Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2015shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | CHINA FINANCE ONLINE CO. LTD |
Trading Symbol | JRJC |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 118,098,018 |
Amendment Flag | false |
Entity Central Index Key | 1,297,830 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 85,734,048 | $ 32,538,513 |
Restricted cash | 0 | 5,498 |
Prepaid expenses and other current assets | 3,488,647 | 8,540,863 |
Trust bank balances held on behalf of customers | 14,167,606 | 11,922,216 |
Consideration receivable | 0 | 13,400,882 |
Accounts receivable - net of allowance for doubtful accounts | 4,367,417 | 1,698,861 |
Loan receivable | 0 | 10,295,800 |
Deferred tax assets, current | 969,464 | 926,081 |
Total current assets | 120,734,896 | 92,214,207 |
Property and equipment, net | 5,789,534 | 4,862,949 |
Acquired intangible assets, net | 1,539,534 | 2,185,280 |
Cost method investment | 554,392 | 1,217,617 |
Equity method investment, net | 1,228,269 | 0 |
Rental deposits | 1,422,626 | 1,387,653 |
Goodwill | 6,699,620 | 7,089,780 |
Guarantee fund deposits | 6,076,036 | 4,874,332 |
Deferred tax assets, non-current | 20,250 | 71,540 |
Total assets | 144,065,157 | 113,903,358 |
Current liabilities: | ||
Deferred revenue, current (including deferred revenue, current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $2,954,098 and $5,058,018 as of December 31, 2014 and December 31, 2015, respectively) | 6,658,689 | 4,935,972 |
Accrued expenses and other current liabilities (including accrued expenses and othercurrent liabilities of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $6,282,466 and $13,035,773 as of December 31, 2014 and December 31, 2015, respectively) | 15,655,425 | 8,837,734 |
Amounts due to customers for the trust bank balances held on their behalf (including amounts due to customers for the trust bank balances held on their behalf of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $398,936 and $565,605 as of December 31, 2014 and December 31, 2015, respectively) | 14,167,606 | 11,922,216 |
Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $1,997,774 and $3,387,125 as of December 31, 2014 and December 31, 2015, respectively) | 5,493,728 | 9,852,491 |
Income taxes payable (including income taxes payable of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $300,679 and $1,752,812 as of December 31, 2014 and December 31, 2015, respectively) | 1,768,347 | 314,270 |
Deferred tax liabilities, current (including deferred tax liabilities, current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $578,006 and $13,067 as of December 31, 2014 and December 31, 2015, respectively) | 15,132 | 580,197 |
Total current liabilities | 43,758,927 | 36,442,880 |
Deferred revenue, non-current (including deferred revenue, non-current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $353,035 and $187,041 as of December 31, 2014 and December 31, 2015, respectively) | 691,922 | 1,372,722 |
Deferred tax liabilities, non-current (including deferred tax liabilities, non-current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $546,320 and $384,883 as of December 31, 2014 and December 31, 2015, respectively) | 384,883 | 546,320 |
Total liabilities | 44,835,732 | 38,361,922 |
China Finance Online Co. Limited shareholder's equity: | ||
Ordinary shares (112,417,933 and 118,098,018 shares issued and outstanding as of December 31, 2014 and 2015, respectively) | 56,856,000 | 56,386,606 |
Additional paid-in capital | 28,145,846 | 24,207,606 |
Accumulated other comprehensive income | 8,597,295 | 12,064,338 |
Retained deficits | (5,560,770) | (28,043,186) |
Total China Finance Online Co. Limited shareholders' equity | 88,038,371 | 64,615,364 |
Noncontrolling interest | 11,191,054 | 10,926,072 |
Total equity | 99,229,425 | 75,541,436 |
Total liabilities and equity | 144,065,157 | 113,903,358 |
Margin Clients [Member] | ||
Current assets: | ||
Accounts receivable - net of allowance for doubtful accounts | 4,367,417 | 1,698,861 |
Others [Member] | ||
Current assets: | ||
Accounts receivable - net of allowance for doubtful accounts | $ 12,007,714 | $ 12,885,493 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts receivable—margin clients, allowance for doubtful accounts | $ 0 | $ 0 |
Accounts receivable—others, allowance for doubtful accounts | 40,592 | 43,077 |
Deferred revenue, current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited | 5,058,018 | 2,954,098 |
Accrued expenses and other current liabilities of the consolidated variable interest entities without recourse to China Finance Online Co. Limited | 13,035,773 | 6,282,466 |
Amounts due to customers for the trust bank balances held on their behalf of the consolidated variable interest entities without recourse to China Finance Online Co. Limited | 565,605 | 398,936 |
Accounts payable of the consolidated variable interest entities without recourse to China Finance Online Co. Limited | 3,387,125 | 1,997,774 |
Income taxes payable of the consolidated variable interest entities without recourse to China Finance Online Co. Limited | 1,752,812 | 300,679 |
Deferred tax liabilities, current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited | 13,067 | 578,006 |
Deferred revenue, non-current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited | 187,041 | 353,035 |
Deferred tax liabilities, non-current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited | $ 384,883 | $ 546,320 |
Ordinary shares, shares issued (in Shares) | 118,098,018 | 112,417,933 |
Ordinary shares, shares outstanding (in Shares) | 118,098,018 | 112,417,933 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net revenues | $ 107,404,766 | $ 83,695,885 | $ 52,738,077 |
Cost of revenues | 19,738,737 | 20,352,729 | 10,570,070 |
Gross profit | 87,666,029 | 63,343,156 | 42,168,007 |
Operating expenses: | |||
General and administrative (including share-based compensation of $2,985,112, $4,533,562 and $6,395,451 for 2013, 2014 and 2015, respectively) | 17,993,787 | 17,592,119 | 15,210,102 |
Product development (including share-based compensation of $39,574, $113,292 and $(217,695) for 2013, 2014 and 2015, respectively) | 10,738,730 | 11,147,873 | 9,032,327 |
Sales and marketing (including share-based compensation of $10,436 , $52,099 and $(121,723) for 2013, 2014 and 2015, respectively) | 46,474,107 | 43,761,473 | 30,588,236 |
Loss from impairment of intangible assets | 250,360 | 1,802,125 | 0 |
Loss from impairment of goodwill | 0 | 8,149,525 | 0 |
Total operating expenses | 75,456,984 | 82,453,115 | 54,830,665 |
Government subsidies | 251,828 | 659,417 | 11,187 |
Income (loss) from operations | 12,460,873 | (18,450,542) | (12,651,471) |
Interest income | 2,648,026 | 4,044,288 | 1,340,563 |
Interest expense | (514) | (12,311) | (196,458) |
Exchange gain (loss), net | (766,162) | (112,672) | 556,757 |
Gain on the interest sold and retained noncontrolling investment | 9,999,801 | 0 | 0 |
Gain from sales of cost method investment | 4,648,302 | 4,337,736 | 0 |
Gain (loss) from equity method investment | (66,970) | 0 | 2,773,839 |
Short-term investment income | 216,025 | 58,451 | 132,069 |
Other income (expense), net | (937,431) | 18,236 | (29,131) |
Income (loss) before income tax expense | 28,201,950 | (10,116,814) | (8,073,832) |
Income tax expense | (1,384,262) | (513,914) | (100,058) |
Net income (loss) | 26,817,688 | (10,630,728) | (8,173,890) |
Less: net income (loss) attributable to the noncontrolling interest | 4,335,272 | (3,462,879) | 399,238 |
Net income (loss) attributable to China Finance Online Co. Limited | $ 22,482,416 | $ (7,167,849) | $ (8,573,128) |
Net income (loss) per share attributable to China Finance Online Co. Limited | |||
Basic (in Dollars per share) | $ 0.20 | $ (0.07) | $ (0.08) |
Diluted (in Dollars per share) | $ 0.18 | $ (0.07) | $ (0.08) |
Weighted average shares used in calculating net income (loss) per share | |||
Basic (in Shares) | 110,997,871 | 109,385,712 | 109,019,513 |
Diluted (in Shares) | 125,129,763 | 109,385,712 | 109,019,513 |
Other comprehensive income (loss), net of tax: | |||
Changes in foreign currency translation adjustment | $ (3,467,043) | $ (221,277) | $ 1,195,795 |
Other comprehensive income (loss), net of tax | (3,467,043) | (221,277) | 1,195,795 |
Comprehensive income (loss) | 23,350,645 | (10,852,005) | (6,978,095) |
Less: net income (loss) attributable to the noncontrolling interest | 4,335,272 | (3,462,879) | 399,238 |
Comprehensive income (loss) attributable to China Finance Online Co. Limited | $ 19,015,373 | $ (7,389,126) | $ (7,377,333) |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based compensation | $ 6,056,033 | $ 4,698,953 | $ 3,035,122 |
Reclassification adjustment of available-for-sale securities, Net tax effects | (121,723) | 52,099 | 10,436 |
General and Administrative Expense [Member] | |||
Share-based compensation | 6,395,451 | 4,533,562 | 2,985,112 |
Research and Development Expense [Member] | |||
Share-based compensation | $ (217,695) | $ 113,292 | $ 39,574 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2012 | $ 14,328 | $ 81,163,244 | $ 11,089,820 | $ (12,302,209) | $ 79,965,183 | $ 751,368 | $ 80,716,551 |
Balance (in Shares) at Dec. 31, 2012 | 110,955,383 | ||||||
Exercise of share options by employees | $ 25 | 30,415 | 30,440 | 30,440 | |||
Exercise of share options by employees (in Shares) | 190,250 | ||||||
Share-based compensation | 2,960,746 | 2,960,746 | 74,376 | 3,035,122 | |||
Business combination | 191,861 | 191,861 | 13,421,370 | 13,613,231 | |||
Foreign currency translation adjustment | 1,195,795 | 1,195,795 | 1,195,795 | ||||
Net income (loss) | (8,573,128) | (8,573,128) | 399,238 | (8,173,890) | |||
Balance at Dec. 31, 2013 | $ 14,353 | 84,346,266 | 12,285,615 | (20,875,337) | 75,770,897 | 14,646,352 | 90,417,249 |
Balance (in Shares) at Dec. 31, 2013 | 111,145,633 | ||||||
Transfer share premium to share capital (Note) | $ 55,718,184 | (55,718,184) | |||||
Exercise of share options by employees | $ 654,055 | 654,055 | 654,055 | ||||
Exercise of share options by employees (in Shares) | 1,164,300 | ||||||
Restricted shares issued | $ 14 | 14 | 14 | ||||
Restricted shares issued (in Shares) | 108,000 | ||||||
Share-based compensation | 4,540,257 | 4,540,257 | 158,696 | 4,698,953 | |||
Business restructure | (8,960,733) | (8,960,733) | 613,915 | (8,348,818) | |||
Dividends paid to noncontrolling interest | (1,030,012) | (1,030,012) | |||||
Foreign currency translation adjustment | (221,277) | (221,277) | (221,277) | ||||
Net income (loss) | (7,167,849) | (7,167,849) | (3,462,879) | (10,630,728) | |||
Balance at Dec. 31, 2014 | $ 56,386,606 | 24,207,606 | 12,064,338 | (28,043,186) | 64,615,364 | 10,926,072 | 75,541,436 |
Balance (in Shares) at Dec. 31, 2014 | 112,417,933 | ||||||
Issuance of ordinary shares for the plan of share options and restricted shares | $ 520 | 520 | 520 | ||||
Issuance of ordinary shares for the plan of share options and restricted shares (in Shares) | 4,000,000 | ||||||
Exercise of share options by employees | $ 293,654 | 293,654 | 293,654 | ||||
Exercise of share options by employees (in Shares) | 435,000 | ||||||
Exercise of share options by nonemployees | $ 175,200 | 175,200 | 175,200 | ||||
Exercise of share options by nonemployees (in Shares) | 1,095,000 | ||||||
Restricted shares issued | $ 20 | 20 | 20 | ||||
Restricted shares issued (in Shares) | 150,085 | ||||||
Share-based compensation | 5,331,748 | 5,331,748 | 724,285 | 6,056,033 | |||
Changes in noncontrolling ownership interest | (1,393,508) | (1,393,508) | 1,714,464 | 320,956 | |||
Dividends paid to noncontrolling interest | (6,509,680) | (6,509,680) | |||||
Foreign currency translation adjustment | (3,467,043) | (3,467,043) | (3,467,043) | ||||
Paid-in capital from noncontrolling shareholders | 641 | 641 | |||||
Net income (loss) | 22,482,416 | 22,482,416 | 4,335,272 | 26,817,688 | |||
Balance at Dec. 31, 2015 | $ 56,856,000 | $ 28,145,846 | $ 8,597,295 | $ (5,560,770) | $ 88,038,371 | $ 11,191,054 | $ 99,229,425 |
Balance (in Shares) at Dec. 31, 2015 | 118,098,018 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||
Net income (loss) | $ 26,817,688 | $ (10,630,728) | $ (8,173,890) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Share-based compensation | 6,056,033 | 4,698,953 | 3,035,122 |
Depreciation and amortization | 1,649,136 | 1,973,423 | 2,164,992 |
Provision of allowance for doubtful accounts | 74 | (193,832) | 521,567 |
Gain (loss) from equity method investment | 66,970 | (2,773,839) | |
Gain from short-term investments | (216,025) | (58,451) | (132,069) |
Deferred taxes | (502,052) | (106,900) | (357,014) |
Loss on disposal of property and equipment | 390,296 | 194,136 | 163,963 |
Gain from sales of cost method investment | (4,648,302) | (4,337,736) | 0 |
Loss from impairment of intangible assets | 250,360 | 1,802,125 | 0 |
Loss from impairment of goodwill | 0 | 8,149,525 | 0 |
Gain from business restructure | (90,666) | ||
Gain on the interest sold and retained noncontrolling investment | (9,999,801) | 0 | 0 |
Changes in assets and liabilities: | |||
Accounts receivable, others | 586,009 | 2,371,865 | (8,132,005) |
Accounts receivable, margin clients | (2,666,812) | 4,413,011 | 8,933,007 |
Prepaid expenses and other current assets | 369,290 | (1,284,341) | 1,131,750 |
Advances to employees | 1,071,769 | ||
Trust bank balances held on behalf of customers | (2,267,808) | (1,928,568) | (1,181,312) |
Restricted cash | 5,403 | (1,560) | 7,143 |
Rental deposits | (204,811) | (368,933) | (273,402) |
Guarantee deposit funds | (1,576,128) | 865,963 | (4,881,966) |
Amounts due from noncontrolling shareholders | 2,690,941 | (1,821,928) | |
Deferred revenue | 1,794,179 | (1,749,432) | (2,866,258) |
Account payable | (5,182,939) | (2,671,121) | 11,666,365 |
Accrued expenses and other current liabilities | 2,596,050 | 161,455 | (1,189,465) |
Amounts due to customers for the trust bank balance held on their behalf | 2,267,808 | 1,928,568 | 1,181,312 |
Income taxes payable | 1,541,421 | (142,692) | 242,886 |
Net cash provided by operating activities | 19,816,980 | 1,172,136 | 158,656 |
Investing activities: | |||
Purchase of property and equipment | (3,350,260) | (3,158,042) | (833,921) |
Purchase of intangible assets | (81,378) | (578,624) | |
Acquisition of businesses (net of cash acquired of $121,044, nil and $14,463 for the years ended December 31, 2013, 2014, and 2015, respectively) | 14,463 | (705,180) | (3,627,963) |
Business restructure (Note 4) | (354,284) | (2,873,988) | |
Proceeds from disposal of affiliates (Note 13) | 8,463,170 | ||
Acquisition of equity method investment | (327,263) | (21,525,608) | |
Proceeds from transfer of equity method investment | 12,765,427 | 11,445,202 | |
Loan given to equity method investee | (20,461,773) | ||
Repayment of loans given to equity method investee | 9,807,585 | 10,247,235 | |
Proceeds from transfer equity interest to noncontrolling shareholders | 72,271 | ||
Advances related to disposal of subsidiaries (Note 18 (i)) | 5,299,758 | ||
Purchase of short-term investments | (105,354,947) | (90,694,201) | (83,911,858) |
Proceeds from sales of short-term investments | 105,562,667 | 90,764,098 | 86,716,413 |
Acquisition of cost method investment | (81,378) | (309,698) | |
Proceeds from sales of cost method investment | 7,959,237 | 2,168,868 | |
Restricted cash | 29,282,705 | ||
Loan receivable | 994,459 | ||
Proceeds from disposal of fixed assets | 63,038 | 140,942 | |
Net cash provided by (used in) investing activities | 40,557,824 | (4,598,163) | 7,577,511 |
Financing activities: | |||
Proceeds from stock options exercised by employees | 294,193 | 654,069 | 640 |
Proceeds from stock options exercised by nonemployees | 175,200 | ||
Proceeds from paid-in capital of noncontrolling shareholders | 488,155 | 1,397,616 | |
Repayment of short-term loan | (13,536,161) | ||
Dividends paid to noncontrolling shareholders | (6,549,628) | (1,025,788) | |
Net cash used in financing activities | (5,592,080) | (371,719) | (12,137,905) |
Effect of exchange rate changes | (1,587,189) | (34,691) | (133,308) |
Net (decrease) increase in cash and cash equivalents | 53,195,535 | (3,832,437) | (4,535,046) |
Cash and cash equivalents, beginning of the year | 32,538,513 | 36,370,950 | 40,905,996 |
Cash and cash equivalents, end of the year | 85,734,048 | 32,538,513 | 36,370,950 |
Supplemental disclosure of cash flow information | |||
Income taxes paid | 682,232 | 758,006 | 81,188 |
Interest paid | $ 514 | $ 5,130 | $ 174,353 |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parentheticals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Acquisition of businesses, cash acquired | $ 14,463 | $ 121,044 |
Note 1 - Organization and Princ
Note 1 - Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES China Finance Online Co. Limited ("China Finance Online" or the "Company") was incorporated in Hong Kong on November 2, 1998. China Finance Online, its subsidiaries, its variable interest entities ("VIEs") and its VIEs' subsidiaries (collectively, the "Group") is a leading web-based financial services company in China. The Company provides Chinese retail investors with online access to securities, commodities and wealth management products, as well as financial database and analytics services to institutional customers. The Company's prominent flagship portal site www.jrj.com In 2015, the Company integrated its web-based trading platform, Securities Master (Zhengquantong) Yinglibao iTougu Yinglibao In addition, the Company offers basic financial software, information services and securities investment advisory services to retail investors in China. Through its subsidiary, Shenzhen Genius Information Technology Co., Ltd., the Company provides financial database and analytics to institutional customers including domestic financial, research, academic and regulatory institutions. China Finance Online also provides brokerage services in Hong Kong. Details of China Finance Online's significant subsidiaries, VIEs and VIEs' subsidiaries as of December 31, 2015 were as follows: Company name Place of establishment Date of acquisition legal interest Principal activity Subsidiaries: China Finance Online (Beijing) Co., Ltd. ("CFO Beijing") Beijing, PRC Jul. 9, 1998 100% N/A Fortune Software (Beijing) Co., Ltd. ("CFO Software") Beijing, PRC Dec. 7, 2004 100% N/A Shenzhen Genius Information Technology Co., Ltd. ("CFO Genius") Shenzhen, PRC Sep. 21, 2006 100% Subscription service Zhengyong Information & Technology (Shanghai) Co., Ltd. (“CFO Zhengyong”) Shanghai, PRC Aug. 17, 2008 100% N/A Zhengtong Information Technology (Shanghai) Co., Ltd ("CFO Zhengtong") Shanghai, PRC Jun. 24, 2008 100% N/A iSTAR Financial Holdings Limited ("iSTAR Financial Holdings") BVI Jul. 16, 2007 85% Investment holdings iSTAR International Securities Co. Limited ("iSTAR Securities") Hong Kong, PRC Nov. 23, 2007 85% Brokerage service iSTAR International Futures Co. Limited ("iSTAR Futures") Hong Kong, PRC Apr. 16, 2008 85% Brokerage service iSTAR International Wealth Management Co. Limited Hong Kong, PRC Oct. 8, 2008 85% Securities advising, future contract ("iSTAR Wealth Management") advising and asset management iSTAR International Credit Co. Limited ("iSTAR Credit") Hong Kong, PRC Feb. 10, 2012 85% N/A Variable interest entities: Beijing Fuhua Innovation Technology Development Co., Ltd. ("CFO Fuhua") Beijing, PRC Dec. 31, 2000 Nil Web portal and advertising service Shanghai Chongzhi Co., Ltd. ("CFO Chongzhi") Shanghai, PRC Jun. 6, 2008 Nil Subscription service Fortune (Beijing) Qicheng Technology Co., Ltd. ("CFO Qicheng") Beijing, PRC Dec. 18, 2009 Nil N/A Shenzhen Newrand Securities Advisory and Investment Co., Ltd. Shenzhen, PRC Oct. 17, 2008 Nil Securities investment advising ("CFO Newrand ") Shanghai Stockstar Wealth Management Co., Ltd. ("Stockstar Wealth Management") Shanghai, PRC Apr. 12, 2011 Nil N/A Beijing Chuangying Advisory and Investment Co., Ltd. ( "CFO Chuangying" ) Beijing, PRC Jan. 9, 2009 Nil N/A Subsidiaries of variable interest entities: Shanghai Meining Computer Software Co., Ltd. ("CFO Meining") Shanghai, PRC Oct. 1, 2006 Nil Web portal, advertising, subscription, and SMS Shenzhen Newrand Securities Training Center ("CFO Newrand Training") Shenzhen, PRC Oct. 17, 2008 Nil Securities investment training Fortune (Beijing) Huiying Investment Consulting Co., Ltd. ("CFO Huiying") Beijing, PRC Dec. 18, 2009 Nil N/A Shenzhen Tahoe Investment and Development Co., Ltd ("CFO Tahoe") Shenzhen, PRC Sep. 30, 2013 Nil N/A Shenzhen Shangtong Software Co., Ltd. ("CFO Shenzhen Shangtong") Shenzhen, PRC Sep. 23, 2009 Nil N/A Zhengjin (Fujian) Precious Metals Investment Co., Ltd. Fujian, PRC Jan. 6, 2013 Nil Commodities brokerage ("CFO Zhengjin Fujian") Zhengjin (Shanghai) Precious Metals Investment Co., Ltd. Shanghai, PRC Dec. 12, 2013 Nil Commodities brokerage ("CFO Zhengjin Shanghai") Zhengjin (Tianjin) Precious Metals Investment Co., Ltd. Tianjin, PRC Jul. 23, 2013 Nil Commodities brokerage ("CFO Zhengjin Tianjin") Henghui (Tianjin) Precious Metals Investment Co., Ltd. Tianjin, PRC Sep. 30, 2013 Nil Commodities brokerage ("CFO Henghui") Zhengjin (Beijing) Wisdom Petroleum and Chemical Investment Management Co., Ltd. ("CFO Zhengjin Beijing") Beijing, PRC Jan. 13, 2014 Nil N/A Yinglibao (Beijing) Technology Co., Ltd. ("CFO Yinglibao") Beijing, PRC Jan. 15, 2014 Nil Internet-based financial platform Zhengjin (Qingdao) Wisdom Trading Co., Ltd. ("CFO Zhengjin Qingdao") Qingdao, PRC Sep. 4, 2014 Nil N/A Zhengjin (Jiangsu) Precious Metals Co., Ltd. ("CFO Zhengjin Jiangsu") Nanjing, PRC Nov. 19, 2014 Nil Commodities brokerage iTougu (Beijing) Network Technology Co., Ltd. ("CFO iTougu") Beijing, PRC Dec. 8, 2014 Nil Investment advisory service platform Tibet Fortune Jinyuan Network Technology Co., Ltd. ("CFO Tibet") Tibet, PRC Aug. 22, 2015 Nil N/A Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) Shanghai, PRC Apr. 1, 2015 Nil N/A The consolidated financial statements of the Group include the financial statements of the Company and its controlled operating entities including the subsidiaries and the variable interest entities for which the Company is the primary beneficiary. A variable interest entity is the entity in which the Company, through contractual arrangements as the primary beneficiary, bears the risks of, and enjoys the rewards normally associated with ownership of the entity. People ' ("PRC") regulations prohibit or restrict direct foreign ownership of business entities providing certain services in PRC, such as internet content service and securities investment advisory service. In order to comply with these regulations, China Finance Online, through its subsidiaries, entered into contractual arrangements with the Company's VIEs and their equity owners who are PRC citizens. The Group made loans to the shareholders of the VIEs solely for the purposes of capitalizing the VIEs. Pursuant to the loan agreements, these loans can only be repaid by transferring all of their interests in the VIEs to the Group or a third party designated by the Group. The Group has entered into proxy agreements or power of attorney and exclusive equity purchase option agreements with the VIEs and nominee shareholders of the VIEs through the Company's wholly owned significant subsidiaries including CFO Beijing, CFO Software, CFO Zhengyong and CFO Zhengtong (collectively, the " WFOEs WFOE Despite the lack of technical majority ownership, the agreements with the VIEs provide the WFOEs with effective control over and the ability to receive substantially all of the economic benefits of its VIEs, resembling a parent-subsidiary relationship between the WFOEs and the VIEs. The shareholders of the VIEs effectively assigned all of their voting rights underlying their equity interest in the VIEs to the WFOEs. In addition, through the other exclusive agreements, which consist of strategic consulting services agreement, technical support services agreement and operating support services agreement, the WFOEs demonstrate their ability and intention to continue to exercise the ability to absorb substantially all of the profits and all of the expected losses of the VIEs. The VIEs are subject to operating risks, which determine the variability of the Company's interest in those entities. Based on these contractual arrangements, the Company consolidates the VIEs as required by SEC Regulation SX-3A-02 and Accounting Standards Codification ("ASC") Topic 810 ("ASC 810") because the Company holds all the variable interests of the VIEs through the WFOEs. The principal terms of the agreements entered into amongst the VIEs, their respective shareholders and the WFOEs are further described below. Exclusive technology consulting and management service agreement Pursuant to a series of technology support and service agreements, the WOFEs retain exclusive right to provide the VIEs and their subsidiaries technology support and consulting services and exclusive management consulting service. As a result of these services, the WOFEs are entitled to charge the VIEs and their subsidiaries annual service fees. The terms of the strategic consulting services agreement, the technical support services agreement and the operating support services agreement are twenty, ten and ten years, respectively, and these agreements will be automatically renewed on applicable expiration dates, unless the contracting WOFE informs the corresponding VIE its intention to terminate such contract one month prior to the applicable expiration date. Notwithstanding the foregoing, none of the parties has a right to terminate the service contracts. The principal services agreements that the WOFEs have entered into with VIEs include: · strategic consulting services agreement, pursuant to which the amount of the fee to be charged is 30% of each VIE's income before tax; · technical support services agreement, pursuant to which the amount of the fee to be charged is 30% of each VIE's income before tax; and · operating support services agreement, pursuant to which the amount of the fee to be charged is 40% of each VIE's income before tax. Exclusive purchase right agreement on the equity interest of the VIEs Pursuant to the purchase option agreement, the WOFEs have the unconditional right to purchase the entire equity interest in, or all the assets of the VIEs at a price equal to the total principal amount of the loan lent by the WOFEs to the shareholders of the VIEs when and if such purchase is permitted by the PRC law or the current shareholders of the VIEs cease to be directors or employees of the VIEs. The term of the exclusive purchase right agreement is perpetual and can be terminated at the discretion of the WOFEs. Power of attorney Pursuant to the power of attorney, each of the shareholders of the VIEs have executed an irrevocable power of attorney assigning the WOFEs or individuals designated by the WOFEs as their attorney-in-fact to vote on their behalf on all matters of the VIEs requiring shareholder approval under PRC laws and regulations and the articles of association of VIEs. The Articles of Incorporation of the VIE state that the major rights of the shareholders include the right to appoint directors, the general manager and other senior management. Therefore, through the irrevocable power of attorney arrangement, the WOFEs have the ability to exercise effective control over the VIEs through shareholder votes and, through such votes, to also control the composition of the board of directors. In addition, the senior management team of the VIEs is the same as that of the WOFEs. The term of the power of attorney is twenty years and will be automatically renewed on the expiration date. The contract can be terminated at the discretion of the WOFEs. Pledge agreement Pursuant to the equity pledge agreement between the WOFEs and the shareholders of the VIEs, the shareholders of the VIEs pledged all of their equity interests in the VIEs to the WOFEs to guarantee the VIEs' performance of its obligations under the exclusive technology consulting and service agreement. If the VIEs breach their contractual obligations under that agreement, the WOFEs, as the pledge, will be entitled to certain rights, including the rights to sell the pledged equity interests. The shareholders of the VIEs agree that, without prior written consent of the WOFEs, they will not transfer, sell, and dispose of or create any encumbrance on their equity interest in the VIEs. The term of the pledge agreement is twenty years and will be automatically renewed on the expiration date, unless the WOFEs inform the VIEs of their intention to terminate the agreement one month prior to the expiration date. Through these contractual agreements, the WOFEs have the ability to effectively control the VIEs and are also able to receive substantially all the economic benefits of the VIEs. Details of significant VIEs and their counterparts which substantially control the VIEs as of December 31, 2015 were as follows: VIE name Contractual arrangement Date counterpart CFO Fuhua May 27, 2004 CFO Beijing CFO Chongzhi June 8, 2008 CFO Software CFO Newrand October 17, 2008 CFO Zhengyong CFO Qicheng November 20, 2009 CFO Chuangying Stockstar Wealth Management April 12, 2011 CFO Zhengtong Risks in relation to the VIE structure The Company's ability to control the VIEs also depends on the power of attorney the WOFEs have to vote on all matters requiring shareholder approval in the VIEs. As noted above, the Company believes this power of attorney is legally enforceable but may not be as effective as direct equity ownership. In addition, if the legal structure and contractual arrangements were found to be in violation of any existing PRC laws and regulations, the regulatory authorities may exercise their discretion and · revoke the business and operating licenses of our PRC subsidiaries or VIEs; · restrict the rights to collect revenues from any of our PRC subsidiaries; · discontinue or restrict the operations of any related-party transactions among our PRC subsidiaries or VIEs; · require our PRC subsidiaries or VIEs to restructure the relevant ownership structure or operations; · take other regulatory or enforcement actions, including levying fines that could be harmful to our business; or · impose additional conditions or requirements with which we may not be able to comply. The imposition of any of these penalties may result in a material adverse effect on the Company's ability to conduct its business. In addition, if the imposition of any of these penalties causes the Company to lose the rights to direct the activities of the VIEs and their subsidiaries or the right to receive their economic benefits, the Company would no longer be able to consolidate the VIEs. The Company does not believe that any penalties imposed or actions taken by the PRC Government would result in the liquidation of the Company, its subsidiaries, or the VIEs. The Company has consolidated its VIEs because it was the primary beneficiary of those entities. Through the contractual agreements discussed above, the Company, through its wholly owned subsidiaries, has (1) the power to direct the activities of the VIEs that most significantly affect the entities' economic performance and (2) the right to receive benefits from the VIEs, therefore it consolidates the VIEs. The consolidated VIEs operate securities investment advisory business and commodities brokerage business. The following table presents the most important revenue-producing assets to operate commodities brokerage business, which was recognized in the Company's consolidated financial statements. December 31 , 2014 2015 Commodities brokerage business: Commodities trading right $ 1,291,061 $ 966,222 Customer relationship 894,219 573,312 $ 2,185,280 $ 1,539,534 The VIEs also hold important unrecognized revenue-producing assets, such as our domain names and Internet Content Provider Licenses with respect to www.jrj.com www.stockstar.com The following financial statement amounts and balances of the VIEs for which the Company is the primary beneficiary and their subsidiaries were before intercompany elimination as of and for the years ended: December 31, 2014 2015 Assets Current assets Cash and cash equivalents $ 17,615,035 $ 47,788,398 Consideration receivable 13,400,882 - Account receivable -others, net 22,217,745 45,278,278 Loan receivable 10,295,800 - Others 6,558,399 3,971,332 Total current assets $ 70,087,861 $ 97,038,008 Property and equipment, net 3,242,905 4,311,095 Acquired intangible assets, net 2,185,280 1,539,534 Cost method investment 907,919 554,392 Equity method investment, net - 1,228,269 Rental deposits 913,187 989,383 Guarantee fund deposits 4,604,924 5,850,623 Investment in subsidiaries 43,751,417 43,553,986 Deferred tax assets, non-current 13,328 4,982 Total assets $ 125,706,821 $ 155,070,272 Third-party liabilities Current liabilities Accrued expenses and other current liabilities 10,514,186 20,425,274 Accounts payable 18,843,147 3,387,125 Total current liabilities $ 29,357,333 $ 23,812,399 Non-current liabilities 899,356 571,924 Total third-party liabilities $ 30,256,689 $ 24,384,323 Inter-company liabilities $ 42,155,248 $ 44,591,484 Year ended December 31, 2013 2014 2015 Net revenues $ 58,549,393 $ 98,207,958 $ 136,412,062 Net income (loss) $ (5,469,402 ) $ 12,305,855 $ 49,300,399 Year ended December 31, 2013 2014 2015 Net cash (used in) provided by operating activities $ (14,469,067 ) $ 3,204,749 $ (835,965 ) Net cash (used in) provided by investing activities (9,440,165 ) (5,685,885 ) 38,523,306 Net cash provided by (used in) financing activities 35,830,988 1,430,739 (6,061,473 ) Effect of exchange rate changes $ (46,900 ) $ (95,269 ) $ (1,452,505 ) There are no consolidated VIE's assets that are collateral for the VIE's obligations and can only be used to settle the VIE's obligations. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Basis of consolidation The consolidated financial statements include the financial statements of China Finance Online, its subsidiaries, VIEs for which the Company is the primary beneficiary and those VIEs' subsidiaries. All inter-company transactions and balances have been eliminated upon consolidation. Cash and cash equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. Restricted cash Restricted cash is the deposit in bank accounts for providing guarantee to subscription revenue customers by Shanghai Stockstar Securities Advisory and Investment Co., Ltd. ("CFO Securities Consulting") in accordance with the requirement of China Securities Regulatory Commission ("CSRC"). The restriction period is one year. Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1-inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. Level 2-inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3-inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. The Group measures certain assets, including the long-term investments and intangible assets, at fair value on a nonrecurring basis when they are deemed to be impaired. The fair values of these investments and intangible assets are determined based on valuation techniques using the best information available, and may include management judgments, future performance projections, etc. Trust bank balances held on behalf of customers Trust bank balances held on behalf of customers consist two parts: i) iSTAR Securities and iSTAR Futures receive fund from customers for purpose of buying or selling securities and futures on behalf of its customers and deposits the fund in its interest-bearing bank account; ii) The funds received by CFO Newrand from customers who purchase mutual funds and other wealth management products which are deposited in a trust bank account. The Group launched "Yinglibao", an internet-based financial platform that integrates cash management solutions and mutual fund distribution. Such bank balance represents an asset of the Group for the amounts due to customers for the trust bank balance held on their behalf and payable to customers on demand. The Group also recognizes a corresponding liability. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Group's financial statements include account receivable, cost method investment, equity method investment, impairment of goodwill and long-lived assets, income taxes, share-based compensation and purchase price allocation. Actual results could differ from those estimates. Loan receivable Loans are reported at either their outstanding principal balances. For loans reported at their outstanding principal balances, interest income is accrued on the unpaid principal balance. A loan is considered impaired when, based on current events and the financial condition of the borrower, it is probable that the company will be unable to collect all principal and interest due according to the contractual terms of the loan agreement. Loan collectability is monitored by the Group in connection with the ongoing monitoring of the associated financial guarantee transactions. Short-term investments Short-term investments comprise marketable debt and equity securities, which are classified as trading, held-to-maturity or available-for-sale. Trading securities are securities that are bought and held principally for the purpose of selling them in the near term and are reported at fair value, with unrealized gains and losses recognized in earnings. Short-term investments are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. All of the Company's held-to-maturity securities are classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year and are stated at their amortized costs. Short-term investments classified as available for sale are carried at their fair values and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income. Available for sale securities are classified as current assets on the accompanying consolidated balance sheets because they are available for immediate sale. The Group reviews its short-term investments for other-than-temporary impairment based on the specific identification method. The Company considers available quantitative and qualitative evidence in evaluating potential impairment of its short-term investments. If the cost of an investment exceeds the investment's fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than the cost, and the Group's intent and ability to hold the investment, in determining if impairment is needed. Property and equipment, net Property and equipment, net are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Technology infrastructure (in years) 5 Computer equipment 5 Furniture, fixtures and equipment 5 Motor vehicle 5 Leasehold improvements Shorter of the lease term or 5 Acquired intangible assets, net Acquired intangible assets are estimated by management based on the fair value of assets acquired. Identifiable intangible assets are carried at cost less accumulated amortization. Amortization of definite-lived intangible assets is computed using the straight-line method over the estimated average useful lives, which are as follows: License and related trademarks (in years) 15 Completed technology (in years) 5 Customer relationship (in years) 4 - 5 Certain trademarks resulting from the acquisitions of business and certain trading rights bought by the Group are determined to have indefinite lives. If an intangible asset is determined to have an indefinite life, it is not amortized until its useful life is determined to be no longer indefinite. Guarantee fund deposits Guarantee fund deposits consist of i) the funds deposited with Hong Kong Exchange and Clearing Limited by iSTAR Futures, to guarantee its customers' settlement obligations; ii) the funds deposited with the commodities exchanges as a result of its customers' trading. The Group needs to deposit certain percentage of its customers' trading margins with the commodities exchanges. Impairment of long-lived assets with definite lives The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group compares the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the fair value of the assets. Business combinations Business combinations are recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed, and any noncontrolling interest of the acquiree at the acquisition date, if any, are measured at their fair values as of that date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any noncontrolling interest of the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Common forms of the consideration made in acquisitions include cash and common equity instruments. Consideration transferred in a business acquisition is measured at the fair value as at the date of acquisition. Where the consideration in an acquisition includes contingent consideration the payment of which depends on the achievement of certain specified conditions post-acquisition, the contingent consideration is recognized and measured at its fair value at the acquisition date and if recorded as a liability it is subsequently carried at fair value with changes in fair value reflected in earnings. Impairment of goodwill and indefinite-lived intangible assets The Group performs a qualitative analysis that includes reviewing the carrying value of intangible assets not subject to amortization, including goodwill, to determine whether impairment may exist, whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable at least annually. The excess of the purchase price over the fair value of net assets acquired is recorded on the consolidated balance sheet as goodwill. After a qualitative analysis indicates an impairment test is needed, the Company completes a two-step goodwill impairment test. The first step is to compare the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step is to compare the implied fair value of goodwill to the carrying value of a reporting unit's goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. Estimating fair value is performed by utilizing various valuation techniques, with the primary technique being a discounted cash flow. The impairment test for other intangible assets not subject to amortization consists of a comparison of the fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The estimates of fair values of intangible assets not subject to amortization are determined using various discounted cash flow valuation methodologies. Significant assumptions are inherent in this process, including estimates of discount rates. Discount rate assumptions are based on an assessment of the risk inherent in the respective intangible assets. The Group performed the annual impairment tests on December 31 of each year. Based on the Group's assessment, the Group recorded nil, $8,149,525 and nil goodwill impairment losses during the years ended December 31, 2013, 2014 and 2015, respectively. In addition, the Group recorded nil, nil and $250,360 impairment loss in relation to intangible assets with indefinite life during the years ended December 31, 2013, 2014 and 2015. Revenue recognition Commodities brokerage business The Group derives commission income, carrying charges and trading revenues from its commodities brokerage services. Commission income is recognized on a trade basis based on their customers' trading volumes. The commission earned is fixed no matter how the client's open positions are ultimately settled. Additionally, the Group charges carrying charges to its customers. The commissions and carrying charges are presented in net revenues in the statement of comprehensive income. Amounts are settled with the Exchange by both the Group and the customers and the exchange then settles with any counterparty. The exchange offsets the Group's gains and losses and amounts receivable and amounts payable from the exchange are presented net on the statement of financial position as the Group and the exchange settle net. Trading gains, net include brokerage fees and margins generated from derivative trades executed with customers and other counterparties and are recognized when trades are executed. Trading gains, net also include activities where the Group acts as market maker in the purchase and sale of commodities derivative instruments with customers. These transactions may be offset simultaneously with another customer or counterparty, offset with similar but not identical positions on an exchange, made from inventory, or may be aggregated with other purchases to provide liquidity intraday, for a number of days, or in some cases, particularly the commodities brokerage business, even longer periods (during which fair value may fluctuate). Therefore, trading gains, net includes activities from the Group's operations of a proprietary commodity trades. Net trading gains are recognized on a trade-date basis and include realized gains or losses and changes in unrealized gains or losses on investments at fair value. Unrealized gains/losses on open positions will be marked to market at each period end and may present trading gains and losses which comprise both realized and unrealized gains and losses, on a net basis in the statement of comprehensive income. The open transactions may lead to receivables and/or payables for open transaction which are recorded on the Statement of Financial Position. Revenue generally is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. The following table presents the totally recognized net revenue from commodities trading business, consisted of: Years ended December 31, 2014 2015 Commodities trading gains $ 38,297,005 $ 53,776,323 Commission income 17,397,978 22,913,704 Carrying charges 4,396,134 3,012,627 Total $ 60,091,117 $ 79,702,654 Hong Kong Brokerage services The Group also derives commission from its brokerage services provided by the subsidiaries, iSTAR Securities and iSTAR Futures which buy or sell securities and future contracts on their customers' behalf. The Group acts as an agent with their customers for these transactions. The commission income is recognized on a trade date basis as transactions occur. Financial information and advisory services The Group derives revenue from subscription fees from subscribers to their financial data, information services and investment advisory. The Group recognizes revenues when all of the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the fee is fixed or determinable and (4) collectability is probable. Upon receipt of the upfront cash payments from the subscriber, the Group will activate the subscriber's account and provide the subscriber the access code. This will commence a certain subscription period according to the customer demand and the full payment will be deferred and recognized ratably over the subscription period. The Group recognizes revenue ratably over the life of the arrangement. Estimated refund of subscription fees is recorded as deduction of revenue and deferred revenue. Advertising revenue The Group derives its advertising fees from advertising sales on their website for a fixed period of time, generally less than one year. Revenues from advertising arrangements are recognized ratably over the period the advertising is displayed. Business taxes and value added taxes Starting from January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation launched a Business Tax to value added tax ("VAT") Transformation Pilot Program(the "Pilot Program"), for certain industries in Shanghai. On September 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation extended the Pilot Program to certain industries in other eight regions, including Beijing and Shenzhen. With the adoption of Pilot Program, our advertising-related revenues and certain subscription revenues were subject to VAT tax at a rate of 6%. Our advertising- related revenues, certain subscription revenues and certain commodities brokerage revenues were recognized after deducting VAT and other related surcharges. Revenue is recorded net of business taxes when incurred. The Group is subject to business taxes of 3%-5% on taxable services provided to its customers. During the years ended December 31, 2013, 2014, and 2015, business taxes and related surcharges totaled $598,044, $1,425,835 and $1,663,869, respectively. The Group's certain PRC subsidiaries, VIEs and VIEs' subsidiaries are subject to VAT at a rate of 17% on subscription-based revenue. VAT payable on subscription-based revenue is computed net of VAT paid on purchases. In respect of subscription-based revenue, however, if the net amount of VAT payable exceeds 3% of subscription-based revenue, the excess portion of value added tax can be refunded immediately. The Group therefore is subject to an effective net VAT burden of 3% from subscription-based revenue and records VAT on a net basis. Net amount of value added tax is recorded either in the line item of other current liabilities or prepaid expenses and other current assets on the face of consolidated balance sheet. Subscription-based revenue includes the benefit of the rebate of value added taxes on sale of the downloadable software received from the Chinese tax authorities as part of the PRC government policy of encouraging software development in the PRC. In 2013, 2014 and 2015, the Group recognized $639,936, $425,908 and $328,817, respectively, in VAT refunds. Government subsidies The Group records government subsidies when granted by local government authority and are not subject to future return. The government subsidies include research & development subsidy, business tax refund, innovation fund and high-tech company subsidy. Deferred revenue Payments received in advance of for our financial information and advisory service, advertising service are recorded as deferred revenue until earned and when the relevant revenue recognition requirements have been met. Cost method investment For investments in an investee over which the Group does not have significant influence, the Group carries the investment at cost and recognizes income as any dividends declared from distribution of investee's earnings. The Group reviews the cost method investments for impairment whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable. An impairment loss is recognized in earnings equal to the difference between the investment's cost and its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value of the investment would then become the new cost basis of the investment. Equity method investment Under the equity method, the Group initially records its investment at cost. The Group subsequently adjusts the carrying amount of the investment to recognize the Company's proportionate share of each equity investee's net income or loss. The Group will discontinue applying equity method if an investment (and additional financial supports to the investee, if any) has been reduced to zero. When the equity-method investment in ordinary shares is reduced to zero and further investments are made that have a higher liquidation preference than ordinary shares, the Group would recognize the loss based on its percentage of the investment with the same liquidation preference, and the loss would be applied to those investments of a lower liquidation preference first before being further applied to the investments of a higher liquidation preference. An impairment loss on the equity method investments is recognized in the consolidated statements of comprehensive income when the decline in value is determined to be other than-temporary. Foreign currency translation The functional and reporting currency of the Company is the United States dollar ("U.S. dollar"). The financial records of the Group's subsidiaries, VIEs and VIEs' subsidiaries located in the PRC, Hong Kong and British Virgin Islands are maintained in their local currencies, the Renminbi ("RMB"), Hong Kong Dollars ("HK$"), and U.S. Dollars ("US$"), respectively, which are also the functional currencies of these entities. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into functional currency at the applicable rates of exchange prevailing when the transactions occurred. Transaction gains and losses are recognized in the statements of operations. The Group's entities with functional currency of RMB and HK$ translate their operating results and financial position into the US$, the Group's reporting currency. Assets and liabilities are translated using the exchange rates in effect on the balance sheet date. Revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are report as cumulative translation adjustments and are shown as a separate component of other comprehensive income. Foreign currency risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People's Bank of China, controls the conversion of Renminbi into foreign currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. Cash and cash equivalents of the Group included aggregate amounts of $26,974,664, $19,726,992 and $79,461,280 at December 31, 2013, 2014 and 2015 which were denominated in RMB. Product development expenses Costs of product development, including investment in data capability, are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized. The Group essentially completed its development concurrently with the establishment of technological feasibility, and, accordingly, no costs have been capitalized. Advertising costs The Group expenses advertising costs as incurred. Total advertising expenses were $2,391,762, $7,505,506 and $4,908,593 for the years ended December 31, 2013, 2014 and 2015, respectively, and have been included as part of sales and marketing expenses in the accompanying consolidated statements of operations. Commissions paid Commissions paid are the commission rebates of our Hong Kong brokerage business and the commissions paid to the sales agents of our commodities brokerage business. Total commissions paid were $3,125,982, $11,546,126 and $5,049,661 for the years ended December 31, 2013, 2014 and 2015. Income taxes Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net operating loss carry forwards and credits by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. Comprehensive income (loss) Comprehensive income (loss) includes net income (loss), unrealized gain (loss) on short-term investments and foreign currency translation adjustments. Beginning in January 1, 2012, the Group presents the components of net income, the components of other comprehensive income and total comprehensive income a single continuous consolidated statement of comprehensive income. Fair value of financial instruments Financial instruments include cash and cash equivalents, restricted cash, accounts receivable, cost method investment, equity method investment, loan receivable and accounts payable. The carrying values of cash and cash equivalents, restricted cash, accounts receivable, loan receivable and accounts payable approximate their fair value due to their short-term maturities. The carrying value of the cost method investment was $1,217,617 and $554,392 as of December 31, 2014 and 2015, which approximate the fair value of the investment based on the valuation performed by the Company. The carrying value of the equity method investment was nil and $1,228,269 as of December 31, 2014 and 2015, which approximate the fair value of the investments at the acquired date and subsequently adjusted as the net assets of the investee change through the earning of income. The Group does not use derivative instruments to manage risks. Share-based compensation Share-based compensation with employees is measured based on the grant date fair value of the equity instrument. The Group recognizes the compensation costs net of an estimated forfeiture rate using the straight-line method for performance based awards or graded vesting attribution method for service based awards, over the requisite service period of the award, which is generally the vesting period of the award. The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of share-based compensation expense to be recognized in future periods. Share awards issued to nonemployees are measured at fair value at the earlier of the commitment date or the date the services is completed and recognized over the period the service is provided or as goods is received. Net income (loss) per share Basic net income (loss) per share attributable to China Finance Online Co. Limited is computed by dividing net income (loss) attributable to China Finance Online Co. Limited by the weighted average number of ordinary shares outstanding during the period. Diluted net income per ordinary share attributable to China Finance Online Co. Limited reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. The dilutive effect of the stock options and nonvested shares is computed using treasury stock method. Concentrations of credit risk Financial instruments that potentially expose the Group to concentrations of credit risk consist principally of cash and cash equivalents, restricted cash, short-term investments, loan receivable and accounts receivable. The Group places its cash and cash equivalents, restricted cash, short-term investments in major financial institutions located in PRC and Hong Kong, which management considers to be of high credit quality. The Group conducts ongoing credit evaluations of its customers and generally does not require collateral or other security from its customers except for the accounts receivable-margin clients which represents the margin loan to customers for securities purchase. The accounts receivable-margin client was collateralized by the securities the margin client purchased. The Group manages its credit risk by collecting up-front fee from its customers and billing at regular intervals during the contract period. The Group assesses the adequacy of allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. Details of clients accounting for 10% or more of accounts receivable are as follows: Year ended December 31, 2014 2015 Amount % Amount % A $ 1,963,900 13.5 $ * * B $ 5,044,178 34.6 $ * * C $ * * $ 4,245,971 25.9 * Represented less than 10% of consolidated account receivable balance. There were no customers with 10% or more of the Group's revenues during 2013, 2014, or 2015. Recently accounting pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers. ASU 2014-09 supersedes the revenue recognition requirements in ASC 605, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is originally effective for the annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. ASU 2015-14, Revenue from Contracts with Customers, defers the effective date of ASU 2014-09 by one year. As a result, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017 and interim periods therein. Early adoption is permitted to the original effective date. The Group is currently evaluating the timing of its adoption and the impact of adopting the new revenue standard on its consolidated financial statements and considering additional disclosure requirements. In April 2015, the FASB issued ASU No. 2015-03 ("ASU 2015-03"), Interest – Imputation of Interest. ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. The Group does not expect the adoption of ASU 2015-03 will have a significant impact on the consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16 ("ASU 2015-16"), Business Combinations (Topic 805) Simplifying the Accounting for Measurement – Period Adjustments. ASU 2015-16 requires the acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, |
Note 3 - Acquisitions
Note 3 - Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 3. ACQUISITIONS Acquisition of CFO Guiwo On April 1, 2015, Fortune Zhengjin Co., Ltd. ("Fortune Zhengjin", formerly known as Huifu Jinyuan , an affiliate of the Company, acquired 100% of equity interest of Shanghai Guiwo Information Technology Co., Ltd. ("CFO Guiwo"), which was not a significant acquisition. Total cash consideration was $16,278. The Company recognized $19,906 goodwill at the acquisition date. Neither the results of operations since the acquisition date nor the pro forma results of operations of CFO Guiwo were presented because of the effects of this acquisition was not significant to the Company's consolidated statement of comprehensive income. Acquisition of CFO Tahoe On September 30, 2013, Shanghai Stockstar Wealth Management Co., Ltd. ("Stockstar Wealth Management"), an affiliate of the Company, paid $6,506,181 to subscribe the newly issued shares of Shenzhen Tahoe Investment and Development Co., Ltd. ("CFO Tahoe") and acquired 60% of the equity interest. CFO Tahoe held the 55% share equity in Henghui (Tianjin) Precious Metals Investment Co., Ltd. ("CFO Henghui"), with which the Company expects to develop the commodities brokerage business in the future. With the assistance of a third party appraiser, the Company allocated the purchase price to assets acquired and liabilities assumed as of the acquisition date as follows and goodwill was allocated to commodities brokerage business and other related services operating segment. The net revenue and net income of CFO Tahoe in the amount of $5,988,280 and $1,864,234, respectively, have been included in the consolidated statement of comprehensive income for the year ended December 31, 2013. Useful life (in years) Purchase price allocation: Cash and cash equivalents $ 5,279,425 Prepaid expenses and current assets 1,135,765 Accounts receivable 2,143,957 Property and equipment, net 47,770 Rental deposit 72,431 Acquired intangible assets: Commodities trading right 699,414 Customer relationship 1,250,813 4.3 Guarantee fund deposits 1,626,545 Total assets acquired 12,256,120 Accrued expenses and other current liabilities (2,810,425 ) Deferred tax liabilities (487,557 ) Total net assets 8,958,138 Noncontrolling interest (9,508,295 ) Goodwill 7,056,338 Total purchase price $ 6,506,181 Acquisition of Champion Connection's business On July 1, 2013, Giant Bright International Holdings Limited ("CFO GB") and Mainfame Group Limited ("CFO MF"), two subsidiaries of the Company, entered into a series of contractual arrangement with Champion Connection Network H.K Limited ("Champion Connection") to acquire the packaged fixed assets, experienced personnel related to its investment advisory and institution subscription services businesses in China, respectively. For the acquisition, the purchase consideration comprised cash consideration was $4,044,980, 30% shares of CFO GB, 30% shares of CFO MF and a contingent consideration of 5% shares of CFO MF. With the assistance of a third party appraiser, the Company allocated the purchase price to assets acquired and liabilities assumed as of the acquisition date as follows and goodwill was allocated to investment advisory services, institution subscription services and other related services operating unit. In addition, the fair value of the shares of CFO GB and CFO MF were determined by using the income approach. Purchase price allocation: Property and equipment, net $ 199,803 Total assets acquired 199,803 Goodwill 6,544,150 Cash consideration 4,044,980 The fair value of 30% shares of CFO GB 1,760,861 The fair value of 30% shares of CFO MF 804,142 Contingent consideration of 5% shares of CFO MF 133,970 Total purchase price $ 6,743,953 Business combination of CFO Netinfo On July 1, 2013, Zhengyong Information Technology (Shanghai) Co., Ltd. ("CFO Zhengyong"), a subsidiary of the Company, entered into a series of contractual arrangement with Netinfo (Beijing) Technology Co., Ltd. ("CFO Netinfo") to acquire 100% of the equity interest, with which the Company expects to develop the investment advisory services in the future. For the acquisition, the total cash consideration was $808,996. With the assistance of a third party appraiser, the Company allocated the purchase price to assets acquired and liabilities assumed as of the acquisition date as follows and goodwill was allocated to investment advisory services business and other related services operating segment. The net revenue and net loss of CFO Netinfo in the amount of $286,500 and $355,322, respectively, have been included in the consolidated statement of for the year ended December 31, 2013. Useful life (in years) Purchase price allocation: Cash and cash equivalents $ 121,044 Prepaid expenses and current assets 339,296 Accounts receivable 4,912 Acquired intangible assets: Security consulting license 598,657 15 Total assets acquired 1,063,909 Accrued expenses and other current liabilities (274,748 ) Deferred tax liabilities (149,664 ) Income tax payable 612 Total net assets 640,109 Goodwill 168,887 Total purchase price $ 808,996 If comparative financial statements are presented, the pro forma results as though the business combination that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period The pro forma results are prepared for comparative purposes only and do not purport to be indicative of the results of operations which actually would have resulted, nor is it indicative of future operating results. There was no significant acquisition during the years ended December 31, 2014 and 2015, and then no pro forma results were presented. Fair value of acquired assets The Group measured the fair value for the assets acquired, with the assistance of an independent valuation firm, using discounted cash flow techniques, and these assets were valued using Level 3 inputs, because the Group used unobservable inputs to value them, reflecting the Group's assessment of the assumptions market participants would use in valuing these purchased intangible assets. |
Note 4 - Business Restructure
Note 4 - Business Restructure | 12 Months Ended |
Dec. 31, 2015 | |
Business Restructure [Abstract] | |
Business Restructure [Text Block] | 4. BUSINESS RESTRUCTURE On June 1, 2014, the Group signed a series of contractual arrangements for the business restructure. Pursuant to the arrangements, the Group disposed (i) its entire 100% equity interest of several VIEs and subsidiaries of VIEs designated under the contract, (ii) the workforce and assets from the acquisition of Champion Connection's business related to the institutional subscription services to CFO GB and CFO MF's noncontrolling shareholders. In addition, the Group also should pay 20% net income of three subsidiaries of VIEs related to the commodities brokerage services designated under the contract, and a cash consideration of $1,620,877, to get (i) 20% equity interest of CFO Tahoe, and (ii) 40% equity interest of CFO GB and 30% CFO MF. The Group recognized a gain from the disposal with an amount of $90,666 in the consolidated statement of comprehensive income for the year ended December 31, 2014. |
Note 5 - Accounts Receivable
Note 5 - Accounts Receivable | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Receivable [Abstract] | |
Accounts Receivable [Text Block] | 5. ACCOUNTS RECEIVABLE December 31, 2014 2015 Accounts receivable-margin clients $ 1,698,861 $ 4,367,417 Less: Allowance for doubtful accounts - - Accounts receivable- margin clients, net $ 1,698,861 $ 4,367,417 Accounts receivable-others 12,928,570 12,048,306 Less: Allowance for doubtful accounts (43,077 ) (40,592 ) Accounts receivable-others, net $ 12,885,493 $ 12,007,714 Accounts receivable- margin clients represent the receivables derived in the Hong Kong brokerage service in iSTAR Securities, which is pledged by the customer's purchased securities. Accounts receivable-others represent the receivables derived in commodities brokerage business and other ordinary business without any collateral or other security from its customers. |
Note 6 - Consideration Receivab
Note 6 - Consideration Receivable | 12 Months Ended |
Dec. 31, 2015 | |
Consideration Receivable [Abstract] | |
Consideration Receivable [Text Block] | 6. CONSIDERATION RECEIVABLE In order to enhance our return on cash during the strategic transition period, in March 2013, the Group made an equity method investment to a real estate developer in Langfang City, Hebei Province (the "Langfang Developer"). The Group invested an aggregate $22,142,400 in consideration for 49% of its equity interests. In December 2013, the Company transferred this investment to two third party companies at the consideration of $24,930,702. As of December 31, 2013, the Company has collected $11,481,244 in cash. The carrying balance of consideration receivable was $13,400,882 as of December 31, 2014. The consideration receivable was pledged by the 100% equity interests of Langfang Developer. As of December 31, 2014, based on the valuation of the 100% equity interests of Langfang Developer performed by a third party appraiser, there was no impairment loss of the consideration receivable. In December 2015, the Company fully collected the consideration receivable. The carrying balance of consideration receivable was nil as of December 31, 2015. |
Note 7 - Prepaid Expenses and O
Note 7 - Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Expenses And Other Current Assets Disclosure [Abstract] | |
Prepaid Expenses And Other Current Assets Disclosure [Text Block] | 7. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following: December 31, 2014 2015 Prepayment of advertising fees $ 213,837 $ 209,778 Advertising deposit 355,390 196,290 Advances to suppliers 840,308 1,272,519 VAT refund receivable 139,908 68,429 Interest receivable 1,264,075 65 Prepayment of office rental 380,325 170,536 Amount due from noncontrolling shareholders (i) 2,393,645 - Sales of cost method investment receivable (Note 11) 2,168,868 - Amounts due from equity method investee - 212,904 Other current assets 784,507 1,358,126 Total $ 8,540,863 $ 3,488,647 (i) The amounts due from noncontrolling shareholders represented the interest free loans to the noncontrolling shareholders. Pursuant to the agreement, all the loans were for temporary cash turnover purpose and were received in the first quarter of 2015. |
Note 8 - Loan Receivable
Note 8 - Loan Receivable | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 8. LOAN RECEIVABLE The Group has loan receivable due from third parties, which consisted of the following: As of December 31, 2014 2015 Interest rate Period A(i) $ 10,295,800 $ - 1.5% per month October 9, 2013 to October 20, 2014 $ 10,295,800 $ - 19-21% per annum October 21, 2014 to December 31, 2014 (i) The loan was made to the Langfang Developer, in which the Group also made an equity method investment in 2013 (Note 6). The principal and its return are pledged by the 100% equity interests of Langfang Developer. In September 2014, the Company's board of directors approved an extension of the outstanding loan to December 31, 2014. As of December 31, 2014, based on the valuation of the 100% equity interests of Langfang Developer performed by a third party appraiser, there was no impairment loss of the loan. In March, 2015, the Group collected approximately $2.1 million (RMB13 million, equivalently) from Langfang Developer. In December 2015, the Company received the remaining outstanding loan and relative interests. The Group recorded $693,231, $3,783,929 and $2,283,875 interest income in relation to the consideration receivable and loan receivable during the years ended December 31, 2013, 2014 and 2015, respectively. The following table presents changes in loan receivable for the twelve-month period ended December 31, 2014 and 2015, respectively: December 31, 2014 2015 Beginning balance $ 10,333,120 $ 10,295,800 Collection - (9,807,585 ) Exchange difference (37,320 ) (488,215 ) Ending balance $ 10,295,800 $ - |
Note 9 - Short-term Investments
Note 9 - Short-term Investments | 12 Months Ended |
Dec. 31, 2015 | |
Short-term Investments [Abstract] | |
Short Term Investments [Text Block] | 9. SHORT-TERM INVESTMENTS The Group measured the trading securities at fair value based on quoted market prices in an active market. As a result the Group has determined the valuation of its trading securities falls within Level 1 of the fair value hierarchy. As of December 31, 2014 and 2015, the Group did not hold any trading securities. For the year ended December 31, 2013, 2014 and 2015, the Group recognized a loss from the trading securities of nil, $47,941 and $18,396 in the consolidated statement of comprehensive income, respectively. The Group measured the available-for-sale securities at the fair value shown by the financial institution which the Group believes a Level 2 valuation. The following table presents changes in level 2 available-for-sale securities measured on a recurring basis for the twelve-month period ended December 31, 2014 and 2015, respectively: December 31, 2014 2015 Beginning balance $ - $ - Purchases 90,205,903 105,334,483 Redemption (90,323,594 ) (105,560,595 ) Realized gain 106,392 234,421 Exchange difference 11,299 (8,309 ) Ending balance $ - $ - The following table provides additional information on the realized gains of the sale of available-for-sale securities as of December 31, 2014 and 2015, respectively. For purposes of determining gross realized gains, the cost of securities sold is based on specific identification. Year ended December 31, 2015 Proceeds Costs Gains Exchange Available-for-sale securities $ 105,560,595 $ 105,334,483 $ 234,421 $ (8,309 ) Total $ 105,560,595 $ 105,334,483 $ 234,421 $ (8,309 ) Year ended December 31, 2014 Proceeds Costs Gains Exchange Available-for-sale securities $ 90,323,594 $ 90,205,903 $ 106,392 $ 11,299 Total $ 90,323,594 $ 90,205,903 $ 106,392 $ 11,299 The fair values of trading securities and available-for-sale securities as measured, and held-to-maturity securities as disclosed are further discussed in Note 10. |
Note 10 - Fair Value Measuremen
Note 10 - Fair Value Measurement | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 10. FAIR VALUE MEASUREMENT Fair value disclosed or measured on a recurring basis The fair values of the Group's trading securities and available-for-sale securities as measured, held-to-maturity securities as disclosed are determined based on the discounted cash flow method. The Group measured the available-for-sale securities at the fair value shown by the financial institution which the Group believes a Level 2 valuation. The Group's financial assets measured or disclosed at fair value on a recurring basis both were nil as of December 31, 2014 and 2015. The following table presents changes in level 2 available-for-sale securities measured on a recurring basis for the twelve-month period ended December 31, 2014 and 2015, respectively: December 31, 2014 2015 Beginning balance $ - $ - Purchases 90,205,903 105,334,483 Redemption (90,323,594 ) (105,560,595 ) Realized gain 106,392 234,421 Exchange difference 11,299 (8,309 ) Ending balance $ - $ - Fair value disclosed or measured on a non-recurring basis The Group measures certain financial assets, including equity method investments and cost method investments, at fair value on a nonrecurring basis only if an impairment charge were to be recognized. The Group's non-financial assets, such as intangible assets, goodwill and fixed assets, would be measured at fair value only if they were determined to be impaired on an other-than-temporary basis. Fair value at December 31, 2014 Total losses in the year ended December 31, 2014 Fair value at December 31, 2015 Total losses in the year ended December 31, 2015 Non- Recurring Goodwill - (8,149,525 ) - - Intangible Assets - (1,802,125 ) - (250,360 ) As of December 31, 2014 and 2015, certain goodwill (Note 16) and intangible assets (Note 15) were written off from their carrying value to fair value, which was measured using significant unobservable inputs (Level 3), with impairment loss incurred and recorded in the in the consolidated statement of comprehensive income for the year ended December 31, 2014 and 2015. |
Note 11 - Cost Method Investmen
Note 11 - Cost Method Investment | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Cost and Equity Method Investments Disclosure [Text Block] | 11. COST METHOD INVESTMENT In 2012, the Group made a cost method investment. The carrying amount of the cost method investments was $802,202 as of December 31, 2012. As result of an addition investment of $309,698 in 2013, the carrying balance of such investment was $1,138,899 as of December 31, 2013. In 2014, the Group made another cost method investment of $81,064. The total carrying balance of such cost method investments were $1,217,617 as of December 31, 2014. In 2014, the Group sold its equity interests in Ocean Butterflies Holdings Inc. to a third party, which was fully impaired as of December 31, 2011. Gains from the sale of cost method investment recognized in the consolidated statement of comprehensive income for the year ended December 31, 2014 was $4,337,736, of which $2,168,868 was remained receivable as of December 31, 2014. In April, 2015, the Group collected $2,168,868, the remaining consideration related to the sale of Ocean Butterflies Holdings Inc. In May 2015, the Group sold a cost method investment to third parties, which was acquired during 2012 and 2013, and recognized a gain from the sale of cost method investment of $4,648,302 in the consolidated statement of comprehensive income for the year ended December 31, 2015. In December 2015, the Group entered a series of arrangements to dispose its 90% equity interests in CFO Securities Consulting with third parties. With the assistance of a third party appraiser, the fair value of the 10% retained noncontrolling investment of $477,393 was recognized in the consolidated balance sheets. (Note 13) As a result, the carrying balance of cost method investment was $554,392 as of December 31, 2015. The following table presents changes in cost method investment for the twelve-month period ended December 31, 2014 and 2015, respectively: December 31, 2014 2015 Beginning balance $ 1,138,899 $ 1,217,617 Acquisitions 81,713 - consideration of disposal (4,337,736 ) (5,790,369 ) Gain from sale of cost method investment 4,337,736 4,648,302 Fair value adjustment of retained noncontrolling investment - 477,393 Exchange difference (2,995 ) 1,449 Ending balance $ 1,217,617 $ 554,392 These investments are recorded as cost method investments, as the Group did not have a significant influence to the investee. There was no impairment of the Group's cost method investment for the year ended December 31, 2014 and 2015. |
Note 12 - Equity Method Investm
Note 12 - Equity Method Investment | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 12. EQUITY METHOD INVESTMENT In June 2015, the Group paid $307,996 to acquire 20% of an investee's the equity interest. In December 2015, the Group entered a contractual arrangement with a third party to transfer its 15% equity interests in Aishang (Beijing) Fortune Technology Co., Ltd. ("CFO Aishang"), which was previously owned 55% equity interests by the Group. The remaining 40% equity interests in CFO Aishang was recorded as equity method investment at the disposal date, as the Group lost control over CFO Aishang. The fair value of the retained noncontrolling investment of $985,586 was recognized in the consolidated balance sheets, based on the valuation performed by a third party. (Note 13) The Group recognized a loss from equity method investment of $66,970 in the consolidated statement of comprehensive income for the year ended December 31, 2015. The carrying balance of equity method investment was $1,228,269 as of December 31, 2015. The following table presents changes in equity method investment for the twelve-month period ended December 31, 2015: December 31, Beginning balance $ - Acquisitions 307,996 Equity method investment losses (66,970 ) Fair value adjustment of retained noncontrolling investment 985,586 Exchange difference 1,657 Ending balance $ 1,228,269 |
Note 13 - Deconsolidation
Note 13 - Deconsolidation | 12 Months Ended |
Dec. 31, 2015 | |
Deconsolidation Disclosure [Abstract] | |
Deconsolidation Disclosure [Text Block] | 13. Deconsolidation In December, 2015, the Group entered a series of arrangements to dispose its 100% equity interests in Zhongcheng Futong Co., Ltd. ("CFO Zhongcheng") which holds 90% equity interests in CFO Securities Consulting with third parties. Pursuant to the arrangements, the cash consideration was $9,322,850. With the assistance of a third party appraiser, the fair value of the 10% retained noncontrolling investment of $477,393 was recognized as a cost method investment in the consolidated balance sheets (Note 11), as the Group did not have any significant influence over CFO Securities Consulting. The Group recorded a gain on the interest sold and the retained noncontrolling investment of $9,161,948 in the consolidated statement of comprehensive income for the year ended December 31, 2015. In December, 2015, the Company entered a contractual arrangement with third parties to transfer its 15% equity interests in CFO Aishang, which was previously owned 55% equity interests by the Group. Pursuant to the arrangements, the cash consideration was $3,861. With the assistance of a third party appraiser, the fair value of the 40% retained noncontrolling investment of $985,586 was recognized as an equity method investment in the consolidated balance sheets (Note 12). The Group recorded a gain on the interest sold and the retained noncontrolling investment of $837,853 in the consolidated statement of comprehensive income for the year ended December 31, 2015. The gain on the interest sold and the retained noncontrolling investment was calculated as the difference between the aggregate of (i) the fair value of the consideration transferred, (ii) the fair value of any retained noncontrolling investment in the former affiliated company on the date the affiliated company was deconsolidated, and (iii) the carrying amount of any noncontrolling interest in the former affiliated company on the date the affiliated company was deconsolidated, if applicable; and the carrying amount of the former affiliated company's net assets. |
Note 14 - Property and Equipmen
Note 14 - Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 14. PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of: December 31, 2014 2015 Technology infrastructure $ 9,842,789 $ 10,638,276 Computer equipment 1,995,876 2,163,506 Furniture, fixtures and equipment 4,052,425 3,800,591 Motor vehicle 929,340 875,729 Leasehold improvements 4,610,488 4,931,813 21,430,918 22,409,915 Less: accumulated depreciation (16,567,969 ) (16,620,381 ) Property and Equipment, Net $ 4,862,949 $ 5,789,534 Depreciation expense for the years ended December 31, 2013, 2014 and 2015 were $1,732,035, $1,524,655 and $1,364,048, respectively. |
Note 15 - Acquired Intangible A
Note 15 - Acquired Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Intangible Assets Disclosure [Text Block] | 15. ACQUIRED INTANGIBLE ASSETS, NET Intangible assets as of December 31, 2014 and 2015 were as follows: December, 31 2014 2015 Gross Accumulated Impairment Disposal Net carrying Gross Accumulated Impairment Net carrying Intangible assets not subject to amortization: Commodities trading right 1,372,773 - - (81,712 ) 1,291,061 1,216,582 - (250,360 ) 966,222 Intangible assets subject to amortization: Completed technology 68,639 (27,187 ) (41,452 ) - - - - - - Customer relationship 1,256,741 (362,522 ) - - 894,219 1,184,243 (610,931 ) - 573,312 Securities consulting license and related trademarks 5,570,082 (741,279 ) (1,760,673 ) (3,068,130 ) - - - - - $ 8,268,235 $ (1,130,988 ) $ (1,802,125 ) $ (3,149,842 ) $ 2,185,280 $ 2,400,825 $ (610,931 ) $ (250,360 ) $ 1,539,534 Amortization expenses for the years ended December 31, 2013, 2014 and 2015 were $432,957, $448,768 and $285,088, respectively. Future amortization expenses of acquired intangible assets with determinable lives are $393,460, $393,460, and $32,788 for 2016, 2017 and 2018, respectively. There was no impairment on intangible assets for the year ended December 31, 2013. For the year ended December 31, 2014, the Group recorded an impairment loss on its intangible assets in the amount of $1,802,125 associated with the acquired completed technology and securities consulting license and related trademarks due to management's estimation of the expected future cash flows associated with these assets were insufficient to recover their carrying values. During 2014, the Group disposed its intangible assets in the amount of $3,149,842 associated with the acquired commodities trading right and securities consulting license and the related trademarks due to the business restructure. For the year ended December 31, 2015, the Group recorded an impairment loss of $250,360 related to commodities trading right. |
Note 16 - Goodwill
Note 16 - Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Goodwill Disclosure [Text Block] | 16. GOODWILL Changes in goodwill for the years ended December 31, 2013, 2014 and 2015 were as follows: Commodities Investment services Institutional services Total Balance as of January 1, 2014 $ 7,115,479 $ 8,182,468 $ 1,676,490 $ 16,974,437 Impairment of CFO East Win - (3,112,365 ) - (3,112,365 ) Impairment of Champion Connection's business - (4,867,660 ) - (4,867,660 ) Disposal of Champion Connection's business (Note4) - - (1,676,490 ) (1,676,490 ) Impairment of CFO Netinfo - (169,500 ) - (169,500 ) Exchange difference (25,699 ) (32,943 ) - (58,642 ) Balance as of December 31, 2014 $ 7,089,780 $ - $ - $ 7,089,780 Acquisition of CFO Guiwo (Note3) 19,906 - - 19,906 Exchange difference (410,066 ) - - (410,066 ) Balance as of December 31, 2015 $ 6,699,620 $ - $ - $ 6,699,620 During the third quarter of 2013, the Group made a series of business acquisition and restructures. The Company has re-categorized its reporting units to better reflect the evolving nature of its businesses and reallocated its goodwill. The goodwill related to acquisition of CFO Tahoe was allocated to commodities brokerage reporting unit; the goodwill related to the acquisition of CFO East Win, CFO Netinfo and Champion Connection's investment advisory business were allocated to investment advisory services reporting unit and the goodwill related to the acquisition of Champion Connection's institutional subscription business were allocated to the institutional reporting unit. In the second quarter of 2014, due to the new business redirection to develop our online brokerage services "Securities Master", the Group was expected to suffer reduced cash flow in its investment advisory reporting unit. With the assistance of a third party appraiser, the Group recognized an impairment loss of $8,149,525 related to the investment advisory services reporting unit. On June 1, 2014, the Group disposed all of goodwill related to the institutional reporting unit of $1,676,490 as a result of the business restructure (Note 4). The Group also performed a goodwill impairment test related to commodities trading business as of December 31, 2014 and no impairment loss was recorded. The goodwill related to the acquisition of CFO Guiwo was allocated to commodities trading reporting unit, which was acquired in the second quarter of 2015. The Group performed a goodwill impairment test as of December 31, 2015 and no impairment loss was recorded. In the goodwill impairment test, the Group used the income approach, which it believed to be more reliable than the market approach in determining the fair value of the Group's reporting units. Accordingly, it adopted a discounted cash flow ("DCF") method under the income approach, which considers a number of factors that include expected future cash flows, growth rates, discount rates, and comparable multiples from publicly traded companies in the industry and requires the Group to make certain assumptions and estimates regarding industry economic factors and future profitability of its business unit. The assumptions are inherently uncertain and subjective. Based on the impairment tests performed, the Group recognized impairment losses of nil, $8,149,525 and nil for the years ended December 31, 2013, 2014 and 2015, respectively. |
Note 17 - Accounts Payable
Note 17 - Accounts Payable | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 17. Accounts payable Accounts payable consist of: December 31, 2014 2015 Amount due to customers of Hong Kong brokerage business $ 7,982,827 $ 2,388,638 Amount due to sales agents 583,367 1,722,827 Amount due to noncontrolling shareholders 876,911 910,864 Others 409,386 471,399 $ 9,852,491 $ 5,493,728 |
Note 18 - Accrued Expenses and
Note 18 - Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | 18. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of: December 31, 2014 2015 Accrued bonus $ 3,612,689 $ 4,825,633 Accrued professional service fees 760,780 416,676 Withholding individual income tax-option exercise 61,683 61,683 Value added taxes and other taxes payable 945,471 2,219,300 Accrued raw data cost 762,492 1,285,418 Accrued bandwidth cost 127,650 38,527 Accrued welfare benefits 72,160 61,594 Amount payable related to business restructure (Note 4) 360,520 - Advances related to disposal of subsidiaries (i) - 5,081,927 Accrued sales service fees 491,981 578,910 Others 1,642,308 1,085,757 Total $ 8,837,734 $ 15,655,425 (i) On March 30, 2015, the Group signed a sale & purchase agreement with a third party, to transfer the 100% ordinary shares of iSTAR Futures and iSTAR Wealth Management (the Transaction ). In April 2015, the Group collected partial consideration of approximately $5.1 million. Due to the Transaction was not completed as of December 31, 2015, the agreement was expired automatically. The Group refunded the $5.1 million and entered into a new agreement in April 2016. (Note 28) |
Note 19 - Stock Options and Non
Note 19 - Stock Options and Nonvested Shares | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 19. STOCK OPTIONS AND NONVESTED SHARES As of December 31, 2015, the Company and its subsidiaries have five share-based compensation plans, which are described below. The compensation expenses that had been charged against income for those plans were $3,035,122, $4,698,953 and $6,056,033 for 2013, 2014, and 2015, respectively. 2004 Stock incentive plan In January 2004, the Company adopted the 2004 stock incentive plan (the "2004 Plan") which allows the Company to offer a variety of incentive awards to employees, directors, officers and other eligible persons in the Group, and consultants and advisors outside the Group. We amend the 2004 Plan in September 2004, August 2006, June 2009 and June 2010. The total number of ordinary shares authorized under the 2004 Plan was 30,688,488, and all of these authorized ordinary shares were granted to directors, officers, employees and non-employees as of December 31, 2014. Options to employees During 2013, the Company granted totaling 7,740,000 stock options to directors, officers and employees at an exercise price that equaled the trading price of the stock upon the stock option grant. These options vest over 3 years except the 3,300,000 shares granted to the two officers which vest over 2 years. The fair value of employee options was estimated on the basis of the Black-Scholes Option Pricing model with the following assumptions: Years ended December 31, 2013 Weighted average risk free rate of return 1.40 % Weighted average expected option life (in years) 6.14 Expected volatility rate 76.67 % Dividend yield - (1) Expected volatility The volatility of the underlying ordinary shares during the life of the options was estimated based on the historical stock price volatility of the Company over the past years. (2) Risk-free interest rate Risk-free interest rate was estimated based on the yield to maturity of treasury bonds of the United States with a maturity period close to the expected term of the options. (3) Expected option life The expected life was estimated based on historical information. (4) Dividend yield The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the options. (5) Exercise price Options are generally granted at an exercise price equal to the fair market value of the Company's shares at the date of grant. Options to non-employees During 2013, the Company granted 6,260,000 options under the 2004 Plan to consultants and strategic advisers. The fair value of non-employee options is estimated using the Black-Scholes Option Pricing model as such method provided a more accurate estimate of the fair value of services provided by the consultants and strategic advisers. The fair value of the stock options is remeasured as of the end of each reporting period until the services of these non-employees are complete under the service contracts. These options vest over two years. Summary of stock options to employees and non-employees A summary of the stock option activity is as follows: 2013 2014 2015 Number of options Weighted exercise price Number of options Weighted exercise price Number of options Weighted exercise price Outstanding at beginning of year 11,144,998 $ 0.93 24,505,348 $ 0.54 21,326,160 $ 0.57 Granted 14,000,000 0.25 - - - - Exercised (190,250 ) 0.16 (1,164,300 ) 0.54 (2,205,600 ) 0.22 Forfeited (449,400 ) 1.25 (2,014,888 ) 0.27 (1,787,800 ) 1.18 Outstanding at end of year 24,505,348 $ 0.54 21,326,160 $ 0.57 17,332,760 $ 0.55 Shares exercisable at end of year 10,500,548 $ 0.93 14,070,240 $ 0.73 14,513,528 $ 0.61 The following table summarizes information with respect to stock options outstanding at December 31, 2015: Options outstanding Option exercisable Stock option Number outstanding Weighted contractual life Weighted exercise Aggregate 31, Number exercisable Weighted exercise Aggregate 31, $1.07 700,000 700,000 $0.96 2,268,000 2,268,000 $1.318 53,600 53,600 $1.26 413,360 413,360 $1.648 10,000 10,000 $1.426 2,091,000 2,091,000 $1.43 50,000 50,000 $0.25 11,746,800 8,927,568 17,332,760 5.85 $ 0.55 $ 12,412,802 14,513,528 $ 0.61 $ 9,616,123 The weighted-average grant-date fair value of options granted during the years 2013 was $0.17. The total intrinsic value of options exercised during the years ended December 31, 2013, 2014 and 2015 was $208,895, $647,701, and $1,881,129, respectively. The total fair value of shares vested during the year ended December 31, 2013, 2014 and 2015 were $141,549, $3,080,628 and $2,067,037, respectively. The Company recognized share-based compensation expenses of $2,539,274, $2,664,317 and $546,465 for stock option in the years ended December 31, 2013, 2014 and 2015, respectively. As of December 31, 2015, there were $39,183 unrecognized share-based compensation expenses relating to the stock options, which are expected to be recognized over a weighted average period of one year. Restricted shares to employees On January 2, 2014, the Company granted remaining 1,100,240 ordinary shares, which were in the form of restricted shares, to employees under 2004 Plan. The vesting of the restricted shares is subject to rendering service to the Company for three years. Based on the Company's requisite service period stated in the 2004 Plan, 748,162 shares were vested as of January 2, 2016, of which 258,086 shares were issued to an employee as of December 31, 2015. The fair value of restricted shares is $1.106, which equal to the fair market value of the Company's shares at the date of grant. The Company recognized share-based compensation expenses of $762,568 and $324,496 for the years ended December 31, 2014 and 2015. As of December 31, 2015, there were $129,801 unrecognized share-based compensation expenses relating to the restricted shares, which are expected to be recognized over a weighted average period of one year. 2007 Equity incentive plan In July 2007, the Company adopted the 2007 Equity incentive plan (the "2007 Plan") and granted nonvested shares covering 10,558,493 ordinary shares of the Company to the employees who were eligible for the 2007 Plan. The vesting of the nonvested shares are subject to achieving certain operating performance targets and rendering service to the Company for the requisite service period stated in the 2007 Plan. Based on the Company's operating performance, 8,658,048 shares were vested as of December 31, 2010. In June 2014, the Annual General Meeting approved the amendment to the 2007 Plan and the Restricted Stock Issuance and Allocation Agreement of 2007 Plan. Pursuant to such agreement, together with the remaining 1,900,445 ordinary shares which were not vested due to the operating performance targets under 2007 Plan not being achieved, 3,000,000 ordinary shares were collectively granted to the employees who were eligible. The fair value of a nonvested share on the grant date was measured at the quoted market price of the Company's equity shares. The nonvested shares shall become activated and vest during the period commencing from the grant date and ending on December 31, 2016 based on the Company's achievement of the performance targets. As of December 31, 2014, there was no nonvested shares become activated and vested due to the performance targets were not achieved, and nil share-based compensation expenses relating to the nonvested shares was recognized. As of December 31, 2015, the granted shares were activated and vested based on the Group's achievement of performance target. The fair value of granted share is $0.82, which equal to the fair market value of the Company's shares at the date of grant. The Company recognized share-based compensation expenses of $1,476,000 for the years ended December 31, 2015. As of December 31, 2015, there were $984,000 unrecognized share-based compensation expenses relating to the restricted shares, which are expected to be recognized over a weighted average period of one year. A summary of the status of the nonvested shares as of December 31, 2013, 2014 and 2015, and changes during the year ended December 31, 2014 and 2015, respectively is presented below. Nonvested shares Shares Weighted- date fair value Aggregate intrinsic value At the beginning of year 2014 1,900,445 $ 0.252 $ 2,390,760 Granted 1,099,555 $ 0.82 $ 901,635 Vested - - - Forfeited - - - At the end of year 2014 3,000,000 $ 1.064 $ 3,192,000 Granted - Vested 3,000,000 $ 0.82 2,460,000 Forfeited - - - At the end of year 2015 3,000,000 $ 1.082 $ 3,246,000 2010 Equity incentive plan of iSTAR Financial Holdings In November 2010, iSTAR Financial Holdings, a subsidiary of the Company, implemented the "2010 equity incentive plan" (the "2010 Plan") under which the Company transferred 1,500 nonvested shares which representing 15% of total iSTAR Financial Holdings' equity interest to its management group as a share incentive. If the grantees left the Company before the third anniversary of the grant date when the nonvested shares become vested, they should transfer the shares to the Company at no consideration. Therefore, the total share based compensation expenses are recognized ratably over the three years of vesting period. In addition, as the grantees are entitled to all the shareholder's rights, including the dividend rights since the date of grant, the 15% share of the earnings of iSTAR Financial Holdings is recognized as noncontrolling interest on the Company's consolidated financial statements since November 1, 2010, the date of grant. The fair value of the share incentive was determined to be $1,188 per share. The Group recognized $495,848 share based compensation cost in 2013. As of December 31, 2013, all compensation cost relating to nonvested shares was recognized. 2014 Stock incentive plan In July 2014, the Company adopted the 2014 stock incentive plan (the "2014 Plan") which allows the Company to offer a variety of incentive awards to employees, directors, officers and other eligible persons in the Group, and consultants and advisors outside the Group. The maximum number of ordinary Shares that may be delivered pursuant to awards granted to eligible persons under 2014 Plan during calendar year 2014 is equal to 5,000,000 ordinary shares; provided, that, as of January 1 of each calendar year thereafter during the term of 2014 plan, the maximum number of ordinary shares that may be delivered pursuant to awards granted to eligible persons under 2014 Plan shall be increased by 3,000,000 Ordinary Shares. As of result, the total number of ordinary shares authorized under the 2014 Plan was 8,000,000 as of December 31, 2015. As of December 31, 2015, 31,400 shares were available for future grant of awards. Options to employees During 2014 and 2015, the Company granted totaling 1,930,000 and 120,000 stock options to employees at an exercise price that equaled the trading price of the stock upon the stock option grant, respectively. These options vest over 3 years. The fair value of employee options was estimated on the basis of the Black-Scholes Option Price model with the following assumptions: Years ended December 31, 2014 2015 Weighted average risk free rate of return 1.39% - 1.62% 1.32% Weighted average expected option life (in years) 6.82 - 6.87 6.86 Expected volatility rate 77.74% - 79.37% 77.81% Dividend yield - - (1) Expected volatility The volatility of the underlying ordinary shares during the life of the options was estimated based on the historical stock price volatility of the Company over the past years. (2) Risk-free interest rate Risk-free interest rate was estimated based on the yield to maturity of treasury bonds of the United States with a maturity period close to the expected term of the options. (3) Expected option life The expected life was estimated based on historical information. (4) Dividend yield The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the options. (5) Exercise price Options are generally granted at an exercise price equal to the fair market value of the Company's shares at the date of grant. Options to non-employees During 2014, the Company granted 30,000 options under the 2014 Plan to a consultant. The fair value of non-employee options is estimated using the Black-Scholes Option Pricing model as such method provided a more accurate estimate of the fair value of services provided by the consultants and strategic advisers. The fair value of the stock options is remeasured as of the end of each reporting period until the services of these non-employees are complete under the service contracts. These options vest over 3 years. Summary of stock options to employees and non-employees A summary of the stock option activity is as follows: 2014 2015 Number Weighted Number Weighted Outstanding at beginning of year - $ - 1,860,000 $ 0.89 Granted 1,960,000 0.90 120,000 0.87 Exercised - - (3,600 ) 0.92 Forfeited (100,000 ) 0.88 (741,400 ) 0.89 Outstanding at end of year 1,860,000 $ 0.89 1,235,000 $ 0.88 Shares exercisable at end of year - - 480,200 $ 0.89 The following table summarizes information with respect to stock options outstanding at December 31, 2015: Options outstanding Option exercisable Stock option with exercise price of: Number Weighted Weighted Aggregate Number Weighted Aggregate $0.878 985,000 433,400 $0.92 30,000 10,800 $1.03 50,000 18,000 $1.04 50,000 18,000 $0.87 120,000 - 1,235,000 8.70 $ 0.88 $ 433,540 480,200 $ 0.89 $ 168,688 The weighted-average grant-date fair value of options granted during the years 2014 and 2015 was $0.63 and $0.61, respectively. The total intrinsic value of options exercised during the years ended December 31, 2014 and 2015 was nil and $1,159, respectively. The total fair value of shares vested during the year ended December 31, 2014 and 2015 was nil and $496,560, respectively. The Company recognized share-based compensation expenses of $148,451 and $(187,485) for stock option in the years ended December 31, 2014 and 2015, respectively. As of December 31, 2015, there were $345,961 unrecognized share-based compensation expenses relating to the stock options, which are expected to be recognized over a weighted average period of two year. Restricted shares to employees During 2014, the Company granted 1,780,000 restricted shares under the 2014 Plan to directors and employees. The vesting of the restricted shares is subject to rendering service to the Company for two years. Based on the Company's requisite service period stated in the 2014 Plan, there were 890,000 shares vested, of which 15,000 shares were issued as of December 31, 2015. The fair value of restricted shares was $0.878, which was the fair market value of the Company's shares at the date of grant. On November 16, 2015, the Company granted 3,800,000 restricted shares under the 2014 Plan to selected directors and employees. Subject to the agreement, the awards shall become activated and vest during the period commencing on the grant date and ending on November 16, 2018 (the "Vesting Term"), provided that the participant has achieved all the performance targets. The fair value of restricted shares was $0.742, which was the fair market value of the Company's shares at the date of grant. The Company recognized share-based compensation expenses of $310,888 and $898,903 relating to the restricted shares granted to employees in 2014 and 2015, respectively. As of December 31, 2015, there were $3,172,649 unrecognized share-based compensation expenses relating to the restricted shares granted to employees, which are expected to be recognized over a weighted average period of 2.6 year. Restricted shares to non-employees During 2014, the Company granted 1,150,000 restricted shares under the 2014 Plan to consultants. The fair value of the stock options is remeasured as of the end of each reporting period until the services of these non-employees are completed under the service contracts. These options vest over two years except 50,000 restricted shares granted to one consultant which vest over three years. The Company recognized share-based compensation expenses of $245,958 and $754,354 relating to the restricted shares granted to non-employees in 2014 and 2015, respectively. As of December 31, 2015, there were $427,988 unrecognized share-based compensation expenses relating to the restricted shares granted to non-employees, which are expected to be recognized over a weighted average period of half year. Restricted shares of Shanghai Shangtong Co., Ltd. ("CFO Shangtong"), Fortune Zhengjin and CFO Tahoe On July 1, 2014, CFO Shangtong and Fortune Zhengjin, two affiliates of the Company, entered into a series of contractual arrangement with selected employees of the Group. Pursuant to the agreement, these employees were granted 10% restricted shares of CFO Shangtong and Fortune Zhengjin. The vesting of the restricted shares is subject to rendering service to the Company for five years. The fair value of restricted shares is $28,965 and $2,464,455, which equal to the fair value of the CFO Shangtong and Fortune Zhengjin's 10% net assets at the effective date of the agreement, respectively. On July 1, 2015, Fortune Zhengjin entered into an additional arrangement with selected employees of the Group. Pursuant to the agreement, these employees were granted 8% restricted shares of Fortune Zhengjin. The vesting of the restricted shares is subject to rendering service to the Company for five years. The fair value of restricted shares is $4,681,533, which equal to the fair value of Fortune Zhengjin's 8% net assets at the effective date of the agreement. CFO Tahoe also entered an arrangement with selected employees of the Group. Pursuant to the agreement, these employees were granted 1.95% restricted shares of CFO Tahoe. The fair value of restricted shares is subject to rendering service to the Company for five years. The fair value of restricted shares is $1,141,124, which equal to the fair value of CFO Tahoe's 1.95% net assets at the effective date of the agreement. The Company recognized share-based compensation expenses of $6,584 and $560,187 in 2014 relating to CFO Shangtong, Fortune Zhengjin, respectively. There were $10,200, $1,965,535 and $267,565 share-based compensation expenses recorded in 2015 relating to CFO Shangtong, Fortune Zhengjin and CFO Tahoe, respectively. As of December 31, 2015, there were $10,510 and $4,478,097 and $873,559 unrecognized share-based compensation expenses relating to CFO Shangtong, Fortune Zhengjin and CFO Tahoe, respectively, which are expected to be recognized over a weighted average period of 3.5 years. |
Note 20 - Income Taxes
Note 20 - Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 20. INCOME TAXES Hong Kong China Finance Online, iSTAR Securities, iSTAR Futures, iSTAR Wealth Management, iSTAR Credit and other eight subsidiaries were established in Hong Kong. These companies were subject to Hong Kong profit tax at 16.5%. In addition, companies who incorporated outside of Hong Kong and carried on a trade, profession or business in Hong Kong were also subject to Hong Kong profit tax in respect of their profits arising in or derived from Hong Kong. British Virgin Islands Companies that were incorporated in the BVI are not subject to taxation in their country of incorporation. Subsidiaries incorporated in the BVI include iSTAR Financial Holdings and other eleven subsidiaries. PRC The Group's PRC entities are subject to 25% PRC Enterprise Income Tax ("EIT") on the taxable income in accordance with the relevant PRC income tax laws, except for certain entities that enjoy preferential tax rates, which are lower than the statutory rates, as described below. Under the EIT Law and its implementing rules, an enterprise which qualifies as a "high and new technology enterprise" ("the HNTE") is entitled to a tax rate of 15%. Under the EIT law and its implementing rules, enterprises that obtain status of "Software Enterprises" are entitled to be exempted from EIT tax for the first two profit-making years and enjoy a preferential 12.5% tax rate, which is half of the standard EIT rate of 25% for the three years thereafter. A summary of the main PRC entities that subject to tax preferential policies for the year ended December 31, 2015 is as follows: PRC entities Chinese EIT rate Qualification for preferential tax rate CFO Qicheng Preferential tax rate of 12.5% in 2013 and 2014. Software Enterprises CFO Shenzhen Shangtong Preferential tax rate of 12.5% in 2013 and 2014. Software Enterprises CFO Software Preferential tax rate of 15% in 2013. HNTE CFO Meining Preferential tax rate of 15% from 2013 to 2015. HNTE CFO Genius Preferential tax rate of 15% from 2013 to 2015. HNTE CFO Tibet Preferential tax rate of 9% from 2015 to 2017 and 15% thereafter Preferential tax rate for enterprises in Tibet, China Under the EIT Law, the HNTE status is valid for three years and qualifying entities can then apply to renew for an additional three years provided their business operations continue to qualify for the HNTE status. CFO Software obtained its HNTE status in 2008 and its renewal in 2011. CFO Meining obtained its HNTE status in 2008 and obtained the renewal successfully in 2011 and 2014. In 2012, CFO Genius also obtained the HNTE status and successfully renewed it in 2015. In 2013 and 2014, CFO Chongzhi and CFO Shangtong filed their EIT by adopting the "deemed-profit method". In 2014, Shanghai Yongfu Enterprises Management Consulting Co., Ltd. adopted this method. In 2015, Zhengjin (Jiangsu) Precious Metals Co., Ltd. also adopted this method .Under this method, the qualifying entities filed their income tax by calculating as 2.5% of the gross revenues. This method is subject to be reevaluated by the local tax authority in the future. The EIT Law includes a provision specifying that legal entities organized outside of the PRC will be considered residents for PRC Income tax purposes if the place of effective management or control is within the PRC. The implementation rules to the EIT Law provide that non-resident legal entities will be considered PRC residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting, properties, etc., occurs within the PRC. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Group does not believe that currently the legal entities organized outside of the PRC within the Group should be treated as residents for EIT law purposes. If the PRC tax authorities subsequently determine that the Company and its subsidiaries registered outside the PRC should be deemed a resident enterprise, the Company and its subsidiaries registered outside the PRC will be subject to the PRC income tax at a rate of 25%. If the Company were to be non-resident for PRC tax purpose, dividends paid to it out of profits earned after January 1, 2008 would be subject to a withholding tax. In the case of dividends paid by PRC subsidiaries the withholding tax would be 10% not considering the arrangements for the Avoidance of Double Taxation on income and Prevention of Fiscal Evasion with respect to Taxes on Income between mainland and Hong Kong. Aggregate deficits of the Company's subsidiaries located in the PRC were approximately $20.3 million at December 31, 2015. And accordingly, no provision has been made for the Chinese dividend withholding taxes. Aggregate undistributed earnings of the Company's VIEs and its VIEs' subsidiaries located in the PRC that is available for distribution to the Company of approximately $30.0 million at December 31, 2015. A deferred tax liability should be recorded for taxable temporary differences attributable to the excess of financial reporting amounts over tax basis amounts, including those differences attributable to a more than 50% interest in a domestic subsidiary. However, recognition is not required in situations where the tax law provides a means by which the reported amount of that investment can be recovered tax-free and the enterprise expects that it will ultimately use that means. The Company has not recorded any such deferred tax liability attributable to the undistributed earnings of its financial interest in VIEs because it believes such excess earnings can be distributed in a manner that would not be subject to income tax. Income tax (provision) benefit was as follows: December 31, 2013 2014 2015 Current $ (478,966 ) $ (558,696 ) $ (2,071,154 ) Deferred 378,908 44,782 686,892 Total $ (100,058 ) $ (513,914 ) $ (1,384,262 ) The principal components of deferred income taxes were as follows: December 31, 2014 2015 Current deferred tax assets: Deferred revenue - current $ 594,196 $ 445,314 Accrued expenses and other liabilities 467,758 612,161 Net operating loss carrying forwards 4,233,246 4,718,396 Gross current deferred tax assets 5,295,200 5,775,871 Less: valuation allowance (4,369,119 ) (4,806,407 ) Total current deferred tax assets 926,081 969,464 Non-current deferred tax assets Deferred revenue- non-current $ 268,393 $ 121,133 Net operating loss carrying forwards 10,556,749 10,984,475 Gross non-current deferred tax assets 10,825,142 11,105,608 Less: valuation allowance (10,753,602 ) (11,085,358 ) Total non-current deferred tax assets $ 71,540 $ 20,250 Current deferred tax liabilities: Account receivable and other assets (580,197 ) (15,132 ) Total current deferred tax liabilities $ (580,197 ) $ (15,132 ) Non-current deferred tax liabilities: Intangible assets (546,320 ) (384,883 ) Total non-current deferred tax liabilities $ (546,320 ) $ (384,883 ) A valuation allowance of $15,122,721 and $15,891,765 was established as of December 31, 2014 and 2015, respectively, for the entities that have incurred losses because the Group believes that it is more likely than not that the related deferred tax assets will not be realized in the future. At December 31, 2015, operating loss carry forwards includes approximately $52.3 million which will expire by 2020, and $18.7 million which will carry forward indefinitely. Reconciliation between total income tax expense (benefit) and the amount computed by applying the PRC EIT statutory rate to income before income taxes is as follows: Years ended December 31, 2013 2014 2015 Income (loss) before tax $ (8,073,832 ) $ (10,116,814 ) $ 28,201,950 Income tax (benefits) expenses calculated at 25% (2,018,458 ) (2,529,204 ) 7,050,488 Effect of tax holiday (266,396 ) (4,125,912 ) (8,139,429 ) Effect of income tax rate difference in other jurisdictions 305,505 1,789,762 645,873 Non-deductible expenses. 267,748 1,425,655 2,559,649 Non-taxable income (439,861 ) (549,315 ) (893,950 ) Change in valuation allowance 2,251,520 4,502,928 161,631 Income tax expense $ 100,058 $ 513,914 $ 1,384,262 During the years ended December 31, 2013, 2014 and 2015, if the Company's subsidiaries, VIEs and VIEs' subsidiaries in the PRC were neither in the tax holiday period nor had they been specifically allowed special tax concessions, they would have recorded additional income tax expense of $31,910, $20,851 and $1,102,399, respectively. The impact of the tax holidays on basic net income per ordinary share was an increase of $0.00, $0.00 and $0.01, for the years ended December 31, 2013, 2014 and 2015, respectively. The Group did not identify significant unrecognized tax benefits for the years ended December 31, 2013, 2014 and 2015. The Group did not incur any interest and penalties related to potential underpaid income tax expenses and also believed that the adoption of pronouncement issued by FASB regarding accounting for uncertainty in income taxes did not have a significant impact on the unrecognized tax benefits within 12 months from December 31, 2015. In accordance with relevant PRC tax administration laws, tax years from 2010 to 2015 of the Group's PRC subsidiaries and VIEs remain subject to tax audits as of December 31, 2015, at the tax authority's discretion. |
Note 21 - American Depositary S
Note 21 - American Depositary Shares ("ADS") Plan | 12 Months Ended |
Dec. 31, 2015 | |
American Depositary Shares Plan [Abstract] | |
American Depositary Shares Plan [Text Block] | 21. AMERICAN DEPOSITARY SHARES ("ADS") PLAN In September 2015, the Group issued 4,000,000 ordinary shares to its American Depositary Receipt bank and in exchange received 800,000 ADSs under the 2004 Plan and 2014 Plan. As of December 31, 2015, 3,305,800 shares were available for future exercise of options and vesting of granted shares. |
Note 22 - Net Loss Per Share
Note 22 - Net Loss Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 22. NET INCOME (LOSS) PER SHARE The following table sets forth the computation of basic and diluted income (loss) per share for the years indicated: Years ended December 31, 2013 2014 2015 Net income (loss) attributable to China Finance Online Co. Limited $ (8,573,128 ) $ (7,167,849 ) $ 22,482,416 Weighted average ordinary shares outstanding used in computing basic net income (loss) per share 109,019,513 109,385,712 110,997,871 Plus: Incremental shares from assumed conversions of stock options and nonvested shares - - 14,131,892 Weighted average ordinary shares outstanding used in computing diluted net income (loss) per share 109,019,513 109,385,712 125,129,763 Net income (loss) per share attributable to China Finance Online Co. Limited - basic $ (0.08 ) $ (0.07 ) $ 0.20 - diluted $ (0.08 ) $ (0.07 ) $ 0.18 For the years ended December 31, 2013 and 2014, 24,505,348 options and 1,900,445 nonvested shares, 23,186,160 options, 4,030,240 restricted shares and 3,000,000 nonvested shares, were anti-dilutive, respectively, because the Group was in the loss position. |
Note 23 - Mainland China Contri
Note 23 - Mainland China Contribution Plan and Profit Appropriation | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 23. MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION Full time employees of the Group in the PRC participate in a government-mandated defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require the Group to accrue for these benefits based on certain percentages of the employees' salaries. The total provisions for such employee benefits were $2,710,481, $3,685,654 and $4,353,944 for the years ended December 31, 2013, 2014 and 2015, respectively. |
Note 24 - Noncontrolling Intere
Note 24 - Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2015 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Disclosure [Text Block] | 24. NONCONTROLLING INTERESTS Commodities Investment Institutional iSTAR Financial Other Total Balance as of January 1, 2013 $ - $ 688,062 $ - $ 63,306 $ - $ 751,368 Acquisition of CFO Tahoe (Note 3) 9,508,295 - - - - 9,508,295 Acquisition of Champion Connection (Note 3) - 1,760,861 938,112 - - 2,698,973 Acquisition of Nontrolling interests of CFO East Win - 586,954 - - - 586,954 Changes in ownership of subsidiaries - 289,656 (1,068,471 ) - - (778,815 ) Paid-in capital from noncontrolling shareholders 1,405,963 - - - - 1,405,963 Share-based compensation (Note 19) - - - 74,376 - 74,376 Net income (loss) 1,056,322 (419,202 ) (64,585 ) (173,297 ) - 399,238 Balance as of December 31, 2013 $ 11,970,580 $ 2,906,331 $ (194,944 ) $ (35,615 ) $ - $ 14,646,352 Business restructure (2,569,160 ) 2,384,519 786,355 - 12,201 613,915 Dividends paid to noncontrolling shareholders (1,030,012 ) - - - - (1,030,012 ) Share-based compensation (Note 19) 158,696 - - - - 158,696 Net income (loss) 2,463,956 (5,290,850 ) (591,411 ) 3,936 (48,510 ) (3,462,879 ) Balance as of December 31, 2014 $ 10,994,060 $ - $ - $ (31,679 ) $ (36,309 ) $ 10,926,072 Dividends paid to noncontrolling shareholders (6,509,680 ) - - - - (6,509,680 ) Changes in controlling ownership interest 1,393,508 - - - 320,956 1,714,464 Paid-in capital from noncontrolling shareholders 641 - - - - 641 Share-based compensation (Note 19) 724,285 - - - - 724,285 Net income (loss) 4,815,506 - - (195,587 ) (284,647 ) 4,335,272 Balance as of December 31, 2015 $ 11,418,320 $ - $ - $ (227,266 ) $ - $ 11,191,054 |
Note 25 - Commitments and Conti
Note 25 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 25. COMMITMENTS AND CONTINGENCIES Commitments The Group leases certain office premises and purchases data under non-cancelable leases. Rent expenses under operating leases for 2013, 2014 and 2015 were $4,808,894, $7,013,985 and $6,044,119, respectively. Future minimum payments under non-cancelable operating leases and data purchase agreements were as follows: Year ending 2016 $ 5,437,871 2017 3,359,212 2018 1,632,872 Total $ 10,429,955 Securities Litigation The Company and certain of its officers and directors were named as defendants in a putative securities class actions filed in Central District of California which was then transferred to Southern District of New York. The complaints allege that the Company violated Exchange Act Section 10(b) and Rule 10b-5 by failing to disclose certain its transactions as related party transaction. As the actions remain in their preliminary stages, the Company's management is unable to express any opinion on the likelihood of an unfavorable outcome or any estimate of the amount or range of any potential loss. Litigation The Group was involved in certain cases pending in some PRC courts as of December 31, 2015. These cases include a copyright infringement case, among others. Adverse results in these lawsuits may include awards of damages and may also result in a loss of revenue or otherwise harm the business of the Group. For many proceedings, the Company is currently unable to estimate the reasonably possible loss or a range of reasonably possible losses as the proceedings are in the early stages, and/or there is a lack of clear or consistent interpretation of laws specific to the industry-specific complaints among different jurisdictions. As a result, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, which includes eventual loss, fine, penalty or business impact, if any, and therefore, an estimate for the reasonably possible loss or a range of reasonably possible losses cannot be made. However, the Company believes that such matters, individually and in the aggregate, when finally resolved, are not reasonably likely to have a material adverse effect on the Company’s consolidated results of operations, financial position and cash flows. |
Note 26 - Segment and Geographi
Note 26 - Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 26. SEGMENT AND GEOGRAPHIC INFORMATION The Group has three operating segments (1) commodities brokerage services, (2) online financial information and advisory service, and other related services in PRC, (3) Hong Kong brokerage services. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-makers in deciding how to allocate resources and in assessing performance. The Group's chief executive officer has been identified as the chief operating decision makers. The Group's chief operating decision maker directs the allocation of resources to operating segments based on the profitability and cash flows of each respective segment. The Group evaluates performance based on several factors, including net revenue, cost of revenue, operating expenses, income from operation. The following tables show the operations of the Group's operating segments: For the year ended December 31, 2015 Commodities Subscription Hong Kong Consolidated Net revenues $ 113,720,922 $ 27,236,753 $ 3,149,063 $ 144,106,738 Less: intersegment sales (34,018,268 ) (2,683,704 ) - (36,701,972 ) Net revenues from external customer 79,702,654 24,553,049 3,149,063 107,404,766 Cost of revenues 4,975,361 14,321,339 1,181,538 20,478,238 Less: intersegment cost of revenues - (739,501 ) - (739,501 ) Cost of revenues after elimination 4,975,361 13,581,838 1,181,538 19,738,737 Operating expenses: General and administrative 4,026,984 11,148,924 2,978,161 18,154,069 Product development 2,549,731 8,188,718 - 10,738,449 Sales and marketing 69,674,657 12,139,100 566,396 82,380,153 Loss from impairment of intangible assets 250,360 - - 250,360 Total segments operating expenses 76,501,732 31,476,742 3,544,557 111,523,031 Less: intersegment operating expenses (35,907,706 ) (47,620 ) (110,721 ) (36,066,047 ) Total operating expenses. 40,594,026 31,429,122 3,433,836 75,456,984 Government subsidies 251,828 - - 251,828 Income (loss) from operations $ 34,385,095 $ (20,457,911 ) $ (1,466,311 ) $ 12,460,873 Total segments assets. $ 109,286,634 $ 179,706,230 $ 47,011,111 $ 336,003,975 Less: intersegment assets (51,101,320 ) (122,077,495 ) (18,760,003 ) (191,938,818 ) Total assets. $ 58,185,314 $ 57,628,735 $ 28,251,108 $ 144,065,157 For the year ended December 31, 2014 Commodities Subscription Hong Kong Consolidated Net revenues $ 80,943,201 $ 25,250,486 $ 4,610,516 $ 110,804,203 Less: intersegment sales (20,852,084 ) (6,256,234 ) - (27,108,318 ) Net revenues from external customer 60,091,117 18,994,252 4,610,516 83,695,885 Cost of revenues 10,526,980 8,091,595 1,731,651 20,350,226 Less: intersegment cost of revenues - 2,503 - 2,503 Cost of revenues after elimination 10,526,980 8,094,098 1,731,651 20,352,729 Operating expenses: General and administrative 8,320,540 19,544,999 2,655,925 30,521,464 Product development 2,460,048 13,567,759 - 16,027,807 Sales and marketing 52,371,135 12,845,724 586,015 65,802,874 Loss from impairment of intangible assets - 1,802,125 - 1,802,125 Loss from impairment of goodwill - 8,149,525 - 8,149,525 Total segments operating expenses 63,151,723 55,910,132 3,241,940 122,303,795 Less: intersegment operating expenses (24,533,694 ) (15,199,246 ) (117,740 ) (39,850,680 ) Total operating expenses. 38,618,029 40,710,886 3,124,200 82,453,115 Government subsidies 655,437 3,980 - 659,417 Income (loss) from operations $ 11,601,545 $ (29,806,752 ) $ (245,335 ) $ (18,450,542 ) Total segments assets. $ 62,272,231 $ 171,870,606 $ 52,776,273 $ 286,919,110 Less: intersegment assets (26,824,659 ) (127,444,636 ) (18,746,458 ) (173,015,752 ) Total assets. $ 35,447,572 $ 44,425,970 $ 34,029,815 $ 113,903,358 For the year ended December 31, 2013 Commodities Subscription Hong Kong Consolidated Net revenues $ 30,124,245 $ 21,656,482 $ 3,404,767 $ 55,185,494 Less: intersegment sales (2,447,417 ) (2,447,417 ) Net revenues from external customer 30,124,245 19,209,065 3,404,767 52,738,077 Cost of revenues 2,613,287 7,018,379 938,404 10,570,070 Operating expenses: General and administrative 1,087,048 10,831,336 3,291,718 15,210,102 Product development 784,083 8,248,244 - 9,032,327 Sales and marketing 22,015,190 10,429,389 591,074 33,035,653 Total segments operating expenses 23,886,321 29,508,969 3,882,792 57,278,082 Less: intersegment operating expenses (2,447,417 ) (2,447,417 ) Total operating expenses 21,438,904 29,508,969 3,882,792 54,830,665 Government subsidies - 11,187 - 11,187 Income (loss) from operations $ 6,072,054 $ (17,307,096 ) $ (1,416,429 ) $ (12,651,471 ) Total segments assets 27,791,654 80,844,211 31,893,233 140,529,098 Less: intersegment balances - (7,036,363 ) - (7,036,363 ) Total assets $ 27,791,654 $ 73,807,848 $ 31,893,233 $ 133,492,735 Enterprise wide disclose The Group derives revenue from external customers for each of the following services during the years presented: Years ended December 31, 2013 2014 2015 Commodities brokerage services revenues $ 30,124,245 $ 60,091,117 $ 79,702,654 Financial information and advisory services revenues 11,122,400 10,355,732 17,205,459 Advertising revenue 6,799,109 8,160,310 7,023,399 Hong Kong brokerage services revenues 3,404,767 4,610,516 3,149,063 Others 1,287,556 478,210 324,191 Total revenue from external customers.. $ 52,738,077 $ 83,695,885 $ 107,404,766 Substantially all of the Company's revenues for the years ended December 31, 2013, 2014 and 2015 were generated from the PRC and Hong Kong. As of December 31, 2013, 2014 and 2015, respectively, substantially all of long-lived assets of the Group are located in the PRC and Hong Kong. |
Note 27 - Statutory Reserves an
Note 27 - Statutory Reserves and Restricted Net Assets | 12 Months Ended |
Dec. 31, 2015 | |
Statutory Reserves And Restricted Net Assets Disclosure [Abstract] | |
Statutory Reserves And Restricted Net Assets Disclosure [Text Block] | 27. STATUTORY RESERVES AND RESTRICTED NET ASSETS PRC legal restrictions permit payments of dividends by the Group's PRC entities only out of their retained earnings, if any, determined in accordance with PRC regulations. Prior to payment of dividends, pursuant to the laws applicable to the PRC Domestic Enterprises and PRC Foreign Investment Enterprises, the PRC entities must make appropriations from after-tax profit to non-distributable statutory reserve funds as determined by the Board of Directors of the Group. These reserve funds include the (1) general reserve, (2) enterprise expansion fund and (3) staff bonus and welfare fund. Subject to certain cumulative limits, the general reserve fund requires annual appropriations of not less than 10% of after-tax profit (as determined under accounting principles and financial regulations applicable to PRC enterprises at each year-end); the other two funds are to be made at the discretion of the board of directors of each of the Group's subsidiaries. These reserve funds can only be used for specific purposes and are not distributable as cash dividends. The appropriation to these reserves by the Group's PRC subsidiaries was $284,114, $679,927 and $1,820,080 in 2013, 2014 and 2015. The balance of the statutory reserves was $6,820,441 and $8,640,521 as of December 31 2014 and 2015. Such reserves have been included in the retained earnings of the Company's consolidated balance sheet. As a result of these PRC laws and regulations and the requirement that distributions by PRC entities can only be paid out of distributable profits computed in accordance with PRC GAAP, the PRC entities are restricted from transferring a portion of their net assets to the Group. Amounts restricted include paid-in capital and the statutory reserves of the Company's PRC subsidiaries and VIEs. As of December 31, 2015, the aggregate amounts restricted which represented the amount of net assets of the relevant subsidiaries and VIEs in the Group not available for distribution was $71,700,541. As a result of the above restrictions, parent-only financials are presented on financial statement Schedule I. |
Note 28 - Subsequent Event
Note 28 - Subsequent Event | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 28. SUBSEQUENT EVENT In April, 2016, the Group signed a sale & purchase agreement with a third party, to transfer the 100% ordinary shares of iSTAR Wealth Management. The completion of this transaction was still subject to conditions, including but not limited to obtaining the approvals and consents of CSRC and Securities and Futures Commission of Hong Kong. The consideration of this transaction is approximately $2.9 million (HK$22.5 million, equivalently). |
Schedule I - Financial Informat
Schedule I - Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Financial information of Parent Company Balance sheets (In U.S. dollars, except share-related data) December 31, 2014 2015 Assets Current assets: Cash and cash equivalents $ 1,383,205 $ 971,500 Amounts due from subsidiaries, VIEs and VIE’s subsidiaries 7,492,739 7,350,974 Prepaid expenses and other current assets 2,479,810 290,603 Dividends receivable 17,541,570 16,529,639 Total current assets 28,897,324 25,142,716 Investments in subsidiaries, VIEs and VIE’s subsidiaries 48,389,562 76,682,094 Rental deposits 66,893 - Total assets $ 77,353,779 $ 101,824,810 Liabilities and shareholders' equity Current liabilities: Accrued expenses and other current liabilities 296,866 279,801 Amounts due to subsidiaries, VIEs and VIE's subsidiaries 12,441,549 13,506,638 Total current liabilities $ 12,738,415 $ 13,786,439 Shareholders' equity Ordinary shares (112,417,933 and 118,098,018 shares issued and outstanding as of December 31, 2014 and 2015, respectively) 56,386,606 56,856,000 Additional paid-in capital 24,207,606 28,145,846 Accumulated other comprehensive income 12,064,338 8,597,295 Retained deficits (28,043,186 ) (5,560,770 ) Total shareholders' equity 64,615,364 88,038,371 Total liabilities and shareholders' equity $ 77,353,779 $ 101,824,810 Financial information of Parent Company Statements of Comprehensive Income (In U.S. dollars) December 31, 2013 2013 2015 Cost of revenues $ 2,584 $ - $ - Gross loss (2,584 ) - - Operating expenses: General and administrative 1,417,843 1,418,198 1,226,800 Product development 62,914 50,859 - Sales and marketing 160,112 108,384 - Share-based compensation 2,539,274 4,132,182 3,812,733 Total operating expenses 4,180,143 5,709,623 5,039,533 Interest income 605 30 47 Equity in earnings (deficits) of subsidiaries, VIEs and VIE's subsidiaries (4,985,519 ) (6,394,055 ) 28,643,095 Exchange gain (loss), net 594,513 (76,351 ) (1,011,509 ) Other income (loss), net - 674,414 (109,684 ) Gain from sales of cost method investment - 4,337,736 - Net income (loss) $ (8,573,128 ) $ (7,167,849 ) $ 22,482,416 Other comprehensive income (loss), net of tax: Changes in foreign currency translation adjustment 1,195,795 (221,070 ) (3,467,043 ) Other comprehensive income (loss), net of tax 1,195,795 (221,070 ) (3,467,043 ) Comprehensive income (loss) $ (7,377,333 ) $ (7,388,919 ) $ 19,015,373 Financial Information of Parent Company Statement of Shareholders' Equity (In U.S. dollars, except share data) Ordinary shares Shares Amount Additional Accumulated other Retained Total Balance as of January 1, 2013. 110,955,383 $ 14,328 $ 81,163,243 $ 11,089,820 $ (12,302,209 ) $ 79,965,182 Exercise of share options by employees. 190,250 25 30,415 - - 30,440 Share-based compensation. - - 2,539,274 - - 2,539,274 Equity pick up from compensation of a subsidiary - - 421,473 - - 421,473 Business combination. - - 191,861 - - 191,861 Foreign currency translation adjustment - - - 1,195,795 - 1,195,795 Net loss. - - - - (8,573,128 ) (8,573,128 ) Balance as of December 31, 2013 111,145,633 $ 14,353 $ 84,346,266 $ 12,285,615 $ (20,875,337 ) $ 75,770,897 Transfer share premium to share capital - 55,718,184 (55,718,184 ) - - - Exercise of share options by employees 1,164,300 654,055 - - - 654,055 Restricted shares issued 108,000 14 - - - 14 Share-based compensation - - 4,132,182 - - 4,132,182 Equity pick up from compensation of VIE's subsidiaries - - 408,075 - - 408,075 Business restructure - - (8,960,733 ) - - (8,960,733 ) Foreign currency translation adjustment - - - (221,277 ) - (221,277 ) Net loss - - - - (7,167,849 ) (7,167,849 ) Balance as of December 31, 2014 112,417,933 $ 56,386,606 $ 24,207,606 $ 12,064,338.00 $ (28,043,186 ) $ 64,615,364 Issuance of ordinary shares for the plan of stock options and restricted shares 4,000,000 520 - - - 520 Exercise of share options by employees 435,000 293,654 - - - 293,654 Exercise of share options by nonemployees 1,095,000 175,200 - - - 175,200 Restricted shares issued 150,085 20 - - - 20 Share-based compensation - - 3,812,733 - - 3,812,733 Equity pick up from compensation of VIE's subsidiaries - - 1,519,015 - - 1,519,015 Changes of controlling ownership interest - - (1,393,508 ) - - (1,393,508 ) Foreign currency translation adjustment - - - (3,467,043 ) - (3,467,043 ) Net income - - - - 22,482,416 22,482,416 Balance as of December 31, 2015 118,098,018 $ 56,856,000 $ 28,145,846 $ 8,597,295 $ (5,560,770 ) $ 88,038,371 Financial information of Parent Company Statements of cash flows (In U.S. dollars, except share-related data) December 31, 2013 2014 2015 Operating activities: Net income (loss) $ (8,573,128 ) $ (7,167,849 ) $ 22,482,416 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Stock-based compensation 2,539,274 4,132,182 3,812,733 Gain from sales of cost method investment - (4,337,736 ) - Equity in deficits (earnings) of subsidiaries, VIEs and VIE’s subsidiaries 4,985,519 6,394,055 (28,643,095 ) Changes in assets and liabilities: Prepaid expenses and other current assets (63,446 ) (143,380 ) 20,339 Amounts due from subsidiaries, VIEs and VIE’s subsidiaries (4,092,500 ) 983,297 142,303 Rental deposits (271 ) - 66,893 Accrued expenses and other current liabilities 34,392 10,825 (8,035 ) Amounts due to subsidiaries, VIEs and VIE’s subsidiaries 1,779,098 1,535,073 1,065,088 Net cash (used in) provided by operating activities. (3,391,062 ) 1,406,467 (1,061,358 ) Investing activities: Dividend receivable from subsidiaries 1,140,713 1,375,727 1,011,931 Capital injection to subsidiaries. - (2,774,315 ) (3,000,000 ) Proceeds from sales of cost method investment - - 2,168,868 Net cash provided (used in) by investing activities.. 1,140,713 (1,398,588 ) 180,799 Financing activities: Proceeds from stock options exercised by employees.. 30,440 654,055 293,654 Proceeds from stock options exercised by nonemployees.. - - 175,200 Net cash provided by financing activities 30,440 654,055 468,854 Net (decrease) increase in cash and cash equivalents (2,219,909 ) 661,934 (411,705 ) Cash and cash equivalents, beginning of the year 2,941,180 721,271 1,383,205 Cash and cash equivalents, end of the year $ 721,271 $ 1,383,205 $ 971,500 Note: Basis for preparation The parent-company Financial Information of China Finance Online has been prepared using the same accounting policies as set out in the Group's consolidated financial statements except that China Finance Online has used equity method to account for its investments in its subsidiaries and variable interest entities. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). |
Consolidation, Policy [Policy Text Block] | Basis of consolidation The consolidated financial statements include the financial statements of China Finance Online, its subsidiaries, VIEs for which the Company is the primary beneficiary and those VIEs' subsidiaries. All inter-company transactions and balances have been eliminated upon consolidation. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted cash Restricted cash is the deposit in bank accounts for providing guarantee to subscription revenue customers by Shanghai Stockstar Securities Advisory and Investment Co., Ltd. ("CFO Securities Consulting") in accordance with the requirement of China Securities Regulatory Commission ("CSRC"). The restriction period is one year. |
Fair Value Measurement, Policy [Policy Text Block] | Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1-inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. Level 2-inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3-inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. The Group measures certain assets, including the long-term investments and intangible assets, at fair value on a nonrecurring basis when they are deemed to be impaired. The fair values of these investments and intangible assets are determined based on valuation techniques using the best information available, and may include management judgments, future performance projections, etc. |
Trust Bank Balances Held On Behalf Of Customers [Policy Text Block] | Trust bank balances held on behalf of customers Trust bank balances held on behalf of customers consist two parts: i) iSTAR Securities and iSTAR Futures receive fund from customers for purpose of buying or selling securities and futures on behalf of its customers and deposits the fund in its interest-bearing bank account; ii) The funds received by CFO Newrand from customers who purchase mutual funds and other wealth management products which are deposited in a trust bank account. The Group launched "Yinglibao", an internet-based financial platform that integrates cash management solutions and mutual fund distribution. Such bank balance represents an asset of the Group for the amounts due to customers for the trust bank balance held on their behalf and payable to customers on demand. The Group also recognizes a corresponding liability. |
Use of Estimates, Policy [Policy Text Block] | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Group's financial statements include account receivable, cost method investment, equity method investment, impairment of goodwill and long-lived assets, income taxes, share-based compensation and purchase price allocation. Actual results could differ from those estimates. |
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | Loan receivable Loans are reported at either their outstanding principal balances. For loans reported at their outstanding principal balances, interest income is accrued on the unpaid principal balance. A loan is considered impaired when, based on current events and the financial condition of the borrower, it is probable that the company will be unable to collect all principal and interest due according to the contractual terms of the loan agreement. Loan collectability is monitored by the Group in connection with the ongoing monitoring of the associated financial guarantee transactions. |
Marketable Securities, Policy [Policy Text Block] | Short-term investments Short-term investments comprise marketable debt and equity securities, which are classified as trading, held-to-maturity or available-for-sale. Trading securities are securities that are bought and held principally for the purpose of selling them in the near term and are reported at fair value, with unrealized gains and losses recognized in earnings. Short-term investments are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. All of the Company's held-to-maturity securities are classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year and are stated at their amortized costs. Short-term investments classified as available for sale are carried at their fair values and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income. Available for sale securities are classified as current assets on the accompanying consolidated balance sheets because they are available for immediate sale. The Group reviews its short-term investments for other-than-temporary impairment based on the specific identification method. The Company considers available quantitative and qualitative evidence in evaluating potential impairment of its short-term investments. If the cost of an investment exceeds the investment's fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than the cost, and the Group's intent and ability to hold the investment, in determining if impairment is needed. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and equipment, net Property and equipment, net are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Technology infrastructure (in years) 5 Computer equipment 5 Furniture, fixtures and equipment 5 Motor vehicle 5 Leasehold improvements Shorter of the lease term or 5 |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Acquired intangible assets, net Acquired intangible assets are estimated by management based on the fair value of assets acquired. Identifiable intangible assets are carried at cost less accumulated amortization. Amortization of definite-lived intangible assets is computed using the straight-line method over the estimated average useful lives, which are as follows: License and related trademarks (in years) 15 Completed technology (in years) 5 Customer relationship (in years) 4 - 5 Certain trademarks resulting from the acquisitions of business and certain trading rights bought by the Group are determined to have indefinite lives. If an intangible asset is determined to have an indefinite life, it is not amortized until its useful life is determined to be no longer indefinite. |
Guarantee Fund Deposits [Policy Text Block] | Guarantee fund deposits Guarantee fund deposits consist of i) the funds deposited with Hong Kong Exchange and Clearing Limited by iSTAR Futures, to guarantee its customers' settlement obligations; ii) the funds deposited with the commodities exchanges as a result of its customers' trading. The Group needs to deposit certain percentage of its customers' trading margins with the commodities exchanges. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of long-lived assets with definite lives The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group compares the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the fair value of the assets. |
Business Combinations Policy [Policy Text Block] | Business combinations Business combinations are recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed, and any noncontrolling interest of the acquiree at the acquisition date, if any, are measured at their fair values as of that date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any noncontrolling interest of the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Common forms of the consideration made in acquisitions include cash and common equity instruments. Consideration transferred in a business acquisition is measured at the fair value as at the date of acquisition. Where the consideration in an acquisition includes contingent consideration the payment of which depends on the achievement of certain specified conditions post-acquisition, the contingent consideration is recognized and measured at its fair value at the acquisition date and if recorded as a liability it is subsequently carried at fair value with changes in fair value reflected in earnings. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Impairment of goodwill and indefinite-lived intangible assets The Group performs a qualitative analysis that includes reviewing the carrying value of intangible assets not subject to amortization, including goodwill, to determine whether impairment may exist, whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable at least annually. The excess of the purchase price over the fair value of net assets acquired is recorded on the consolidated balance sheet as goodwill. After a qualitative analysis indicates an impairment test is needed, the Company completes a two-step goodwill impairment test. The first step is to compare the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step is to compare the implied fair value of goodwill to the carrying value of a reporting unit's goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. Estimating fair value is performed by utilizing various valuation techniques, with the primary technique being a discounted cash flow. The impairment test for other intangible assets not subject to amortization consists of a comparison of the fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The estimates of fair values of intangible assets not subject to amortization are determined using various discounted cash flow valuation methodologies. Significant assumptions are inherent in this process, including estimates of discount rates. Discount rate assumptions are based on an assessment of the risk inherent in the respective intangible assets. The Group performed the annual impairment tests on December 31 of each year. Based on the Group's assessment, the Group recorded nil, $8,149,525 and nil goodwill impairment losses during the years ended December 31, 2013, 2014 and 2015, respectively. In addition, the Group recorded nil, nil and $250,360 impairment loss in relation to intangible assets with indefinite life during the years ended December 31, 2013, 2014 and 2015. |
Revenue Recognition, Policy [Policy Text Block] | Revenue recognition Commodities brokerage business The Group derives commission income, carrying charges and trading revenues from its commodities brokerage services. Commission income is recognized on a trade basis based on their customers' trading volumes. The commission earned is fixed no matter how the client's open positions are ultimately settled. Additionally, the Group charges carrying charges to its customers. The commissions and carrying charges are presented in net revenues in the statement of comprehensive income. Amounts are settled with the Exchange by both the Group and the customers and the exchange then settles with any counterparty. The exchange offsets the Group's gains and losses and amounts receivable and amounts payable from the exchange are presented net on the statement of financial position as the Group and the exchange settle net. Trading gains, net include brokerage fees and margins generated from derivative trades executed with customers and other counterparties and are recognized when trades are executed. Trading gains, net also include activities where the Group acts as market maker in the purchase and sale of commodities derivative instruments with customers. These transactions may be offset simultaneously with another customer or counterparty, offset with similar but not identical positions on an exchange, made from inventory, or may be aggregated with other purchases to provide liquidity intraday, for a number of days, or in some cases, particularly the commodities brokerage business, even longer periods (during which fair value may fluctuate). Therefore, trading gains, net includes activities from the Group's operations of a proprietary commodity trades. Net trading gains are recognized on a trade-date basis and include realized gains or losses and changes in unrealized gains or losses on investments at fair value. Unrealized gains/losses on open positions will be marked to market at each period end and may present trading gains and losses which comprise both realized and unrealized gains and losses, on a net basis in the statement of comprehensive income. The open transactions may lead to receivables and/or payables for open transaction which are recorded on the Statement of Financial Position. Revenue generally is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. The following table presents the totally recognized net revenue from commodities trading business, consisted of: Years ended December 31, 2014 2015 Commodities trading gains $ 38,297,005 $ 53,776,323 Commission income 17,397,978 22,913,704 Carrying charges 4,396,134 3,012,627 Total $ 60,091,117 $ 79,702,654 Hong Kong Brokerage services The Group also derives commission from its brokerage services provided by the subsidiaries, iSTAR Securities and iSTAR Futures which buy or sell securities and future contracts on their customers' behalf. The Group acts as an agent with their customers for these transactions. The commission income is recognized on a trade date basis as transactions occur. Financial information and advisory services The Group derives revenue from subscription fees from subscribers to their financial data, information services and investment advisory. The Group recognizes revenues when all of the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the fee is fixed or determinable and (4) collectability is probable. Upon receipt of the upfront cash payments from the subscriber, the Group will activate the subscriber's account and provide the subscriber the access code. This will commence a certain subscription period according to the customer demand and the full payment will be deferred and recognized ratably over the subscription period. The Group recognizes revenue ratably over the life of the arrangement. Estimated refund of subscription fees is recorded as deduction of revenue and deferred revenue. Advertising revenue The Group derives its advertising fees from advertising sales on their website for a fixed period of time, generally less than one year. Revenues from advertising arrangements are recognized ratably over the period the advertising is displayed. |
Business Taxes And Value Added Taxes [Policy Text Block] | Business taxes and value added taxes Starting from January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation launched a Business Tax to value added tax ("VAT") Transformation Pilot Program(the "Pilot Program"), for certain industries in Shanghai. On September 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation extended the Pilot Program to certain industries in other eight regions, including Beijing and Shenzhen. With the adoption of Pilot Program, our advertising-related revenues and certain subscription revenues were subject to VAT tax at a rate of 6%. Our advertising- related revenues, certain subscription revenues and certain commodities brokerage revenues were recognized after deducting VAT and other related surcharges. Revenue is recorded net of business taxes when incurred. The Group is subject to business taxes of 3%-5% on taxable services provided to its customers. During the years ended December 31, 2013, 2014, and 2015, business taxes and related surcharges totaled $598,044, $1,425,835 and $1,663,869, respectively. The Group's certain PRC subsidiaries, VIEs and VIEs' subsidiaries are subject to VAT at a rate of 17% on subscription-based revenue. VAT payable on subscription-based revenue is computed net of VAT paid on purchases. In respect of subscription-based revenue, however, if the net amount of VAT payable exceeds 3% of subscription-based revenue, the excess portion of value added tax can be refunded immediately. The Group therefore is subject to an effective net VAT burden of 3% from subscription-based revenue and records VAT on a net basis. Net amount of value added tax is recorded either in the line item of other current liabilities or prepaid expenses and other current assets on the face of consolidated balance sheet. Subscription-based revenue includes the benefit of the rebate of value added taxes on sale of the downloadable software received from the Chinese tax authorities as part of the PRC government policy of encouraging software development in the PRC. In 2013, 2014 and 2015, the Group recognized $639,936, $425,908 and $328,817, respectively, in VAT refunds. |
Government Subsidies [Policy Text Block] | Government subsidies The Group records government subsidies when granted by local government authority and are not subject to future return. The government subsidies include research & development subsidy, business tax refund, innovation fund and high-tech company subsidy. |
Revenue Recognition, Deferred Revenue [Policy Text Block] | Deferred revenue Payments received in advance of for our financial information and advisory service, advertising service are recorded as deferred revenue until earned and when the relevant revenue recognition requirements have been met. |
Cost Method Investments, Policy [Policy Text Block] | Cost method investment For investments in an investee over which the Group does not have significant influence, the Group carries the investment at cost and recognizes income as any dividends declared from distribution of investee's earnings. The Group reviews the cost method investments for impairment whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable. An impairment loss is recognized in earnings equal to the difference between the investment's cost and its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value of the investment would then become the new cost basis of the investment. |
Equity Method Investments, Policy [Policy Text Block] | Equity method investment Under the equity method, the Group initially records its investment at cost. The Group subsequently adjusts the carrying amount of the investment to recognize the Company's proportionate share of each equity investee's net income or loss. The Group will discontinue applying equity method if an investment (and additional financial supports to the investee, if any) has been reduced to zero. When the equity-method investment in ordinary shares is reduced to zero and further investments are made that have a higher liquidation preference than ordinary shares, the Group would recognize the loss based on its percentage of the investment with the same liquidation preference, and the loss would be applied to those investments of a lower liquidation preference first before being further applied to the investments of a higher liquidation preference. An impairment loss on the equity method investments is recognized in the consolidated statements of comprehensive income when the decline in value is determined to be other than-temporary |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign currency translation The functional and reporting currency of the Company is the United States dollar ("U.S. dollar"). The financial records of the Group's subsidiaries, VIEs and VIEs' subsidiaries located in the PRC, Hong Kong and British Virgin Islands are maintained in their local currencies, the Renminbi ("RMB"), Hong Kong Dollars ("HK$"), and U.S. Dollars ("US$"), respectively, which are also the functional currencies of these entities. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into functional currency at the applicable rates of exchange prevailing when the transactions occurred. Transaction gains and losses are recognized in the statements of operations. The Group's entities with functional currency of RMB and HK$ translate their operating results and financial position into the US$, the Group's reporting currency. Assets and liabilities are translated using the exchange rates in effect on the balance sheet date. Revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are report as cumulative translation adjustments and are shown as a separate component of other comprehensive income. |
Foregin Currency Risk [Policy Text Block] | Foreign currency risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People's Bank of China, controls the conversion of Renminbi into foreign currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. Cash and cash equivalents of the Group included aggregate amounts of $26,974,664, $19,726,992 and $79,461,280 at December 31, 2013, 2014 and 2015 which were denominated in RMB. |
Research, Development, and Computer Software, Policy [Policy Text Block] | Product development expenses Costs of product development, including investment in data capability, are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized. The Group essentially completed its development concurrently with the establishment of technological feasibility, and, accordingly, no costs have been capitalized. |
Advertising Costs, Policy [Policy Text Block] | Advertising costs The Group expenses advertising costs as incurred. Total advertising expenses were $2,391,762, $7,505,506 and $4,908,593 for the years ended December 31, 2013, 2014 and 2015, respectively, and have been included as part of sales and marketing expenses in the accompanying consolidated statements of operations. |
Commissions Expense, Policy [Policy Text Block] | Commissions paid Commissions paid are the commission rebates of our Hong Kong brokerage business and the commissions paid to the sales agents of our commodities brokerage business. Total commissions paid were $3,125,982, $11,546,126 and $5,049,661 for the years ended December 31, 2013, 2014 and 2015 |
Income Tax, Policy [Policy Text Block] | Income taxes Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net operating loss carry forwards and credits by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive income (loss) Comprehensive income (loss) includes net income (loss), unrealized gain (loss) on short-term investments and foreign currency translation adjustments. Beginning in January 1, 2012, the Group presents the components of net income, the components of other comprehensive income and total comprehensive income a single continuous consolidated statement of comprehensive income. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair value of financial instruments Financial instruments include cash and cash equivalents, restricted cash, accounts receivable, cost method investment, equity method investment, loan receivable and accounts payable. The carrying values of cash and cash equivalents, restricted cash, accounts receivable, loan receivable and accounts payable approximate their fair value due to their short-term maturities. The carrying value of the cost method investment was $1,217,617 and $554,392 as of December 31, 2014 and 2015, which approximate the fair value of the investment based on the valuation performed by the Company. The carrying value of the equity method investment was nil and $1,228,269 as of December 31, 2014 and 2015, which approximate the fair value of the investments at the acquired date and subsequently adjusted as the net assets of the investee change through the earning of income. The Group does not use derivative instruments to manage risks. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Share-based compensation Share-based compensation with employees is measured based on the grant date fair value of the equity instrument. The Group recognizes the compensation costs net of an estimated forfeiture rate using the straight-line method for performance based awards or graded vesting attribution method for service based awards, over the requisite service period of the award, which is generally the vesting period of the award. The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of share-based compensation expense to be recognized in future periods. Share awards issued to nonemployees are measured at fair value at the earlier of the commitment date or the date the services is completed and recognized over the period the service is provided or as goods is received. |
Earnings Per Share, Policy [Policy Text Block] | Net income (loss) per share Basic net income (loss) per share attributable to China Finance Online Co. Limited is computed by dividing net income (loss) attributable to China Finance Online Co. Limited by the weighted average number of ordinary shares outstanding during the period. Diluted net income per ordinary share attributable to China Finance Online Co. Limited reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. The dilutive effect of the stock options and nonvested shares is computed using treasury stock method. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of credit risk Financial instruments that potentially expose the Group to concentrations of credit risk consist principally of cash and cash equivalents, restricted cash, short-term investments, loan receivable and accounts receivable. The Group places its cash and cash equivalents, restricted cash, short-term investments in major financial institutions located in PRC and Hong Kong, which management considers to be of high credit quality. The Group conducts ongoing credit evaluations of its customers and generally does not require collateral or other security from its customers except for the accounts receivable-margin clients which represents the margin loan to customers for securities purchase. The accounts receivable-margin client was collateralized by the securities the margin client purchased. The Group manages its credit risk by collecting up-front fee from its customers and billing at regular intervals during the contract period. The Group assesses the adequacy of allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. Details of clients accounting for 10% or more of accounts receivable are as follows: Year ended December 31, 2014 2015 Amount % Amount % A $ 1,963,900 13.5 $ * * B $ 5,044,178 34.6 $ * * C $ * * $ 4,245,971 25.9 * Represented less than 10% of consolidated account receivable balance. There were no customers with 10% or more of the Group's revenues during 2013, 2014, or 2015. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently accounting pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers. ASU 2014-09 supersedes the revenue recognition requirements in ASC 605, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is originally effective for the annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. ASU 2015-14, Revenue from Contracts with Customers, defers the effective date of ASU 2014-09 by one year. As a result, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017 and interim periods therein. Early adoption is permitted to the original effective date. The Group is currently evaluating the timing of its adoption and the impact of adopting the new revenue standard on its consolidated financial statements and considering additional disclosure requirements. In April 2015, the FASB issued ASU No. 2015-03 ("ASU 2015-03"), Interest – Imputation of Interest. ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. The Group does not expect the adoption of ASU 2015-03 will have a significant impact on the consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16 ("ASU 2015-16"), Business Combinations (Topic 805) Simplifying the Accounting for Measurement – Period Adjustments. ASU 2015-16 requires the acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, ASU 2015-16 is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. The Group does not expect the adoption of ASU 2015-16 will have a significant impact on the consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17 ("ASU 2015-17"), Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. ASU 2015-17 simplifies the presentation of deferred income taxes by eliminating the separate classification of deferred income tax liabilities and assets into current and noncurrent amounts in the consolidated balance sheet statement of financial position. The amendments in the update require that all deferred tax liabilities and assets be classified as noncurrent in the consolidated balance sheet. The amendments in this update are effective for fiscal years beginning after December 15, 2016, and interim periods therein and may be applied either prospectively or retrospectively to all periods presented. Early adoption is permitted. The Group does not expect the adoption of ASU 2015-17 will have a significant impact on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02 ("ASU 2016-02"), Leases. ASU 2016-02 specifies the accounting for leases. For operating leases, ASU 2016-02 requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. ASU 2016-02 is effective for public companies for annual reporting periods, and interim periods within those years beginning after December 15, 2018. Early adoption is permitted. The Group is currently evaluating the impact of adopting this standard on its consolidated financial statements. |
Note 1 - Organization and Pri39
Note 1 - Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Note 1 - Organization and Principal Activities (Tables) [Line Items] | |
Schedule of Variable Interest Entities [Table Text Block] | Company name Place of establishment Date of acquisition legal interest Principal activity Subsidiaries: China Finance Online (Beijing) Co., Ltd. ("CFO Beijing") Beijing, PRC Jul. 9, 1998 100% N/A Fortune Software (Beijing) Co., Ltd. ("CFO Software") Beijing, PRC Dec. 7, 2004 100% N/A Shenzhen Genius Information Technology Co., Ltd. ("CFO Genius") Shenzhen, PRC Sep. 21, 2006 100% Subscription service Zhengyong Information & Technology (Shanghai) Co., Ltd. (“CFO Zhengyong”) Shanghai, PRC Aug. 17, 2008 100% N/A Zhengtong Information Technology (Shanghai) Co., Ltd ("CFO Zhengtong") Shanghai, PRC Jun. 24, 2008 100% N/A iSTAR Financial Holdings Limited ("iSTAR Financial Holdings") BVI Jul. 16, 2007 85% Investment holdings iSTAR International Securities Co. Limited ("iSTAR Securities") Hong Kong, PRC Nov. 23, 2007 85% Brokerage service iSTAR International Futures Co. Limited ("iSTAR Futures") Hong Kong, PRC Apr. 16, 2008 85% Brokerage service iSTAR International Wealth Management Co. Limited Hong Kong, PRC Oct. 8, 2008 85% Securities advising, future contract ("iSTAR Wealth Management") advising and asset management iSTAR International Credit Co. Limited ("iSTAR Credit") Hong Kong, PRC Feb. 10, 2012 85% N/A Variable interest entities: Beijing Fuhua Innovation Technology Development Co., Ltd. ("CFO Fuhua") Beijing, PRC Dec. 31, 2000 Nil Web portal and advertising service Shanghai Chongzhi Co., Ltd. ("CFO Chongzhi") Shanghai, PRC Jun. 6, 2008 Nil Subscription service Fortune (Beijing) Qicheng Technology Co., Ltd. ("CFO Qicheng") Beijing, PRC Dec. 18, 2009 Nil N/A Shenzhen Newrand Securities Advisory and Investment Co., Ltd. Shenzhen, PRC Oct. 17, 2008 Nil Securities investment advising ("CFO Newrand ") Shanghai Stockstar Wealth Management Co., Ltd. ("Stockstar Wealth Management") Shanghai, PRC Apr. 12, 2011 Nil N/A Beijing Chuangying Advisory and Investment Co., Ltd. ( "CFO Chuangying" ) Beijing, PRC Jan. 9, 2009 Nil N/A Subsidiaries of variable interest entities: Shanghai Meining Computer Software Co., Ltd. ("CFO Meining") Shanghai, PRC Oct. 1, 2006 Nil Web portal, advertising, subscription, and SMS Shenzhen Newrand Securities Training Center ("CFO Newrand Training") Shenzhen, PRC Oct. 17, 2008 Nil Securities investment training Fortune (Beijing) Huiying Investment Consulting Co., Ltd. ("CFO Huiying") Beijing, PRC Dec. 18, 2009 Nil N/A Shenzhen Tahoe Investment and Development Co., Ltd ("CFO Tahoe") Shenzhen, PRC Sep. 30, 2013 Nil N/A Shenzhen Shangtong Software Co., Ltd. ("CFO Shenzhen Shangtong") Shenzhen, PRC Sep. 23, 2009 Nil N/A Zhengjin (Fujian) Precious Metals Investment Co., Ltd. Fujian, PRC Jan. 6, 2013 Nil Commodities brokerage ("CFO Zhengjin Fujian") Zhengjin (Shanghai) Precious Metals Investment Co., Ltd. Shanghai, PRC Dec. 12, 2013 Nil Commodities brokerage ("CFO Zhengjin Shanghai") Zhengjin (Tianjin) Precious Metals Investment Co., Ltd. Tianjin, PRC Jul. 23, 2013 Nil Commodities brokerage ("CFO Zhengjin Tianjin") Henghui (Tianjin) Precious Metals Investment Co., Ltd. Tianjin, PRC Sep. 30, 2013 Nil Commodities brokerage ("CFO Henghui") Zhengjin (Beijing) Wisdom Petroleum and Chemical Investment Management Co., Ltd. ("CFO Zhengjin Beijing") Beijing, PRC Jan. 13, 2014 Nil N/A Yinglibao (Beijing) Technology Co., Ltd. ("CFO Yinglibao") Beijing, PRC Jan. 15, 2014 Nil Internet-based financial platform Zhengjin (Qingdao) Wisdom Trading Co., Ltd. ("CFO Zhengjin Qingdao") Qingdao, PRC Sep. 4, 2014 Nil N/A Zhengjin (Jiangsu) Precious Metals Co., Ltd. ("CFO Zhengjin Jiangsu") Nanjing, PRC Nov. 19, 2014 Nil Commodities brokerage iTougu (Beijing) Network Technology Co., Ltd. ("CFO iTougu") Beijing, PRC Dec. 8, 2014 Nil Investment advisory service platform Tibet Fortune Jinyuan Network Technology Co., Ltd. ("CFO Tibet") Tibet, PRC Aug. 22, 2015 Nil N/A Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) Shanghai, PRC Apr. 1, 2015 Nil N/A |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | December, 31 2014 2015 Gross Accumulated Impairment Disposal Net carrying Gross Accumulated Impairment Net carrying Intangible assets not subject to amortization: Commodities trading right 1,372,773 - - (81,712 ) 1,291,061 1,216,582 - (250,360 ) 966,222 Intangible assets subject to amortization: Completed technology 68,639 (27,187 ) (41,452 ) - - - - - - Customer relationship 1,256,741 (362,522 ) - - 894,219 1,184,243 (610,931 ) - 573,312 Securities consulting license and related trademarks 5,570,082 (741,279 ) (1,760,673 ) (3,068,130 ) - - - - - $ 8,268,235 $ (1,130,988 ) $ (1,802,125 ) $ (3,149,842 ) $ 2,185,280 $ 2,400,825 $ (610,931 ) $ (250,360 ) $ 1,539,534 |
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure [Member] | |
Note 1 - Organization and Principal Activities (Tables) [Line Items] | |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | December 31 , 2014 2015 Commodities brokerage business: Commodities trading right $ 1,291,061 $ 966,222 Customer relationship 894,219 573,312 $ 2,185,280 $ 1,539,534 |
Condensed Balance Sheet [Table Text Block] | December 31, 2014 2015 Assets Current assets Cash and cash equivalents $ 17,615,035 $ 47,788,398 Consideration receivable 13,400,882 - Account receivable -others, net 22,217,745 45,278,278 Loan receivable 10,295,800 - Others 6,558,399 3,971,332 Total current assets $ 70,087,861 $ 97,038,008 Property and equipment, net 3,242,905 4,311,095 Acquired intangible assets, net 2,185,280 1,539,534 Cost method investment 907,919 554,392 Equity method investment, net - 1,228,269 Rental deposits 913,187 989,383 Guarantee fund deposits 4,604,924 5,850,623 Investment in subsidiaries 43,751,417 43,553,986 Deferred tax assets, non-current 13,328 4,982 Total assets $ 125,706,821 $ 155,070,272 Third-party liabilities Current liabilities Accrued expenses and other current liabilities 10,514,186 20,425,274 Accounts payable 18,843,147 3,387,125 Total current liabilities $ 29,357,333 $ 23,812,399 Non-current liabilities 899,356 571,924 Total third-party liabilities $ 30,256,689 $ 24,384,323 Inter-company liabilities $ 42,155,248 $ 44,591,484 |
Condensed Income Statement [Table Text Block] | Year ended December 31, 2013 2014 2015 Net revenues $ 58,549,393 $ 98,207,958 $ 136,412,062 Net income (loss) $ (5,469,402 ) $ 12,305,855 $ 49,300,399 |
Condensed Cash Flow Statement [Table Text Block] | Year ended December 31, 2013 2014 2015 Net cash (used in) provided by operating activities $ (14,469,067 ) $ 3,204,749 $ (835,965 ) Net cash (used in) provided by investing activities (9,440,165 ) (5,685,885 ) 38,523,306 Net cash provided by (used in) financing activities 35,830,988 1,430,739 (6,061,473 ) Effect of exchange rate changes $ (46,900 ) $ (95,269 ) $ (1,452,505 ) |
Note 2 - Summary of Significa40
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Property and Equipment, Estimated Useful Life [Table Text Block] | Technology infrastructure (in years) 5 Computer equipment 5 Furniture, fixtures and equipment 5 Motor vehicle 5 Leasehold improvements Shorter of the lease term or 5 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | License and related trademarks (in years) 15 Completed technology (in years) 5 Customer relationship (in years) 4 - 5 |
Revenue Recognition,Customer Collection [Table Text Block] | Years ended December 31, 2014 2015 Commodities trading gains $ 38,297,005 $ 53,776,323 Commission income 17,397,978 22,913,704 Carrying charges 4,396,134 3,012,627 Total $ 60,091,117 $ 79,702,654 |
Schedule of Accounts Receivable by Major Customers by Reporting Segments [Table Text Block] | Year ended December 31, 2014 2015 Amount % Amount % A $ 1,963,900 13.5 $ * * B $ 5,044,178 34.6 $ * * C $ * * $ 4,245,971 25.9 |
Note 3 - Acquisitions (Tables)
Note 3 - Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Useful life (in years) Purchase price allocation: Cash and cash equivalents $ 5,279,425 Prepaid expenses and current assets 1,135,765 Accounts receivable 2,143,957 Property and equipment, net 47,770 Rental deposit 72,431 Acquired intangible assets: Commodities trading right 699,414 Customer relationship 1,250,813 4.3 Guarantee fund deposits 1,626,545 Total assets acquired 12,256,120 Accrued expenses and other current liabilities (2,810,425 ) Deferred tax liabilities (487,557 ) Total net assets 8,958,138 Noncontrolling interest (9,508,295 ) Goodwill 7,056,338 Total purchase price $ 6,506,181 Useful life (in years) Purchase price allocation: Cash and cash equivalents $ 121,044 Prepaid expenses and current assets 339,296 Accounts receivable 4,912 Acquired intangible assets: Security consulting license 598,657 15 Total assets acquired 1,063,909 Accrued expenses and other current liabilities (274,748 ) Deferred tax liabilities (149,664 ) Income tax payable 612 Total net assets 640,109 Goodwill 168,887 Total purchase price $ 808,996 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Purchase price allocation: Property and equipment, net $ 199,803 Total assets acquired 199,803 Goodwill 6,544,150 Cash consideration 4,044,980 The fair value of 30% shares of CFO GB 1,760,861 The fair value of 30% shares of CFO MF 804,142 Contingent consideration of 5% shares of CFO MF 133,970 Total purchase price $ 6,743,953 |
Note 5 - Accounts Receivable (T
Note 5 - Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Receivable [Abstract] | |
Accounts Receivable [Table Text Block] | December 31, 2014 2015 Accounts receivable-margin clients $ 1,698,861 $ 4,367,417 Less: Allowance for doubtful accounts - - Accounts receivable- margin clients, net $ 1,698,861 $ 4,367,417 Accounts receivable-others 12,928,570 12,048,306 Less: Allowance for doubtful accounts (43,077 ) (40,592 ) Accounts receivable-others, net $ 12,885,493 $ 12,007,714 |
Note 7 - Prepaid Expenses and43
Note 7 - Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Expenses And Other Current Assets Disclosure [Abstract] | |
Schedule of Other Assets [Table Text Block] | December 31, 2014 2015 Prepayment of advertising fees $ 213,837 $ 209,778 Advertising deposit 355,390 196,290 Advances to suppliers 840,308 1,272,519 VAT refund receivable 139,908 68,429 Interest receivable 1,264,075 65 Prepayment of office rental 380,325 170,536 Amount due from noncontrolling shareholders (i) 2,393,645 - Sales of cost method investment receivable (Note 11) 2,168,868 - Amounts due from equity method investee - 212,904 Other current assets 784,507 1,358,126 Total $ 8,540,863 $ 3,488,647 |
Note 8 - Loan Receivable (Table
Note 8 - Loan Receivable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | As of December 31, 2014 2015 Interest rate Period A(i) $ 10,295,800 $ - 1.5% per month October 9, 2013 to October 20, 2014 $ 10,295,800 $ - 19-21% per annum October 21, 2014 to December 31, 2014 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | December 31, 2014 2015 Beginning balance $ 10,333,120 $ 10,295,800 Collection - (9,807,585 ) Exchange difference (37,320 ) (488,215 ) Ending balance $ 10,295,800 $ - |
Note 9 - Short-term Investmen45
Note 9 - Short-term Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Short-term Investments [Abstract] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | December 31, 2014 2015 Beginning balance $ - $ - Purchases 90,205,903 105,334,483 Redemption (90,323,594 ) (105,560,595 ) Realized gain 106,392 234,421 Exchange difference 11,299 (8,309 ) Ending balance $ - $ - |
Available-for-sale Securities [Table Text Block] | Year ended December 31, 2015 Proceeds Costs Gains Exchange Available-for-sale securities $ 105,560,595 $ 105,334,483 $ 234,421 $ (8,309 ) Total $ 105,560,595 $ 105,334,483 $ 234,421 $ (8,309 ) Year ended December 31, 2014 Proceeds Costs Gains Exchange Available-for-sale securities $ 90,323,594 $ 90,205,903 $ 106,392 $ 11,299 Total $ 90,323,594 $ 90,205,903 $ 106,392 $ 11,299 |
Note 10 - Fair Value Measurem46
Note 10 - Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Note 10 - Fair Value Measurement (Tables) [Line Items] | |
Fair Value Measurements, Nonrecurring [Table Text Block] | Fair value at December 31, 2014 Total losses in the year ended December 31, 2014 Fair value at December 31, 2015 Total losses in the year ended December 31, 2015 Non- Recurring Goodwill - (8,149,525 ) - - Intangible Assets - (1,802,125 ) - (250,360 ) |
Available-for-sale Securities [Member] | |
Note 10 - Fair Value Measurement (Tables) [Line Items] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | December 31, 2014 2015 Beginning balance $ - $ - Purchases 90,205,903 105,334,483 Redemption (90,323,594 ) (105,560,595 ) Realized gain 106,392 234,421 Exchange difference 11,299 (8,309 ) Ending balance $ - $ - |
Note 11 - Cost Method Investm47
Note 11 - Cost Method Investment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Cost Method Investments [Table Text Block] | December 31, 2014 2015 Beginning balance $ 1,138,899 $ 1,217,617 Acquisitions 81,713 - consideration of disposal (4,337,736 ) (5,790,369 ) Gain from sale of cost method investment 4,337,736 4,648,302 Fair value adjustment of retained noncontrolling investment - 477,393 Exchange difference (2,995 ) 1,449 Ending balance $ 1,217,617 $ 554,392 |
Note 12 - Equity Method Inves48
Note 12 - Equity Method Investment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments [Table Text Block] | December 31, Beginning balance $ - Acquisitions 307,996 Equity method investment losses (66,970 ) Fair value adjustment of retained noncontrolling investment 985,586 Exchange difference 1,657 Ending balance $ 1,228,269 |
Note 14 - Property and Equipm49
Note 14 - Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | December 31, 2014 2015 Technology infrastructure $ 9,842,789 $ 10,638,276 Computer equipment 1,995,876 2,163,506 Furniture, fixtures and equipment 4,052,425 3,800,591 Motor vehicle 929,340 875,729 Leasehold improvements 4,610,488 4,931,813 21,430,918 22,409,915 Less: accumulated depreciation (16,567,969 ) (16,620,381 ) Property and Equipment, Net $ 4,862,949 $ 5,789,534 |
Note 15 - Acquired Intangible50
Note 15 - Acquired Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | December, 31 2014 2015 Gross Accumulated Impairment Disposal Net carrying Gross Accumulated Impairment Net carrying Intangible assets not subject to amortization: Commodities trading right 1,372,773 - - (81,712 ) 1,291,061 1,216,582 - (250,360 ) 966,222 Intangible assets subject to amortization: Completed technology 68,639 (27,187 ) (41,452 ) - - - - - - Customer relationship 1,256,741 (362,522 ) - - 894,219 1,184,243 (610,931 ) - 573,312 Securities consulting license and related trademarks 5,570,082 (741,279 ) (1,760,673 ) (3,068,130 ) - - - - - $ 8,268,235 $ (1,130,988 ) $ (1,802,125 ) $ (3,149,842 ) $ 2,185,280 $ 2,400,825 $ (610,931 ) $ (250,360 ) $ 1,539,534 |
Note 16 - Goodwill (Tables)
Note 16 - Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Goodwill [Table Text Block] | Commodities Investment services Institutional services Total Balance as of January 1, 2014 $ 7,115,479 $ 8,182,468 $ 1,676,490 $ 16,974,437 Impairment of CFO East Win - (3,112,365 ) - (3,112,365 ) Impairment of Champion Connection's business - (4,867,660 ) - (4,867,660 ) Disposal of Champion Connection's business (Note4) - - (1,676,490 ) (1,676,490 ) Impairment of CFO Netinfo - (169,500 ) - (169,500 ) Exchange difference (25,699 ) (32,943 ) - (58,642 ) Balance as of December 31, 2014 $ 7,089,780 $ - $ - $ 7,089,780 Acquisition of CFO Guiwo (Note3) 19,906 - - 19,906 Exchange difference (410,066 ) - - (410,066 ) Balance as of December 31, 2015 $ 6,699,620 $ - $ - $ 6,699,620 |
Note 17 - Accounts Payable (Tab
Note 17 - Accounts Payable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Note 17 - Accounts Payable (Tables) [Line Items] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | December 31, 2014 2015 Accrued bonus $ 3,612,689 $ 4,825,633 Accrued professional service fees 760,780 416,676 Withholding individual income tax-option exercise 61,683 61,683 Value added taxes and other taxes payable 945,471 2,219,300 Accrued raw data cost 762,492 1,285,418 Accrued bandwidth cost 127,650 38,527 Accrued welfare benefits 72,160 61,594 Amount payable related to business restructure (Note 4) 360,520 - Advances related to disposal of subsidiaries (i) - 5,081,927 Accrued sales service fees 491,981 578,910 Others 1,642,308 1,085,757 Total $ 8,837,734 $ 15,655,425 |
Accounts Payable [Member] | |
Note 17 - Accounts Payable (Tables) [Line Items] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | December 31, 2014 2015 Amount due to customers of Hong Kong brokerage business $ 7,982,827 $ 2,388,638 Amount due to sales agents 583,367 1,722,827 Amount due to noncontrolling shareholders 876,911 910,864 Others 409,386 471,399 $ 9,852,491 $ 5,493,728 |
Note 18 - Accrued Expenses an53
Note 18 - Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | December 31, 2014 2015 Accrued bonus $ 3,612,689 $ 4,825,633 Accrued professional service fees 760,780 416,676 Withholding individual income tax-option exercise 61,683 61,683 Value added taxes and other taxes payable 945,471 2,219,300 Accrued raw data cost 762,492 1,285,418 Accrued bandwidth cost 127,650 38,527 Accrued welfare benefits 72,160 61,594 Amount payable related to business restructure (Note 4) 360,520 - Advances related to disposal of subsidiaries (i) - 5,081,927 Accrued sales service fees 491,981 578,910 Others 1,642,308 1,085,757 Total $ 8,837,734 $ 15,655,425 |
Note 19 - Stock Options and N54
Note 19 - Stock Options and Nonvested Shares (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Note 19 - Stock Options and Nonvested Shares (Tables) [Line Items] | |
Schedule of Nonvested Share Activity [Table Text Block] | Nonvested shares Shares Weighted- date fair value Aggregate intrinsic value At the beginning of year 2014 1,900,445 $ 0.252 $ 2,390,760 Granted 1,099,555 $ 0.82 $ 901,635 Vested - - - Forfeited - - - At the end of year 2014 3,000,000 $ 1.064 $ 3,192,000 Granted - Vested 3,000,000 $ 0.82 2,460,000 Forfeited - - - At the end of year 2015 3,000,000 $ 1.082 $ 3,246,000 |
2004 Stock Incentive Plan [Member] | |
Note 19 - Stock Options and Nonvested Shares (Tables) [Line Items] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Years ended December 31, 2013 Weighted average risk free rate of return 1.40 % Weighted average expected option life (in years) 6.14 Expected volatility rate 76.67 % Dividend yield - |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | 2013 2014 2015 Number of options Weighted exercise price Number of options Weighted exercise price Number of options Weighted exercise price Outstanding at beginning of year 11,144,998 $ 0.93 24,505,348 $ 0.54 21,326,160 $ 0.57 Granted 14,000,000 0.25 - - - - Exercised (190,250 ) 0.16 (1,164,300 ) 0.54 (2,205,600 ) 0.22 Forfeited (449,400 ) 1.25 (2,014,888 ) 0.27 (1,787,800 ) 1.18 Outstanding at end of year 24,505,348 $ 0.54 21,326,160 $ 0.57 17,332,760 $ 0.55 Shares exercisable at end of year 10,500,548 $ 0.93 14,070,240 $ 0.73 14,513,528 $ 0.61 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Options outstanding Option exercisable Stock option Number outstanding Weighted contractual life Weighted exercise Aggregate 31, Number exercisable Weighted exercise Aggregate 31, $1.07 700,000 700,000 $0.96 2,268,000 2,268,000 $1.318 53,600 53,600 $1.26 413,360 413,360 $1.648 10,000 10,000 $1.426 2,091,000 2,091,000 $1.43 50,000 50,000 $0.25 11,746,800 8,927,568 17,332,760 5.85 $ 0.55 $ 12,412,802 14,513,528 $ 0.61 $ 9,616,123 |
2014 Stock Incentive Plan [Member] | |
Note 19 - Stock Options and Nonvested Shares (Tables) [Line Items] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Years ended December 31, 2014 2015 Weighted average risk free rate of return 1.39% - 1.62% 1.32% Weighted average expected option life (in years) 6.82 - 6.87 6.86 Expected volatility rate 77.74% - 79.37% 77.81% Dividend yield - - |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | 2014 2015 Number Weighted Number Weighted Outstanding at beginning of year - $ - 1,860,000 $ 0.89 Granted 1,960,000 0.90 120,000 0.87 Exercised - - (3,600 ) 0.92 Forfeited (100,000 ) 0.88 (741,400 ) 0.89 Outstanding at end of year 1,860,000 $ 0.89 1,235,000 $ 0.88 Shares exercisable at end of year - - 480,200 $ 0.89 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Options outstanding Option exercisable Stock option with exercise price of: Number Weighted Weighted Aggregate Number Weighted Aggregate $0.878 985,000 433,400 $0.92 30,000 10,800 $1.03 50,000 18,000 $1.04 50,000 18,000 $0.87 120,000 - 1,235,000 8.70 $ 0.88 $ 433,540 480,200 $ 0.89 $ 168,688 |
Note 20 - Income Taxes (Tables)
Note 20 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | December 31, 2013 2014 2015 Current $ (478,966 ) $ (558,696 ) $ (2,071,154 ) Deferred 378,908 44,782 686,892 Total $ (100,058 ) $ (513,914 ) $ (1,384,262 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2014 2015 Current deferred tax assets: Deferred revenue - current $ 594,196 $ 445,314 Accrued expenses and other liabilities 467,758 612,161 Net operating loss carrying forwards 4,233,246 4,718,396 Gross current deferred tax assets 5,295,200 5,775,871 Less: valuation allowance (4,369,119 ) (4,806,407 ) Total current deferred tax assets 926,081 969,464 Non-current deferred tax assets Deferred revenue- non-current $ 268,393 $ 121,133 Net operating loss carrying forwards 10,556,749 10,984,475 Gross non-current deferred tax assets 10,825,142 11,105,608 Less: valuation allowance (10,753,602 ) (11,085,358 ) Total non-current deferred tax assets $ 71,540 $ 20,250 Current deferred tax liabilities: Account receivable and other assets (580,197 ) (15,132 ) Total current deferred tax liabilities $ (580,197 ) $ (15,132 ) Non-current deferred tax liabilities: Intangible assets (546,320 ) (384,883 ) Total non-current deferred tax liabilities $ (546,320 ) $ (384,883 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Years ended December 31, 2013 2014 2015 Income (loss) before tax $ (8,073,832 ) $ (10,116,814 ) $ 28,201,950 Income tax (benefits) expenses calculated at 25% (2,018,458 ) (2,529,204 ) 7,050,488 Effect of tax holiday (266,396 ) (4,125,912 ) (8,139,429 ) Effect of income tax rate difference in other jurisdictions 305,505 1,789,762 645,873 Non-deductible expenses. 267,748 1,425,655 2,559,649 Non-taxable income (439,861 ) (549,315 ) (893,950 ) Change in valuation allowance 2,251,520 4,502,928 161,631 Income tax expense $ 100,058 $ 513,914 $ 1,384,262 |
Note 22 - Net Loss Per Share (T
Note 22 - Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Years ended December 31, 2013 2014 2015 Net income (loss) attributable to China Finance Online Co. Limited $ (8,573,128 ) $ (7,167,849 ) $ 22,482,416 Weighted average ordinary shares outstanding used in computing basic net income (loss) per share 109,019,513 109,385,712 110,997,871 Plus: Incremental shares from assumed conversions of stock options and nonvested shares - - 14,131,892 Weighted average ordinary shares outstanding used in computing diluted net income (loss) per share 109,019,513 109,385,712 125,129,763 Net income (loss) per share attributable to China Finance Online Co. Limited - basic $ (0.08 ) $ (0.07 ) $ 0.20 - diluted $ (0.08 ) $ (0.07 ) $ 0.18 |
Note 24 - Noncontrolling Inte57
Note 24 - Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest [Table Text Block] | Commodities Investment Institutional iSTAR Financial Other Total Balance as of January 1, 2013 $ - $ 688,062 $ - $ 63,306 $ - $ 751,368 Acquisition of CFO Tahoe (Note 3) 9,508,295 - - - - 9,508,295 Acquisition of Champion Connection (Note 3) - 1,760,861 938,112 - - 2,698,973 Acquisition of Nontrolling interests of CFO East Win - 586,954 - - - 586,954 Changes in ownership of subsidiaries - 289,656 (1,068,471 ) - - (778,815 ) Paid-in capital from noncontrolling shareholders 1,405,963 - - - - 1,405,963 Share-based compensation (Note 19) - - - 74,376 - 74,376 Net income (loss) 1,056,322 (419,202 ) (64,585 ) (173,297 ) - 399,238 Balance as of December 31, 2013 $ 11,970,580 $ 2,906,331 $ (194,944 ) $ (35,615 ) $ - $ 14,646,352 Business restructure (2,569,160 ) 2,384,519 786,355 - 12,201 613,915 Dividends paid to noncontrolling shareholders (1,030,012 ) - - - - (1,030,012 ) Share-based compensation (Note 19) 158,696 - - - - 158,696 Net income (loss) 2,463,956 (5,290,850 ) (591,411 ) 3,936 (48,510 ) (3,462,879 ) Balance as of December 31, 2014 $ 10,994,060 $ - $ - $ (31,679 ) $ (36,309 ) $ 10,926,072 Dividends paid to noncontrolling shareholders (6,509,680 ) - - - - (6,509,680 ) Changes in controlling ownership interest 1,393,508 - - - 320,956 1,714,464 Paid-in capital from noncontrolling shareholders 641 - - - - 641 Share-based compensation (Note 19) 724,285 - - - - 724,285 Net income (loss) 4,815,506 - - (195,587 ) (284,647 ) 4,335,272 Balance as of December 31, 2015 $ 11,418,320 $ - $ - $ (227,266 ) $ - $ 11,191,054 |
Note 25 - Commitments and Con58
Note 25 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Year ending 2016 $ 5,437,871 2017 3,359,212 2018 1,632,872 Total $ 10,429,955 |
Note 26 - Segment and Geograp59
Note 26 - Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Note 26 - Segment and Geographic Information (Tables) [Line Items] | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Years ended December 31, 2013 2014 2015 Commodities brokerage services revenues $ 30,124,245 $ 60,091,117 $ 79,702,654 Financial information and advisory services revenues 11,122,400 10,355,732 17,205,459 Advertising revenue 6,799,109 8,160,310 7,023,399 Hong Kong brokerage services revenues 3,404,767 4,610,516 3,149,063 Others 1,287,556 478,210 324,191 Total revenue from external customers.. $ 52,738,077 $ 83,695,885 $ 107,404,766 |
Three Operating Segments [Member] | |
Note 26 - Segment and Geographic Information (Tables) [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Commodities Subscription Hong Kong Consolidated Net revenues $ 113,720,922 $ 27,236,753 $ 3,149,063 $ 144,106,738 Less: intersegment sales (34,018,268 ) (2,683,704 ) - (36,701,972 ) Net revenues from external customer 79,702,654 24,553,049 3,149,063 107,404,766 Cost of revenues 4,975,361 14,321,339 1,181,538 20,478,238 Less: intersegment cost of revenues - (739,501 ) - (739,501 ) Cost of revenues after elimination 4,975,361 13,581,838 1,181,538 19,738,737 Operating expenses: General and administrative 4,026,984 11,148,924 2,978,161 18,154,069 Product development 2,549,731 8,188,718 - 10,738,449 Sales and marketing 69,674,657 12,139,100 566,396 82,380,153 Loss from impairment of intangible assets 250,360 - - 250,360 Total segments operating expenses 76,501,732 31,476,742 3,544,557 111,523,031 Less: intersegment operating expenses (35,907,706 ) (47,620 ) (110,721 ) (36,066,047 ) Total operating expenses. 40,594,026 31,429,122 3,433,836 75,456,984 Government subsidies 251,828 - - 251,828 Income (loss) from operations $ 34,385,095 $ (20,457,911 ) $ (1,466,311 ) $ 12,460,873 Total segments assets. $ 109,286,634 $ 179,706,230 $ 47,011,111 $ 336,003,975 Less: intersegment assets (51,101,320 ) (122,077,495 ) (18,760,003 ) (191,938,818 ) Total assets. $ 58,185,314 $ 57,628,735 $ 28,251,108 $ 144,065,157 Commodities Subscription Hong Kong Consolidated Net revenues $ 80,943,201 $ 25,250,486 $ 4,610,516 $ 110,804,203 Less: intersegment sales (20,852,084 ) (6,256,234 ) - (27,108,318 ) Net revenues from external customer 60,091,117 18,994,252 4,610,516 83,695,885 Cost of revenues 10,526,980 8,091,595 1,731,651 20,350,226 Less: intersegment cost of revenues - 2,503 - 2,503 Cost of revenues after elimination 10,526,980 8,094,098 1,731,651 20,352,729 Operating expenses: General and administrative 8,320,540 19,544,999 2,655,925 30,521,464 Product development 2,460,048 13,567,759 - 16,027,807 Sales and marketing 52,371,135 12,845,724 586,015 65,802,874 Loss from impairment of intangible assets - 1,802,125 - 1,802,125 Loss from impairment of goodwill - 8,149,525 - 8,149,525 Total segments operating expenses 63,151,723 55,910,132 3,241,940 122,303,795 Less: intersegment operating expenses (24,533,694 ) (15,199,246 ) (117,740 ) (39,850,680 ) Total operating expenses. 38,618,029 40,710,886 3,124,200 82,453,115 Government subsidies 655,437 3,980 - 659,417 Income (loss) from operations $ 11,601,545 $ (29,806,752 ) $ (245,335 ) $ (18,450,542 ) Total segments assets. $ 62,272,231 $ 171,870,606 $ 52,776,273 $ 286,919,110 Less: intersegment assets (26,824,659 ) (127,444,636 ) (18,746,458 ) (173,015,752 ) Total assets. $ 35,447,572 $ 44,425,970 $ 34,029,815 $ 113,903,358 Commodities Subscription Hong Kong Consolidated Net revenues $ 30,124,245 $ 21,656,482 $ 3,404,767 $ 55,185,494 Less: intersegment sales (2,447,417 ) (2,447,417 ) Net revenues from external customer 30,124,245 19,209,065 3,404,767 52,738,077 Cost of revenues 2,613,287 7,018,379 938,404 10,570,070 Operating expenses: General and administrative 1,087,048 10,831,336 3,291,718 15,210,102 Product development 784,083 8,248,244 - 9,032,327 Sales and marketing 22,015,190 10,429,389 591,074 33,035,653 Total segments operating expenses 23,886,321 29,508,969 3,882,792 57,278,082 Less: intersegment operating expenses (2,447,417 ) (2,447,417 ) Total operating expenses 21,438,904 29,508,969 3,882,792 54,830,665 Government subsidies - 11,187 - 11,187 Income (loss) from operations $ 6,072,054 $ (17,307,096 ) $ (1,416,429 ) $ (12,651,471 ) Total segments assets 27,791,654 80,844,211 31,893,233 140,529,098 Less: intersegment balances - (7,036,363 ) - (7,036,363 ) Total assets $ 27,791,654 $ 73,807,848 $ 31,893,233 $ 133,492,735 |
Schedule I - Financial Inform60
Schedule I - Financial Information of Parent Company (Tables) - Parent Company [Member] | 12 Months Ended |
Dec. 31, 2015 | |
Schedule I - Financial Information of Parent Company (Tables) [Line Items] | |
Condensed Balance Sheet [Table Text Block] | December 31, 2014 2015 Assets Current assets: Cash and cash equivalents $ 1,383,205 $ 971,500 Amounts due from subsidiaries, VIEs and VIE’s subsidiaries 7,492,739 7,350,974 Prepaid expenses and other current assets 2,479,810 290,603 Dividends receivable 17,541,570 16,529,639 Total current assets 28,897,324 25,142,716 Investments in subsidiaries, VIEs and VIE’s subsidiaries 48,389,562 76,682,094 Rental deposits 66,893 - Total assets $ 77,353,779 $ 101,824,810 Liabilities and shareholders' equity Current liabilities: Accrued expenses and other current liabilities 296,866 279,801 Amounts due to subsidiaries, VIEs and VIE's subsidiaries 12,441,549 13,506,638 Total current liabilities $ 12,738,415 $ 13,786,439 Shareholders' equity Ordinary shares (112,417,933 and 118,098,018 shares issued and outstanding as of December 31, 2014 and 2015, respectively) 56,386,606 56,856,000 Additional paid-in capital 24,207,606 28,145,846 Accumulated other comprehensive income 12,064,338 8,597,295 Retained deficits (28,043,186 ) (5,560,770 ) Total shareholders' equity 64,615,364 88,038,371 Total liabilities and shareholders' equity $ 77,353,779 $ 101,824,810 |
Condensed Income Statement [Table Text Block] | December 31, 2013 2013 2015 Cost of revenues $ 2,584 $ - $ - Gross loss (2,584 ) - - Operating expenses: General and administrative 1,417,843 1,418,198 1,226,800 Product development 62,914 50,859 - Sales and marketing 160,112 108,384 - Share-based compensation 2,539,274 4,132,182 3,812,733 Total operating expenses 4,180,143 5,709,623 5,039,533 Interest income 605 30 47 Equity in earnings (deficits) of subsidiaries, VIEs and VIE's subsidiaries (4,985,519 ) (6,394,055 ) 28,643,095 Exchange gain (loss), net 594,513 (76,351 ) (1,011,509 ) Other income (loss), net - 674,414 (109,684 ) Gain from sales of cost method investment - 4,337,736 - Net income (loss) $ (8,573,128 ) $ (7,167,849 ) $ 22,482,416 Other comprehensive income (loss), net of tax: Changes in foreign currency translation adjustment 1,195,795 (221,070 ) (3,467,043 ) Other comprehensive income (loss), net of tax 1,195,795 (221,070 ) (3,467,043 ) Comprehensive income (loss) $ (7,377,333 ) $ (7,388,919 ) $ 19,015,373 |
Schedule of Stockholders Equity [Table Text Block] | Ordinary shares Shares Amount Additional Accumulated other Retained Total Balance as of January 1, 2013. 110,955,383 $ 14,328 $ 81,163,243 $ 11,089,820 $ (12,302,209 ) $ 79,965,182 Exercise of share options by employees. 190,250 25 30,415 - - 30,440 Share-based compensation. - - 2,539,274 - - 2,539,274 Equity pick up from compensation of a subsidiary - - 421,473 - - 421,473 Business combination. - - 191,861 - - 191,861 Foreign currency translation adjustment - - - 1,195,795 - 1,195,795 Net loss. - - - - (8,573,128 ) (8,573,128 ) Balance as of December 31, 2013 111,145,633 $ 14,353 $ 84,346,266 $ 12,285,615 $ (20,875,337 ) $ 75,770,897 Transfer share premium to share capital - 55,718,184 (55,718,184 ) - - - Exercise of share options by employees 1,164,300 654,055 - - - 654,055 Restricted shares issued 108,000 14 - - - 14 Share-based compensation - - 4,132,182 - - 4,132,182 Equity pick up from compensation of VIE's subsidiaries - - 408,075 - - 408,075 Business restructure - - (8,960,733 ) - - (8,960,733 ) Foreign currency translation adjustment - - - (221,277 ) - (221,277 ) Net loss - - - - (7,167,849 ) (7,167,849 ) Balance as of December 31, 2014 112,417,933 $ 56,386,606 $ 24,207,606 $ 12,064,338.00 $ (28,043,186 ) $ 64,615,364 Issuance of ordinary shares for the plan of stock options and restricted shares 4,000,000 520 - - - 520 Exercise of share options by employees 435,000 293,654 - - - 293,654 Exercise of share options by nonemployees 1,095,000 175,200 - - - 175,200 Restricted shares issued 150,085 20 - - - 20 Share-based compensation - - 3,812,733 - - 3,812,733 Equity pick up from compensation of VIE's subsidiaries - - 1,519,015 - - 1,519,015 Changes of controlling ownership interest - - (1,393,508 ) - - (1,393,508 ) Foreign currency translation adjustment - - - (3,467,043 ) - (3,467,043 ) Net income - - - - 22,482,416 22,482,416 Balance as of December 31, 2015 118,098,018 $ 56,856,000 $ 28,145,846 $ 8,597,295 $ (5,560,770 ) $ 88,038,371 |
Condensed Cash Flow Statement [Table Text Block] | December 31, 2013 2014 2015 Operating activities: Net income (loss) $ (8,573,128 ) $ (7,167,849 ) $ 22,482,416 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Stock-based compensation 2,539,274 4,132,182 3,812,733 Gain from sales of cost method investment - (4,337,736 ) - Equity in deficits (earnings) of subsidiaries, VIEs and VIE’s subsidiaries 4,985,519 6,394,055 (28,643,095 ) Changes in assets and liabilities: Prepaid expenses and other current assets (63,446 ) (143,380 ) 20,339 Amounts due from subsidiaries, VIEs and VIE’s subsidiaries (4,092,500 ) 983,297 142,303 Rental deposits (271 ) - 66,893 Accrued expenses and other current liabilities 34,392 10,825 (8,035 ) Amounts due to subsidiaries, VIEs and VIE’s subsidiaries 1,779,098 1,535,073 1,065,088 Net cash (used in) provided by operating activities. (3,391,062 ) 1,406,467 (1,061,358 ) Investing activities: Dividend receivable from subsidiaries 1,140,713 1,375,727 1,011,931 Capital injection to subsidiaries. - (2,774,315 ) (3,000,000 ) Proceeds from sales of cost method investment - - 2,168,868 Net cash provided (used in) by investing activities.. 1,140,713 (1,398,588 ) 180,799 Financing activities: Proceeds from stock options exercised by employees.. 30,440 654,055 293,654 Proceeds from stock options exercised by nonemployees.. - - 175,200 Net cash provided by financing activities 30,440 654,055 468,854 Net (decrease) increase in cash and cash equivalents (2,219,909 ) 661,934 (411,705 ) Cash and cash equivalents, beginning of the year 2,941,180 721,271 1,383,205 Cash and cash equivalents, end of the year $ 721,271 $ 1,383,205 $ 971,500 |
Note 1 - Organization and Pri61
Note 1 - Organization and Principal Activities (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Strategic Consulting Services Agreement [Member] | |
Note 1 - Organization and Principal Activities (Details) [Line Items] | |
Agreement Fee, As A Percentage of VIE's Income Before Tax | 30.00% |
Technical Support Services Agreement [Member] | |
Note 1 - Organization and Principal Activities (Details) [Line Items] | |
Agreement Fee, As A Percentage of VIE's Income Before Tax | 30.00% |
Operating Support Services Agreement [Member] | |
Note 1 - Organization and Principal Activities (Details) [Line Items] | |
Agreement Fee, As A Percentage of VIE's Income Before Tax | 40.00% |
Strategic Consulting Services Agreement [Member] | |
Note 1 - Organization and Principal Activities (Details) [Line Items] | |
Term of Agreement | 20 years |
Technical Support Services Agreement [Member] | |
Note 1 - Organization and Principal Activities (Details) [Line Items] | |
Term of Agreement | 10 years |
Operating Support Services Agreement [Member] | |
Note 1 - Organization and Principal Activities (Details) [Line Items] | |
Term of Agreement | 10 years |
Note 1 - Organization and Pri62
Note 1 - Organization and Principal Activities (Details) - Significant Subsidiaries, VIEs and VIEs' Subsidiaries | 12 Months Ended |
Dec. 31, 2015 | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Apr. 1, 2015 |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Apr. 1, 2015 |
"CFO Meining" [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Oct. 1, 2006 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Oct. 1, 2006 |
"CFO Newrand Training" [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Oct. 17, 2008 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Oct. 17, 2008 |
CFO Huiying [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Dec. 18, 2009 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Dec. 18, 2009 |
CFO Tahoe [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Sep. 30, 2013 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Sep. 30, 2013 |
"CFO Shenzhen Shangtong" [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Sep. 23, 2009 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Sep. 23, 2009 |
CFO Zhengjin Fujian [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Jan. 6, 2013 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Jan. 6, 2013 |
CFO Zhengjin Shanghai [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Dec. 12, 2013 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Dec. 12, 2013 |
CFO Zhengjin Tianjin [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Jul. 23, 2013 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Jul. 23, 2013 |
CFO Henghui [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Sep. 30, 2013 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Sep. 30, 2013 |
CFO Zhengjin Beijing [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Jan. 13, 2014 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Jan. 13, 2014 |
CFO Yingliboa [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Jan. 15, 2014 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Jan. 15, 2014 |
CFO Zhengjin Qingdao [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Sep. 4, 2014 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Sep. 4, 2014 |
CFO Zhengjin Jiangsu [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Nov. 19, 2014 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Nov. 19, 2014 |
CFO iTougu [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Dec. 8, 2014 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Dec. 8, 2014 |
CFO Tibet [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Aug. 22, 2015 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Aug. 22, 2015 |
CFO Beijing [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Jul. 9, 1998 |
Subsidiary, legal ownership interest | 100.00% |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Jul. 9, 1998 |
"CFO Software" [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Dec. 7, 2004 |
Subsidiary, legal ownership interest | 100.00% |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Dec. 7, 2004 |
"CFO Genius" [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Sep. 21, 2006 |
Subsidiary, legal ownership interest | 100.00% |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Sep. 21, 2006 |
CFO Zhengyong [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Aug. 17, 2008 |
Subsidiary, legal ownership interest | 100.00% |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Aug. 17, 2008 |
"CFO Zhengtong" [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Jun. 24, 2008 |
Subsidiary, legal ownership interest | 100.00% |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Jun. 24, 2008 |
iSTAR Financial Holdings [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Jul. 16, 2007 |
Subsidiary, legal ownership interest | 85.00% |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Jul. 16, 2007 |
iSTAR Securities [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Nov. 23, 2007 |
Subsidiary, legal ownership interest | 85.00% |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Nov. 23, 2007 |
"iSTAR Futures" [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Apr. 16, 2008 |
Subsidiary, legal ownership interest | 85.00% |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Apr. 16, 2008 |
iSTAR Wealth Management [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Oct. 8, 2008 |
Subsidiary, legal ownership interest | 85.00% |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Oct. 8, 2008 |
"iSTAR Credit" [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Feb. 10, 2012 |
Subsidiary, legal ownership interest | 85.00% |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Feb. 10, 2012 |
CFO Fuhua [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Dec. 31, 2000 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Dec. 31, 2000 |
CFO Chongzhi [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Jun. 6, 2008 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Jun. 6, 2008 |
"CFO Qicheng" [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Dec. 18, 2009 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Dec. 18, 2009 |
"CFO Newrand" [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Oct. 17, 2008 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Oct. 17, 2008 |
Stockstar Wealth Management [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Apr. 12, 2011 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Apr. 12, 2011 |
"CFO Securities Consulting" [Member] | |
Subsidiaries: | |
Subsidiary, date of incorporation or acquisition | Jan. 9, 2009 |
Subsidiary, legal ownership interest | |
("CFO Henghui") | |
Shanghai Guiwo Information Technology Co., Ltd. (“CFO Guiwo”) | Jan. 9, 2009 |
Note 1 - Organization and Pri63
Note 1 - Organization and Principal Activities (Details) - Consolidated VIEs Revenue Producing Assets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Commodities brokerage business: | ||
Intangible assets | $ 1,539,534 | $ 2,185,280 |
Precious Metals Trading Right [Member] | Precious Metals Business [Member] | ||
Commodities brokerage business: | ||
Intangible assets | 966,222 | 1,291,061 |
Customer Relationships [Member] | Precious Metals Business [Member] | ||
Commodities brokerage business: | ||
Intangible assets | $ 573,312 | $ 894,219 |
Note 1 - Organization and Pri64
Note 1 - Organization and Principal Activities (Details) - Assets and Liabilities of the VIEs and Their Subsidiaries, Before Intercompany Elimination - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets | ||||
Cash and cash equivalents | $ 85,734,048 | $ 32,538,513 | $ 36,370,950 | $ 40,905,996 |
Consideration receivable | 0 | 13,400,882 | ||
Account receivable -others, net | 12,007,714 | 12,885,493 | ||
Others | 1,358,126 | 784,507 | ||
Total current assets | 120,734,896 | 92,214,207 | ||
Property and equipment, net | 5,789,534 | 4,862,949 | ||
Acquired intangible assets, net | 1,539,534 | 2,185,280 | ||
Cost method investment | 554,392 | 1,217,617 | 1,138,899 | $ 802,202 |
Equity method investment, net | 1,228,269 | 0 | ||
Rental deposits | 1,422,626 | 1,387,653 | ||
Guarantee fund deposits | 6,076,036 | 4,874,332 | ||
Total assets | 144,065,157 | 113,903,358 | $ 133,492,735 | |
Current liabilities | ||||
Accrued expenses and other current liabilities | 5,493,728 | 9,852,491 | ||
Total current liabilities | 43,758,927 | 36,442,880 | ||
Total liabilities | 44,835,732 | 38,361,922 | ||
VIEs And Their Subsidiaries, Before Intercompany Elimination [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 47,788,398 | 17,615,035 | ||
Consideration receivable | 13,400,882 | |||
Account receivable -others, net | 45,278,278 | 22,217,745 | ||
Loan receivable | 10,295,800 | |||
Others | 3,971,332 | 6,558,399 | ||
Total current assets | 97,038,008 | 70,087,861 | ||
Property and equipment, net | 4,311,095 | 3,242,905 | ||
Acquired intangible assets, net | 1,539,534 | 2,185,280 | ||
Cost method investment | 554,392 | 907,919 | ||
Equity method investment, net | 1,228,269 | |||
Rental deposits | 989,383 | 913,187 | ||
Guarantee fund deposits | 5,850,623 | 4,604,924 | ||
Investment in subsidiaries | 43,553,986 | 43,751,417 | ||
Deferred tax assets, non-current | 4,982 | 13,328 | ||
Total assets | 155,070,272 | 125,706,821 | ||
Current liabilities | ||||
Accrued expenses and other current liabilities | 20,425,274 | 10,514,186 | ||
Accounts payable | 3,387,125 | 18,843,147 | ||
Total current liabilities | 23,812,399 | 29,357,333 | ||
Non-current liabilities | 571,924 | 899,356 | ||
Total liabilities | 24,384,323 | 30,256,689 | ||
VIEs And Their Subsidiaries, Before Intercompany Elimination [Member] | Consolidation, Eliminations [Member] | ||||
Current liabilities | ||||
Total liabilities | $ 44,591,484 | $ 42,155,248 |
Note 1 - Organization and Pri65
Note 1 - Organization and Principal Activities (Details) - Net Revenue and Net Income (Loss) of the VIEs and Their Subsidiaries, Before Intercompany Elimination - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Income Statements, Captions [Line Items] | |||
Net revenues | $ 107,404,766 | $ 83,695,885 | $ 52,738,077 |
Net income (loss) | 22,482,416 | (7,167,849) | (8,573,128) |
VIEs And Their Subsidiaries, Before Intercompany Elimination [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Net revenues | 136,412,062 | 98,207,958 | 58,549,393 |
Net income (loss) | $ 49,300,399 | $ 12,305,855 | $ (5,469,402) |
Note 1 - Organization and Pri66
Note 1 - Organization and Principal Activities (Details) - Net Cash Provided By (Used In) of the VIEs and Their Subsidiaries, Before Intercompany Elimination - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | $ 19,816,980 | $ 1,172,136 | $ 158,656 |
Net cash (used in) provided by investing activities | 40,557,824 | (4,598,163) | 7,577,511 |
Net cash provided by (used in) financing activities | (5,592,080) | (371,719) | (12,137,905) |
Effect of exchange rate changes | (1,587,189) | (34,691) | (133,308) |
VIEs And Their Subsidiaries, Before Intercompany Elimination [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | (835,965) | 3,204,749 | (14,469,067) |
Net cash (used in) provided by investing activities | 38,523,306 | (5,685,885) | (9,440,165) |
Net cash provided by (used in) financing activities | (6,061,473) | 1,430,739 | 35,830,988 |
Effect of exchange rate changes | $ (1,452,505) | $ (95,269) | $ (46,900) |
Note 2 - Summary of Significa67
Note 2 - Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Impairment of Long-Lived Assets Held-for-use | $ 1,802,125 | |||
Goodwill, Impairment Loss | $ 0 | 8,149,525 | $ 0 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 250,360 | |||
Value Added Tax, Rate | 6.00% | |||
Business Tax On Services Provided, Expense | $ 1,663,869 | 1,425,835 | 598,044 | |
Value Added Tax Payable, As A Percentage of Subscription-Based Revenue, Threshold For Refund Of Excess Value Added Tax | 3.00% | |||
Value Added Tax Receivable | $ 328,817 | 425,908 | 639,936 | |
Advertising Expense | 4,908,593 | 7,505,506 | 2,391,762 | |
Payments for Commissions | 5,049,661 | 11,546,126 | 3,125,982 | |
Cost Method Investments | 554,392 | 1,217,617 | 1,138,899 | $ 802,202 |
Equity Method Investments | 1,228,269 | 0 | ||
Denominated in RMB [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Cash Equivalents, at Carrying Value | $ 79,461,280 | $ 19,726,992 | $ 26,974,664 | |
Minimum [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Business Tax On Services Provided | 3.00% | |||
Maximum [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Business Tax On Services Provided | 5.00% | |||
Value Added Tax On Subscription-Based Revenue [Member] | The Group's PRC Subsidiaries, VIEs and VIEs' Subsidiaries [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Value Added Tax, Rate | 17.00% |
Note 2 - Summary of Significa68
Note 2 - Summary of Significant Accounting Policies (Details) - Property and Equipment, Estimated Useful Lives | 12 Months Ended |
Dec. 31, 2015 | |
Technology Infrastructure [Member] | |
Note 2 - Summary of Significant Accounting Policies (Details) - Property and Equipment, Estimated Useful Lives [Line Items] | |
Property and equipment, useful life | 5 years |
Computer Equipment [Member] | |
Note 2 - Summary of Significant Accounting Policies (Details) - Property and Equipment, Estimated Useful Lives [Line Items] | |
Property and equipment, useful life | 5 years |
Furniture, Fixtures And Equipment [Member] | |
Note 2 - Summary of Significant Accounting Policies (Details) - Property and Equipment, Estimated Useful Lives [Line Items] | |
Property and equipment, useful life | 5 years |
Vehicles [Member] | |
Note 2 - Summary of Significant Accounting Policies (Details) - Property and Equipment, Estimated Useful Lives [Line Items] | |
Property and equipment, useful life | 5 years |
Leasehold Improvements [Member] | |
Note 2 - Summary of Significant Accounting Policies (Details) - Property and Equipment, Estimated Useful Lives [Line Items] | |
Leasehold improvements (in years) | Shorter of the lease term or 5 |
Note 2 - Summary of Significa69
Note 2 - Summary of Significant Accounting Policies (Details) - Amortization of Definite-Lived Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Securities Consulting License And Related Trademarks [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired intangible assets | 15 years |
Completed Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired intangible assets | 5 years |
Minimum [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired intangible assets | 4 years |
Maximum [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired intangible assets | 5 years |
Note 2 - Summary of Significa70
Note 2 - Summary of Significant Accounting Policies (Details) - Revenue Recognition - Precious Metal Trading Securities [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 2 - Summary of Significant Accounting Policies (Details) - Revenue Recognition [Line Items] | ||
Commodities trading gains | $ 53,776,323 | $ 38,297,005 |
Commission income | 22,913,704 | 17,397,978 |
Carrying charges | 3,012,627 | 4,396,134 |
Total | $ 79,702,654 | $ 60,091,117 |
Note 2 - Summary of Significa71
Note 2 - Summary of Significant Accounting Policies (Details) - Clients Accounting For 10% or More of Accounts Receivable - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | ||
Client A [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) - Clients Accounting For 10% or More of Accounts Receivable [Line Items] | ||||
Amount | [1] | $ 1,963,900 | ||
Percentage | [1] | 13.50% | ||
Client B [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) - Clients Accounting For 10% or More of Accounts Receivable [Line Items] | ||||
Amount | [1] | $ 5,044,178 | ||
Percentage | [1] | 34.60% | ||
Client C [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) - Clients Accounting For 10% or More of Accounts Receivable [Line Items] | ||||
Amount | $ 4,245,971 | [1] | ||
Percentage | 25.90% | [1] | ||
[1] | Represented less than 10% of consolidated account receivable balance. |
Note 3 - Acquisitions (Details)
Note 3 - Acquisitions (Details) - USD ($) | Apr. 01, 2015 | Sep. 30, 2013 | Jul. 01, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 01, 2014 |
Note 3 - Acquisitions (Details) [Line Items] | ||||||||
Goodwill | $ 16,974,437 | $ 6,699,620 | $ 7,089,780 | |||||
CFO Guiwo [Member] | Fortune Zhengjin [Member] | ||||||||
Note 3 - Acquisitions (Details) [Line Items] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||||||
Payments to Acquire Businesses, Gross | $ 16,278 | |||||||
Goodwill | $ 19,906 | |||||||
CFO Tahoe [Member] | ||||||||
Note 3 - Acquisitions (Details) [Line Items] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 60.00% | 60.00% | 20.00% | |||||
Payments to Acquire Businesses, Gross | $ 6,506,181 | $ 6,506,181 | ||||||
Goodwill | $ 7,056,338 | $ 7,056,338 | ||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 5,988,280 | |||||||
Business Acquisition, Pro Forma Net Income (Loss) | 1,864,234 | |||||||
Henghui (Tianjin) Precious Metals Investment Co., Ltd [Member] | ||||||||
Note 3 - Acquisitions (Details) [Line Items] | ||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 55.00% | 55.00% | ||||||
CFO GB [Member] | ||||||||
Note 3 - Acquisitions (Details) [Line Items] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 40.00% | |||||||
Payments to Acquire Businesses, Gross | $ 4,044,980 | |||||||
Business Acquisition Percentage Of Voting Interests Transferred | 30.00% | |||||||
CFO MF [Member] | ||||||||
Note 3 - Acquisitions (Details) [Line Items] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 30.00% | |||||||
Business Acquisition Percentage Of Voting Interests Transferred | 30.00% | |||||||
CFO MF [Member] | Contingent Consideration [Member] | ||||||||
Note 3 - Acquisitions (Details) [Line Items] | ||||||||
Business Acquisition Percentage Of Voting Interests Transferred | 5.00% | |||||||
CFO Netinfo [Member] | ||||||||
Note 3 - Acquisitions (Details) [Line Items] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||||||
Payments to Acquire Businesses, Gross | $ 808,996 | |||||||
Goodwill | $ 168,887 | |||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 286,500 | |||||||
Business Acquisition, Pro Forma Net Income (Loss) | $ (355,322) |
Note 3 - Acquisitions (Detail73
Note 3 - Acquisitions (Details) - Business Acquisitions Purchase Price Allocation - USD ($) | Sep. 30, 2013 | Jul. 01, 2013 | Sep. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Acquired intangible assets: | ||||||
Goodwill | $ 6,699,620 | $ 7,089,780 | $ 16,974,437 | |||
CFO Tahoe [Member] | ||||||
Purchase price allocation: | ||||||
Cash and cash equivalents | $ 5,279,425 | $ 5,279,425 | ||||
Prepaid expenses and current assets | 1,135,765 | 1,135,765 | ||||
Accounts receivable | 2,143,957 | 2,143,957 | ||||
Property and equipment, net | 47,770 | 47,770 | ||||
Rental deposit | 72,431 | 72,431 | ||||
Acquired intangible assets: | ||||||
Guarantee fund deposits | 1,626,545 | 1,626,545 | ||||
Total assets acquired | 12,256,120 | 12,256,120 | ||||
Accrued expenses and other current liabilities | (2,810,425) | (2,810,425) | ||||
Deferred tax liabilities | (487,557) | (487,557) | ||||
Total net assets | 8,958,138 | 8,958,138 | ||||
Noncontrolling interest | (9,508,295) | (9,508,295) | ||||
Goodwill | 7,056,338 | 7,056,338 | ||||
Cash consideration | 6,506,181 | 6,506,181 | ||||
CFO Tahoe [Member] | Precious Metal Trading Right [Member] | ||||||
Acquired intangible assets: | ||||||
Commodities trading right | 699,414 | 699,414 | ||||
CFO Netinfo [Member] | ||||||
Purchase price allocation: | ||||||
Cash and cash equivalents | $ 121,044 | |||||
Prepaid expenses and current assets | 339,296 | |||||
Accounts receivable | 4,912 | |||||
Acquired intangible assets: | ||||||
Total assets acquired | 1,063,909 | |||||
Accrued expenses and other current liabilities | (274,748) | |||||
Deferred tax liabilities | (149,664) | |||||
Income tax payable | 612 | |||||
Total net assets | 640,109 | |||||
Goodwill | 168,887 | |||||
Cash consideration | 808,996 | |||||
Customer Relationships [Member] | CFO Tahoe [Member] | ||||||
Acquired intangible assets: | ||||||
Finite lived intangible assets | $ 1,250,813 | $ 1,250,813 | ||||
Finite lived Intangible assets, useful life | 4 years 109 days | |||||
Securities Consulting License [Member] | CFO Netinfo [Member] | ||||||
Acquired intangible assets: | ||||||
Finite lived intangible assets | $ 598,657 | |||||
Finite lived Intangible assets, useful life | 15 years |
Note 3 - Acquisitions (Detail74
Note 3 - Acquisitions (Details) - Acquisition of Champion Connection Purchase Price Allocation - USD ($) | Jul. 01, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Purchase price allocation: | ||||
Goodwill | $ 6,699,620 | $ 7,089,780 | $ 16,974,437 | |
Champion Connection [Member] | ||||
Purchase price allocation: | ||||
Property and equipment, net | $ 199,803 | |||
Total assets acquired | 199,803 | |||
Goodwill | 6,544,150 | |||
Cash consideration | 4,044,980 | |||
Total purchase price | 6,743,953 | |||
Champion Connection [Member] | CFO GB [Member] | ||||
Purchase price allocation: | ||||
The fair value of shares | 1,760,861 | |||
Champion Connection [Member] | CFO MF [Member] | ||||
Purchase price allocation: | ||||
The fair value of shares | 804,142 | |||
Contingent consideration of 5% shares of CFO MF | $ 133,970 |
Note 3 - Acquisitions (Detail75
Note 3 - Acquisitions (Details) - Acquisition of Champion Connection Purchase Price Allocation (Parentheticals) - Champion Connection [Member] | Jul. 01, 2013 |
CFO GB [Member] | |
Note 3 - Acquisitions (Details) - Acquisition of Champion Connection Purchase Price Allocation (Parentheticals) [Line Items] | |
% shares | 30.00% |
CFO MF [Member] | |
Note 3 - Acquisitions (Details) - Acquisition of Champion Connection Purchase Price Allocation (Parentheticals) [Line Items] | |
% shares | 30.00% |
CFO MF [Member] | Contingent Consideration [Member] | |
Note 3 - Acquisitions (Details) - Acquisition of Champion Connection Purchase Price Allocation (Parentheticals) [Line Items] | |
% shares | 5.00% |
Note 4 - Business Restructure (
Note 4 - Business Restructure (Details) - USD ($) | Jun. 01, 2014 | Sep. 30, 2013 | Jul. 01, 2013 | Sep. 30, 2013 | Dec. 31, 2014 |
Note 4 - Business Restructure (Details) [Line Items] | |||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax (in Dollars) | $ 90,666 | ||||
Precious Metal Trading Services [Member] | |||||
Note 4 - Business Restructure (Details) [Line Items] | |||||
Number of VIE Subsidiaries | 3 | ||||
CFO GB and CFO MF [Member] | |||||
Note 4 - Business Restructure (Details) [Line Items] | |||||
Payments to Acquire Businesses, Gross (in Dollars) | $ 1,620,877 | ||||
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Note 4 - Business Restructure (Details) [Line Items] | |||||
VIE Equity Interest Percentage Sold | 100.00% | ||||
Subsidiary of VIE [Member] | Precious Metal Trading Services [Member] | |||||
Note 4 - Business Restructure (Details) [Line Items] | |||||
Percentage of Net Income Sold | 20.00% | ||||
CFO Tahoe [Member] | |||||
Note 4 - Business Restructure (Details) [Line Items] | |||||
Payments to Acquire Businesses, Gross (in Dollars) | $ 6,506,181 | $ 6,506,181 | |||
Business Acquisition, Percentage of Voting Interests Acquired | 20.00% | 60.00% | 60.00% | ||
CFO GB [Member] | |||||
Note 4 - Business Restructure (Details) [Line Items] | |||||
Payments to Acquire Businesses, Gross (in Dollars) | $ 4,044,980 | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 40.00% | ||||
CFO MF [Member] | |||||
Note 4 - Business Restructure (Details) [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 30.00% |
Note 5 - Accounts Receivable (D
Note 5 - Accounts Receivable (Details) - Accounts Receivable - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts Receivable [Abstract] | ||
Accounts receivable-margin clients | $ 4,367,417 | $ 1,698,861 |
Accounts receivable- margin clients, net | 4,367,417 | 1,698,861 |
Accounts receivable-others | 12,048,306 | 12,928,570 |
Less: Allowance for doubtful accounts | (40,592) | (43,077) |
Accounts receivable-others, net | $ 12,007,714 | $ 12,885,493 |
Note 6 - Consideration Receiv78
Note 6 - Consideration Receivable (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2015 | Mar. 31, 2013 | |
Note 6 - Consideration Receivable (Details) [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 20.00% | ||||
Proceeds from Sale of Equity Method Investments | $ 12,765,427 | $ 11,445,202 | |||
Consideration Receivable | $ 0 | $ 13,400,882 | |||
Lang Fang Developer [Member] | |||||
Note 6 - Consideration Receivable (Details) [Line Items] | |||||
Equity Method Investment, Aggregate Cost | $ 22,142,400 | ||||
Equity Method Investment, Ownership Percentage | 49.00% | ||||
Equity Method Investment, Amount Sold | 24,930,702 | ||||
Proceeds from Sale of Equity Method Investments | $ 11,481,244 | ||||
Consideration Receivable | $ 13,400,882 | ||||
Equity Interest Pledged as Collateral, Percentage | 100.00% | ||||
Equity Method Investment, Other than Temporary Impairment | $ 0 |
Note 7 - Prepaid Expenses and79
Note 7 - Prepaid Expenses and Other Current Assets (Details) - Prepaid Expenses and Other Current Assets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Prepaid Expenses and Other Current Assets [Abstract] | ||
Prepayment of advertising fees | $ 209,778 | $ 213,837 |
Advertising deposit | 196,290 | 355,390 |
Advances to suppliers | 1,272,519 | 840,308 |
VAT refund receivable | 68,429 | 139,908 |
Interest receivable | 65 | 1,264,075 |
Prepayment of office rental | 170,536 | 380,325 |
Amount due from noncontrolling shareholders (i) | 2,393,645 | |
Sales of cost method investment receivable (Note 11) | 2,168,868 | |
Amounts due from equity method investee | 212,904 | |
Other current assets | 1,358,126 | 784,507 |
Total | $ 3,488,647 | $ 8,540,863 |
Note 8 - Loan Receivable (Detai
Note 8 - Loan Receivable (Details) ¥ in Millions | Dec. 31, 2013USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Note 8 - Loan Receivable (Details) [Line Items] | |||||
Interest Income, Consideration and Loan Receivable | $ 693,231 | $ 2,283,875 | $ 3,783,929 | ||
Lang Fang Developer [Member] | |||||
Note 8 - Loan Receivable (Details) [Line Items] | |||||
Equity Interest Pledged as Collateral, Percentage | 100.00% | ||||
Equity Method Investment, Other than Temporary Impairment | $ 0 | ||||
Proceeds from Collection of Loans Receivable | $ 2,100,000 | ¥ 13 |
Note 8 - Loan Receivable (Det81
Note 8 - Loan Receivable (Details) - Loan Receivable Due From Third Parties - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 0 | $ 10,295,800 | $ 10,333,120 | |
A [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | [1] | $ 10,295,800 | ||
Interest rate | [1] | 1.50% | ||
Minimum [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest rate | 19.00% | |||
Maximum [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest rate | 21.00% | |||
[1] | The loan was made to the Langfang Developer, in which the Group also made an equity method investment in 2013 (Note 6). The principal and its return are pledged by the 100% equity interests of Langfang Developer. |
Note 8 - Loan Receivable (Det82
Note 8 - Loan Receivable (Details) - Changes in Loan Receivable - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in Loan Receivable [Abstract] | ||
Beginning balance | $ 10,295,800 | $ 10,333,120 |
Collection | (9,807,585) | |
Exchange difference | (488,215) | (37,320) |
Ending balance | $ 0 | $ 10,295,800 |
Note 9 - Short-term Investmen83
Note 9 - Short-term Investments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Short-term Investments [Abstract] | ||
Trading Securities | $ 0 | $ 0 |
Trading Securities, Realized Gain (Loss) | $ 18,396 | $ (47,941) |
Note 9 - Short-term Investmen84
Note 9 - Short-term Investments (Details) - Changes in Level 3 Available-for-sale Securities Measured On a Recurring Basis - Fair Value, Inputs, Level 3 [Member] - Available-for-sale Securities [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases | $ 105,334,483 | $ 90,205,903 |
Redemption | (105,560,595) | (90,323,594) |
Realized gain | 234,421 | 106,392 |
Exchange difference | $ (8,309) | $ 11,299 |
Note 9 - Short-term Investmen85
Note 9 - Short-term Investments (Details) - Realized Gains of the Sale of Available-for-sale Securities - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Realized Gains of the Sale of Available-for-sale Securities [Abstract] | ||
Proceeds | $ 105,560,595 | $ 90,323,594 |
Costs | 105,334,483 | 90,205,903 |
Gains | 234,421 | 106,392 |
Exchange difference | $ (8,309) | $ 11,299 |
Note 10 - Fair Value Measurem86
Note 10 - Fair Value Measurement (Details) - Changes in Level 3 Available-for-sale Securities Measured On a Recurring Basis - Fair Value, Inputs, Level 3 [Member] - Available-for-sale Securities [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 10 - Fair Value Measurement (Details) - Changes in Level 3 Available-for-sale Securities Measured On a Recurring Basis [Line Items] | ||
Purchases | $ 105,334,483 | $ 90,205,903 |
Redemption | (105,560,595) | (90,323,594) |
Realized gain | 234,421 | 106,392 |
Exchange difference | $ (8,309) | $ 11,299 |
Note 10 - Fair Value Measurem87
Note 10 - Fair Value Measurement (Details) - Non-financial Assets, Measured at Non-recurring Basis - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Non- Recurring | |||
Goodwill | $ 0 | $ (8,149,525) | $ 0 |
Intangible Assets | (250,360) | (1,802,125) | $ 0 |
Fair Value, Measurements, Nonrecurring [Member] | |||
Non- Recurring | |||
Goodwill | (8,149,525) | ||
Intangible Assets | $ (250,360) | $ (1,802,125) |
Note 11 - Cost Method Investm88
Note 11 - Cost Method Investment (Details) - USD ($) | 1 Months Ended | 5 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Apr. 30, 2015 | May. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Note 11 - Cost Method Investment (Details) [Line Items] | |||||||
Cost Method Investments | $ 554,392 | $ 554,392 | $ 1,217,617 | $ 1,138,899 | $ 802,202 | ||
Increase (Decrease) in Cost Method Investments | 81,064 | 309,698 | |||||
Cost-method Investments, Realized Gains | $ 4,648,302 | 4,648,302 | 4,337,736 | 0 | |||
Sales of Cost Method Investment Receivable | 2,168,868 | ||||||
Cost-method Investments, Other than Temporary Impairment | $ 0 | 0 | $ 0 | ||||
Ocean Butterflies Holdings [Member] | |||||||
Note 11 - Cost Method Investment (Details) [Line Items] | |||||||
Cost-method Investments, Realized Gains | 4,337,736 | ||||||
Sales of Cost Method Investment Receivable | $ 2,168,868 | ||||||
Proceeds from Collection of Consideration Receivable | $ 2,168,868 | ||||||
CFO Securities Consuting [Member] | |||||||
Note 11 - Cost Method Investment (Details) [Line Items] | |||||||
Cost Method Investments, Ownership Percentage | 10.00% | 10.00% | |||||
Cost Method Investments, Fair Value Disclosure | $ 477,393 | $ 477,393 | |||||
CFO Securities Consuting [Member] | |||||||
Note 11 - Cost Method Investment (Details) [Line Items] | |||||||
Deconsolidation, Ownership Percentage, Disposed | 90.00% |
Note 11 - Cost Method Investm89
Note 11 - Cost Method Investment (Details) - Changes in Cost Method Investment - USD ($) | 5 Months Ended | 12 Months Ended | ||
May. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in Cost Method Investment [Abstract] | ||||
Beginning balance | $ 1,217,617 | $ 1,217,617 | $ 1,138,899 | $ 802,202 |
Acquisitions | 81,713 | |||
consideration of disposal | (5,790,369) | (4,337,736) | ||
Gain from sale of cost method investment | $ 4,648,302 | 4,648,302 | 4,337,736 | 0 |
Fair value adjustment of retained noncontrolling investment | 477,393 | |||
Exchange difference | 1,449 | (2,995) | ||
Ending balance | $ 554,392 | $ 1,217,617 | $ 1,138,899 |
Note 12 - Equity Method Inves90
Note 12 - Equity Method Investment (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2015 | |
Note 12 - Equity Method Investment (Details) [Line Items] | ||||||
Payments to Acquire Equity Method Investments | $ 307,996 | $ 327,263 | $ 21,525,608 | |||
Equity Method Investment, Ownership Percentage | 20.00% | |||||
Equity method investment losses | (66,970) | $ 0 | $ 2,773,839 | |||
Equity Method Investments | $ 1,228,269 | $ 1,228,269 | $ 0 | |||
CFO Aishang [Member] | ||||||
Note 12 - Equity Method Investment (Details) [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 40.00% | 40.00% | 55.00% | |||
Equity Method Investment Ownership Transferred Percentage | 15.00% | |||||
Equity Method Investments, Fair Value Disclosure | $ 985,586 | $ 985,586 |
Note 12 - Equity Method Inves91
Note 12 - Equity Method Investment (Details) - Changes in Equity Method Investment - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in Equity Method Investment [Abstract] | |||
Beginning balance | $ 0 | ||
Acquisitions | 307,996 | ||
Equity method investment losses | (66,970) | $ 0 | $ 2,773,839 |
Fair value adjustment of retained noncontrolling investment | 985,586 | ||
Exchange difference | 1,657 | ||
Ending balance | $ 1,228,269 | $ 0 |
Note 13 - Deconsolidation (Deta
Note 13 - Deconsolidation (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2013 | Nov. 30, 2015 | Jun. 30, 2015 | |
Note 13 - Deconsolidation (Details) [Line Items] | |||||
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | $ 8,463,170 | ||||
Equity Method Investment, Ownership Percentage | 20.00% | ||||
Proceeds from Sale of Equity Method Investments | 12,765,427 | $ 11,445,202 | |||
CFO Zhongcheng [Member] | |||||
Note 13 - Deconsolidation (Details) [Line Items] | |||||
Deconsolidation, Ownership Percentage, Disposed | 100.00% | ||||
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | $ 9,322,850 | ||||
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | $ 9,161,948 | ||||
CFO Securities Consuting [Member] | |||||
Note 13 - Deconsolidation (Details) [Line Items] | |||||
Cost Method Investments, Ownership Percentage | 10.00% | 10.00% | |||
Cost Method Investments, Fair Value Disclosure | $ 477,393 | $ 477,393 | |||
CFO Securities Consuting [Member] | CFO Securities Consuting [Member] | |||||
Note 13 - Deconsolidation (Details) [Line Items] | |||||
Ownership Interest of Subsidiary | 90.00% | 90.00% | |||
CFO Aishang [Member] | |||||
Note 13 - Deconsolidation (Details) [Line Items] | |||||
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | $ 837,853 | ||||
Equity Method Investment Ownership Transferred Percentage | 15.00% | ||||
Equity Method Investment, Ownership Percentage | 40.00% | 40.00% | 55.00% | ||
Proceeds from Sale of Equity Method Investments | $ 3,861 | ||||
Equity Method Investments, Fair Value Disclosure | $ 985,586 | $ 985,586 |
Note 14 - Property and Equipm93
Note 14 - Property and Equipment, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 1,364,048 | $ 1,524,655 | $ 1,732,035 |
Note 14 - Property and Equipm94
Note 14 - Property and Equipment, Net (Details) - Property and Equipment - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 22,409,915 | $ 21,430,918 |
Less: accumulated depreciation | (16,620,381) | (16,567,969) |
Property and Equipment, Net | 5,789,534 | 4,862,949 |
Technology Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 10,638,276 | 9,842,789 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 2,163,506 | 1,995,876 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 3,800,591 | 4,052,425 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 875,729 | 929,340 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 4,931,813 | $ 4,610,488 |
Note 15 - Acquired Intangible95
Note 15 - Acquired Intangible Assets, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Note 15 - Acquired Intangible Assets, Net (Details) [Line Items] | |||
Amortization of Intangible Assets | $ 285,088 | $ 448,768 | $ 432,957 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 393,460 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 393,460 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 32,788 | ||
Impairment of Intangible Assets (Excluding Goodwill) | 250,360 | 1,802,125 | $ 0 |
Disposal | $ 3,149,842 | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 250,360 | ||
Commodity Trading Right [Member] | |||
Note 15 - Acquired Intangible Assets, Net (Details) [Line Items] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 250,360 |
Note 15 - Acquired Intangible96
Note 15 - Acquired Intangible Assets, Net (Details) - Acquired Intangible Assets - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Intangible assets not subject to amortization: | |||
Commodities trading right | $ (250,360) | ||
Intangible assets subject to amortization: | |||
Accumulated Amortization of Intangible Assets Subject to Amortization | (610,931) | $ (1,130,988) | |
Disposal of Intangible Assets Subject to Amortization | (3,149,842) | ||
2,400,825 | 8,268,235 | ||
(610,931) | (1,130,988) | ||
(250,360) | (1,802,125) | $ 0 | |
(3,149,842) | |||
1,539,534 | 2,185,280 | ||
Completed Technology [Member] | |||
Intangible assets subject to amortization: | |||
Gross Carrying Amount of Intangible Assets Subject to Amortization | 68,639 | ||
Accumulated Amortization of Intangible Assets Subject to Amortization | (27,187) | ||
Impairment of Intangible Assets Subject to Amortization | (41,452) | ||
(27,187) | |||
Customer Relationships [Member] | |||
Intangible assets subject to amortization: | |||
Gross Carrying Amount of Intangible Assets Subject to Amortization | 1,184,243 | 1,256,741 | |
Accumulated Amortization of Intangible Assets Subject to Amortization | (610,931) | (362,522) | |
Net Carrying Amount of Intangible Assets Subject to Amortization | 573,312 | 894,219 | |
(610,931) | (362,522) | ||
Securities Consulting License And Related Trademarks [Member] | |||
Intangible assets subject to amortization: | |||
Gross Carrying Amount of Intangible Assets Subject to Amortization | 5,570,082 | ||
Accumulated Amortization of Intangible Assets Subject to Amortization | (741,279) | ||
Impairment of Intangible Assets Subject to Amortization | (1,760,673) | ||
Disposal of Intangible Assets Subject to Amortization | (3,068,130) | ||
(741,279) | |||
Commodity Trading Right [Member] | |||
Intangible assets not subject to amortization: | |||
Commodities trading right | 1,216,582 | 1,372,773 | |
Commodities trading right | (250,360) | ||
Commodities trading right | (81,712) | ||
Commodities trading right | $ 966,222 | $ 1,291,061 |
Note 16 - Goodwill (Details)
Note 16 - Goodwill (Details) - USD ($) | Jun. 01, 2014 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Note 16 - Goodwill (Details) [Line Items] | |||||
Goodwill, Impairment Loss | $ 0 | $ 8,149,525 | $ 0 | ||
Investment Advisory Services [Member] | |||||
Note 16 - Goodwill (Details) [Line Items] | |||||
Goodwill, Impairment Loss | $ 8,149,525 | ||||
Institutional Subscription Services [Member] | |||||
Note 16 - Goodwill (Details) [Line Items] | |||||
Goodwill, Written off Related to Sale of Business Unit | $ 1,676,490 | ||||
CFO Guiwo [Member] | |||||
Note 16 - Goodwill (Details) [Line Items] | |||||
Goodwill, Impairment Loss | $ 0 |
Note 16 - Goodwill (Details) -
Note 16 - Goodwill (Details) - Changes in Goodwill - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Line Items] | |||
Balance | $ 7,089,780 | $ 16,974,437 | |
Impairment | 0 | (8,149,525) | $ 0 |
Exchange difference | (410,066) | (58,642) | |
Balance | 6,699,620 | 7,089,780 | 16,974,437 |
Precious Metal Trading [Member] | |||
Goodwill [Line Items] | |||
Balance | 7,089,780 | 7,115,479 | |
Exchange difference | (410,066) | (25,699) | |
Balance | 6,699,620 | 7,089,780 | 7,115,479 |
Investment Advisory Services [Member] | |||
Goodwill [Line Items] | |||
Balance | 8,182,468 | ||
Exchange difference | (32,943) | ||
Balance | 8,182,468 | ||
Institutional Subscription Service [Member] | |||
Goodwill [Line Items] | |||
Balance | 1,676,490 | ||
Balance | $ 1,676,490 | ||
CFO East Win [Member] | |||
Goodwill [Line Items] | |||
Impairment | (3,112,365) | ||
CFO East Win [Member] | Investment Advisory Services [Member] | |||
Goodwill [Line Items] | |||
Impairment | (3,112,365) | ||
Champion Connection [Member] | |||
Goodwill [Line Items] | |||
Impairment | (4,867,660) | ||
Disposal of Champion Connection's business (Note4) | (1,676,490) | ||
Champion Connection [Member] | Investment Advisory Services [Member] | |||
Goodwill [Line Items] | |||
Impairment | (4,867,660) | ||
Champion Connection [Member] | Institutional Subscription Service [Member] | |||
Goodwill [Line Items] | |||
Disposal of Champion Connection's business (Note4) | (1,676,490) | ||
CFO Netinfo [Member] | |||
Goodwill [Line Items] | |||
Acquisition of CFO Guiwo (Note3) | 19,906 | ||
Impairment | (169,500) | ||
CFO Netinfo [Member] | Precious Metal Trading [Member] | |||
Goodwill [Line Items] | |||
Acquisition of CFO Guiwo (Note3) | $ 19,906 | ||
CFO Netinfo [Member] | Investment Advisory Services [Member] | |||
Goodwill [Line Items] | |||
Impairment | $ (169,500) |
Note 17 - Accounts Payable (Det
Note 17 - Accounts Payable (Details) - Accounts Payable - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Note 17 - Accounts Payable (Details) - Accounts Payable [Line Items] | ||
Accounts payable | $ 5,493,728 | $ 9,852,491 |
Amount due to noncontrolling shareholders | 910,864 | 876,911 |
Others | 471,399 | 409,386 |
Amount Due to Customers of H.K. Brokerage Business [Member] | ||
Note 17 - Accounts Payable (Details) - Accounts Payable [Line Items] | ||
Accounts payable | 2,388,638 | 7,982,827 |
Amount Due to Sales Agents [Member] | ||
Note 17 - Accounts Payable (Details) - Accounts Payable [Line Items] | ||
Accounts payable | $ 1,722,827 | $ 583,367 |
Note 18 - Accrued Expenses a100
Note 18 - Accrued Expenses and Other Current Liabilities (Details) - iSTAR Futures and iSTAR Wealth Management [Member] - USD ($) $ in Millions | Mar. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 |
Note 18 - Accrued Expenses and Other Current Liabilities (Details) [Line Items] | |||
Sale of Stock, Percentage of Ownership before Transaction | 100.00% | ||
Proceeds from Collection of Consideration Receivable | $ 5.1 | ||
Subsequent Event [Member] | |||
Note 18 - Accrued Expenses and Other Current Liabilities (Details) [Line Items] | |||
Refund, Agreement Expired | $ 5.1 |
Note 18 - Accrued Expenses a101
Note 18 - Accrued Expenses and Other Current Liabilities (Details) - Accrued Expenses and Other Current Liabilities - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |||
Accrued bonus | $ 4,825,633 | $ 3,612,689 | |
Accrued professional service fees | 416,676 | 760,780 | |
Withholding individual income tax-option exercise | 61,683 | 61,683 | |
Value added taxes and other taxes payable | 2,219,300 | 945,471 | |
Accrued raw data cost | 1,285,418 | 762,492 | |
Accrued bandwidth cost | 38,527 | 127,650 | |
Accrued welfare benefits | 61,594 | 72,160 | |
Amount payable related to business restructure (Note 4) | $ 360,520 | ||
Advances related to disposal of subsidiaries (i) | [1] | 5,081,927 | |
Accrued sales service fees | 578,910 | $ 491,981 | |
Others | 1,085,757 | 1,642,308 | |
Total | $ 15,655,425 | $ 8,837,734 | |
[1] | On March 30, 2015, the Group signed a sale & purchase agreement with a third party, to transfer the 100% ordinary shares of iSTAR Futures and iSTAR Wealth Management (the "Transaction"). In April 2015, the Group collected partial consideration of approximately $5.1 million. Due to the Transaction was not completed as of December 31, 2015, the agreement was expired automatically. The Group refunded the $5.1 million and entered into a new agreement in April 2016. (Note 28) |
Note 19 - Stock Options and 102
Note 19 - Stock Options and Nonvested Shares (Details) - USD ($) | Jan. 02, 2016 | Nov. 16, 2015 | Jul. 01, 2015 | Jul. 01, 2014 | Jan. 02, 2014 | Jun. 30, 2014 | Nov. 30, 2010 | Jul. 31, 2007 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2010 |
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Allocated Share-based Compensation Expense | $ 6,056,033 | $ 4,698,953 | $ 3,035,122 | |||||||||
Restricted Stock [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 6 months | |||||||||||
"CFO Shenzhen Shangtong" [Member] | Restricted Stock [Member] | Employee [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Granted | 10.00% | |||||||||||
2004 Stock Incentive Plan [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Allocated Share-based Compensation Expense | $ 546,465 | $ 2,664,317 | $ 2,539,274 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 30,688,488 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 14,000,000 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 0.17 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 1,881,129 | $ 647,701 | $ 208,895 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 2,067,037 | 3,080,628 | $ 141,549 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 39,183 | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year | |||||||||||
2004 Stock Incentive Plan [Member] | Consultants and Strategic Advisers [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 6,260,000 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |||||||||||
2004 Stock Incentive Plan [Member] | Employee Stock Option [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 7,740,000 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||||
2004 Stock Incentive Plan [Member] | Employee Stock Option [Member] | Two Officers [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 3,300,000 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |||||||||||
2004 Stock Incentive Plan [Member] | Restricted Stock [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Allocated Share-based Compensation Expense | $ 324,496 | $ 762,568 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | 1,100,240 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 1.106 | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 129,801 | |||||||||||
2004 Stock Incentive Plan [Member] | Restricted Stock [Member] | Employee [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | 258,086 | |||||||||||
2004 Stock Incentive Plan [Member] | Restricted Stock [Member] | Subsequent Event [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in Shares) | 748,162 | |||||||||||
2007 Equity Incentive Plan [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Allocated Share-based Compensation Expense | $ 1,476,000 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in Shares) | 0 | 8,658,048 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 0.82 | |||||||||||
2007 Equity Incentive Plan [Member] | Restricted Stock [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 984,000 | |||||||||||
2007 Equity Incentive Plan [Member] | Nonvested Ordinary Shares [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | 10,558,493 | 0 | 1,099,555 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in Shares) | 3,000,000 | 0 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 0.82 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 0.82 | $ 0 | ||||||||||
Restricted Stock Issuance and Allocation Agreement of 2007 Equity Incentive Plan [Member] | Nonvested Ordinary Shares [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | 3,000,000 | |||||||||||
2010 Equity Incentive Plan of iSTAR Financial Holdings [Member] | Nonvested Shares - iSTAR Financial Holdings' Equity Interest [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Allocated Share-based Compensation Expense | $ 495,848 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | 1,500 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 1,188 | |||||||||||
Nonvested Shares Granted, Percentage of Total Equity Interest | 15.00% | |||||||||||
Nonvested Shares Granted, Percentage of Earnings | 15.00% | |||||||||||
2014 Stock Incentive Plan [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 8,000,000 | 5,000,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 120,000 | 1,960,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 0.61 | $ 0.63 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 1,159 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 496,560 | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 345,961 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in Shares) | 3,000,000 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | 31,400 | |||||||||||
2014 Stock Incentive Plan [Member] | Consultant [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 30,000 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||||
2014 Stock Incentive Plan [Member] | Employee Stock Option [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Allocated Share-based Compensation Expense | $ 148,451 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 120,000 | 1,930,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years | |||||||||||
Allocated Share-based Compensation Expense, Reversal | $ 187,485 | |||||||||||
2014 Stock Incentive Plan [Member] | Restricted Stock [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Allocated Share-based Compensation Expense | $ 898,903 | $ 310,888 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 219 days | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | 3,800,000 | 15,000 | 1,780,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in Shares) | 890,000 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 0.742 | $ 0.878 | ||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 3,172,649 | |||||||||||
2014 Stock Incentive Plan [Member] | Restricted Stock [Member] | Consultant [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Allocated Share-based Compensation Expense | $ 754,354 | $ 245,958 | ||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 0 years | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | 1,150,000 | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 427,988 | |||||||||||
CFO Huifu [Member] | Restricted Stock [Member] | Employee [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Granted | 10.00% | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Fair Value | $ 2,464,455 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Net Assets Granted | 10.00% | |||||||||||
"CFO Shenzhen Shangtong" [Member] | Restricted Stock [Member] | Employee [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Fair Value | $ 28,965 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Net Assets Granted | 10.00% | |||||||||||
Fortune Zhengjin [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Allocated Share-based Compensation Expense | 1,965,535 | $ 560,187 | ||||||||||
Fortune Zhengjin [Member] | Restricted Stock [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 4,478,097 | |||||||||||
Fortune Zhengjin [Member] | Restricted Stock [Member] | Employee [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Granted | 8.00% | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Fair Value | $ 4,681,533 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Net Assets Granted | 8.00% | |||||||||||
CFO Tahoe [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Allocated Share-based Compensation Expense | 267,565 | |||||||||||
CFO Tahoe [Member] | Restricted Stock [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 873,559 | |||||||||||
CFO Tahoe [Member] | Restricted Stock [Member] | Employee [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 5 years | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Granted | 1.95% | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Fair Value | $ 1,141,124 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Net Assets Granted | 1.95% | |||||||||||
CFO Shangtong [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Allocated Share-based Compensation Expense | 10,200 | $ 6,584 | ||||||||||
CFO Shangtong [Member] | Restricted Stock [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 10,510 | |||||||||||
Not Vested Under 2007 Plan [Member] | Restricted Stock Issuance and Allocation Agreement of 2007 Equity Incentive Plan [Member] | Nonvested Ordinary Shares [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | 1,900,445 | |||||||||||
Share-based Compensation Award, Tranche One [Member] | 2014 Stock Incentive Plan [Member] | Restricted Stock [Member] | Consultant [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |||||||||||
Share-based Compensation Award, Tranche Two [Member] | 2014 Stock Incentive Plan [Member] | Restricted Stock [Member] | Consultant [Member] | ||||||||||||
Note 19 - Stock Options and Nonvested Shares (Details) [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | 50,000 |
Note 19 - Stock Options and 103
Note 19 - Stock Options and Nonvested Shares (Details) - Fair Value Assumptions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2013 | |
Note 19 - Stock Options and Nonvested Shares (Details) - Fair Value Assumptions [Line Items] | ||
Weighted average risk free rate of return | 1.32% | |
Weighted average expected option life (in years) | 6 years 313 days | |
Expected volatility rate | 77.81% | |
2004 Stock Incentive Plan [Member] | ||
Note 19 - Stock Options and Nonvested Shares (Details) - Fair Value Assumptions [Line Items] | ||
Weighted average risk free rate of return | 1.40% | |
Weighted average expected option life (in years) | 6 years 51 days | |
Expected volatility rate | 76.67% |
Note 19 - Stock Options and 104
Note 19 - Stock Options and Nonvested Shares (Details) - Summary of the Stock Option Activity - 2004 Stock Incentive Plan [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Note 19 - Stock Options and Nonvested Shares (Details) - Summary of the Stock Option Activity [Line Items] | |||
Outstanding at beginning of year | 21,326,160 | 24,505,348 | 11,144,998 |
Outstanding at beginning of year | $ 0.57 | $ 0.54 | $ 0.93 |
Granted | 14,000,000 | ||
Granted | $ 0.25 | ||
Exercised | (2,205,600) | (1,164,300) | (190,250) |
Exercised | $ 0.22 | $ 0.54 | $ 0.16 |
Forfeited | (1,787,800) | (2,014,888) | (449,400) |
Forfeited | $ 1.18 | $ 0.27 | $ 1.25 |
Outstanding at end of year | 17,332,760 | 21,326,160 | 24,505,348 |
Outstanding at end of year | $ 0.55 | $ 0.57 | $ 0.54 |
Shares exercisable at end of year | 14,513,528 | 14,070,240 | 10,500,548 |
Shares exercisable at end of year | $ 0.61 | $ 0.73 | $ 0.93 |
Note 19 - Stock Options and 105
Note 19 - Stock Options and Nonvested Shares (Details) - Summary of Information With Respect to Stock Options Outstanding - 2004 Stock Incentive Plan [Member] - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Number outstanding | 17,332,760 | 21,326,160 | 24,505,348 | 11,144,998 |
Weighted average remaining contractual life, outstanding | 5 years 310 days | |||
Weighted average exercise price, outstanding (in Dollars per share) | $ 0.55 | $ 0.57 | $ 0.54 | $ 0.93 |
Aggregate intrinsic value, outstanding (in Dollars) | $ 12,412,802 | |||
Number exercisable | 14,513,528 | 14,070,240 | 10,500,548 | |
Weighted average exercise price, exercisable (in Dollars per share) | $ 0.61 | $ 0.73 | $ 0.93 | |
Aggregate intrinsic value, exercisable (in Dollars) | $ 9,616,123 | |||
$1.07 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Stock option exercise price (in Dollars per share) | $ 1.07 | |||
Number outstanding | 700,000 | |||
Number exercisable | 700,000 | |||
$0.96 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Stock option exercise price (in Dollars per share) | $ 0.96 | |||
Number outstanding | 2,268,000 | |||
Number exercisable | 2,268,000 | |||
$1.318 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Stock option exercise price (in Dollars per share) | $ 1.318 | |||
Number outstanding | 53,600 | |||
Number exercisable | 53,600 | |||
$1.26 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Stock option exercise price (in Dollars per share) | $ 1.26 | |||
Number outstanding | 413,360 | |||
Number exercisable | 413,360 | |||
$1.65 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Stock option exercise price (in Dollars per share) | $ 1.648 | |||
Number outstanding | 10,000 | |||
Number exercisable | 10,000 | |||
$1.426 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Stock option exercise price (in Dollars per share) | $ 1.426 | |||
Number outstanding | 2,091,000 | |||
Number exercisable | 2,091,000 | |||
$1.43 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Stock option exercise price (in Dollars per share) | $ 1.43 | |||
Number outstanding | 50,000 | |||
Number exercisable | 50,000 | |||
$0.25 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Stock option exercise price (in Dollars per share) | $ 0.25 | |||
Number outstanding | 11,746,800 | |||
Number exercisable | 8,927,568 |
Note 19 - Stock Options and 106
Note 19 - Stock Options and Nonvested Shares (Details) - Nonvested Shares - 2007 Equity Incentive Plan [Member] - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2007 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2010 | |
Note 19 - Stock Options and Nonvested Shares (Details) - Nonvested Shares [Line Items] | ||||
Vested | 0 | 8,658,048 | ||
Vested, weighted-average grant/modification date fair value (in Dollars per share) | $ 0.82 | |||
Nonvested Ordinary Shares [Member] | ||||
Note 19 - Stock Options and Nonvested Shares (Details) - Nonvested Shares [Line Items] | ||||
Shares | 3,000,000 | 1,900,445 | ||
Weighted-average grant/modification date fair value (in Dollars per share) | $ 1.064 | $ 0.252 | ||
Aggregate intrinsic value (in Dollars) | $ 3,192,000 | $ 2,390,760 | ||
Granted | 10,558,493 | 0 | 1,099,555 | |
Granted, weighted-average grant/modification date fair value (in Dollars per share) | $ 0.82 | |||
Granted, aggregate intrinsic value (in Dollars) | $ 901,635 | |||
Vested | 3,000,000 | 0 | ||
Vested, weighted-average grant/modification date fair value (in Dollars per share) | $ 0.82 | $ 0 | ||
Vested, aggregate intrinsic value (in Dollars) | $ 2,460,000 | $ 0 | ||
Forfeited | 0 | 0 | ||
Forfeited, weighted-average grant/modification date fair value (in Dollars per share) | $ 0 | $ 0 | ||
Forfeited, aggregate intrinsic value (in Dollars) | $ 0 | $ 0 | ||
Shares | 3,000,000 | 3,000,000 | ||
Weighted-average grant/modification date fair value (in Dollars per share) | $ 1.082 | $ 1.064 | ||
Aggregate intrinsic value (in Dollars) | $ 3,246,000 | $ 3,192,000 |
Note 19 - Stock Options and 107
Note 19 - Stock Options and Nonvested Shares (Details) - Fair Value Assumptions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 19 - Stock Options and Nonvested Shares (Details) - Fair Value Assumptions [Line Items] | ||
Weighted average risk free rate of return | 1.32% | |
Weighted average expected option life (in years) | 6 years 313 days | |
Expected volatility rate | 77.81% | |
Minimum [Member] | 2014 Stock Incentive Plan [Member] | ||
Note 19 - Stock Options and Nonvested Shares (Details) - Fair Value Assumptions [Line Items] | ||
Weighted average risk free rate of return | 1.39% | |
Weighted average expected option life (in years) | 6 years 299 days | |
Expected volatility rate | 77.74% | |
Maximum [Member] | 2014 Stock Incentive Plan [Member] | ||
Note 19 - Stock Options and Nonvested Shares (Details) - Fair Value Assumptions [Line Items] | ||
Weighted average risk free rate of return | 1.62% | |
Weighted average expected option life (in years) | 6 years 317 days | |
Expected volatility rate | 79.37% |
Note 19 - Stock Options and 108
Note 19 - Stock Options and Nonvested Shares (Details) - Summary of the Stock Option Activity - 2014 Stock Incentive Plan [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 19 - Stock Options and Nonvested Shares (Details) - Summary of the Stock Option Activity [Line Items] | ||
Outstanding at beginning of year | 1,860,000 | |
Outstanding at beginning of year | $ 0.89 | |
Granted | 120,000 | 1,960,000 |
Granted | $ 0.87 | $ 0.90 |
Exercised | (3,600) | |
Exercised | $ 0.92 | |
Forfeited | (741,400) | (100,000) |
Forfeited | $ 0.89 | $ 0.88 |
Outstanding at end of year | 1,235,000 | 1,860,000 |
Outstanding at end of year | $ 0.88 | $ 0.89 |
Shares exercisable at end of year | 480,200 | |
Shares exercisable at end of year | $ 0.89 |
Note 19 - Stock Options and 109
Note 19 - Stock Options and Nonvested Shares (Details) - Summary of Information with Respect to Stock Options Outstanding - 2014 Stock Incentive Plan [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number outstanding | 1,235,000 | 1,860,000 |
Weighted average remaining contractual life, outstanding | 8 years 255 days | |
Weighted average exercise price, outstanding (in Dollars per share) | $ 0.88 | $ 0.89 |
Aggregate intrinsic value, outstanding (in Dollars) | $ 433,540 | |
Number exercisable | 480,200 | |
Weighted average exercise price, exercisable (in Dollars per share) | $ 0.89 | |
Aggregate intrinsic value, exercisable (in Dollars) | $ 168,688 | |
$0.878 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Stock option exercise price (in Dollars per share) | $ 0.878 | |
Number outstanding | 985,000 | |
Number exercisable | 433,400 | |
$0.92 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Stock option exercise price (in Dollars per share) | $ 0.92 | |
Number outstanding | 30,000 | |
Number exercisable | 10,800 | |
$1.03 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Stock option exercise price (in Dollars per share) | $ 1.03 | |
Number outstanding | 50,000 | |
Number exercisable | 18,000 | |
$1.04 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Stock option exercise price (in Dollars per share) | $ 1.04 | |
Number outstanding | 50,000 | |
Number exercisable | 18,000 | |
$0.87 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Stock option exercise price (in Dollars per share) | $ 0.87 | |
Number outstanding | 120,000 |
Note 20 - Income Taxes (Details
Note 20 - Income Taxes (Details) - USD ($) | 12 Months Ended | 24 Months Ended | 36 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2015 | |
Note 20 - Income Taxes (Details) [Line Items] | |||||||
Income Tax Calculation, "Deemed-Profit Method," Percentage of Gross Revenues | 2.50% | ||||||
Retained Earnings (Accumulated Deficit) (in Dollars) | $ (5,560,770) | $ (28,043,186) | $ (28,043,186) | $ (5,560,770) | |||
Deferred Tax Assets, Valuation Allowance (in Dollars) | 15,891,765 | $ 15,122,721 | 15,122,721 | 15,891,765 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration (in Dollars) | 52,300,000 | 52,300,000 | |||||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration (in Dollars) | $ 18,700,000 | 18,700,000 | |||||
Impact Of The Tax Holidays On Basic Net Income Per Ordinary Share (in Dollars per share) | $ 0.01 | $ 0 | $ 0 | ||||
Unrecognized Tax Benefits (in Dollars) | $ 0 | $ 0 | $ 0 | $ 0 | 0 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued (in Dollars) | 0 | 0 | |||||
Company's Subsidiary Located in the PRC [Member] | |||||||
Note 20 - Income Taxes (Details) [Line Items] | |||||||
Retained Earnings (Accumulated Deficit) (in Dollars) | (20,300,000) | (20,300,000) | |||||
Company's VIEs and Its VIEs' Subsidiaries Located in The PRC [Member] | |||||||
Note 20 - Income Taxes (Details) [Line Items] | |||||||
Retained Earnings, Unappropriated (in Dollars) | $ 30,000,000 | $ 30,000,000 | |||||
Hong Kong [Member] | |||||||
Note 20 - Income Taxes (Details) [Line Items] | |||||||
Profit Tax | 16.50% | ||||||
PRC [Member] | |||||||
Note 20 - Income Taxes (Details) [Line Items] | |||||||
Enterprise Income Tax ("EIT") | 25.00% | ||||||
PRC [Member] | Enterprise Qualifying As A "High and New Technology Enterprise" ("the HNTE") [Member] | |||||||
Note 20 - Income Taxes (Details) [Line Items] | |||||||
Enterprise Income Tax ("EIT") | 15.00% | ||||||
PRC [Member] | "Software Enterprises" - Preferential Rate For Three Years [Member] | |||||||
Note 20 - Income Taxes (Details) [Line Items] | |||||||
Enterprise Income Tax ("EIT") | 12.50% | ||||||
PRC [Member] | Standard EIT Rate [Member] | |||||||
Note 20 - Income Taxes (Details) [Line Items] | |||||||
Enterprise Income Tax ("EIT") | 25.00% | ||||||
PRC [Member] | Company and Its Subsidiaries Registered Outside the PRC, But Deemed a Resident Enterprise [Member] | |||||||
Note 20 - Income Taxes (Details) [Line Items] | |||||||
Income Tax Rate | 25.00% | ||||||
PRC [Member] | "CFO Qicheng" [Member] | Preferential Tax Rate - Software Enterprises [Member] | |||||||
Note 20 - Income Taxes (Details) [Line Items] | |||||||
Enterprise Income Tax ("EIT") | 12.50% | ||||||
PRC [Member] | "CFO Shenzhen Shangtong" [Member] | Preferential Tax Rate - Software Enterprises [Member] | |||||||
Note 20 - Income Taxes (Details) [Line Items] | |||||||
Enterprise Income Tax ("EIT") | 12.50% | ||||||
PRC [Member] | "CFO Software" [Member] | Preferential Tax Rate - HNTE; Transition Rules of EIT Law [Member] | |||||||
Note 20 - Income Taxes (Details) [Line Items] | |||||||
Enterprise Income Tax ("EIT") | 15.00% | ||||||
PRC [Member] | "CFO Meining" [Member] | Preferential Tax Rate - HNTE; Transition Rules of EIT Law [Member] | |||||||
Note 20 - Income Taxes (Details) [Line Items] | |||||||
Enterprise Income Tax ("EIT") | 15.00% | ||||||
PRC [Member] | "CFO Genius" [Member] | Preferential Tax Rate - HNTE; Transition Rules of EIT Law [Member] | |||||||
Note 20 - Income Taxes (Details) [Line Items] | |||||||
Enterprise Income Tax ("EIT") | 15.00% | ||||||
PRC [Member] | CFO Tibet [Member] | Preferential Tax Rate - HNTE; Transition Rules of EIT Law [Member] | |||||||
Note 20 - Income Taxes (Details) [Line Items] | |||||||
Enterprise Income Tax ("EIT") | 15.00% | ||||||
PRC [Member] | CFO Tibet [Member] | Preferential Tax Rate for Enterprises in Tibet, China [Member] | |||||||
Note 20 - Income Taxes (Details) [Line Items] | |||||||
Enterprise Income Tax ("EIT") | 9.00% | ||||||
Dividends Paid By PRC Subsidiaries [Member] | |||||||
Note 20 - Income Taxes (Details) [Line Items] | |||||||
Dividends, Withholding Tax, Percentage | 10.00% | ||||||
Amount Avoided Due to Tax Holiday and Special Tax Concessions [Member] | |||||||
Note 20 - Income Taxes (Details) [Line Items] | |||||||
Income Tax Expense, Amount Avoided (in Dollars) | $ 1,102,399 | $ 20,851 | $ 31,910 |
Note 20 - Income Taxes (Deta111
Note 20 - Income Taxes (Details) - Income Tax (Provision) Benefit - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Note 20 - Income Taxes (Details) - Income Tax (Provision) Benefit [Line Items] | |||
Current | $ (2,071,154) | $ (558,696) | $ (478,966) |
Deferred | 502,052 | 106,900 | 357,014 |
Total | (1,384,262) | (513,914) | (100,058) |
Exchange Difference [Member] | |||
Note 20 - Income Taxes (Details) - Income Tax (Provision) Benefit [Line Items] | |||
Deferred | $ 686,892 | $ 44,782 | $ 378,908 |
Note 20 - Income Taxes (Deta112
Note 20 - Income Taxes (Details) - The Principal Components of Deferred Income Taxes Were As Follows - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current deferred tax assets: | ||
Accrued expenses and other liabilities | $ 612,161 | $ 467,758 |
Gross non-current deferred tax assets | 11,105,608 | 10,825,142 |
Gross current deferred tax assets | 5,775,871 | 5,295,200 |
Less: valuation allowance | (11,085,358) | (10,753,602) |
Total non-current deferred tax assets | 20,250 | 71,540 |
Current deferred tax liabilities: | ||
Account receivable and other assets | (15,132) | (580,197) |
Total current deferred tax liabilities | (15,132) | (580,197) |
Non-current deferred tax liabilities: | ||
Intangible assets | (384,883) | (546,320) |
Total non-current deferred tax liabilities | (384,883) | (546,320) |
Less: valuation allowance | (4,806,407) | (4,369,119) |
Total current deferred tax assets | 969,464 | 926,081 |
Current [Member] | ||
Current deferred tax assets: | ||
Deferred revenue | 445,314 | 594,196 |
Net operating loss carrying forwards | 4,718,396 | 4,233,246 |
Non-Current [Member] | ||
Current deferred tax assets: | ||
Deferred revenue | 121,133 | 268,393 |
Net operating loss carrying forwards | $ 10,984,475 | $ 10,556,749 |
Note 20 - Income Taxes (Deta113
Note 20 - Income Taxes (Details) - Reconciliation Between Total Income Tax Expense (Benefit) and The Amount Computed By Applying The PRC EIT Statutory Rate To Income Before Income Taxes - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation Between Total Income Tax Expense (Benefit) and The Amount Computed By Applying The PRC EIT Statutory Rate To Income Before Income Taxes [Abstract] | |||
Income (loss) before tax | $ 28,201,950 | $ (10,116,814) | $ (8,073,832) |
Income tax (benefits) expenses calculated at 25% | 7,050,488 | (2,529,204) | (2,018,458) |
Effect of tax holiday | (8,139,429) | (4,125,912) | (266,396) |
Effect of income tax rate difference in other jurisdictions | 645,873 | 1,789,762 | 305,505 |
Non-deductible expenses. | 2,559,649 | 1,425,655 | 267,748 |
Non-taxable income | (893,950) | (549,315) | (439,861) |
Change in valuation allowance | 161,631 | 4,502,928 | 2,251,520 |
Income tax expense | $ 1,384,262 | $ 513,914 | $ 100,058 |
Note 20 - Income Taxes (Deta114
Note 20 - Income Taxes (Details) - Reconciliation Between Total Income Tax Expense (Benefit) and The Amount Computed By Applying The PRC EIT Statutory Rate To Income Before Income Taxes (Parentheticals) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation Between Total Income Tax Expense (Benefit) and The Amount Computed By Applying The PRC EIT Statutory Rate To Income Before Income Taxes [Abstract] | |||
Income tax expense calculated | 25.00% | 25.00% | 25.00% |
Note 21 - American Depositar115
Note 21 - American Depositary Shares ("ADS") Plan (Details) - 2004 Plan and 2014 Plan [Member] - shares | 1 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2015 | |
Note 21 - American Depositary Shares ("ADS") Plan (Details) [Line Items] | ||
Shares Exchange for ADSs | 4,000,000 | |
ADSs Received | 800,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,305,800 |
Note 22 - Net Loss Per Share (D
Note 22 - Net Loss Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Stock Option [Member] | ||
Note 22 - Net Loss Per Share (Details) [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 23,186,160 | 24,505,348 |
Nonvested [Member] | ||
Note 22 - Net Loss Per Share (Details) [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,000,000 | 1,900,445 |
Restricted Stock [Member] | ||
Note 22 - Net Loss Per Share (Details) [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,030,240 |
Note 22 - Net Loss Per Share117
Note 22 - Net Loss Per Share (Details) - Computation of Basic and Diluted Income (Loss) Per Share - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Computation of Basic and Diluted Income (Loss) Per Share [Abstract] | |||
Net income (loss) attributable to China Finance Online Co. Limited (in Dollars) | $ 22,482,416 | $ (7,167,849) | $ (8,573,128) |
Weighted average ordinary shares outstanding used in computing basic net income (loss) per share | 110,997,871 | 109,385,712 | 109,019,513 |
Plus: Incremental shares from assumed conversions of stock options and nonvested shares | 14,131,892 | ||
Weighted average ordinary shares outstanding used in computing diluted net income (loss) per share | 125,129,763 | 109,385,712 | 109,019,513 |
Net income (loss) per share attributable to China Finance Online Co. Limited | |||
- basic (in Dollars per share) | $ 0.20 | $ (0.07) | $ (0.08) |
- diluted (in Dollars per share) | $ 0.18 | $ (0.07) | $ (0.08) |
Note 23 - Mainland China Con118
Note 23 - Mainland China Contribution Plan and Profit Appropriation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Defined Contribution Plan, Cost Recognized | $ 4,353,944 | $ 3,685,654 | $ 2,710,481 |
Note 24 - Noncontrolling Int119
Note 24 - Noncontrolling Interests (Details) - Noncontrolling Interests - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Redeemable Noncontrolling Interest [Line Items] | |||
Balance | $ 10,926,072 | $ 14,646,352 | $ 751,368 |
Business restructure | 613,915 | ||
Dividends paid to noncontrolling shareholders | (6,509,680) | (1,030,012) | |
Acquisitions | 13,613,231 | ||
Changes in ownership of subsidiaries or afficates | 1,714,464 | (778,815) | |
Paid-in capital from noncontrolling shareholders | 488,155 | 1,397,616 | |
Share-based compensation | 724,285 | 158,696 | 74,376 |
Net income (loss) | 4,335,272 | (3,462,879) | 399,238 |
Balance | 11,191,054 | 10,926,072 | 14,646,352 |
Additional Paid-in Capital [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Acquisitions | 191,861 | ||
Paid-in capital from noncontrolling shareholders | 641 | 1,405,963 | |
Precious Metal Trading Services [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Balance | 10,994,060 | 11,970,580 | |
Business restructure | (2,569,160) | ||
Dividends paid to noncontrolling shareholders | (6,509,680) | (1,030,012) | |
Changes in ownership of subsidiaries or afficates | 1,393,508 | ||
Share-based compensation | 724,285 | 158,696 | |
Net income (loss) | 4,815,506 | 2,463,956 | 1,056,322 |
Balance | 11,418,320 | 10,994,060 | 11,970,580 |
Precious Metal Trading Services [Member] | Additional Paid-in Capital [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Paid-in capital from noncontrolling shareholders | 641 | 1,405,963 | |
Investment Advisory Services [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Balance | 2,906,331 | 688,062 | |
Business restructure | 2,384,519 | ||
Changes in ownership of subsidiaries or afficates | 289,656 | ||
Net income (loss) | (5,290,850) | (419,202) | |
Balance | 2,906,331 | ||
Institutional Subscription Services [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Balance | (194,944) | ||
Business restructure | 786,355 | ||
Changes in ownership of subsidiaries or afficates | (1,068,471) | ||
Net income (loss) | (591,411) | (64,585) | |
Balance | (194,944) | ||
iSTAR Financial Holdings Brokerage Services [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Balance | (31,679) | (35,615) | 63,306 |
Share-based compensation | 74,376 | ||
Net income (loss) | (195,587) | 3,936 | (173,297) |
Balance | (227,266) | (31,679) | (35,615) |
Other Segments [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Balance | (36,309) | ||
Business restructure | 12,201 | ||
Changes in ownership of subsidiaries or afficates | 320,956 | ||
Net income (loss) | $ (284,647) | (48,510) | |
Balance | $ (36,309) | ||
CFO Tahoe [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Acquisitions | 9,508,295 | ||
CFO Tahoe [Member] | Precious Metal Trading Services [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Acquisitions | 9,508,295 | ||
Champion Connection [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Acquisitions | 2,698,973 | ||
Champion Connection [Member] | Investment Advisory Services [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Acquisitions | 1,760,861 | ||
Champion Connection [Member] | Institutional Subscription Services [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Acquisitions | 938,112 | ||
CFO East Win [Member] | Noncontrolling Interest Not Including Additional Paid In Capital [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Acquisitions | 586,954 | ||
CFO East Win [Member] | Investment Advisory Services [Member] | Noncontrolling Interest Not Including Additional Paid In Capital [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Acquisitions | $ 586,954 |
Note 25 - Commitments and Co120
Note 25 - Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases, Rent Expense | $ 6,044,119 | $ 7,013,985 | $ 4,808,894 |
Note 25 - Commitments and Co121
Note 25 - Commitments and Contingencies (Details) - Future Minimum Payments Under Non-cancelable Operating Leases and Data Purchase Agreements - Non-Cancelable Operating Leases and Data Purchase Agreements [Member] | Dec. 31, 2015USD ($) |
Note 25 - Commitments and Contingencies (Details) - Future Minimum Payments Under Non-cancelable Operating Leases and Data Purchase Agreements [Line Items] | |
2,016 | $ 5,437,871 |
2,017 | 3,359,212 |
2,018 | 1,632,872 |
Total | $ 10,429,955 |
Note 26 - Segment and Geogra122
Note 26 - Segment and Geographic Information (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 3 |
Note 26 - Segment and Geogra123
Note 26 - Segment and Geographic Information (Details) - Operations of the Group's Operating Segments - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 107,404,766 | $ 83,695,885 | $ 52,738,077 |
Cost of revenues | 19,738,737 | 20,352,729 | 10,570,070 |
Operating expenses: | |||
General and adminstrative | 17,993,787 | 17,592,119 | 15,210,102 |
Product development | 10,738,730 | 11,147,873 | 9,032,327 |
Sales and marketing | 46,474,107 | 43,761,473 | 30,588,236 |
Loss from impairment of intangible assets | 250,360 | 1,802,125 | 0 |
Loss from impairment of goodwill | 0 | 8,149,525 | 0 |
Operating expenses | 75,456,984 | 82,453,115 | 54,830,665 |
Government subsidies | 251,828 | 659,417 | 11,187 |
Income (loss) from operations | 12,460,873 | (18,450,542) | (12,651,471) |
Assets | 144,065,157 | 113,903,358 | 133,492,735 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 144,106,738 | 110,804,203 | 55,185,494 |
Cost of revenues | 20,478,238 | 20,350,226 | |
Operating expenses: | |||
General and adminstrative | 18,154,069 | 30,521,464 | 15,210,102 |
Product development | 10,738,449 | 16,027,807 | 9,032,327 |
Sales and marketing | 82,380,153 | 65,802,874 | 33,035,653 |
Loss from impairment of intangible assets | 250,360 | 1,802,125 | |
Loss from impairment of goodwill | 8,149,525 | ||
Operating expenses | 111,523,031 | 122,303,795 | 57,278,082 |
Government subsidies | 11,187 | ||
Assets | 336,003,975 | 286,919,110 | 140,529,098 |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | (36,701,972) | (27,108,318) | (2,447,417) |
Cost of revenues | (739,501) | 2,503 | |
Operating expenses: | |||
Operating expenses | (36,066,047) | (39,850,680) | (2,447,417) |
Assets | (191,938,818) | (173,015,752) | (7,036,363) |
Precious Metal Trading Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 79,702,654 | 60,091,117 | 30,124,245 |
Cost of revenues | 4,975,361 | 10,526,980 | 2,613,287 |
Operating expenses: | |||
Operating expenses | 40,594,026 | 38,618,029 | 21,438,904 |
Government subsidies | 251,828 | 655,437 | |
Income (loss) from operations | 34,385,095 | 11,601,545 | 6,072,054 |
Assets | 58,185,314 | 35,447,572 | 27,791,654 |
Precious Metal Trading Services [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 113,720,922 | 80,943,201 | 30,124,245 |
Cost of revenues | 4,975,361 | 10,526,980 | |
Operating expenses: | |||
General and adminstrative | 4,026,984 | 8,320,540 | 1,087,048 |
Product development | 2,549,731 | 2,460,048 | 784,083 |
Sales and marketing | 69,674,657 | 52,371,135 | 22,015,190 |
Loss from impairment of intangible assets | 250,360 | ||
Operating expenses | 76,501,732 | 63,151,723 | 23,886,321 |
Assets | 109,286,634 | 62,272,231 | 27,791,654 |
Precious Metal Trading Services [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | (34,018,268) | (20,852,084) | |
Operating expenses: | |||
Operating expenses | (35,907,706) | (24,533,694) | (2,447,417) |
Assets | (51,101,320) | (26,824,659) | |
Subscription Services And Other Related Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 24,553,049 | 18,994,252 | 19,209,065 |
Cost of revenues | 13,581,838 | 8,094,098 | 7,018,379 |
Operating expenses: | |||
Operating expenses | 31,429,122 | 40,710,886 | 29,508,969 |
Government subsidies | 3,980 | ||
Income (loss) from operations | (20,457,911) | (29,806,752) | (17,307,096) |
Assets | 57,628,735 | 44,425,970 | 73,807,848 |
Subscription Services And Other Related Services [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 27,236,753 | 25,250,486 | 21,656,482 |
Cost of revenues | 14,321,339 | 8,091,595 | |
Operating expenses: | |||
General and adminstrative | 11,148,924 | 19,544,999 | 10,831,336 |
Product development | 8,188,718 | 13,567,759 | 8,248,244 |
Sales and marketing | 12,139,100 | 12,845,724 | 10,429,389 |
Loss from impairment of intangible assets | 1,802,125 | ||
Loss from impairment of goodwill | 8,149,525 | ||
Operating expenses | 31,476,742 | 55,910,132 | 29,508,969 |
Government subsidies | 11,187 | ||
Assets | 179,706,230 | 171,870,606 | 80,844,211 |
Subscription Services And Other Related Services [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | (2,683,704) | (6,256,234) | (2,447,417) |
Cost of revenues | (739,501) | 2,503 | |
Operating expenses: | |||
Operating expenses | (47,620) | (15,199,246) | |
Assets | (122,077,495) | (127,444,636) | (7,036,363) |
Brokerage Services in Hong Kong [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 3,149,063 | 4,610,516 | 3,404,767 |
Cost of revenues | 1,181,538 | 1,731,651 | 938,404 |
Operating expenses: | |||
Operating expenses | 3,433,836 | 3,124,200 | 3,882,792 |
Income (loss) from operations | (1,466,311) | (245,335) | (1,416,429) |
Assets | 28,251,108 | 34,029,815 | 31,893,233 |
Brokerage Services in Hong Kong [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 3,149,063 | 4,610,516 | 3,404,767 |
Cost of revenues | 1,181,538 | 1,731,651 | |
Operating expenses: | |||
General and adminstrative | 2,978,161 | 2,655,925 | 3,291,718 |
Sales and marketing | 566,396 | 586,015 | 591,074 |
Operating expenses | 3,544,557 | 3,241,940 | 3,882,792 |
Assets | 47,011,111 | 52,776,273 | $ 31,893,233 |
Brokerage Services in Hong Kong [Member] | Intersegment Eliminations [Member] | |||
Operating expenses: | |||
Operating expenses | (110,721) | (117,740) | |
Assets | $ (18,760,003) | $ (18,746,458) |
Note 26 - Segment and Geogra124
Note 26 - Segment and Geographic Information (Details) - The Group Derives Revenue from External Customers for Each of the Following Services - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenue from external customers | $ 107,404,766 | $ 83,695,885 | $ 52,738,077 |
Precious Metals Trading Services [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenue from external customers | 79,702,654 | 60,091,117 | 30,124,245 |
Financial Service Revenue [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenue from external customers | 17,205,459 | 10,355,732 | 11,122,400 |
Brokerage Services in Hong Kong [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenue from external customers | 3,149,063 | 4,610,516 | 3,404,767 |
Advertising Revenue [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenue from external customers | 7,023,399 | 8,160,310 | 6,799,109 |
Others [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenue from external customers | $ 324,191 | $ 478,210 | $ 1,287,556 |
Note 27 - Statutory Reserves125
Note 27 - Statutory Reserves and Restricted Net Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Note 27 - Statutory Reserves and Restricted Net Assets (Details) [Line Items] | |||
Annual Appropriations, General Reserve Fund, Percent of After-Tax Profit, Minimum | 10.00% | ||
Reserve Funds, Appropriations | $ 1,820,080 | $ 679,927 | $ 284,114 |
Net Assets, Not Available For Distribution | 71,700,541 | ||
Statutory Reserves [Member] | |||
Note 27 - Statutory Reserves and Restricted Net Assets (Details) [Line Items] | |||
Retained Earnings, Appropriated | $ 8,640,521 | $ 6,820,441 |
Note 28 - Subsequent Event (Det
Note 28 - Subsequent Event (Details) - iSTAR Wealth Management [Member] - Subsequent Event [Member] HKD in Millions, $ in Millions | 1 Months Ended | |
Apr. 30, 2016USD ($) | Apr. 30, 2016HKD | |
Note 28 - Subsequent Event (Details) [Line Items] | ||
Sale of Stock, Percentage of Ownership before Transaction | 100.00% | 100.00% |
Sale of Stock, Consideration Received on Transaction | $ 2.9 | HKD 22.5 |
Schedule I - Financial Infor127
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ||||
Cash and cash equivalents | $ 85,734,048 | $ 32,538,513 | $ 36,370,950 | $ 40,905,996 |
Prepaid expenses and other current assets | 3,488,647 | 8,540,863 | ||
Total current assets | 120,734,896 | 92,214,207 | ||
Rental deposits | 1,422,626 | 1,387,653 | ||
Total assets | 144,065,157 | 113,903,358 | 133,492,735 | |
Current liabilities: | ||||
Accrued expenses and other current liabilities | 15,655,425 | 8,837,734 | ||
Total current liabilities | 43,758,927 | 36,442,880 | ||
Shareholders' equity | ||||
Ordinary shares (112,417,933 and 118,098,018 shares issued and outstanding as of December 31, 2014 and 2015, respectively) | 56,856,000 | 56,386,606 | ||
Additional paid-in capital | 28,145,846 | 24,207,606 | ||
Accumulated other comprehensive income | 8,597,295 | 12,064,338 | ||
Retained deficits | (5,560,770) | (28,043,186) | ||
Total shareholders' equity | 88,038,371 | 64,615,364 | ||
Total liabilities and shareholders' equity | 144,065,157 | 113,903,358 | ||
Parent Company [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 971,500 | 1,383,205 | 721,271 | 2,941,180 |
Amounts due from subsidiaries, VIEs and VIE’s subsidiaries | 7,350,974 | 7,492,739 | ||
Prepaid expenses and other current assets | 290,603 | 2,479,810 | ||
Dividends receivable | 16,529,639 | 17,541,570 | ||
Total current assets | 25,142,716 | 28,897,324 | ||
Investments in subsidiaries, VIEs and VIE’s subsidiaries | 76,682,094 | 48,389,562 | ||
Rental deposits | 66,893 | |||
Total assets | 101,824,810 | 77,353,779 | ||
Current liabilities: | ||||
Accrued expenses and other current liabilities | 279,801 | 296,866 | ||
Amounts due to subsidiaries, VIEs and VIE's subsidiaries | 13,506,638 | 12,441,549 | ||
Total current liabilities | 13,786,439 | 12,738,415 | ||
Shareholders' equity | ||||
Ordinary shares (112,417,933 and 118,098,018 shares issued and outstanding as of December 31, 2014 and 2015, respectively) | 56,856,000 | 56,386,606 | ||
Additional paid-in capital | 28,145,846 | 24,207,606 | ||
Accumulated other comprehensive income | 8,597,295 | 12,064,338 | ||
Retained deficits | (5,560,770) | (28,043,186) | ||
Total shareholders' equity | 88,038,371 | 64,615,364 | $ 75,770,897 | $ 79,965,182 |
Total liabilities and shareholders' equity | $ 101,824,810 | $ 77,353,779 |
Schedule I - Financial Infor128
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Balance Sheets (Parentheticals) - shares | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary shares, shares issued | 118,098,018 | 112,417,933 |
Ordinary shares, shares outstanding | 118,098,018 | 112,417,933 |
Parent Company [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary shares, shares issued | 118,098,018 | 112,417,933 |
Ordinary shares, shares outstanding | 118,098,018 | 112,417,933 |
Schedule I - Financial Infor129
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Income Statements, Captions [Line Items] | |||
Cost of revenues | $ 19,738,737 | $ 20,352,729 | $ 10,570,070 |
Gross loss | 87,666,029 | 63,343,156 | 42,168,007 |
Operating expenses: | |||
General and administrative | 17,993,787 | 17,592,119 | 15,210,102 |
Product development | 10,738,730 | 11,147,873 | 9,032,327 |
Sales and marketing | 46,474,107 | 43,761,473 | 30,588,236 |
Share-based compensation | 6,056,033 | 4,698,953 | 3,035,122 |
Total operating expenses | 75,456,984 | 82,453,115 | 54,830,665 |
Interest income | 2,648,026 | 4,044,288 | 1,340,563 |
Equity in earnings (deficits) of subsidiaries, VIEs and VIE's subsidiaries | (66,970) | 0 | 2,773,839 |
Exchange gain (loss), net | (766,162) | (112,672) | 556,757 |
Other income (loss), net | (937,431) | 18,236 | (29,131) |
Gain from sales of cost method investment | 0 | 0 | 0 |
Net income (loss) | 26,817,688 | (10,630,728) | (8,173,890) |
Other comprehensive income (loss), net of tax: | |||
Comprehensive income (loss) | 19,015,373 | (7,389,126) | (7,377,333) |
Parent Company [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Cost of revenues | 2,584 | ||
Gross loss | (2,584) | ||
Operating expenses: | |||
General and administrative | 1,226,800 | 1,418,198 | 1,417,843 |
Product development | 50,859 | 62,914 | |
Sales and marketing | 108,384 | 160,112 | |
Share-based compensation | 3,812,733 | 4,132,182 | 2,539,274 |
Total operating expenses | 5,039,533 | 5,709,623 | 4,180,143 |
Interest income | 47 | 30 | 605 |
Equity in earnings (deficits) of subsidiaries, VIEs and VIE's subsidiaries | 28,643,095 | (6,394,055) | (4,985,519) |
Exchange gain (loss), net | (1,011,509) | (76,351) | 594,513 |
Other income (loss), net | (109,684) | 674,414 | |
Gain from sales of cost method investment | 4,337,736 | ||
Net income (loss) | 22,482,416 | (7,167,849) | (8,573,128) |
Other comprehensive income (loss), net of tax: | |||
Changes in foreign currency translation adjustment | (3,467,043) | (221,070) | 1,195,795 |
Other comprehensive income (loss), net of tax | (3,467,043) | (221,070) | 1,195,795 |
Comprehensive income (loss) | $ 19,015,373 | $ (7,388,919) | $ (7,377,333) |
Schedule I - Financial Infor130
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity [Line Items] | |||
Balance | $ 64,615,364 | ||
Exercise of share options by employees | 293,654 | $ 654,055 | $ 30,440 |
Exercise of share options by nonemployees | 175,200 | ||
Restricted shares issued | 20 | 14 | |
Share-based compensation | 6,056,033 | 4,698,953 | 3,035,122 |
Business restructure | (8,348,818) | ||
Business combination. | (13,613,231) | ||
Foreign currency translation adjustment | (3,467,043) | (221,277) | 1,195,795 |
Net income (loss) | 22,482,416 | (7,167,849) | $ (8,573,128) |
Balance | $ 88,038,371 | $ 64,615,364 | |
Common Stock [Member] | |||
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity [Line Items] | |||
Balance (in Shares) | 112,417,933 | 111,145,633 | 110,955,383 |
Transfer share premium to share capital | $ 55,718,184 | ||
Exercise of share options by employees (in Shares) | 435,000 | 1,164,300 | 190,250 |
Exercise of share options by employees | $ 293,654 | $ 654,055 | $ 25 |
Exercise of share options by nonemployees (in Shares) | 1,095,000 | ||
Exercise of share options by nonemployees | $ 175,200 | ||
Restricted shares issued (in Shares) | 150,085 | 108,000 | |
Restricted shares issued | $ 20 | $ 14 | |
Balance (in Shares) | 118,098,018 | 112,417,933 | 111,145,633 |
Additional Paid-in Capital [Member] | |||
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity [Line Items] | |||
Transfer share premium to share capital | $ (55,718,184) | ||
Exercise of share options by employees | $ 30,415 | ||
Share-based compensation | $ 5,331,748 | 4,540,257 | 2,960,746 |
Business restructure | (8,960,733) | ||
Business combination. | (191,861) | ||
AOCI Attributable to Parent [Member] | |||
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity [Line Items] | |||
Foreign currency translation adjustment | (3,467,043) | (221,277) | 1,195,795 |
Parent Company [Member] | |||
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity [Line Items] | |||
Balance | 64,615,364 | 75,770,897 | 79,965,182 |
Issuance of ordinary shares for the plan of stock options and restricted shares | 520 | ||
Exercise of share options by employees | 293,654 | 654,055 | 30,440 |
Exercise of share options by nonemployees | 175,200 | ||
Restricted shares issued | 20 | 14 | |
Share-based compensation | 3,812,733 | 4,132,182 | 2,539,274 |
Equity pick up from compensation of a subsidiary | 1,519,015 | 408,075 | 421,473 |
Changes of controlling ownership interest | (1,393,508) | ||
Business restructure | (8,960,733) | ||
Business combination. | 191,861 | ||
Foreign currency translation adjustment | (3,467,043) | (221,277) | 1,195,795 |
Net income (loss) | 22,482,416 | (7,167,849) | (8,573,128) |
Balance | $ 88,038,371 | $ 64,615,364 | $ 75,770,897 |
Parent Company [Member] | Common Stock [Member] | |||
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity [Line Items] | |||
Balance (in Shares) | 112,417,933 | 111,145,633 | 110,955,383 |
Balance | $ 56,386,606 | $ 14,353 | $ 14,328 |
Issuance of ordinary shares for the plan of stock options and restricted shares (in Shares) | 4,000,000 | ||
Issuance of ordinary shares for the plan of stock options and restricted shares | $ 520 | ||
Transfer share premium to share capital | $ 55,718,184 | ||
Exercise of share options by employees (in Shares) | 435,000 | 1,164,300 | 190,250 |
Exercise of share options by employees | $ 293,654 | $ 654,055 | $ 25 |
Exercise of share options by nonemployees (in Shares) | 1,095,000 | ||
Exercise of share options by nonemployees | $ 175,200 | ||
Restricted shares issued (in Shares) | 150,085 | 108,000 | |
Restricted shares issued | $ 20 | $ 14 | |
Balance (in Shares) | 118,098,018 | 112,417,933 | 111,145,633 |
Balance | $ 56,856,000 | $ 56,386,606 | $ 14,353 |
Parent Company [Member] | Additional Paid-in Capital [Member] | |||
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity [Line Items] | |||
Balance | 24,207,606 | 84,346,266 | 81,163,243 |
Transfer share premium to share capital | (55,718,184) | ||
Exercise of share options by employees | 30,415 | ||
Share-based compensation | 3,812,733 | 4,132,182 | 2,539,274 |
Equity pick up from compensation of a subsidiary | 1,519,015 | 408,075 | 421,473 |
Changes of controlling ownership interest | (1,393,508) | ||
Business restructure | (8,960,733) | ||
Business combination. | 191,861 | ||
Balance | 28,145,846 | 24,207,606 | 84,346,266 |
Parent Company [Member] | AOCI Attributable to Parent [Member] | |||
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity [Line Items] | |||
Balance | 12,064,338 | 12,285,615 | 11,089,820 |
Foreign currency translation adjustment | (3,467,043) | (221,277) | 1,195,795 |
Balance | 8,597,295 | 12,064,338 | 12,285,615 |
Parent Company [Member] | Retained Earnings [Member] | |||
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity [Line Items] | |||
Balance | (28,043,186) | (20,875,337) | (12,302,209) |
Net income (loss) | 22,482,416 | (7,167,849) | (8,573,128) |
Balance | $ (5,560,770) | $ (28,043,186) | $ (20,875,337) |
Schedule I - Financial Infor131
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Statement of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||
Net income (loss) | $ 22,482,416 | $ (7,167,849) | $ (8,573,128) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Stock-based compensation | 6,056,033 | 4,698,953 | 3,035,122 |
Gain from sales of cost method investment | 0 | 0 | 0 |
Equity in deficits (earnings) of subsidiaries, VIEs and VIE’s subsidiaries | 66,970 | 0 | (2,773,839) |
Changes in assets and liabilities: | |||
Prepaid expenses and other current assets | 369,290 | (1,284,341) | 1,131,750 |
Rental deposits | (1,587,189) | (34,691) | (133,308) |
Accrued expenses and other current liabilities | 2,596,050 | 161,455 | (1,189,465) |
Net cash (used in) provided by operating activities. | 19,816,980 | 1,172,136 | 158,656 |
Investing activities: | |||
Proceeds from sales of cost method investment | 7,959,237 | 2,168,868 | |
Net cash provided (used in) by investing activities.. | 40,557,824 | (4,598,163) | 7,577,511 |
Financing activities: | |||
Proceeds from stock options exercised by employees.. | 294,193 | 654,069 | 640 |
Proceeds from stock options exercised by nonemployees.. | 175,200 | ||
Net cash provided by financing activities | (5,592,080) | (371,719) | (12,137,905) |
Net (decrease) increase in cash and cash equivalents | 53,195,535 | (3,832,437) | (4,535,046) |
Cash and cash equivalents, beginning of the year | 32,538,513 | 36,370,950 | 40,905,996 |
Cash and cash equivalents, end of the year | 85,734,048 | 32,538,513 | 36,370,950 |
Parent Company [Member] | |||
Operating activities: | |||
Net income (loss) | 22,482,416 | (7,167,849) | (8,573,128) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Stock-based compensation | 3,812,733 | 4,132,182 | 2,539,274 |
Gain from sales of cost method investment | (4,337,736) | ||
Equity in deficits (earnings) of subsidiaries, VIEs and VIE’s subsidiaries | (28,643,095) | 6,394,055 | 4,985,519 |
Changes in assets and liabilities: | |||
Prepaid expenses and other current assets | 20,339 | (143,380) | (63,446) |
Amounts due from subsidiaries, VIEs and VIE’s subsidiaries | 142,303 | 983,297 | (4,092,500) |
Rental deposits | 66,893 | (271) | |
Accrued expenses and other current liabilities | (8,035) | 10,825 | 34,392 |
Amounts due to subsidiaries, VIEs and VIE’s subsidiaries | 1,065,088 | 1,535,073 | 1,779,098 |
Net cash (used in) provided by operating activities. | (1,061,358) | 1,406,467 | (3,391,062) |
Investing activities: | |||
Dividend receivable from subsidiaries | 1,011,931 | 1,375,727 | 1,140,713 |
Capital injection to subsidiaries. | (3,000,000) | (2,774,315) | |
Proceeds from sales of cost method investment | 2,168,868 | ||
Net cash provided (used in) by investing activities.. | 180,799 | (1,398,588) | 1,140,713 |
Financing activities: | |||
Proceeds from stock options exercised by employees.. | 293,654 | 654,055 | 30,440 |
Proceeds from stock options exercised by nonemployees.. | 175,200 | ||
Net cash provided by financing activities | 468,854 | 654,055 | 30,440 |
Net (decrease) increase in cash and cash equivalents | (411,705) | 661,934 | (2,219,909) |
Cash and cash equivalents, beginning of the year | 1,383,205 | 721,271 | 2,941,180 |
Cash and cash equivalents, end of the year | $ 971,500 | $ 1,383,205 | $ 721,271 |