fair values, with limited exceptions. Acquisition-related costs are generally expensed as incurred. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible assets with finite lives are amortized by the straight-line method over their estimated useful lives, typically three years. Intangible assets with indefinite useful lives are not amortized. Goodwill is not amortized. |
Impairment of Intangible Assets, Goodwill and Long-Lived Assets | Impairment of Intangible Assets, Goodwill and Long-Lived Assets Goodwill is reviewed for impairment annually or sooner when circumstances indicate an impairment may exist, using a fair-value approach at the reporting unit level. A reporting unit is the operating segment, or a business, which is one level below that operating segment (the “component” level) if discrete financial information is prepared and regularly reviewed by management at the segment level. Components are aggregated as a single reporting unit if they have similar economic characteristics. In connection with our goodwill impairment test, we first assess qualitative factors as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If the two-step goodwill impairment test is required, first, the fair value of the reporting unit is compared with its carrying amount (including goodwill). If the fair value of the reporting unit is less than its carrying amount, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying amount, step two does not need to be performed. Intangible assets with indefinite useful lives are tested for impairment at the reporting unit level, at least annually, or whenever events or changes in circumstances indicate that the carrying value of an asset might not be recoverable from its related future discounted cash flows. Impairment is measured as the difference between the carrying amounts and the fair value of the assets, and is recognized as a loss from operations. In connection with our impairment test for the intangible assets with indefinite useful lives, we first assess qualitative factors as a basis for determining whether it is necessary to perform the quantitative impairment test. Long-lived assets other than goodwill and intangible assets not being amortized are reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the carrying value of an asset might not be recoverable from its related future undiscounted cash flows. If such assets are considered to be impaired, the impairment to be recognized is measured by the extent to which the carrying amount of the assets exceeds the fair value of the assets. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. When impairment is identified, the carrying amount of the asset is reduced to its estimated fair value, and is recognized as a loss from operations. (See Note 7, “Fair Value Measurements”, for additional information.) |
Software Cost | Software Cost Costs to develop our Asian online game products are capitalized after technological feasibility has been established, and when the product is available for general release to customers, costs are expensed. Costs incurred prior to the establishment of technological feasibility are expensed when incurred and are included in product development and engineering expenses. Capitalized amounts are amortized using the straight-line method, which is applied over the estimated useful economic life of the software, typically three years. The annual amortization is modified if the amount computed using the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product is greater than the amount computed using the straight-line method. We capitalize certain costs incurred to purchase or to internally create and implement internal-use computer software, which includes software coding, installation, testing and certain data conversion. These capitalized costs are amortized on a straight-line basis over the shorter of the useful economic life of the software or its contractual license period, which is typically three years. |
Product Development and Engineering | Product Development and Engineering Product development and engineering expenses primarily consist of research compensation, depreciation and amortization, and are expensed as incurred. |
Advertising | Advertising Direct-response advertising costs incurred in relation to the acquisition or origination of a customer relationship are capitalized and deferred. The deferred costs are recognized as expense in the consolidated statements of operations over the estimated lives of customer relationships. Costs of broadcast advertising are recorded as expenses as advertising airtime is used. Other advertising expenditures are expensed as incurred. Advertising expenses incurred in 2014, 2015 and 2016 totaled $888 thousand, $3.1 million and $3.3 million, respectively. As of December 31, 2015 and 2016, prepaid advertising amounted to $5 thousand and $42 thousand, respectively. |
Leases | Leases Leases for which substantially all of the risks and rewards of ownership remain with the leasing company are accounted for as operating leases. Payments made under operating leases, net of any incentives received by our Company from the leasing company, are charged to the consolidated statements of operations on a straight-line basis over the lease periods. Leases are classified as capital leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. Assets held under capital leases are recognized as assets of our Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a lease obligation. Lease payments are apportioned between finance charges and a reduction of the lease obligation in order to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly to profit or loss. |
Share-Based Compensation | Share-Based Compensation Share-based compensation represents the cost related to share-based awards granted to employees. We measure share-based compensation cost at the grant date, based on the estimated fair value of the award. Share-based compensation is recognized for the portion of the award that is ultimately expected to vest, and the cost is amortized on a straight-line basis (net of estimated forfeitures) over the vesting period. Our Company estimates the fair value of stock options using the Black-Scholes valuation model. The cost is recorded in operating costs and operating expenses in the consolidated statements of operations on the date of grant based on the employees’ respective function. For shares and stock options granted to non-employees, we measure the fair value of the equity instruments granted at the earlier of the performance commitment date or when the performance is completed. |
Retirement Plan and Net Periodic Pension Cost | Retirement Plan and Net Periodic Pension Cost Under our defined benefit pension plan, net periodic pension cost, which includes service cost, interest cost, expected return on plan assets, amortization of unrecognized net transition obligation and gains or losses on plan assets, is recognized based on an actuarial valuation report. We recognize the funded status of pension plans and non-pension post-retirement benefit plans (retirement-related benefit plans) as an asset or a liability in the consolidated balance sheets. Under our defined contribution pension plans, net periodic pension cost is recognized as incurred. |
Income Taxes | Income Taxes The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between financial reporting and tax bases of assets and liabilities. We recognize the investment tax credit associated with the purchase of intangible assets and technology, research and development expenditures, employee compensation and certain equity investments using the flow-through method. Deferred tax assets and liabilities are measured using the enacted tax rate and laws that will be in effect when the related temporary differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amount that will more-likely-than-not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences and loss carryforwards become deductible. In addition, we recognize the financial statement impact of a tax position when it is more-likely-than-not that the position will be sustained upon examination. If the tax position meets the more-likely-than-not recognition threshold, the tax effect is measured at the largest amount that is greater than a 50 percent likely of being realized upon settlement. Interest and penalties on an underpayment of income taxes are reflected as income tax expense in the consolidated financial statements. |
Loss Per Share | Loss Per Share Basic loss per share is computed by dividing the net loss attributable to common shareholders for the period by the weighted average number of common shares outstanding during the period. Diluted earnings loss per share is computed by dividing the net loss for the period by the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares, composed of incremental common shares issuable upon the exercise of warrants and options in all periods, are included in the computation of diluted loss per share to the extent such shares are dilutive. Diluted loss per share also takes into consideration the effect of dilutive securities issued by subsidiaries. In a period in which a loss is incurred, only the weighted average number of common shares issued and outstanding is used to compute the diluted loss per share, as the inclusion of potential common shares would be anti-dilutive. Therefore, for the years ended December 31, 2014, 2015 and 2016, basic and diluted loss per share are the same. |
Noncontrolling Interest | Noncontrolling Interest Noncontrolling interest in the equity of a subsidiary is accounted for and reported as equity. Changes in our Company’s ownership interest in a subsidiary that do not result in deconsolidation are accounted for as equity transactions. Any retained noncontrolling equity investment upon the deconsolidation of a subsidiary is initially measured at fair value. |
Segment Reporting | Segment Reporting We use the management approach in determining reportable operating segments. The management approach considers the internal organization and reporting used by our Company’s chief operating decision maker for making operating decisions, allocating resources and assessing performance as the source for determining our operating segments. Our Company’s chief operating decision maker (“CODM”) has been identified as the Chief Executive Officer. Segment profit and loss is determined on a basis that is consistent with how our Company reports operating loss in its consolidated statements of operations. Our Company does not report segment asset information to the CODM. Consequently, no asset information by segment is presented. There are no intersegment transactions. |
Recent Accounting Pronouncements Not Yet Adopted | (d) Recent Accounting Pronouncements Not Yet Adopted The FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net) The FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients The FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing The FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers We expect to adopt Topic 606 as of January 1, 2018. While we are still in the process of completing the evaluation of our revenue streams and processes relating to the requirements of Topic 606, based on the analysis performed to date, we do not expect the adoption of this new standard to have a material impact on our Company’s financial position, results or cash flows. The FASB issued ASU No. 2017-07, Compensation— Benefits (Topic 715) services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The amendments in this Update also allow only the service cost component to be eligible for capitalization when applicable (for example, as a cost of internally manufactured inventory or a self-constructed asset). Our company will adopt this ASU on January 1, 2018, retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the statement of operations, and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The adoption will only affect the presentation of our consolidated statements of operations. The FASB issued new lease accounting guidance in ASU No. 2016-02, Leases (Topic 842) a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (b) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. |
Principal Activities, Basis o34
Principal Activities, Basis of Presentation, and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Useful Lives of Property Plant and Equipment | Depreciation is recorded on a straight-line basis over useful lives that correspond to categories as follows: Categories Years Buildings 50 Information and communication equipment 2 to 5 Office furniture and equipment 3 to 5 Leasehold improvements 3 to 5 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Denominators of Basic and Diluted Per Share Computations | The following table provides a reconciliation of the denominators of the basic and diluted per share computations: (in thousand shares) 2014 2015 2016 Weighted average number of outstanding shares Basic 10,785 11,052 11,052 Effect of dilutive securities Employee share-based compensation — — — Diluted 10,785 11,052 11,052 |
DIVESTITURES (Tables)
DIVESTITURES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
East Gate Media Contents and Technology Fund | |
Summarized Selected Financial Information for Divested Business | The disposal gain was as follows: (In US$ thousand) Amount The fair value of consideration received, net of any transaction costs $ 112 The fair value of consideration receivable, net of any transaction costs 1,058 1,170 The carrying amount of investment in East Gate at the date of disposal 1,398 Exchange difference 250 Gain on disposal of investment in East Gate $ 22 |
FingerRockz | |
Summarized Selected Financial Information for Divested Business | The deconsolidation gain was as follows: (In US$ thousand) Amount The fair value of consideration received and receivable, net of any transaction costs $ — The carrying amount of FingerRockz at the date of deconsolidation (37 ) Gain on sale of FingerRockz $ 37 |
Perfect Pairs | |
Summarized Selected Financial Information for Divested Business | The disposal gain was as follows: (In US$ thousand) Amount The fair value of consideration received, net of any transaction costs $ 760 The carrying amount of PerfectPairs Cash 482 Receivables and other current assets 40 Property, plant and equipment 71 Intangible and other noncurrent assets 13 Accounts payable and accrued expenses (528 ) Other payable and other current liabilities (144 ) The carrying amount of PerfectPairs at the date of deconsolidation (66 ) Exchange difference 1 Gain on sale of PerfectPairs $ 827 |
INTANGIBLE ASSETS - NET (Tables
INTANGIBLE ASSETS - NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets by Major Asset Class | The following table summarizes our Company’s intangible assets, by major asset class: December 31, 2015 (In US$ thousands) Gross carrying amount Accumulated amortization Net With finite-life intangible assets Capitalized software cost $ 775 $ 687 $ 88 |
PREPAID LICENSING AND ROYALTY38
PREPAID LICENSING AND ROYALTY FEES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Summary of Changes to Prepaid Licensing and Royalty Fees | The following table summarizes changes to our Company’s prepaid licensing and royalty fees: (in US$ thousands) 2014 2015 2016 Balance at beginning of year $ 4,666 $ 4,383 $ 239 Addition 1,498 1,801 2,581 Amortization and usage (264 ) (1,743 ) (416 ) Exchange difference (258 ) (15 ) 2 Impairment charges (Note 7) (1,259 ) (4,187 ) (1,386 ) Balance at end of year $ 4,383 $ 239 $ 1,020 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Carrying Amounts and Estimated Fair Values of Financial Instruments | The following table presents the carrying amounts and estimated fair values of our Company’s financial instruments at December 31, 2015 and 2016. (in US$ thousands) 2015 2016 Carrying amount Fair value Carrying amount Fair value Financial assets Cash and cash equivalents $ 71,432 $ 71,432 $ 65,711 $ 65,711 Marketable securities - current 4 4 3 3 Accounts receivable 1,246 1,246 871 871 Restricted cash 1,000 1,000 500 500 Refundable deposits 272 272 245 245 Financial liabilities Short-term borrowings 6,093 6,093 2,480 2,480 Accounts payable 320 320 266 266 Accrued compensation 759 759 210 210 Accrued expenses 3,037 3,037 3,828 3,828 |
Reconciliation of Beginning and Ending Balances of Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs Level Three | For assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during 2015 and 2016, a reconciliation of the beginning and ending balances are presented as follows: (in US$ thousands) Marketable Securities - Debt Securities 2015 2016 Balance at beginning of year $ 4,744 $ — Total gains or (losses) (realized/unrealized) included in earnings (2,017 ) — included in other comprehensive income — — Sale (2,727 ) — Balance at end of year $ — $ — The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date. $ — $ — |
Realized and Unrealized Gains (or Losses) Included In The Consolidated Financial Statements for Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs Level Three | Realized and unrealized gains (or losses) included in the consolidated financial statements for 2014, 2015 and 2016 for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are reported in the consolidated financial statements as follows: (in US$ thousands) Gain on sales of marketable securities Impairment loss on marketable securities and investments Total gains (losses) included in earnings for 2014 $ — $ — for 2015 5,845 — for 2016 — — Change in unrealized gains (losses) relating to assets still held at the reporting date for 2014 $ 805 $ — for 2015 — — for 2016 — — |
Fair Value, Measurements, Recurring | |
Summary of Assets and Liabilities Measured at Fair Value | Assets and liabilities measured at fair value on a recurring basis are summarized as below: (in US$ thousands) Fair Value Measurement Using Year Ended Level 1 Level 2 Level 3 December 31, 2016 Assets Cash equivalents - time deposits $ — $ 6 $ — $ 6 Restricted cash - time deposits — 500 — 500 Marketable securities - current Equity securities 3 — — 3 $ 3 $ 506 $ — $ 509 (in US$ thousands) Fair Value Measurement Using Year Ended Level 1 Level 2 Level 3 December 31, 2015 Assets Cash equivalents - time deposits $ — $ 6 $ — $ 6 Restricted cash - time deposits — 1,000 — 1,000 Marketable securities - current Equity securities 4 — — 4 $ 4 $ 1,006 $ — $ 1,010 |
Fair Value, Measurements, Nonrecurring | |
Summary of Assets and Liabilities Measured at Fair Value | Assets and liabilities measured at fair value on a nonrecurring basis that were determined to be impaired as of December 31, 2015 and 2016 are summarized as below: (in US$ thousands) Fair Value measurement Using Assets Level 1 Level 2 Level 3 Year Ended December 31, 2016 Total Impairment Losses (b) Property, plant and equipment $ — $ — $ — $ — $ 471 (c) Intangible assets — — — — 57 (d) Prepaid licensing and royalty fees — — 820 820 1,386 Total $ — $ — $ 820 $ 820 $ 1,914 (in US$ thousands) Fair Value measurement Using Assets Level 1 Level 2 Level 3 Year Ended December 31, 2015 Total Impairment Losses (a) Investments - Cost-method $ — $ — $ — $ — $ 1,000 (a) Investments - Equity-method — — 188 188 290 (b) Property, plant and equipment - Information and communication equipment — — — — 60 (c) Intangible assets - Capitalized software cost — — — — 5 (d) Prepaid licensing and royalty fees — — — — 4,187 Total $ — $ — $ 188 $ 188 $ 5,542 (a) Impairment losses on certain cost method and equity method investments which were determined to be impaired: (b) Impairment losses on certain property, plant, and equipment which were determined to be impaired: (c) Impairment losses on certain intangible assets which were determined to be impaired: (d) Impairment losses on certain prepaid licensing and royalty fees which were determined to be impaired: |
CASH, RESTRICTED CASH AND CAS40
CASH, RESTRICTED CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Cash And Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and cash equivalents consist of the following: December 31 (in US$ thousands) 2015 2016 Cash and savings accounts $ 71,426 $ 65,705 Time deposits 6 6 Cash and cash equivalents reported on the consolidated balance sheets 71,432 65,711 Cash restricted as collateral and performance bond 1,000 500 Total cash, restricted cash and cash equivalents reported on the consolidated statements of cash flows $ 72,432 $ 66,211 We maintain cash and cash equivalents, as well as restricted cash, in bank accounts with major financial institutions with high credit ratings located in the following jurisdictions: December 31 (in US$ thousands) 2015 2016 Taiwan $ 69,879 $ 65,093 Hong Kong 1,120 1,102 China 16 16 Singapore 1,417 — $ 72,432 $ 66,211 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Marketable Securities [Abstract] | |
Marketable Debt Securities | Marketable securities – current consist of the following: December 31 (in US$ thousands) 2015 2016 Equity securities $ 4 $ 3 |
ACCOUNTS RECEIVABLE - NET (Tabl
ACCOUNTS RECEIVABLE - NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Accounts Receivable Net | Accounts receivable consist of the following: December 31 (in US$ thousands) 2015 2016 Accounts receivable $ 1,275 $ 903 Less: Allowance for doubtful accounts (29 ) (32 ) $ 1,246 $ 871 |
Summary of Changes in Allowance for Doubtful Accounts | The following is a summary of the changes in our Company’s allowance for doubtful accounts during the years ended December 31, 2014, 2015 and 2016: (in US$ thousands) 2014 2015 2016 Balance at beginning of year $ 55 $ 56 $ 29 Additions: Bad debt expense 37 3 35 Less: Write-offs (33 ) (28 ) (33 ) Translation adjustment (3 ) (2 ) 1 Balance at end of year $ 56 $ 29 $ 32 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Current Assets | Other current assets consist of the following: December 31 (in US$ thousands) 2015 2016 Loans receivable - current 64 65 Less: Allowance for loans receivable - current (28 ) (28 ) Other receivables (Note 4) 9 1,062 Other 226 151 $ 271 $ 1,250 |
Changes in Allowance for Loans Receivable | The following is a reconciliation of changes in our Company’s allowance for loans receivable - current during the years ended December 31, 2014, 2015 and 2016: (in US$ thousands) 2014 2015 2016 Balance at beginning of year $ 3,394 $ 27 $ 28 Writes-offs (3,359 ) — — Reversal for collection of bad debt — 2 — Translation adjustment (8 ) (1 ) — Balance at end of year $ 27 $ 28 $ 28 |
EQUITY INVESTMENTS (Tables)
EQUITY INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments Schedule [Abstract] | |
Equity Investments | Equity investments consist of the following: December 31 (in US$ thousands) 2015 2016 Investments accounted for under the equity method $ 4,524 $ 72 |
Summary of Financial Information of East Gate | Summarized U.S. GAAP financial information of East Gate as of December 31, 2015 and November 30, 2016 (right before we disposed of it), and for the years ended December 31, 2014, 2015 and the eleven-month period ended November 30, 2016 is presented below (in US$ thousands): 2015 2016 Investments and other related assets $ 21,833 $ 7,911 Other assets 3,212 332 Total assets $ 25,045 $ 8,243 Total liabilities $ 478 $ 318 Total net assets of the fund $ 24,567 $ 7,925 2014 2015 2016 Investment and related income (loss) $ 8,351 $ 5,419 $ (1,513 ) Impairment loss (480 ) — (105 ) Other costs and expenses (10,642 ) (8,219 ) (7,513 ) Net loss $ (2,771 ) $ (2,800 ) $ (9,131 ) |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Reconciliation of Beginning and Ending Amounts of Property, Plant and Equipment | A reconciliation of the beginning and ending amounts of our property, plant and equipment for the year ended December 31, 2016 is as follows: (in US$ thousands) Cost Accumulated depreciation Net Balance at beginning of year $ 5,165 $ 3,774 $ 1,391 Purchase 496 — 496 Depreciation — 162 (162 ) Disposal of office premises (1,120 ) (44 ) (1,076 ) Disposal of other property, plant and equipment (1,092 ) (969 ) (123 ) Deconsolidation (Note 4) (104 ) (33 ) (71 ) Impairment (Note 7) (3,423 ) (2,952 ) (471 ) Exchange differences 85 62 23 Balance at end of year $ 7 $ — $ 7 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consist of the following: December 31 (in US$ thousands) 2015 2016 Accrued advertising expenses $ 811 $ 1,961 Accrued professional fees 865 765 Accrued royalties 313 350 Accrued director compensation and liability insurance 238 272 Accrued outsourced development 52 75 Accrued incentive to distributors 63 57 Other 695 348 $ 3,037 $ 3,828 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Current [Abstract] | |
Other Current Liabilities | Other current liabilities consist of the following: December 31 (in US$ thousands) 2015 2016 Income taxes payable (Note 23) $ 1,252 $ — Other 271 346 $ 1,523 $ 346 |
PENSION BENEFITS (Tables)
PENSION BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Benefit Obligations, Fair Value of Plan Assets, and Funded Status | The following table sets forth the plan’s benefit obligations, fair value of plan assets, and funded status at December 31, 2015 and 2016: December 31 (in US$ thousands) 2015 2016 Benefit Obligation $ 201 $ 263 Fair value of plan assets 310 325 $ (109 ) $ (62 ) Amounts recognized in the balance sheet consist of: Noncurrent liabilities (assets) $ (109 ) $ (62 ) Accumulated other comprehensive income — — Net amount recognized $ (109 ) $ (62 ) Amounts recognized in accumulated comprehensive income consist of: Unrecognized net gain (loss) $ — $ (58 ) |
Pension Cost | For the years ended December 31, 2015 and 2016, the net period pension cost consisted of the following: December 31 (in US$ thousands) 2015 2016 Service cost $ — $ — Interest cost 5 4 Expected return on plan assets (6 ) (6 ) Amortization of prior service cost — — Amortization of net loss — — Curtailment gain (57 ) — $ (58 ) $ (2 ) |
Weighted Average Assumptions Used to Determine Benefit Obligations | Weighted average assumptions used to determine benefit obligations for 2015 and 2016 were as follows: December 31 2015 2016 Discount rate 1.875 % 1.375 % Rate of compensation increase 1.50 % 2.00 % |
Schedule of Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | Weighted average assumptions used to determine net periodic benefit cost for end of fiscal year were as follows: 2015 2016 Discount rate 2.00 % 1.875 % Rate of return on plan assets 2.00 % 1.875 % Rate of compensation increase 1.50 % 2.00 % |
OTHER LIABILITIES - OTHER (Tabl
OTHER LIABILITIES - OTHER (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other liabilities consist of the following: December 31 (in US$ thousands) 2015 2016 Deferred tax liabilities (Note 23) $ 1,712 $ 1,671 Other 10 — $ 1,722 $ 1,671 |
ACCUMULATED OTHER COMPREHENSI50
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Accumulated Balances of Other Comprehensive Income (Loss) | The accumulated balances for each component of other comprehensive income (loss) are as follows: (in US$ thousands) Foreign currency items Unrealized gain on securities Pension and post retirement benefit plans Accumulated other comprehensive loss Balance at January 1, 2014 $ (22,707 ) $ 19,104 $ — $ (3,603 ) Net current period change (176 ) 906 — 730 Reclassification adjustments for gains reclassified into income 7 (8,621 ) — (8,614 ) Balance at December 31, 2014 (22,876 ) 11,389 — (11,487 ) Net current period change (118 ) 8,553 — 8,435 Reclassification adjustments for gains reclassified into income 656 (19,939 ) — (19,283 ) Balance at December 31, 2015 (22,338 ) 3 — (22,335 ) Net current period change 5 (1 ) (58 ) (54 ) Reclassification adjustments for gains reclassified into income (222 ) — — (222 ) Balance at December 31, 2016 $ (22,555 ) $ 2 $ (58 ) $ (22,611 ) |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Total Stock-Based Compensation Expense Recognized in Consolidated Statements of Operations | The following table summarizes the total stock-based compensation expense recognized in our consolidated statements of operations: (in US$ thousands) 2014 2015 2016 Cost of online game and service revenues $ — $ — $ — Product development & engineering expenses — — — Selling and marketing expenses — — — General and administrative expenses 21 65 9 Total stock-based compensation expense reported in continuing operations $ 21 $ 65 $ 9 Total stock-based compensation expense reported in discontinued operations, net of tax $ — $ — $ — |
Summary of General Terms of Stock-Based Compensation Plans for Awards Granted | Summarized below are the general terms of our stock-based compensation plans, for which awards have been granted as of December 31, 2016. Stock-Based compensation plan Granted awards Vesting schedule Options’ exercise price RSUs’ grant date fair value 2004 plan 1,575,037 (1) immediately upon granting to four years $3.95~$12.75 — 2006 Plan 256,716 (2) immediately upon granting to four years $3.85~$83 $14.55~$80.05 2007 Plan 671,057 (3) immediately upon granting to four years $4.9885~$90.85 $12.35~$76.75 2008 Plan 200,000 immediately upon granting to six years $12.35~$21.2 — 2009 Plan 500,000 (4) immediately upon granting to four years $4.775~$12.35 — 2010 Plan 440,000 (5) three years $4.0505~$5.7 — (1) The granted awards, net of forfeited or canceled shares, were within reserved shares of 1,400 thousand common shares. (2) The granted awards, net of forfeited or canceled shares, were within reserved shares of 200 thousand common shares. (3) The granted awards, net of forfeited or canceled shares, were within reserved shares of 400 thousand common shares. (4) The granted awards, net of forfeited or canceled shares, were within reserved shares of 300 thousand common shares. (5) The granted awards, net of forfeited or canceled shares, were within reserved shares of 200 thousand common shares. |
Summary of Assumptions Used in Black-Scholes Option-Pricing Model to Estimate Fair Value of Stock Options Granted | No options were granted to employees during 2016. The following table summarizes the assumptions used in the model for options granted during 2015: 2015 Option term (years) 5.75 Volatility 49.239% Weighted-average volatility 49% Risk-free interest rate 1.506% Dividend yield 0% Weighted-average fair value of option granted $ 1.80 |
Summary of Option Transactions | Option transactions during the last three years are summarized as follows: 2014 2015 2016 Weighted Avg. Exercise Price No. of Shares (in thousands) Weighted Avg. Exercise Price No. of Shares (in thousands) Weighted Avg. Exercise Price No. of Shares (in thousands) Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Balance at January 1 $ 9.75 1,844 $ 20.30 626 $ 20.51 617 Options granted 6.15 66 3.85 12 — — Options exercised 3.95 (907 ) — — — — Options Forfeited / canceled / expired 5.65 (377 ) 5.31 (21 ) 3.85 (4 ) Balance at December 31 $ 20.30 626 $ 20.51 617 $ 20.63 613 $ 4.18 — Exercisable at December 31 $ 23.35 519 $ 21.28 586 $ 20.57 606 $ 3.95 — Vested and expected to vest at December 31 $ 20.30 626 $ 20.51 617 $ 20.63 613 $ 3.15 — |
Information about Stock Options Outstanding | The following table sets forth information about stock options outstanding at December 31, 2016: Options outstanding Option currently exercisable Exercise price No. of Shares (in thousands) Weighted average remaining contractual life Exercise price No. of Shares (in thousands) Under $5 112 6.04 years Under $5 108 $5~$50 378 3.11 years $5~$50 375 $50~$100 123 0.64 years $50~$100 123 613 606 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income (Loss) Before Income Taxes by Geographic Location | Income (loss) before income taxes by geographic location is as follows: (in US$ thousands ) 2014 2015 2016 Taiwan operations $ (13,158 ) $ (13,177 ) $ (1,119 ) Non-Taiwan operations 8,095 10,475 (6,096 ) $ (5,063 ) $ (2,702 ) $ (7,215 ) |
Components of Income Tax Benefit Expense by Taxing Jurisdiction | The components of income tax benefit (expense) by taxing jurisdiction are as follows: ( in US$ thousands ) 2014 2015 2016 Taiwan: Current $ 74 $ 198 $ 1,108 Deferred — — — $ 74 $ 198 $ 1,108 Non-Taiwan: Current $ (1 ) $ — $ — Deferred — 216 41 $ (1 ) $ 216 $ 41 Total current income tax benefit $ 73 $ 198 $ 1,108 Total deferred income tax benefit $ — $ 216 $ 41 Total income tax benefit $ 73 $ 414 $ 1,149 |
Reconciliation of Effective Tax Rate Related to Statutory Taiwan Federal Tax Rate | A reconciliation of our effective tax rate related to the statutory tax rate in Taiwan, where our major operations are based, is as follows: 2014 2015 2016 Taiwan statutory rate, including taxes on income and retained earnings 23.85 % 23.85 % 23.85 % Foreign tax differential 42.23 % 183.28 % (12.37 )% Tax-exempt income 0.00 % 2.71 % 3.28 % Non-deductible items - bad debts (5.16 )% (57.91 )% (3.08 )% Other non-deductible expenses 0.00 % (17.47 )% (1.65 )% Changes in unrecognized tax benefits (3.15 )% 6.84 % 1.10 % Adjustment for prior year payable 1.81 % 0.00 % 0.04 % Change in valuation allowance (52.97 )% (130.14 )% 6.87 % Other (5.16 )% 4.17 % (2.12 )% Effective rate 1.45 % 15.33 % 15.92 % |
Reconciliation of Beginning and Ending Amounts of Valuation Allowance on Deferred Tax Assets | A reconciliation of the beginning and ending amounts of our valuation allowance on deferred tax assets for the years ended December 31, 2014, 2015 and 2016 are as follows: (in US$ thousands) 2014 2015 2016 Balance at beginning of year $ 4,754 $ 7,147 $ 11,025 Subsequent reversal and utilization of valuation allowance — — (753 ) Additions to valuation allowance 2,682 4,185 1,739 Divestitures — — (312 ) Exchange differences (289 ) (307 ) 153 Balance at end of year $ 7,147 $ 11,025 $ 11,852 |
Net Operating Loss Carryforwards Available to Offset Future Income | As of December 31, 2016, we had net operating loss carryforwards available to offset future taxable income, shown below by major jurisdictions: Jurisdiction Amount Expiring year Hong Kong $ 14,930 indefinite Taiwan 24,843 2020~2026 $ 39,773 |
Accumulated Statutory Losses available to Offset Future Undistributed Earnings | As of December 31, 2016, we had accumulated statutory losses from Taiwan operations available to offset future undistributed earnings: Jurisdiction Amount Expiring year Taiwan $ 44,431 indefinite |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits Excluding Effects of Accrued Interest | A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding the effects of accrued interest) for the years 2014, 2015 and 2016 are as follows: (in US$ thousands) 2014 2015 2016 Balance at beginning of year $ 8,798 $ 8,287 $ 1,203 Increase related to prior year tax positions — — 1,025 Decrease related to prior year tax positions — (185 ) — Settlement — (6,830 ) — Expiration of statute of limitations — — (1,225 ) Exchange differences (511 ) (69 ) 21 Balance at end of year $ 8,287 $ 1,203 $ 1,024 |
Deferred Tax Assets | |
Significant Components of Deferred Tax Assets and Liabilities | The significant components of our deferred tax assets consist of the following: (in US$ thousands) December 31 2015 2016 Net operating loss carryforwards $ 8,475 $ 9,730 Prepaid licensing and royalty fees 1,035 952 Investments 814 501 Intangible assets and goodwill 282 226 Share-based compensation 271 276 Other 148 167 11,025 11,852 Less: valuation allowance (11,025 ) (11,852 ) Deferred tax assets - net $ — $ — |
Deferred Tax Liability | |
Significant Components of Deferred Tax Assets and Liabilities | The significant components of our deferred tax liabilities consist of the following: (in US$ thousands) December 31 2015 2016 Investment in subsidiaries, principally due to undistributed income $ 1,712 $ 1,671 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Aggregate Minimum Lease Payments Required Under Operating Lease | The following table sets forth our future aggregate minimum lease payments required under these operating leases, as of December 31, 2016: (in US$ thousands) Amount 2017 $ 549 2018 497 2019 496 2020 496 2021 83 $ 2,121 |
Committed License Fees and Minimum Guarantees Against Future Royalties Set Forth in Significant License Agreements | The following table summarizes the committed license fees and minimum guarantees against future royalties set forth in our significant license agreements as of December 31, 2016. (in US$ thousands) License fees Minimum guarantees against future royalties Total Minimum required payments: In 2017 $ — $ 60 $ 60 After 2017 — — — $ — $ 60 $ 60 |
SEGMENT, PRODUCT, GEOGRAPHIC 54
SEGMENT, PRODUCT, GEOGRAPHIC AND OTHER INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Reconciliation of Segment Information to Consolidated Information | Financial information for each operating segment was as follows for the years ended December 31, 2014, 2015, and 2016: (in US$ thousands) Asian online game and service Cloud service business Total 2014: Net revenue from external customers $ 8,199 $ 1,580 $ 9,779 Loss from operations $ (8,639 ) $ (1,510 ) $ (10,149 ) Share-based compensation $ 93 $ 7 $ 100 Impairment loss on property, plant and equipment $ — $ 28 $ 28 Impairment loss on intangible assets $ — $ 115 $ 115 Impairment loss on prepaid licensing and royalty fees $ 1,259 $ — $ 1,259 Interest income $ 31 $ — $ 31 Interest expense $ 243 $ — $ 243 Gain on sales of marketable securities - net $ 8,792 $ — $ 8,792 Foreign exchange gain (loss) $ (306 ) $ — $ (306 ) Gain (loss) on equity method investments - net $ (531 ) $ — $ (531 ) Depreciation $ 239 $ 28 $ 267 Amortization, including intangible assets $ 1,124 $ 71 $ 1,195 Income tax expense (benefits) $ (92 ) $ — $ (92 ) (in US$ thousands) Asian online game and service Cloud service business Total 2015: Net revenue from external customers $ 8,545 $ 1,706 $ 10,251 Loss from operations $ (12,735 ) $ (1,240 ) $ (13,975 ) Share-based compensation $ 6 $ (23 ) $ (17 ) Impairment loss on property, plant and equipment $ — $ 60 $ 60 Impairment loss on intangible assets $ — $ 5 $ 5 Impairment loss on prepaid licensing and royalty fees $ 4,187 $ — $ 4,187 Interest income $ 12 $ — $ 12 Interest expense $ 128 $ 1 $ 129 Gain on sales of marketable securities - net $ 19,939 $ — $ 19,939 Foreign exchange gain (loss) $ (145 ) $ — $ (145 ) Gain (loss) on equity method investments - net $ (600 ) $ — $ (600 ) Impairment loss on marketable securities and investments $ 1,290 $ — $ 1,290 Depreciation $ 233 $ 40 $ 273 Amortization, including intangible assets $ 212 $ 32 $ 244 Income tax expense (benefits) $ (14 ) $ — $ (14 ) (in US$ thousands) Asian online game and service 2016: Net revenue from external customers $ 8,971 Loss from operations $ (3,924 ) Share-based compensation $ 3 Impairment loss on property, plant and equipment $ 288 Impairment loss on intangible assets $ 53 Impairment loss on prepaid licensing and royalty fees $ 1,386 Interest income $ 2 Interest expense $ 0 Gain on sales of marketable securities - net $ 0 Foreign exchange gain (loss) $ (174 ) Gain (loss) on equity method investments - net $ (1,731 ) Impairment loss on marketable securities and investments $ 0 Depreciation $ 142 Amortization, including intangible assets $ 93 Income tax expense (benefits) $ 0 The reconciliations of segment information to GigaMedia’s consolidated totals are as follows: (in US$ thousands) 2014 2015 2016 Loss from operations: Total segments $ (10,149 ) $ (13,975 ) $ (3,924 ) Adjustment* (3,324 ) (6,020 ) (3,206 ) Total GigaMedia consolidated $ (13,473 ) $ (19,995 ) $ (7,130 ) Share-based compensation Total segments $ 100 $ (17 ) $ 3 Adjustment* (79 ) 82 6 Total GigaMedia consolidated $ 21 $ 65 $ 9 Impairment loss on property, plant and equipment: Total segments $ 28 $ 60 $ 288 Adjustment* — — 183 Total GigaMedia consolidated $ 28 $ 60 $ 471 Impairment loss on intangible assets: Total segments $ 115 $ 5 $ 53 Adjustment* — — 4 Total GigaMedia consolidated $ 115 $ 5 $ 57 Impairment loss on prepaid licensing and royalty fees: Total segments $ 1,259 $ 4,187 $ 1,386 Adjustment* — — — Total GigaMedia consolidated $ 1,259 $ 4,187 $ 1,386 Interest income: Total segments $ 31 $ 12 $ 2 Adjustment* 651 321 300 Total GigaMedia consolidated $ 682 $ 333 $ 302 Interest expense: Total segments $ 243 $ 129 $ — Adjustment* — 53 81 Total GigaMedia consolidated $ 243 $ 182 $ 81 Gain (loss) on sales of marketable securities - net: Total segments $ 8,792 $ 19,939 $ — Adjustments* (171 ) — — Total GigaMedia consolidated $ 8,621 $ 19,939 $ — Foreign exchange gain (loss): Total segments $ (306 ) $ (145 ) $ (174 ) Adjustments* (250 ) (252 ) (127 ) Total GigaMedia consolidated $ (556 ) $ (397 ) $ (301 ) (in US$ thousands) 2014 2015 2016 Gain (loss) on equity method investments - net: Total segments $ (531 ) $ (600 ) $ (1,731 ) Adjustment* — — — Total GigaMedia consolidated $ (531 ) $ (600 ) $ (1,731 ) Impairment loss on marketable securities and investments: Total segments $ — $ 1,290 $ — Adjustment* — — — Total GigaMedia consolidated $ — $ 1,290 $ — Depreciation: Total segments $ 267 $ 273 $ 142 Adjustments* 39 21 20 Total GigaMedia consolidated $ 306 $ 294 $ 162 Amortization: Total segments $ 1,195 $ 244 $ 93 Adjustments* 16 1 18 Total GigaMedia consolidated $ 1,211 $ 245 $ 111 Income tax expense (benefit): Total segments $ (92 ) $ (14 ) $ — Adjustments* 19 (400 ) (1,149 ) Total GigaMedia consolidated $ (73 ) $ (414 ) $ (1,149 ) * Adjustment items include corporate and certain back-office costs and expenses not attributable to any specific segment. As of December 31, 2014, 2015 and 2016, the compensation related was approximately $1.7 million $1.3 million and $1.6 million, respectively; professional fees was approximately $174 thousand $587 thousand and $612 thousand, respectively. The termination charge of proposed acquisition of $2.0 million in 2015 is also included in the adjustments. |
Summary of Revenues From Major Products Line | Revenues from the Company’s major product lines are summarized as follow: (in US$ thousands) 2014 2015 2016 MahJong and casino casual games $ 4,301 $ 3,113 $ 2,459 PC massively multiplayer online games 1,908 1,670 1,560 Mobile role playing games 1,914 2,807 4,674 Other games and game related revenues 76 955 278 Cloud computing services 1,580 1,706 — $ 9,779 $ 10,251 $ 8,971 |
Revenue by Geographic Region | Revenues by geographic area are attributed by country of the server location. Revenue from by geographic region is as follows: (in US$ thousands) Geographic region / country 2014 2015 2016 Taiwan $ 7,413 $ 6,889 $ 2,664 Hong Kong 2,366 3,362 6,307 $ 9,779 $ 10,251 $ 8,971 |
Net Tangible Long-Lived Assets by Geographic Region | Net tangible long-lived assets by geographic region are as follows: (in US$ thousands) December 31, Geographic region / country 2014 2015 2016 Taiwan $ 1,641 $ 1,320 $ 7 Hong Kong 22 71 0 $ 1,663 $ 1,391 $ 7 |
Principal Activities, Basis o55
Principal Activities, Basis of Presentation, and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | Dec. 16, 2015 | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Reverse stock split conversion ratio | 0.2 | |||
Finite lived intangible assets, useful life | 3 years | |||
Operating lease, carrying amount of land and buildings | $ 7 | $ 1,391 | $ 1,663 | |
Operating lease, rental income | 9 | 69 | 73 | |
Advertising expenses | 3,300 | 3,100 | $ 888 | |
Prepaid advertising | $ 42 | 5 | ||
Capitalized software development cost | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Finite lived intangible assets, useful life | 3 years | |||
Property Available for Operating Lease | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Operating lease, carrying amount of land and buildings | 1,100 | |||
Prepaid Licensing and Royalty Fees | Minimum | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Finite lived intangible assets, useful life | 1 year | |||
Prepaid Licensing and Royalty Fees | Maximum | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Finite lived intangible assets, useful life | 5 years | |||
Restricted Cash | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Escrow account | $ 500 | 1,000 | ||
Performance Bonds | Restricted Cash | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Escrow account | $ 500 | $ 1,000 |
Useful Lives of Property Plant
Useful Lives of Property Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Building | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 50 years |
Property, plant and equipment - Information and communication equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 2 years |
Property, plant and equipment - Information and communication equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Office Furniture And Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Office Furniture And Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Leasehold Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Leasehold Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Reconciliation of Denominators
Reconciliation of Denominators of Basic and Diluted Per Share Computations (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted average number of outstanding shares | |||
Basic | 11,052 | 11,052 | 10,785 |
Effect of dilutive securities | |||
Employee share-based compensation | 0 | 0 | 0 |
Diluted | 11,052 | 11,052 | 10,785 |
Loss Per Share - Additional Inf
Loss Per Share - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Options excluded from computation of earnings per-share | 0 | 0 | 137 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - Strawberry Cosmetics - USD ($) $ in Millions | Jun. 26, 2015 | Oct. 31, 2015 |
Business Acquisition [Line Items] | ||
Equity ownership percentage acquired | 70.00% | |
Business acquisition, total consideration transferred | $ 93.1 | |
Cash paid to terminate share purchase agreement | $ 2 |
Divestitures - Additional Infor
Divestitures - Additional Information (Detail) $ in Thousands | Mar. 31, 2017USD ($) | Nov. 30, 2016 | Sep. 30, 2016USD ($) | Jan. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015TWD |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Distribution received from investees | $ 1,438 | $ 247 | ||||||
Divestiture transaction consideration recorded as other receivable | $ 1,062 | $ 9 | ||||||
East Gate | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Distribution received from investees | $ 1,438 | |||||||
Investments fund expiration date | 2017-08 | |||||||
Divestiture transaction consideration recorded as other receivable | $ 1,100 | |||||||
East Gate | Subsequent Event | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Divestiture transaction consideration received | $ 232 | |||||||
East Gate | Korean Investor | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Sale of ownership under agreement | 17.65% | |||||||
FingerRockz | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Aggregate selling price relative to the divestiture transaction | TWD | TWD 1 | |||||||
Perfect Pairs | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Sale of ownership under agreement | 100.00% | |||||||
Proceeds from disposal of subsidiary | $ 760 |
Summarized Selected Financial I
Summarized Selected Financial Information for Divested Business (Detail) - USD ($) $ in Thousands | 1 Months Ended | ||
Nov. 30, 2016 | Jan. 31, 2016 | Sep. 30, 2015 | |
East Gate | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Exchange difference | $ 250 | ||
The fair value of consideration received, net of any transaction costs | 112 | ||
The fair value of consideration receivable, net of any transaction costs | 1,058 | ||
Aggregate of consideration received and receivable net of any transaction costs | 1,170 | ||
The carrying amount of investment in East Gate at the date of disposal | 1,398 | ||
Gain on disposal of investment in East Gate | $ 22 | ||
FingerRockz | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
The carrying amount at the date of deconsolidation | $ (37) | ||
Gain on sale | 37 | ||
The fair value of consideration received and receivable, net of any transaction costs | $ 0 | ||
Perfect Pairs | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from disposal of subsidiary | $ 760 | ||
Disposed of by Sale | Perfect Pairs | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from disposal of subsidiary | 760 | ||
Cash | 482 | ||
Receivables and other current assets | 40 | ||
Property, plant and equipment | 71 | ||
Intangible and other noncurrent assets | 13 | ||
Accounts payable and accrued expenses | (528) | ||
Other payable and other current liabilities | (144) | ||
The carrying amount at the date of deconsolidation | (66) | ||
Exchange difference | 1 | ||
Gain on sale | $ 827 |
Summary of Intangible Assets by
Summary of Intangible Assets by Major Asset Class (Detail) - Capitalized Software Cost $ in Thousands | Dec. 31, 2015USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Gross carrying amount | $ 775 |
Accumulated amortization | 687 |
Net | $ 88 |
Intangible Assets - Net - Addit
Intangible Assets - Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible Assets [Line Items] | |||
Finite lived intangible assets, useful life | 3 years | ||
Weighted-average life of identifiable intangible assets | 3 years | ||
Amortization expense of intangible assets | $ 106 | $ 236 | $ 1,200 |
Impairment loss on intangible assets | $ 57 | 5 | 115 |
Capitalized software development cost | |||
Intangible Assets [Line Items] | |||
Finite lived intangible assets, useful life | 3 years | ||
Amortization expense of intangible assets | $ 89 | $ 217 | $ 494 |
Summary of Changes to Prepaid L
Summary of Changes to Prepaid Licensing and Royalty Fees (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Prepaid Expenses [Line Items] | |||
Balance at beginning of year | $ 239 | ||
Addition | 12 | $ (17) | $ (186) |
Amortization and usage | (111) | (245) | (1,211) |
Impairment charges (Note 7) | (1,386) | (4,187) | (1,259) |
Balance at end of year | 1,020 | 239 | |
Prepaid Licensing and Royalty Fees | |||
Prepaid Expenses [Line Items] | |||
Balance at beginning of year | 239 | 4,383 | 4,666 |
Addition | 2,581 | 1,801 | 1,498 |
Amortization and usage | (416) | (1,743) | (264) |
Exchange difference | 2 | (15) | (258) |
Impairment charges (Note 7) | (1,386) | (4,187) | (1,259) |
Balance at end of year | $ 1,020 | $ 239 | $ 4,383 |
Carrying Amounts and Estimated
Carrying Amounts and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financial assets | ||
Cash and cash equivalents | $ 65,711 | $ 71,432 |
Marketable securities - current | 3 | 4 |
Accounts receivable | 871 | 1,246 |
Restricted cash | 500 | 1,000 |
Refundable deposits | 245 | 272 |
Financial liabilities | ||
Short-term borrowings | 2,480 | 6,093 |
Accounts payable | 266 | 320 |
Accrued compensation | 210 | 759 |
Accrued expenses | 3,828 | 3,037 |
Carrying Amount | ||
Financial assets | ||
Cash and cash equivalents | 65,711 | 71,432 |
Marketable securities - current | 3 | 4 |
Accounts receivable | 871 | 1,246 |
Restricted cash | 500 | 1,000 |
Refundable deposits | 245 | 272 |
Financial liabilities | ||
Short-term borrowings | 2,480 | 6,093 |
Accounts payable | 266 | 320 |
Accrued compensation | 210 | 759 |
Accrued expenses | 3,828 | 3,037 |
Estimated Fair Value | ||
Financial assets | ||
Cash and cash equivalents | 65,711 | 71,432 |
Marketable securities - current | 3 | 4 |
Accounts receivable | 871 | 1,246 |
Restricted cash | 500 | 1,000 |
Refundable deposits | 245 | 272 |
Financial liabilities | ||
Short-term borrowings | 2,480 | 6,093 |
Accounts payable | 266 | 320 |
Accrued compensation | 210 | 759 |
Accrued expenses | $ 3,828 | $ 3,037 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 509 | $ 1,010 |
Bank Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents-time deposits | 6 | 6 |
Restricted cash-time deposits | 500 | 1,000 |
Current Assets | Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 3 | 4 |
Fair Value Measurements Using Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 3 | 4 |
Fair Value Measurements Using Level 1 | Current Assets | Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 3 | 4 |
Fair Value Measurements Using Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 506 | 1,006 |
Fair Value Measurements Using Level 2 | Bank Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents-time deposits | 6 | 6 |
Restricted cash-time deposits | $ 500 | $ 1,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |||
Unrealized gains on marketable securities | $ 0 | $ 4,800 | $ 101 |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Balances of Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs Level Three (Detail) - Marketable Securities - Debt and Equity Securities - Available-for-sale Securities - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning of year | $ 4,744 | |
Total gains or (losses) (realized/unrealized), included in earnings | (2,017) | |
Sale | (2,727) | |
Balance at end of year | ||
The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date. | $ 0 | $ 0 |
Realized and Unrealized Gains (
Realized and Unrealized Gains (Or Losses) Included In Income for Assets and Liabilities Measured At Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - Fair Value, Measurements, Recurring - Gain on Sales of Marketable Securities - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Unrealized Gains (Losses) [Line Items] | ||
Total gains (losses) included in earnings | $ 5,845 | |
Change in unrealized gains (losses) relating to assets still held at the reporting date | $ 805 |
Summary of Assets and Liabiliti
Summary of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Property, plant and equipment, impairment loss | $ 471,000 | $ 60,000 | $ 28,000 | |
Intangible assets, total impairment losses | 57,000 | 5,000 | 115,000 | |
Prepaid licensing and royalty, total impairment losses | 1,386,000 | 4,187,000 | 1,259,000 | |
Prepaid Licensing and Royalty Fees | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Prepaid licensing and royalty, total impairment losses | 1,386,000 | 4,187,000 | $ 1,259,000 | |
Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Investments-Cost-method | 0 | |||
Investments-Equity-method | [1] | 188,000 | ||
Total | 820,000 | 188,000 | ||
Investments-Cost-method - total impairment losses | [1] | 1,000,000 | ||
Investments-Equity-method - total impairment losses | [1] | 290,000 | ||
Property, plant and equipment, impairment loss | [2] | 471,000 | 60,000 | |
Intangible assets, total impairment losses | [3] | 57,000 | 5,000 | |
Prepaid licensing and royalty, total impairment losses | [4] | 1,386,000 | 4,187,000 | |
Total | 1,914,000 | 5,542,000 | ||
Fair Value, Measurements, Nonrecurring | Prepaid Licensing and Royalty Fees | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Prepaid licensing and royalty fees | [4] | 820,000 | ||
Fair Value, Measurements, Nonrecurring | Fair Value Measurements Using Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Investments-Equity-method | [1] | 188,000 | ||
Total | 820,000 | $ 188,000 | ||
Fair Value, Measurements, Nonrecurring | Fair Value Measurements Using Level 3 | Prepaid Licensing and Royalty Fees | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Prepaid licensing and royalty fees | [4] | $ 820,000 | ||
[1] | Impairment losses on certain cost method and equity method investments which were determined to be impaired: In 2015, certain cost method investments with carrying amounts of $1.0 million were fully written down to zero, resulting in an impairment charge of $1.0 million, and an equity method investment with a carrying amount of $478 thousand was written down to its estimated fair value of $188 thousand, resulting in an impairment charge of $290 thousand. The impairment charges are included in non-operating expenses within “impairment loss on marketable securities and investments” in the consolidated statements of operations. Cost method and equity method investments are measured at fair value on a nonrecurring basis when declines in fair value are determined to be other-than-temporary, using other observable inputs such as trading prices of similar classes of the stock or using discounted cash flows, incorporating adjusted available market discount rate information and our Company’s estimates for liquidity risk. | |||
[2] | Impairment losses on certain property, plant, and equipment which were determined to be impaired: In 2015, we recognized an impairment loss of $60 thousand against our information and communication equipment. The impairment charges are included in operating expenses within “impairment losses on property, plant and equipment” in the consolidated statements of operations. The impairment charge for the equipment was related to servers used for certain product and service lines within our cloud product and service business for which the carrying amount was determined not to be recoverable from its related future undiscounted cash flows. This equipment was valued using unobservable inputs such as discounted cash flows, incorporating adjusted available market discount rate information and our Company’s estimates for liquidity risk, and other cash flow model - related assumptions. In 2016, we recognized an impairment loss of $471 thousand on property, plant and equipment as a result of consecutive operating losses in recent years that are expected to continue and therefore the carrying amounts of those long-lived assets would not be recoverable based on cash flow projections from current games, which are typically with shorter lives. | |||
[3] | Impairment losses on certain intangible assets which were determined to be impaired: In 2015, certain capitalized and prepaid software development costs for our cloud product and service business were fully written down, resulting in impairment charges of $5 thousand, included in operating expenses within “impairment loss on intangible assets” in the consolidated statements of operations. The impairment charge is for certain product lines within our cloud product and service business that we decided to shift focus from, and as a result, we recorded a full impairment of the carrying value of the assets related to these items. In 2016, we recognized an impairment loss of $57 thousand on intangible assets as a result of consecutive operating losses in recent years that are expected to continue and therefore the carrying amounts of those intangibles assets would not be recoverable based on cash flow projections from current games, which are typically with shorter lives. | |||
[4] | Impairment losses on certain prepaid licensing and royalty fees which were determined to be impaired: In 2015 and 2016, certain prepaid licensing and royalty fees were written down to $0 and $0, respectively, resulting in impairment charges of $4.2 million and $1.4 million, respectively. This impairment is included in operating expenses in the consolidated statements of operations. The impairment charges for the prepaid licensing and royalty fees related to certain licensed games within our Asian online game and service business that we stopped operating or for which the carrying amounts of the related assets were determined not to be recoverable from their expected future undiscounted cash flows. The licensing fee games and related royalties are re-valued on when impairment exists, using unobservable inputs such as discounted cash flows, incorporating adjusted available market discount rate information and our Company’s estimates for liquidity risk, along with other cash flow model related assumptions. |
Summary of Assets and Liabili71
Summary of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Parenthetical) (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Equity method investment, carrying amount | $ 72,000 | $ 4,524,000 | ||
Property, plant and equipment, impairment loss | 471,000 | 60,000 | $ 28,000 | |
Intangible assets, total impairment losses | 57,000 | 5,000 | 115,000 | |
Prepaid licensing and royalty, total impairment losses | 1,386,000 | 4,187,000 | $ 1,259,000 | |
Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Cost method investment, carrying amount | 1,000,000 | |||
Cost method investment, written down | 0 | |||
Cost method investment, impairment charges | [1] | 1,000,000 | ||
Equity method investment, carrying amount | 478,000 | |||
Equity method investment, estimated fair value | [1] | 188,000 | ||
Equity method investment, impairment charges | [1] | 290,000 | ||
Property, plant and equipment, impairment loss | [2] | 471,000 | 60,000 | |
Intangible assets, total impairment losses | [3] | 57,000 | 5,000 | |
Prepaid licensing and royalty, written down | 0 | 0 | ||
Prepaid licensing and royalty, total impairment losses | [4] | $ 1,386,000 | $ 4,187,000 | |
[1] | Impairment losses on certain cost method and equity method investments which were determined to be impaired: In 2015, certain cost method investments with carrying amounts of $1.0 million were fully written down to zero, resulting in an impairment charge of $1.0 million, and an equity method investment with a carrying amount of $478 thousand was written down to its estimated fair value of $188 thousand, resulting in an impairment charge of $290 thousand. The impairment charges are included in non-operating expenses within “impairment loss on marketable securities and investments” in the consolidated statements of operations. Cost method and equity method investments are measured at fair value on a nonrecurring basis when declines in fair value are determined to be other-than-temporary, using other observable inputs such as trading prices of similar classes of the stock or using discounted cash flows, incorporating adjusted available market discount rate information and our Company’s estimates for liquidity risk. | |||
[2] | Impairment losses on certain property, plant, and equipment which were determined to be impaired: In 2015, we recognized an impairment loss of $60 thousand against our information and communication equipment. The impairment charges are included in operating expenses within “impairment losses on property, plant and equipment” in the consolidated statements of operations. The impairment charge for the equipment was related to servers used for certain product and service lines within our cloud product and service business for which the carrying amount was determined not to be recoverable from its related future undiscounted cash flows. This equipment was valued using unobservable inputs such as discounted cash flows, incorporating adjusted available market discount rate information and our Company’s estimates for liquidity risk, and other cash flow model - related assumptions. In 2016, we recognized an impairment loss of $471 thousand on property, plant and equipment as a result of consecutive operating losses in recent years that are expected to continue and therefore the carrying amounts of those long-lived assets would not be recoverable based on cash flow projections from current games, which are typically with shorter lives. | |||
[3] | Impairment losses on certain intangible assets which were determined to be impaired: In 2015, certain capitalized and prepaid software development costs for our cloud product and service business were fully written down, resulting in impairment charges of $5 thousand, included in operating expenses within “impairment loss on intangible assets” in the consolidated statements of operations. The impairment charge is for certain product lines within our cloud product and service business that we decided to shift focus from, and as a result, we recorded a full impairment of the carrying value of the assets related to these items. In 2016, we recognized an impairment loss of $57 thousand on intangible assets as a result of consecutive operating losses in recent years that are expected to continue and therefore the carrying amounts of those intangibles assets would not be recoverable based on cash flow projections from current games, which are typically with shorter lives. | |||
[4] | Impairment losses on certain prepaid licensing and royalty fees which were determined to be impaired: In 2015 and 2016, certain prepaid licensing and royalty fees were written down to $0 and $0, respectively, resulting in impairment charges of $4.2 million and $1.4 million, respectively. This impairment is included in operating expenses in the consolidated statements of operations. The impairment charges for the prepaid licensing and royalty fees related to certain licensed games within our Asian online game and service business that we stopped operating or for which the carrying amounts of the related assets were determined not to be recoverable from their expected future undiscounted cash flows. The licensing fee games and related royalties are re-valued on when impairment exists, using unobservable inputs such as discounted cash flows, incorporating adjusted available market discount rate information and our Company’s estimates for liquidity risk, along with other cash flow model related assumptions. |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Cash And Cash Equivalents [Abstract] | ||||
Cash and savings accounts | $ 65,705 | $ 71,426 | ||
Time deposits | 6 | 6 | ||
Cash and cash equivalents reported on the consolidated balance sheets | 65,711 | 71,432 | ||
Restricted cash | 500 | 1,000 | ||
Total cash, restricted cash and cash equivalents reported on the consolidated statements of cash flows | $ 66,211 | $ 72,432 | $ 59,631 | $ 58,801 |
Cash, Restricted Cash and Cas73
Cash, Restricted Cash and Cash Equivalents - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Restricted Cash | ||
Cash and Cash Equivalents [Line Items] | ||
Escrow Deposit | $ 500 | $ 1,000 |
Cash and Cash Equivalents, As w
Cash and Cash Equivalents, As well As Restricted, Cash in Bank Accounts Jurisdictions of Major Financial Institutions (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents and Restricted cash | $ 66,211 | $ 72,432 | $ 59,631 | $ 58,801 |
Taiwan | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents and Restricted cash | 65,093 | 69,879 | ||
Hong Kong | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents and Restricted cash | 1,102 | 1,120 | ||
China | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents and Restricted cash | $ 16 | 16 | ||
Singapore | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents and Restricted cash | $ 1,417 |
Marketable Securities Current (
Marketable Securities Current (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Investments Debt And Equity Securities [Abstract] | ||
Equity securities | $ 3 | $ 4 |
Marketable Securities - Current
Marketable Securities - Current - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Realized gains from disposal of marketable securities | $ 19,939,000 | $ 8,621,000 | |
Available for sale Securities Current | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Unrealized gains for marketable securities | $ 2,000 | 3,000 | |
Realized gains from disposal of marketable securities | $ 0 | $ 14,100,000 | $ 8,800,000 |
Accounts Receivable (Detail)
Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Accounts receivable | $ 903 | $ 1,275 |
Less: Allowance for doubtful accounts | (32) | (29) |
Accounts receivable - net | $ 871 | $ 1,246 |
Summary of the Changes in Allow
Summary of the Changes in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | |||
Balance at beginning of year | $ 29 | $ 56 | $ 55 |
Additions: Bad debt expense | 35 | 3 | 37 |
Less: Write-offs | (33) | (28) | (33) |
Translation adjustment | 1 | (2) | (3) |
Balance at end of year | $ 32 | $ 29 | $ 56 |
Other Current Assets (Detail)
Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Other Assets [Abstract] | ||||
Loans receivable - current | $ 65 | $ 64 | ||
Less: Allowance for loans receivable - current | (28) | (28) | $ (27) | $ (3,394) |
Other receivables (Note 4) | 1,062 | 9 | ||
Other | 151 | 226 | ||
Other current assets | $ 1,250 | $ 271 |
Reconciliation of Changes in Al
Reconciliation of Changes in Allowance for Loans Receivable Current (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | |||
Balance at beginning of year | $ 28 | $ 27 | $ 3,394 |
Writes-offs | (3,359) | ||
Reversal for collection of bad debt | 2 | ||
Translation adjustment | 0 | (1) | (8) |
Balance at end of year | $ 28 | $ 28 | $ 27 |
Marketable Debt Securities - No
Marketable Debt Securities - Noncurrent - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Realized gains (losses) from disposal of marketable securities | $ 19,939 | $ 8,621 |
Available for sale Securities Non Current | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Realized gains (losses) from disposal of marketable securities | $ 5,800 | $ (171) |
Equity Investments (Detail)
Equity Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Investments [Abstract] | ||
Investments accounted for under the equity method | $ 72 | $ 4,524 |
Equity Investments - Additional
Equity Investments - Additional Information (Detail) | 1 Months Ended | |
Nov. 30, 2016 | Dec. 31, 2016 | |
East Gate Media Contents and Technology Fund | ||
Schedule of Investments [Line Items] | ||
Investments percentages accounted under equity method accounting | 17.65% | |
Sale of ownership under agreement | 17.65% | |
Double2 Network Technology Company Limited | ||
Schedule of Investments [Line Items] | ||
Investments percentages accounted under equity method accounting | 22.86% |
Summary of Financial Informatio
Summary of Financial Information of East Gate (Detail) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity Method Investments And Joint Ventures [Abstract] | |||
Investments and other related assets | $ 7,911 | $ 21,833 | |
Other assets | 332 | 3,212 | |
Total assets | 8,243 | 25,045 | |
Total liabilities | 318 | 478 | |
Total net assets of the fund | 7,925 | 24,567 | |
Investment and related income (loss) | (1,513) | 5,419 | $ 8,351 |
Impairment loss | (105) | (480) | |
Other costs and expenses | (7,513) | (8,219) | (10,642) |
Net loss | $ (9,131) | $ (2,800) | $ (2,771) |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Jan. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment [Abstract] | |||||
Proceeds from disposals of office premises | $ 1,900 | ||||
Gain on disposal of office premises | $ 798 | ||||
Impairment loss on property, plant and equipment | $ 471 | $ 60 | $ 28 |
Reconciliation of Beginning a86
Reconciliation of Beginning and Ending Amounts of Property, Plant and Equipment (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | |
Balance at beginning of year, Cost | $ 5,165 |
Purchase, Cost | 496 |
Deconsolidation (Note 4), Cost | (104) |
Impairment (Note 7), Cost | (3,423) |
Exchange differences, Cost | 85 |
Balance at end of year, Cost | 7 |
Balance at beginning of the year, Accumulated depreciation | 3,774 |
Depreciation, Accumulated depreciation | 162 |
Deconsolidation (Note 4), Accumulated depreciation | (33) |
Impairment (Note 7), Accumulated depreciation | (2,952) |
Exchange differences, Accumulated depreciation | 62 |
Balance at beginning of year, Net | 1,391 |
Purchase, Net | 496 |
Depreciation, Net | (162) |
Disposal of office premises, Net | (1,076) |
Disposal of other property, plant and equipment, Net | (123) |
Deconsolidation (Note 4), Net | (71) |
Impairment (Note 7), Net | (471) |
Exchange differences, Net | 23 |
Balance at end of year, Net | 7 |
Office Premises | |
Property, Plant and Equipment [Line Items] | |
Disposal of office premises, Cost | (1,120) |
Disposal of office premises, Accumulated depreciation | (44) |
Other Property, Plant and Equipment | |
Property, Plant and Equipment [Line Items] | |
Disposal of office premises, Cost | (1,092) |
Disposal of office premises, Accumulated depreciation | $ (969) |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Short Term Debt [Line Items] | ||
Short-term borrowings | $ 2,480 | $ 6,093 |
Short-term borrowings, weighted-average interest rate | 1.86% | 1.89% |
Unused lines of credit available for borrowing | $ 17,000 | $ 12,900 |
Maximum | ||
Short Term Debt [Line Items] | ||
Short-term borrowings, annual interest rate | 2.13% | 1.90% |
Minimum | ||
Short Term Debt [Line Items] | ||
Short-term borrowings, annual interest rate | 1.70% | 1.81% |
Maturity Date One | ||
Short Term Debt [Line Items] | ||
Short-term borrowings, maturity date | 2017-01 | 2016-01 |
Maturity Date Two | ||
Short Term Debt [Line Items] | ||
Short-term borrowings, maturity date | 2017-05 | 2016-02 |
Maturity Date Three | ||
Short Term Debt [Line Items] | ||
Short-term borrowings, maturity date | 2016-05 |
Accrued Expenses (Detail)
Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Payables And Accruals [Abstract] | ||
Accrued advertising expenses | $ 1,961 | $ 811 |
Accrued professional fees | 765 | 865 |
Accrued royalties | 350 | 313 |
Accrued director compensation and liability insurance | 272 | 238 |
Accrued outsourced development | 75 | 52 |
Accrued incentive to distributors | 57 | 63 |
Other | 348 | 695 |
Accrued expenses | $ 3,828 | $ 3,037 |
Other Current Liabilities (Deta
Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Income taxes payable (Note 23) | $ 1,252 | |
Other | $ 346 | 271 |
Other current liabilities | $ 346 | $ 1,523 |
Pension Benefits - Additional I
Pension Benefits - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2016USD ($) | Dec. 31, 2016TWD | Dec. 31, 2016HKD | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Accumulated benefit obligation | $ 185,000 | $ 153,000 | |||
Prepaid pension | 62,000 | 109,000 | |||
Fair value of plan assets | 325,000 | 310,000 | |||
Accumulated other comprehensive income (loss) | (58,000) | 0 | |||
Net periodic benefit cost (income) | (2,000) | (58,000) | $ (199,000) | ||
Defined benefit plan, expected contribution in 2017 | 8,000 | ||||
Benefit payments from 2017 to 2021 | 1,000 | ||||
Benefit payments from 2022 to 2026 | 4,000 | ||||
Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total amount of defined contribution pension expenses | $ 183,000 | $ 318,000 | $ 364,000 | ||
Taiwan | Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of salaries and wages contributed | 2.00% | 2.00% | 2.00% | ||
Hong Kong | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of salaries and wages contributed | 5.00% | 5.00% | 5.00% | ||
Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Lump sum retirement benefit, equivalent months of pensionable salary | 45 months | 45 months | 45 months | ||
Maximum | Taiwan | Monthly Payment | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Maximum monthly contribution for each employee | $ 279 | TWD 9,000 | |||
Maximum | Hong Kong | Monthly Payment | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Maximum monthly contribution for each employee | $ 193 | HKD 1,500 | |||
Minimum | Taiwan | Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of salaries and wages contributed | 6.00% | 6.00% | 6.00% | ||
For each of first 15 years of service | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Lump sum retirement benefit, equivalent months of pensionable salary | 2 months | 2 months | 2 months | ||
For each year of service thereafter | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Lump sum retirement benefit, equivalent months of pensionable salary | 1 month | 1 month | 1 month |
Plan's Benefit Obligations, Fai
Plan's Benefit Obligations, Fair Value of Plan Assets, and Funded Status (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Compensation And Retirement Disclosure [Abstract] | ||
Benefit Obligation | $ 263 | $ 201 |
Fair value of plan assets | 325 | 310 |
Defined Benefit Plan, Funded Status of Plan | (62) | (109) |
Noncurrent liabilities (assets) | (62) | (109) |
Net amount recognized | (62) | (109) |
Amounts recognized in accumulated comprehensive income consist of: | ||
Unrecognized net gain (loss) | $ (58) | $ 0 |
Pension Cost (Detail)
Pension Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | |||
Interest cost | $ 4 | $ 5 | |
Expected return on plan assets | (6) | (6) | |
Curtailment gain | (57) | ||
Net periodic benefit cost (income) | $ (2) | $ (58) | $ (199) |
Weighted Average Assumptions Us
Weighted Average Assumptions Used to Determine Benefit Obligations (Detail) | Dec. 31, 2016 | Dec. 31, 2015 |
Compensation And Retirement Disclosure [Abstract] | ||
Discount rate | 1.375% | 1.875% |
Rate of compensation increase | 2.00% | 1.50% |
Schedule of Weighted-Average As
Schedule of Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost (Detail) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | ||
Discount rate | 1.875% | 2.00% |
Rate of return on plan assets | 1.875% | 2.00% |
Rate of compensation increase | 2.00% | 1.50% |
Other Liabilities (Detail)
Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Deferred tax liabilities (Note 23) | $ 1,671 | $ 1,712 |
Other | 10 | |
Other liabilities - other | $ 1,671 | $ 1,722 |
Equity - Additional Information
Equity - Additional Information (Detail) $ in Millions | Dec. 16, 2015 | Dec. 31, 2016USD ($)Vote | Dec. 31, 2015USD ($) |
Class of Stock [Line Items] | |||
Number of votes per share | Vote | 1 | ||
Reverse stock split | 1-for-5 | ||
Effective date of stock split | Dec. 16, 2015 | ||
Reverse stock split conversion ratio | 0.2 | ||
Hoshin GigaMedia Center Inc. | |||
Class of Stock [Line Items] | |||
Appropriation percentage of net profit for statutory surplus reserve | 10.00% | ||
Legal reserves | $ | $ 1.5 | $ 3 | |
Hoshin GigaMedia Center Inc. | Maximum | |||
Class of Stock [Line Items] | |||
Statutory Surplus Reserve Fund percentage of aggregate paid-in capital | 50.00% | ||
Hoshin GigaMedia Center Inc. | when the reserve balance has reached 50 percent of the aggregate paid-in capital of Hoshin GigaMedia | Maximum | |||
Class of Stock [Line Items] | |||
Percentage of statutory surplus reserve available to offset a deficit or be distributed as a stock dividend | 50.00% |
Accumulated Balances of Other C
Accumulated Balances of Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ (22,335) | $ (11,487) | $ (3,603) |
Net current period change | (54) | 8,435 | 730 |
Reclassification adjustments for gains reclassified into income | (222) | (19,283) | (8,614) |
Ending balance | (22,611) | (22,335) | (11,487) |
Foreign currency items | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (22,338) | (22,876) | (22,707) |
Net current period change | 5 | (118) | (176) |
Reclassification adjustments for gains reclassified into income | (222) | 656 | 7 |
Ending balance | (22,555) | (22,338) | (22,876) |
Unrealized gain on securities | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 3 | 11,389 | 19,104 |
Net current period change | (1) | 8,553 | 906 |
Reclassification adjustments for gains reclassified into income | (19,939) | (8,621) | |
Ending balance | 2 | $ 3 | $ 11,389 |
Pension and post retirement benefit plans | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Net current period change | (58) | ||
Ending balance | $ (58) |
Summary of Total Stock-Based Co
Summary of Total Stock-Based Compensation Expense Recognized in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 9 | $ 65 | $ 21 |
General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 9 | 65 | 21 |
Segment, Continuing Operations | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense, net of tax | $ 9 | $ 65 | $ 21 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 9,000 | $ 65,000 | $ 21,000 |
Stock-based compensation tax benefit recognized | $ 276,000 | $ 271,000 | |
Share-based compensation, number of shares reserved for issuance, contractual terms | 5 years 9 months | ||
Share-based compensation, number of options exercised | 0 | 0 | 907,000 |
Share-based compensation, cash received from exercise of stock options | $ 0 | $ 0 | $ 3,593,000 |
Options granted to employees on grant date | 0 | ||
Total intrinsic value of options exercised | $ 0 | 0 | 1,900,000 |
Unrecognized compensation cost related to nonvested options | $ 2,000 | ||
Unrecognized compensation cost related to nonvested options, expected recognition period | 3 months | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of RSUs granted | $ 0 | 0 | 0 |
Unrecognized compensation cost related to nonvested RSUs | 0 | 0 | |
Cash received from employee stock award vesting and the forfeiture of RSUs | $ 0 | 0 | $ 0 |
2004 Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares reserved for issuance | 1,400,000 | ||
Share-based compensation, number of shares reserved for issuance, contractual terms | 10 years | ||
2006 Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares reserved for issuance | 200,000 | ||
Share-based compensation, number of shares reserved for issuance, contractual terms | 10 years | ||
2007 Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares reserved for issuance | 400,000 | ||
Share-based compensation, number of shares reserved for issuance, contractual terms | 10 years | ||
2008 Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares reserved for issuance | 200,000 | ||
Share-based compensation, number of shares reserved for issuance, contractual terms | 10 years | ||
2008 Employee Share Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares subscribed by qualified employees | 0 | ||
2008 Employee Share Purchase Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares reserved for issuance | 40,000 | ||
2009 Equity Incentive Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares reserved for issuance | 300,000 | ||
Share-based compensation, number of shares reserved for issuance, contractual terms | 10 years | ||
2009 Employee Share Purchase Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares reserved for issuance | 40,000 | ||
Share-based compensation, number of shares issued | 0 | ||
2010 Equity Incentive Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares reserved for issuance | 200,000 | ||
Share-based compensation, number of shares reserved for issuance, contractual terms | 10 years | ||
2010 Employee Share Purchase Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares reserved for issuance | 40,000 | ||
Share-based compensation, number of shares issued | 0 | ||
Capitalized stock-based compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 0 | 0 | |
Stock-based compensation tax benefit recognized | $ 0 | $ 0 |
Summary of General Terms of Sto
Summary of General Terms of Stock-Based Compensation Plans for Awards Granted (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted awards | 12,000 | 66,000 | ||
Options' exercise price | $ 3.85 | $ 6.15 | ||
2004 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted awards | [1] | 1,575,037 | ||
Vesting schedule | immediately upon granting to four years | |||
2004 Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options' exercise price | $ 3.95 | |||
2004 Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options' exercise price | $ 12.75 | |||
2006 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted awards | [2] | 256,716 | ||
Vesting schedule | immediately upon granting to four years | |||
2006 Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options' exercise price | $ 3.85 | |||
2006 Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options' exercise price | 83 | |||
2006 Plan | Restricted Stock Units (RSUs) | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs' grant date fair value | 14.55 | |||
2006 Plan | Restricted Stock Units (RSUs) | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs' grant date fair value | $ 80.05 | |||
2007 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted awards | [3] | 671,057 | ||
Vesting schedule | immediately upon granting to four years | |||
2007 Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options' exercise price | $ 4.9885 | |||
2007 Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options' exercise price | 90.85 | |||
2007 Plan | Restricted Stock Units (RSUs) | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs' grant date fair value | 12.35 | |||
2007 Plan | Restricted Stock Units (RSUs) | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs' grant date fair value | $ 76.75 | |||
2008 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted awards | 200,000 | |||
Vesting schedule | immediately upon granting to six years | |||
2008 Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options' exercise price | $ 12.35 | |||
2008 Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options' exercise price | $ 21.2 | |||
2009 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted awards | [4] | 500,000 | ||
Vesting schedule | immediately upon granting to four years | |||
2009 Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options' exercise price | $ 4.775 | |||
2009 Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options' exercise price | $ 12.35 | |||
2010 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted awards | [2] | 440,000 | ||
Vesting schedule | three years | |||
2010 Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options' exercise price | $ 4.0505 | |||
2010 Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options' exercise price | $ 5.7 | |||
[1] | The granted awards, net of forfeited or canceled shares, were within reserved shares of 1,400 thousand common shares. | |||
[2] | The granted awards, net of forfeited or canceled shares, were within reserved shares of 200 thousand common shares. | |||
[3] | The granted awards, net of forfeited or canceled shares, were within reserved shares of 400 thousand common shares. | |||
[4] | The granted awards, net of forfeited or canceled shares, were within reserved shares of 300 thousand common shares. |
Summary of General Terms of 101
Summary of General Terms of Stock-Based Compensation Plans for Awards Granted (Parenthetical) (Detail) - Maximum | Dec. 31, 2016shares |
2004 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based compensation, common stock shares reserved | 1,400,000 |
2006 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based compensation, common stock shares reserved | 200,000 |
2007 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based compensation, common stock shares reserved | 400,000 |
2009 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based compensation, common stock shares reserved | 300,000 |
2010 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based compensation, common stock shares reserved | 200,000 |
Summary of Assumptions Used in
Summary of Assumptions Used in Black-Scholes Option-Pricing Model to Estimate Fair Value of Stock Options Granted (Detail) | 12 Months Ended |
Dec. 31, 2015$ / shares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Option term (years) | 5 years 9 months |
Volatility | 49.239% |
Weighted-average volatility | 49.00% |
Risk-free interest rate | 1.506% |
Dividend yield | 0.00% |
Weighted-average fair value of option granted | $ 1.80 |
Summary of Option Transactions
Summary of Option Transactions (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted Average Exercise Price | |||
Beginning Balance | $ 20.51 | $ 20.30 | $ 9.75 |
Options granted | 3.85 | 6.15 | |
Options exercised | 3.95 | ||
Options Forfeited / canceled / expired | 3.85 | 5.31 | 5.65 |
Ending Balance | 20.63 | 20.51 | 20.30 |
Exercisable at December 31 | 20.57 | 21.28 | 23.35 |
Ending Balance | $ 20.63 | $ 20.51 | $ 20.30 |
No. of Shares | |||
Beginning Balance | 617,000 | 626,000 | 1,844,000 |
Options granted | 12,000 | 66,000 | |
Options exercised | 0 | 0 | (907,000) |
Options Forfeited / canceled / expired | (4,000) | (21,000) | (377,000) |
Ending Balance | 613,000 | 617,000 | 626,000 |
Exercisable at December 31 | 606,000 | 586,000 | 519,000 |
Vested and expected to vest at December 31 | 613,000 | 617,000 | 626,000 |
Weighted- Average Remaining Contractual Term | |||
Balance at December 31 | 4 years 2 months 5 days | ||
Exercisable at December 31 | 3 years 11 months 12 days | ||
Vested and expected to vest at December 31 | 3 years 1 month 24 days | ||
Aggregate Intrinsic Value | |||
Balance at December 31 | $ 0 | ||
Exercisable at December 31 | 0 | ||
Vested and expected to vest at December 31 | $ 0 |
Information about Stock Options
Information about Stock Options Outstanding (Detail) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Exercise price | $ 20.63 | $ 20.51 | $ 20.30 | $ 9.75 |
Options outstanding, No. of Shares | 613 | |||
Option currently exercisable, Exercise price | $ 20.57 | $ 21.28 | $ 23.35 | |
Option currently exercisable, No. of Shares | 606 | |||
Range One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, No. of Shares | 112 | |||
Options outstanding, Weighted average remaining contractual life | 6 years 15 days | |||
Option currently exercisable, No. of Shares | 108 | |||
Range One | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Exercise price | $ 5 | |||
Option currently exercisable, Exercise price | $ 5 | |||
Range Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, No. of Shares | 378 | |||
Options outstanding, Weighted average remaining contractual life | 3 years 1 month 10 days | |||
Option currently exercisable, No. of Shares | 375 | |||
Range Two | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Exercise price | $ 5 | |||
Option currently exercisable, Exercise price | 5 | |||
Range Two | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Exercise price | 50 | |||
Option currently exercisable, Exercise price | $ 50 | |||
Range Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, No. of Shares | 123 | |||
Options outstanding, Weighted average remaining contractual life | 7 months 21 days | |||
Option currently exercisable, No. of Shares | 123 | |||
Range Three | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Exercise price | $ 50 | |||
Option currently exercisable, Exercise price | 50 | |||
Range Three | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Exercise price | 100 | |||
Option currently exercisable, Exercise price | $ 100 |
Income (Loss) Before Income Tax
Income (Loss) Before Income Taxes by Geographic Location (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting [Abstract] | |||
Taiwan operations | $ (1,119) | $ (13,177) | $ (13,158) |
Non-Taiwan operations | (6,096) | 10,475 | 8,095 |
LOSS BEFORE INCOME TAXES | $ (7,215) | $ (2,702) | $ (5,063) |
Components of Income Tax Benefi
Components of Income Tax Benefit (Expense) by Taxing Jurisdiction (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components Of Income Tax Expense Benefit [Line Items] | |||
Current | $ 1,108 | $ 198 | $ 73 |
Deferred | 41 | 216 | |
Total income tax benefit | 1,149 | 414 | 73 |
Taiwan | |||
Components Of Income Tax Expense Benefit [Line Items] | |||
Current | 1,108 | 198 | 74 |
Total income tax benefit | 1,108 | 198 | 74 |
Foreign Tax Authority | |||
Components Of Income Tax Expense Benefit [Line Items] | |||
Current | (1) | ||
Deferred | 41 | 216 | |
Total income tax benefit | $ 41 | $ 216 | $ (1) |
Reconciliation of Effective Tax
Reconciliation of Effective Tax Rate Related to Statutory United States Federal Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Taiwan statutory rate, including taxes on income and retained earnings | 23.85% | 23.85% | 23.85% |
Foreign tax differential | (12.37%) | 183.28% | 42.23% |
Tax-exempt income | 3.28% | 2.71% | (0.00%) |
Non-deductible items - bad debts | (3.08%) | (57.91%) | (5.16%) |
Other non-deductible expenses | (1.65%) | (17.47%) | 0.00% |
Changes in unrecognized tax benefits | 1.10% | 6.84% | (3.15%) |
Adjustment for prior year payable | 0.04% | 0.00% | 1.81% |
Change in valuation allowance | 6.87% | (130.14%) | (52.97%) |
Other | (2.12%) | 4.17% | (5.16%) |
Effective rate | 15.92% | 15.33% | 1.45% |
Significant Components of Defer
Significant Components of Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||||
Net operating loss carryforwards | $ 9,730 | $ 8,475 | ||
Prepaid licensing and royalty fees | 952 | 1,035 | ||
Investments | 501 | 814 | ||
Intangible assets and goodwill | 226 | 282 | ||
Share-based compensation | 276 | 271 | ||
Other | 167 | 148 | ||
Deferred Tax Assets, Gross, Total | 11,852 | 11,025 | ||
Less: valuation allowance | (11,852) | (11,025) | $ (7,147) | $ (4,754) |
Deferred tax assets - net | $ 0 | $ 0 |
Significant Components of De109
Significant Components of Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Investment in subsidiaries, principally due to undistributed income | $ 1,671 | $ 1,712 |
Reconciliation of Beginning 110
Reconciliation of Beginning and Ending Amounts of Valuation Allowance on Deferred Tax Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation Allowance [Line Items] | |||
Balance at beginning of year | $ 11,025 | $ 7,147 | $ 4,754 |
Subsequent reversal and utilization of valuation allowance | (753) | ||
Additions to valuation allowance | 1,739 | 4,185 | 2,682 |
Exchange differences | 153 | (307) | (289) |
Balance at end of year | 11,852 | $ 11,025 | $ 7,147 |
Divestiture | |||
Valuation Allowance [Line Items] | |||
Divestitures | $ (312) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits that if recognized would affect the effective tax rate | $ 0 | $ 1,200,000 | $ 8,300,000 |
Unrecognized tax benefits that if recognized would be offset by a valuation allowance | 1,000,000 | 0 | 6,400,000 |
Unrecognized tax benefits, income tax penalties and interest expense | $ 0 | $ 0 | $ 0 |
Taiwan | Undistributed Foreign Earnings | |||
Income Tax Contingency [Line Items] | |||
Tax loss carryforward period | 10 years |
Net Operating Loss Carryforward
Net Operating Loss Carryforwards available to Offset Future Taxable Income (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 39,773 |
Hong Kong | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 14,930 |
Expiring year | Indefinite |
Taiwan | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 24,843 |
Taiwan | Earliest Tax Year | |
Operating Loss Carryforwards [Line Items] | |
Expiring year | 2,020 |
Taiwan | Latest Tax Year | |
Operating Loss Carryforwards [Line Items] | |
Expiring year | 2,026 |
Accumulated Statutory Losses av
Accumulated Statutory Losses available to Offset Future Undistributed Earnings (Detail) - Taiwan $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Accumulated Statutory Losses [Line Items] | |
Amount | $ 44,431 |
Expiring year | indefinite |
Reconciliation of Beginning 114
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits Excluding Effects of Accrued Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 1,203 | $ 8,287 | $ 8,798 |
Increase related to prior year tax positions | 1,025 | ||
Decrease related to prior year tax positions | (185) | ||
Settlement | (6,830) | ||
Expiration of statute of limitations | (1,225) | ||
Exchange differences | 21 | (69) | (511) |
Balance at end of year | $ 1,024 | $ 1,203 | $ 8,287 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Double2 Network Technology Co., Ltd. | ||
Related Party Transaction [Line Items] | ||
Software development cost | $ 108 | $ 113 |
Future Aggregate Minimum Lease
Future Aggregate Minimum Lease Payments Required Under Operating Lease (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Leases [Abstract] | |
2,017 | $ 549 |
2,018 | 497 |
2,019 | 496 |
2,020 | 496 |
2,021 | 83 |
Operating Leases, Future Minimum Payments Due, Total | $ 2,121 |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Leases [Abstract] | |||
Operating leases, Rental expenses | $ 821 | $ 909 | $ 1,000 |
Committed License Fees and Mini
Committed License Fees and Minimum Guarantees Against Future Royalties Set Forth in Significant License Agreements (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Guarantee Obligations [Line Items] | |
In 2,017 | $ 60 |
Contractual Obligation, Total | 60 |
Royalty Payments | |
Guarantee Obligations [Line Items] | |
In 2,017 | 60 |
Contractual Obligation, Total | $ 60 |
Segment, Product, Geographic119
Segment, Product, Geographic and Other Information - Additional Information (Detail) - Segment | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting [Abstract] | |||
Number of operating segments | 1 | 2 | 2 |
Reconciliation of Segment Infor
Reconciliation of Segment Information to Consolidated Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Net revenue from external customers | $ 8,971 | $ 10,251 | $ 9,779 |
Loss from operations | (7,130) | (19,995) | (13,473) |
Share-based compensation | 9 | 65 | 21 |
Impairment loss on property, plant and equipment | 471 | 60 | 28 |
Impairment loss on intangible assets | 57 | 5 | 115 |
Impairment loss on prepaid licensing and royalty fees | 1,386 | 4,187 | 1,259 |
Interest income | 302 | 333 | 682 |
Interest expense | 81 | 182 | 243 |
Gain (loss) on sales of marketable securities - net | 19,939 | 8,621 | |
Foreign exchange gain (loss) | (301) | (397) | (556) |
Gain (loss) on equity method investments - net | (1,731) | (600) | (531) |
Impairment loss on marketable securities and investments | 1,290 | ||
Depreciation | 162 | 294 | 306 |
Amortization, including intangible assets | 111 | 245 | 1,211 |
Income tax expense (benefits) | (1,149) | (414) | (73) |
Asian online game and service | |||
Segment Reporting Information [Line Items] | |||
Net revenue from external customers | 8,971 | 8,545 | 8,199 |
Loss from operations | (3,924) | (12,735) | (8,639) |
Share-based compensation | 3 | 6 | 93 |
Impairment loss on property, plant and equipment | 288 | ||
Impairment loss on intangible assets | 53 | ||
Impairment loss on prepaid licensing and royalty fees | 1,386 | 4,187 | 1,259 |
Interest income | 2 | 12 | 31 |
Interest expense | 0 | 128 | 243 |
Gain (loss) on sales of marketable securities - net | 0 | 19,939 | 8,792 |
Foreign exchange gain (loss) | (174) | (145) | (306) |
Gain (loss) on equity method investments - net | (1,731) | (600) | (531) |
Impairment loss on marketable securities and investments | 0 | 1,290 | |
Depreciation | 142 | 233 | 239 |
Amortization, including intangible assets | 93 | 212 | 1,124 |
Income tax expense (benefits) | 0 | (14) | (92) |
Cloud service | |||
Segment Reporting Information [Line Items] | |||
Net revenue from external customers | 1,706 | 1,580 | |
Loss from operations | (1,240) | (1,510) | |
Share-based compensation | (23) | 7 | |
Impairment loss on property, plant and equipment | 60 | 28 | |
Impairment loss on intangible assets | 5 | 115 | |
Interest expense | 1 | ||
Depreciation | 40 | 28 | |
Amortization, including intangible assets | 32 | 71 | |
Income tax expense (benefits) | 0 | ||
Reportable Segment | |||
Segment Reporting Information [Line Items] | |||
Net revenue from external customers | 10,251 | 9,779 | |
Loss from operations | (3,924) | (13,975) | (10,149) |
Share-based compensation | 3 | (17) | 100 |
Impairment loss on property, plant and equipment | 288 | 60 | 28 |
Impairment loss on intangible assets | 53 | 5 | 115 |
Impairment loss on prepaid licensing and royalty fees | 1,386 | 4,187 | 1,259 |
Interest income | 2 | 12 | 31 |
Interest expense | 129 | 243 | |
Gain (loss) on sales of marketable securities - net | 19,939 | 8,792 | |
Foreign exchange gain (loss) | (174) | (145) | (306) |
Gain (loss) on equity method investments - net | (1,731) | (600) | (531) |
Impairment loss on marketable securities and investments | 1,290 | ||
Depreciation | 142 | 273 | 267 |
Amortization, including intangible assets | $ 93 | 244 | 1,195 |
Income tax expense (benefits) | $ (14) | $ (92) |
Reconciliations of Segment Info
Reconciliations of Segment Information to Consolidated Totals (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Loss from operations | $ (7,130) | $ (19,995) | $ (13,473) | |
Share-based compensation | 9 | 65 | 21 | |
Impairment loss on property, plant and equipment | 471 | 60 | 28 | |
Impairment loss on intangible assets | 57 | 5 | 115 | |
Impairment loss on prepaid licensing and royalty fees | 1,386 | 4,187 | 1,259 | |
Interest income | 302 | 333 | 682 | |
Interest expense | 81 | 182 | 243 | |
Gain (loss) on sales of marketable securities - net | 19,939 | 8,621 | ||
Foreign exchange gain (loss) | (301) | (397) | (556) | |
Gain (loss) on equity method investments - net | (1,731) | (600) | (531) | |
Impairment loss on marketable securities and investments | 1,290 | |||
Depreciation | 162 | 294 | 306 | |
Amortization | 111 | 245 | 1,211 | |
Income tax expense (benefit) | (1,149) | (414) | (73) | |
Reportable Segment | ||||
Segment Reporting Information [Line Items] | ||||
Loss from operations | (3,924) | (13,975) | (10,149) | |
Share-based compensation | 3 | (17) | 100 | |
Impairment loss on property, plant and equipment | 288 | 60 | 28 | |
Impairment loss on intangible assets | 53 | 5 | 115 | |
Impairment loss on prepaid licensing and royalty fees | 1,386 | 4,187 | 1,259 | |
Interest income | 2 | 12 | 31 | |
Interest expense | 129 | 243 | ||
Gain (loss) on sales of marketable securities - net | 19,939 | 8,792 | ||
Foreign exchange gain (loss) | (174) | (145) | (306) | |
Gain (loss) on equity method investments - net | (1,731) | (600) | (531) | |
Impairment loss on marketable securities and investments | 1,290 | |||
Depreciation | 142 | 273 | 267 | |
Amortization | 93 | 244 | 1,195 | |
Income tax expense (benefit) | (14) | (92) | ||
Adjustment | ||||
Segment Reporting Information [Line Items] | ||||
Loss from operations | [1] | (3,206) | (6,020) | (3,324) |
Share-based compensation | [1] | 6 | 82 | (79) |
Impairment loss on property, plant and equipment | [1] | 183 | ||
Impairment loss on intangible assets | [1] | 4 | ||
Interest income | [1] | 300 | 321 | 651 |
Interest expense | [1] | 81 | 53 | |
Gain (loss) on sales of marketable securities - net | [1] | (171) | ||
Foreign exchange gain (loss) | [1] | (127) | (252) | (250) |
Depreciation | [1] | 20 | 21 | 39 |
Amortization | [1] | 18 | 1 | 16 |
Income tax expense (benefit) | [1] | $ (1,149) | $ (400) | $ 19 |
[1] | Adjustment items include corporate and certain back-office costs and expenses not attributable to any specific segment. As of December 31, 2014, 2015 and 2016, the compensation related was approximately $1.7 million $1.3 million and $1.6 million, respectively; professional fees was approximately $174 thousand $587 thousand and $612 thousand, respectively. The termination charge of proposed acquisition of $2.0 million in 2015 is also included in the adjustments. |
Reconciliations of Segment I122
Reconciliations of Segment Information to Consolidated Totals (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Termination of proposed acquisition | $ (2,000) | ||
Adjustment | |||
Segment Reporting Information [Line Items] | |||
Compensation expense | $ 1,600 | 1,300 | $ 1,700 |
Professional fees | $ 612 | 587 | $ 174 |
Termination of proposed acquisition | $ (2,000) |
Revenues From Major Product Lin
Revenues From Major Product Lines (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue from External Customer [Line Items] | |||
Revenue | $ 8,971 | $ 10,251 | $ 9,779 |
MahJong and Casino Casual Games | |||
Revenue from External Customer [Line Items] | |||
Revenue | 2,459 | 3,113 | 4,301 |
PC Massively Multiplayer Online Games | |||
Revenue from External Customer [Line Items] | |||
Revenue | 1,560 | 1,670 | 1,908 |
Mobile Role Playing Games | |||
Revenue from External Customer [Line Items] | |||
Revenue | 4,674 | 2,807 | 1,914 |
Other games and game related revenues | |||
Revenue from External Customer [Line Items] | |||
Revenue | $ 278 | 955 | 76 |
Cloud Computing Services | |||
Revenue from External Customer [Line Items] | |||
Revenue | $ 1,706 | $ 1,580 |
Revenue from Unaffiliated Custo
Revenue from Unaffiliated Customers by Geographic Region (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 8,971 | $ 10,251 | $ 9,779 |
Taiwan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 2,664 | 6,889 | 7,413 |
Hong Kong | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 6,307 | $ 3,362 | $ 2,366 |
Net Long-Lived Assets by Geogra
Net Long-Lived Assets by Geographic Region (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net long-lived assets | $ 7 | $ 1,391 | $ 1,663 |
Taiwan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net long-lived assets | 7 | 1,320 | 1,641 |
Hong Kong | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net long-lived assets | $ 0 | $ 71 | $ 22 |