Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Entity Registrant Name | China Finance Online Co. LTD |
Entity Central Index Key | 0001297830 |
Trading Symbol | JRJC |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Dec. 31, 2020 |
Document Type | 20-F |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2020 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Title of 12(g) Security | American Depositary Shares, each representing 50 ordinary shares |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 122,098,018 |
Entity File Number | 000-50975 |
Entity Incorporation, State or Country Code | K3 |
Entity Address, Address Line One | 17th Floor of Fuzhuo Plaza A |
Entity Address, Address Line Two | No. 28 Xuanwai Street, Xicheng District |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100052 |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | false |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 17th Floor of Fuzhuo Plaza A |
Entity Address, Address Line Two | No. 28 Xuanwai Street, Xicheng District |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100052 |
Contact Personnel Name | Ying Zhu |
Contact Personnel Fax Number | (86 10) 83363188 |
Contact Personnel Email Address | ir@jrj.com |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 6,154,499 | $ 9,599,824 |
Prepaid expenses and other current assets | 3,175,281 | 2,412,941 |
Trust bank balances held on behalf of customers | 34,309,103 | 36,987,484 |
Accounts receivable - margin clients, net of allowance for expected credit losses of $1,153,521 and $2,162,339 in 2019 and 2020, respectively | 10,545,377 | 13,451,583 |
Accounts receivable - others, net of allowance for expected credit losses of $234,439 and $252,324 in 2019 and 2020, respectively | 14,067,201 | 12,382,170 |
Short - term investments | 1,146,756 | |
Total current assets | 68,251,461 | 75,980,758 |
Property and equipment, net | 3,345,751 | 4,271,733 |
Acquired intangible assets, net | 63,589 | 74,477 |
Equity investments without readily determinable fair value | 1,241,398 | 1,605,459 |
Equity method investment, net | 766,583 | |
Right-of-use assets | 2,073,263 | 3,988,004 |
Rental deposits | 792,702 | 769,961 |
Goodwill | 108,901 | 108,416 |
Guarantee fund deposits | 219,270 | 218,293 |
Deferred tax assets | 1,860,971 | 1,380,842 |
Total assets | 77,957,306 | 89,164,526 |
Current liabilities: | ||
Deferred revenue, current (including deferred revenue, current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $8,060,844 and $12,326,306 as of December 31, 2019 and December 31, 2020, respectively) | 13,157,404 | 8,854,985 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $5,068,001 and $7,370,111 as of December 31, 2019 and December 31, 2020, respectively) | 16,626,312 | 14,400,050 |
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 $2,109,546 and $2,351,030 as of December 31, 2019 and December 31, 2020, respectively) | 34,309,103 | 36,987,484 |
Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $184,720 and $337,787 as of December 31, 2019 and December 31, 2020, respectively) | 4,024,179 | 6,741,181 |
Lease liabilities, current (including lease liabilities, current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $1,604,241 and $524,780 as of December 31, 2019 and December 31, 2020, respectively) | 1,727,228 | 2,242,757 |
Income taxes payable (including income taxes payable of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $44,128 and $56,291 as of December 31, 2019 and December 31, 2020, respectively) | 86,170 | 177,151 |
Total current liabilities | 69,930,396 | 69,403,608 |
Loan from third party | 3,193,610 | 3,019,863 |
Deferred revenue, non-current (including deferred revenue, non-current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited nil and nil as of December 31, 2019 and December 31, 2020, respectively) | 113,793 | 151,490 |
Deferred tax liabilities (including deferred tax liabilities, non-current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited nil and nil as of December 31, 2019 and December 31, 2020, respectively) | 12,547 | 14,211 |
Lease liabilities, non-current (including lease liabilities, non-current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $741,269 and $235,666 as of December 31, 2019 and December 31, 2020, respectively) | 67,910 | 1,447,328 |
Total liabilities | 73,318,256 | 74,036,500 |
Leases and contingencies (Note 21) | ||
China Finance Online Co. Limited shareholders’ equity: | ||
Ordinary shares (122,098,018 and 122,098,018 shares issued and outstanding as of December 31, 2019 and 2020, respectively) | 57,006,534 | 57,006,534 |
Additional paid-in capital | 37,813,172 | 36,925,874 |
Accumulated other comprehensive income | 6,286,949 | 6,412,555 |
Retained deficits | (85,747,246) | (75,189,077) |
Total shareholders’ equity attributable to China Finance Online Co. Limited shareholders | 15,359,409 | 25,155,886 |
Noncontrolling interest | (10,720,359) | (10,027,860) |
Total shareholders' equity | 4,639,050 | 15,128,026 |
Total liabilities and shareholders’ equity | $ 77,957,306 | $ 89,164,526 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts receivable - margin clients, net of allowance for doubtful accounts | $ 2,162,339 | $ 1,153,521 |
Accounts receivable - others, net of allowance for doubtful accounts | 252,324 | 234,439 |
Deferred revenue, current | 12,326,306 | 8,060,844 |
Accrued expenses and other current liabilities | 7,370,111 | 5,068,001 |
Amounts due to customers for the trust bank balances held on their behalf | 2,351,030 | 2,109,546 |
Accounts payable | 337,787 | 184,720 |
Variable interest entity, consolidated, liabilities, current, no recourse | 69,930,396 | 69,403,608 |
Income taxes payable | $ 56,291 | $ 44,128 |
Ordinary shares, shares issued | 122,098,018 | 122,098,018 |
Ordinary shares, shares outstanding | 122,098,018 | 122,098,018 |
Variable Interest Entity Primary Beneficiary | ||
Variable interest entity, consolidated, liabilities, current, no recourse | $ 22,968,328 | $ 17,071,480 |
Variable interest entity, consolidated, liabilities, non-current, no recourse | 235,666 | 741,269 |
Variable Interest Entity Primary Beneficiary | No Recourse | ||
Variable interest entity, consolidated, liabilities, current, no recourse | 524,780 | 1,604,241 |
Variable interest entity, consolidated, liabilities, non-current, no recourse | $ 235,666 | $ 741,269 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net revenues | |||
Total revenue from external customers | $ 40,033,097 | $ 35,518,790 | $ 45,477,926 |
Cost of revenues | 14,326,803 | 12,974,135 | 16,841,915 |
Gross profit | 25,706,294 | 22,544,655 | 28,636,011 |
Operating expenses: | |||
General and administrative (including share-based compensation of $1,829,364, $977,519 and $827,657 for 2018, 2019 and 2020, respectively) | 11,340,895 | 12,186,108 | 14,254,137 |
Product development (including share-based compensation of $191,708, $62,298 and $113,796 for 2018, 2019 and 2020, respectively) | 8,109,188 | 9,144,180 | 13,924,460 |
Sales and marketing (including share-based compensation of $219,440, $74,011 and $45,379 for 2018, 2019 and 2020, respectively) | 17,419,252 | 13,363,921 | 22,065,504 |
Total operating expenses | 36,869,335 | 34,694,209 | 50,244,101 |
Income (loss) from operations | (11,163,041) | (12,149,554) | (21,608,090) |
Interest income | 18,141 | 33,397 | 96,679 |
Interest expense | (1,101) | ||
Exchange gain (loss), net | (227,336) | (134,172) | 246,680 |
Loss on the interest sold and retained noncontrolling investment | (299,645) | (1,186,852) | |
Loss from equity investments without readily determinable fair value | (449,432) | ||
Income (Loss) from equity method investment | (775,269) | 391 | 470 |
Other income, net | 1,064,127 | 22,692 | 34,498 |
Loss before income tax expense | (11,532,810) | (12,526,891) | (22,417,716) |
Income tax benefit (expense) | 182,602 | (216,857) | (52,779) |
Net loss | (11,350,208) | (12,743,748) | (22,470,495) |
Less: net loss attributable to the noncontrolling interest | (792,039) | (1,480,927) | (2,520,375) |
Net loss attributable to China Finance Online Co. Limited | $ (10,558,169) | $ (11,262,821) | $ (19,950,120) |
Net loss per share attributable to China Finance Online Co. Limited | |||
Basic and Diluted | $ (0.09) | $ (0.10) | $ (0.18) |
Weighted average shares used in calculating net loss per share | |||
Basic and Diluted | 115,060,781 | 114,687,282 | 113,883,030 |
Other comprehensive income (loss), net of tax: | |||
Changes in foreign currency translation adjustment | $ (125,606) | $ 120,762 | $ (362,398) |
Net unrealized gain (loss) from short-term investments available-for-sale | 599 | 11,743 | (72,755) |
Less: reclassification adjustment for net unrealized (gains) losses included in net income | (599) | (11,743) | 72,755 |
Other comprehensive income (loss), net of tax | (125,606) | 120,762 | (362,398) |
Comprehensive loss | (11,475,814) | (12,622,986) | (22,832,893) |
Less: comprehensive loss attributable to the noncontrolling interest | (792,039) | (1,480,927) | (2,520,375) |
Comprehensive loss attributable to China Finance Online Co. Limited | (10,683,775) | (11,142,059) | (20,312,518) |
Hong Kong Brokerage Services Revenues | |||
Net revenues | |||
Total revenue from external customers | 12,110,117 | 15,799,347 | 22,343,950 |
Financial Information and Advisory Services Revenues | |||
Net revenues | |||
Total revenue from external customers | 17,465,197 | 10,674,164 | 14,891,267 |
Advertising Revenues | |||
Net revenues | |||
Total revenue from external customers | 9,176,706 | 8,310,150 | 7,312,947 |
Mutual Funds Distribution Revenues | |||
Net revenues | |||
Total revenue from external customers | $ 1,281,077 | $ 735,129 | 879,802 |
Others | |||
Net revenues | |||
Total revenue from external customers | $ 49,960 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation | $ 986,833 | $ 1,113,828 | $ 2,240,512 |
General and Administrative | |||
Share-based Compensation | 827,657 | 977,519 | 1,829,364 |
Product Development | |||
Share-based Compensation | 113,796 | 62,298 | 191,708 |
Selling and Marketing | |||
Share-based Compensation | $ 45,379 | $ 74,011 | $ 219,440 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Total | Ordinary Shares | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings/(Deficits) | Total Shareholders' Equity Attributable to China Finance Online Co. Limited Shareholders | Non Controlling Interest |
Balance at Dec. 31, 2017 | $ 45,711,611 | $ 57,000,417 | $ 34,368,210 | $ 6,654,191 | $ (43,976,136) | $ 54,046,682 | $ (8,335,071) |
Balance, shares at Dec. 31, 2017 | 118,098,018 | ||||||
Exercise of share options by employees | 600 | $ 600 | 600 | ||||
Share-based compensation | 2,240,512 | 1,710,912 | 1,710,912 | 529,600 | |||
Deconsolidation | 1,216,007 | 1,216,007 | |||||
Foreign currency translation adjustment | (362,398) | (362,398) | (362,398) | ||||
Net loss | (22,470,495) | (19,950,120) | (19,950,120) | (2,520,375) | |||
Balance at Dec. 31, 2018 | 26,335,837 | $ 57,001,017 | 36,079,122 | 6,291,793 | (63,926,256) | 35,445,676 | (9,109,839) |
Balance, shares at Dec. 31, 2018 | 118,098,018 | ||||||
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, shares | 4,000,000 | ||||||
Exercise of share options by employees | 4,997 | $ 4,997 | 4,997 | ||||
Share-based compensation | 1,113,828 | 846,752 | 846,752 | 267,076 | |||
Deconsolidation | 295,830 | 295,830 | |||||
Foreign currency translation adjustment | 120,762 | 120,762 | 120,762 | ||||
Net loss | (12,743,748) | (11,262,821) | (11,262,821) | (1,480,927) | |||
Balance at Dec. 31, 2019 | 15,128,026 | $ 57,006,534 | 36,925,874 | 6,412,555 | (75,189,077) | 25,155,886 | (10,027,860) |
Balance, shares at Dec. 31, 2019 | 122,098,018 | ||||||
Share-based compensation | 986,833 | 887,293 | 887,293 | 99,540 | |||
Foreign currency translation adjustment | (125,606) | (125,606) | (125,606) | ||||
Fractional shares sold | 5 | 5 | 5 | ||||
Net loss | (11,350,208) | (10,558,169) | (10,558,169) | (792,039) | |||
Balance at Dec. 31, 2020 | $ 4,639,050 | $ 57,006,534 | $ 37,813,172 | $ 6,286,949 | $ (85,747,246) | $ 15,359,409 | $ (10,720,359) |
Balance, shares at Dec. 31, 2020 | 122,098,018 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | |||
Net loss | $ (11,350,208) | $ (12,743,748) | $ (22,470,495) |
Adjustments to reconcile net loss to net cash provided by Operating activities: | |||
Share-based Compensation | 986,833 | 1,113,828 | 2,240,512 |
Depreciation and amortization | 1,128,014 | 1,214,354 | 1,697,700 |
Provision of allowance for doubtful accounts | (1,139,658) | (1,226,833) | (149,429) |
Loss from equity investments without a readily determinable fair value | 449,432 | ||
Income (Loss) from equity method investment | 775,269 | (391) | (470) |
(Gain) Loss from short-term investments | (599) | (11,743) | 72,755 |
Deferred taxes | (385,654) | 72,770 | (116,254) |
Loss on disposal of property and equipment | 10,054 | 367,221 | 854,160 |
Loss on the interest sold and retained noncontrolling investment | 299,645 | 1,186,852 | |
Changes in assets and liabilities: | |||
Accounts receivable, others | (1,462,023) | (5,014,134) | 1,774,118 |
Accounts receivable, margin clients | 3,845,695 | 5,373,265 | (9,600,921) |
Prepaid expenses and other current assets | (584,553) | 1,554,475 | 559,702 |
Non-cash lease expense | 2,446,705 | 2,832,968 | |
Trust bank balances held on behalf of customers | 2,984,367 | (5,618,799) | 7,601,562 |
Rental deposits | 15,133 | 185,294 | 138,485 |
Guarantee deposit funds | 307,883 | ||
Deferred revenue | 3,444,990 | 873,728 | (1,659,248) |
Account payable | (2,765,810) | 3,758,493 | (6,473,854) |
Accrued expenses and other current liabilities | 2,723,456 | (3,782,481) | (683,420) |
Operating lease liabilities | (2,388,356) | (3,134,235) | |
Amounts due to customers for the trust bank balance held on their behalf | (2,984,367) | 5,618,799 | (7,601,562) |
Income taxes payable | (95,433) | 21,901 | (392,551) |
Net cash used in operating activities | (4,346,713) | (8,245,623) | (32,714,475) |
Investing activities: | |||
Purchase of property and equipment | (58,535) | (1,552,537) | (340,629) |
Proceeds from disposal of affiliates (Note 9) | 4,950 | ||
Purchase of short-term investments | (10,091,454) | (8,995,273) | |
Proceeds from sales of short-term investments | 1,226,713 | 8,956,178 | 9,437,363 |
Net cash provided by (used in) investing activities | 1,168,178 | (2,687,813) | 106,411 |
Financing activities: | |||
Proceeds from stock options exercised by employees and issuance of ordinary shares | 5 | 4,997 | 600 |
Funds received/(repaid) from/to third-party investors | (891,744) | 4,947,000 | 4,466,000 |
Funds received from third party | 4,116,257 | ||
Funds paid to third party | (33,226) | (1,062,380) | |
Net cash provided by (used in) financing activities | (924,965) | 8,005,874 | 4,466,600 |
Effect of exchange rate changes | 658,175 | 34,251 | (93,906) |
Net decrease in cash and cash equivalents | (3,445,325) | (2,893,311) | (28,235,370) |
Cash, cash equivalents and restricted cash at beginning of the year | 9,599,824 | 12,493,135 | 40,728,505 |
Cash, cash equivalents and restricted cash at end of the year | 6,154,499 | 9,599,824 | 12,493,135 |
Supplemental disclosure of cash flow information | |||
Income taxes paid | 112,550 | 10,130 | 504,462 |
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets: | |||
Cash and cash equivalents | 6,154,499 | 9,599,824 | 12,493,135 |
Cash, cash equivalents and restricted cash at end of the year | $ 6,154,499 | $ 9,599,824 | $ 12,493,135 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Principal Activities | 1. 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 “Company”) is a leading web-based financial services company in China. The Company provides Chinese retail investors with online access to securities and commodities trading services, wealth management products, securities investment advisory services, as well as financial database and analytics services to institutional customers. The Company’s prominent flagship portal site, www.jrj.com, is ranked among the top financial websites in China. In 2015, the Company integrated its web-based trading platform Yinglibao iTougu Yinglibao In 2016, the Company continued to develop our wealth management business, securities investment advisory business, financial database subscription business, individual research tool subscription business, advertisement business, and securities, commodities as well as futures trading business. In addition, we launched a new business line of online peer-to-peer lending. In 2017, the Company was forced to suspend commodities brokerage business due to the suspension of new commodities trading by most of precious metal exchange in China. 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, 2020 were as follows: Company name Place of incorporation or establishment Date of incorporation or acquisition Legal ownership 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 Rifa Financial Holdings Limited (“Rifa Financial Holdings”) (Formerly known as “iSTAR Financial Holdings Limited”) BVI Jul. 16, 2007 85% Investment holdings Rifa Securities Limited (“Rifa Securities”) (Formerly known as “iSTAR International Securities Co. Limited”) Hong Kong, PRC Nov. 23, 2007 85% Brokerage service Rifa Futures Limited (“Rifa Futures”) (Formerly known as “iSTAR International Futures Co. Limited”) Hong Kong, PRC Apr. 16, 2008 85% Brokerage service Rifa Asset Management Limited (“Rifa Asset Management”) Hong Kong, PRC Nov. 15, 2016 85% Asset management service Rifa Credit Limited (“Rifa Credit”) (Formerly known as “iSTAR International Credit Co. Limited”) Hong Kong, PRC Feb. 10, 2012 85% N/A Rifa Wealth Management Co. Limited (“Rifa Wealth Management”) Hong Kong, PRC Sep. 13, 2016 85% Insurance brokerage service Variable interest entities: Beijing Fuhua Innovation Technology Development Co., Ltd. (“CFO Fuhua”) Beijing, PRC Dec. 31, 2000 Nil Web portal and advertising service Shenzhen Newrand Securities Advisory and Investment Co., Ltd. (“CFO Newrand”) Shenzhen, PRC Oct. 17, 2008 Nil Securities investment advising Shanghai Stockstar Wealth Management Co., Ltd. (“Stockstar Wealth Management”) Shanghai, PRC Apr. 12, 2011 Nil N/A Beijing Huizhi Fortune Technology Co., Ltd. (“CFO Huizhi”) Beijing, PRC Jun. 14, 2012 Nil N/A Shenzhen Ganlanren Investment Management Co., Ltd. (“CFO Shenzhen Ganlanren”) Shenzhen, PRC Feb. 18, 2016 Nil N/A Beijing CFO Premium Technology Co., Ltd. (“CFO Premium”). Beijing, PRC June 2, 2009 Nil N/A Beijing CFO Glory Technology Co., Ltd. Beijing, PRC Sep. 11, 2007 Nil N/A Subsidiaries of variable interest entities: 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 Zhengjin (Tianjin) Precious Metals Investment Co., Ltd. (“CFO Zhengjin Tianjin”) Tianjin, PRC Jul. 23, 2013 Nil Commodities brokerage Beijing Jiayi Management Co., Ltd. (“CFO Zhengjin Beijing”) Beijing, PRC Jan. 13, 2014 Nil Commodities brokerage Yinglibao (Beijing) Technology Co., Ltd. (“CFO Yinglibao”) Beijing, PRC Jan. 15, 2014 Nil Internet-based financial platform Zhengjin (Jiangsu) Precious Metals Co., Ltd. (“CFO Zhengjin Jiangsu”) Nanjing, PRC Nov. 19, 2014 Nil Commodities brokerage Zhengjin (Fujian) Precious Metals Co., Ltd. (“CFO Zhengjin Fujian”) Fujian, PRC Jan. 6, 2013 Nil Commodities brokerage Qingdao Zhengjin Zhida Trading Co., Ltd. (“CFO Qingdao Zhida”) Qingdao, PRC Dec. 21, 2015 Nil Commodities brokerage Tibet Lieqian Network Technology Co., Ltd. Tibet, PRC Mar. 18, 2016 Nil Commodities brokerage Qingdao Zhengjin Taiji Trading Co., Ltd. (“CFO Qingdao Taiji”) Qingdao, PRC Mar. 23, 2016 Nil Commodities brokerage iTougu (Beijing) Network Technology Co., Ltd. (“CFO iTougu”) Beijing, PRC Dec. 8, 2014 Nil Investment advisory service platform Beijing Zhongjun Sunshine Investment and Management Co., Ltd (“CFO Zhongjun Sunshine”) Beijing, PRC Sep. 30, 2013 Nil Financial service Zhongheng Xintai (Beijing) Asset Management Co., Ltd. (“CFO Zhongheng Xintai”) Beijing, PRC Jun. 8, 2016 Nil N/A Beijing Zhengjin Wealth Management Co., Ltd. Beijing, PRC Dec. 24, 2004 Nil Commodities brokerage Shenzhen Rifa Commercial Factoring Co. Ltd. Shenzhen, PRC Oct. 20, 2016 Nil Financial service Shanghai Stockstar Information & Technology Co., Ltd. Shanghai, PRC Dec. 24, 2009 Nil N/A Shanghai Shangtong Co., Ltd. Shanghai, PRC Jun. 6, 2008 Nil N/A Shanghai Ganlan Wealth Asset Management Co., Ltd. Shanghai, PRC Dec. 19, 2014 Nil N/A Beijing Chuangying Advisory and Investment Co., Ltd. ("CFO Chuangying") Beijing, PRC Oct. 9, 1997 Nil P2P Lending Service Shanghai Chongzhi Co., Ltd. Shanghai, PRC Jun. 6, 2008 Nil N/A Tibet Fortune Jinyuan Network Technology Co., Ltd. Tibet, PRC Aug. 22, 2015 Nil N/A The consolidated financial statements of the Company 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’s Republic of China (“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 Company 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 Company or a third party designated by the Company. The Company 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 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 WFOEs 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 WFOEs 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 WFOE 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 WFOEs 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 WFOEs 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 WFOEs 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 WFOEs. 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 WFOEs or individuals designated by the WFOEs 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 WFOEs 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 WFOEs. 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 WFOEs. Pledge agreement Pursuant to the equity pledge agreement between the WFOEs and the shareholders of the VIEs, the shareholders of the VIEs pledged all of their equity interests in the VIEs to the WFOEs 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 WFOEs, 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 WFOEs, 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 WFOEs inform the VIEs of their intention to terminate the agreement one month prior to the expiration date. Through these contractual agreements, the WFOEs 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, 2020 were as follows: VIE name Contractual arrangement date Counterpart CFO Fuhua May 27, 2004 CFO Beijing CFO Newrand July 11, 2018 CFO Software Stockstar Wealth Management April 12, 2011 CFO Zhengtong CFO Shenzhen Ganlanren April 20, 2017 CFO Software Beijing CFO Premium Technology June 2, 2009 CFO Software Risks in relation to the VIE structure The Company’s ability to control the VIEs also depends on the power of attorney the WFOEs 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 VIEs hold important unrecognized revenue-producing assets, such as our domain names and Internet Content Provider Licenses with respect to www.jrj.com The following financial statement amounts and balances of the VIEs for which the Company is the primary beneficiary and their subsidiaries excluding intercompany elimination as of and for the years ended: December 31, 2019 2020 Assets Current assets: Cash and cash equivalents $ 479,309 $ 2,778,747 Accounts receivable – others, net 1,384,102 2,454,691 Others 3,385,334 4,933,628 Total current assets 5,248,745 10,167,243 Property and equipment, net 1,601,260 1,156,702 Equity investments without readily determinable fair value 1,605,459 1,716,501 Equity method investment, net 766,583 818,100 Rental deposits 451,975 483,389 Investment in subsidiaries 38,597,614 41,359,205 Deferred tax assets 1,238,319 1,717,431 Right-of-use assets 2,630,373 1,017,972 Total assets $ 52,140,328 $ 58,436,543 Third-party liabilities: Current liabilities: Accrued expenses and other current liabilities $ 16,886,760 $ 22,630,541 Accounts payable 184,720 337,787 Total current liabilities 17,071,480 22,968,328 Non-current liabilities 741,269 235,666 Total third-party liabilities $ 17,812,749 $ 23,203,994 Inter-company liabilities $ (9,272,913 ) $ (9,877,957 ) Year ended December 31, 2018 2019 2020 Net revenues $ 24,747,244 $ 17,497,599 $ 25,705,251 Net loss $ (10,013,159 ) $ (7,098,995 ) $ (2,279,211 ) Year ended December 31, 2018 2019 2020 Net cash (used in) provided by operating activities $ (8,265,834 ) $ (841,958 ) $ 2,080,985 Net cash used in investing activities (69,989 ) (1,650 ) (44,492 ) Net cash used in financing activities — — — Effect of exchange rate changes $ (621,698 ) $ 68,458 $ 477,763 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. Going Concern and Liquidity The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company incurred net losses, amounted to $22.5 million, $12.7 million and $11.4 million in 2018, 2019 and 2020, respectively. The Company has generated negative cash flows from operating activities of $32.7 million, $8.2 million and $4.3 million in 2018, 2019 and 2020, respectively. And the working capital deficiency was approximately $1.7 million as of December 31, 2020. As of December 31, 2020, the Company has approximately $6.2 million in cash and cash equivalents and have $8.5 million overdue balance payable to the third party investors (note 14). To meet the needs of operational cash flow, the Company will need to raise additional funds to continue as a going concern and is currently exploring alternative sources of financing. These factors combined with the uncertainty generated by the economic reaction to the COVID-19 pandemic raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that these financial statements are issued. On January 30, 2020, the World Health Organization declared the coronavirus outbreak a "Public Health Emergency of International Concern" and on March 10, 2020, declared it to be a pandemic. Actions taken around the world to help mitigate the spread of the coronavirus include restrictions on travel, and quarantines in certain areas, and forced closures for certain types of public places and businesses. The coronavirus and actions taken to mitigate it have had and are expected to continue to have an adverse impact on the economies and financial markets of many countries, including the geographical area in which the Company operates. China’s economic growth may continue to slow down due to the current outbreak of novel strain of coronavirus (COVID-19). The recent outbreak of COVID-19 has had an adverse impact on our operations and financial condition, including constraints on capital availability for institutional customers who reduced, delayed or canceled their subscriptions for our services because of tighter budget. Furthermore, the capital markets are experiencing pronounced volatility during the current global COVID-19 pandemic, which may adversely affect investor’s confidence and, in turn affect, our securities brokerage business in Hong Kong and our other businesses. The COVID-19 pandemic has adversely affected our revenue and cash flow. Considering the adverse effect of COVID-19, recurring operating losses and future operation requirements, we will continue to implement some cost-cutting measures and improve the overall efficiency, such as cutting spending, terminating some of lease contracts and optimizing marketing and R&D teams. In terms of business initiatives, we will focus our operations on customer-centric sales and will (i) continue to pursue strategies to increase our revenues from financial services and financial information and advisory services, (ii) continue to work closely with our current and prospective institutional customers, gradually penetrate the Chinese financial institutional market with our core fintech-powered intelligent financial products, and turn fintech research findings into scalable revenues, and (iii) continue to strengthen our content production capabilities in order to enhance influence and strive for more advertising client resources. In terms of financing activities, the COVID-19 has adversely impacted access to capital and slowed down our pace of financing. The extent to which COVID-19 will impact our business and financial results will depend on future developments, which are uncertain and cannot be predicted at this time. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Reclassification Certain amounts in the consolidated financial statements have been reclassified from their original presentation to conform to current year presentation. These reclassifications had no material impact on the consolidated financial statements as previously reported. 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. Correction of Consolidated Balance Sheet and Consolidated Statement of Cash Flows Subsequent to the issuance of the Company’s financial statements for the year ended December 31, 2019, the Company discovered an error in the balance sheet presentation of loan from third party, which was classified as accrued expenses and other current liabilities instead of non-current liabilities on the balance sheet. As a result, current liabilities were overstated and non-current liabilities were understated by approximately $3,019,863 as at December 31, 2019. As a result, net cash used in operating activities was overstated and net cash provided by financing activities was understated by $3,053,877. The consolidated balance sheet and statement of cash flows for the year ended December 31, 2019 has been restated to correct for this classification error. This error had no effect on the Company’s consolidated statements of operations or the consolidated statements of shareholders' equity. In addition, total liabilities and net decrease in cash and cash equivalents were not affected. 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. Accounts Receivable and Allowance for Credit Losses Accounts receivable are recognized based upon the amount due from customers for the services provided or at cost for purchased and other receivables less an allowance for expected credit losses. Prior to the adoption of ASU 2016-13, the allowance for credit losses receivable reflected our best estimate of probable losses inherent in our receivable portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available evidence. We implemented the new standard effective January 1, 2020, as discussed in the Recently Adopted Accounting Pronouncements -"Measurement of Credit Losses on Financial Instruments", below. We generally consider our accounts past due if they are outstanding over 30 days. Our past due accounts are written off against our allowance for credit losses when collection is considered to be not probable. Any recoveries of accounts previously written off are generally recognized as a reduction in bad debt expense in the period received. The carrying value of accounts receivable, net of the allowance for expected credit losses, approximates fair value. Fair value measurement Fair value is considered to be 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 Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. The three levels of inputs may be used to measure fair value include: Level 1 Level 2 Level 3 Financial instruments include cash and cash equivalents, accounts receivable, short-term investment, equity investments without readily determinable fair value, equity method investment and accounts payable. The carrying values of cash and cash equivalents, accounts receivable, short-term investments and accounts payable approximate their fair value due to their short-term maturities. The carrying value of acquired assets was nearly the fair value of the investment based on the valuation performed by the Company as of December 31, 2019 and 2020. See Note 3 for further discussion. The Company’s short-term investment consists of available-for-sale securities with maturities of one year or less. The Company measured the available-for-sale securities at the fair value shown by the financial institution which the company believes a Level 2 valuation. See Note 5 and Note 6 for further discussion. The carrying value of the equity investment without readily determinable fair value was $1,605,459 and $1,241,398 as of December 31, 2019 and 2020, which are accounted for under the measurement alternative method of accounting. These investments are measured at cost, less any impairment, plus or minus any changes resulting from observable price changes in orderly transactions for an identical or similar investment. No dividends were paid to us in history. See Note 7 for further discussion. The carrying value of the equity method investment was $766,583 and nil as of December 31, 2019 and 2020, 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. See Note 8 for further discussion. The Company measures certain assets, including intangible assets and goodwill at fair value on a nonrecurring basis when they are deemed to be impaired. The fair values of goodwill and intangible assets are determined based on valuation techniques using the best information available, and may include management judgments, future performance projections, See Note 6 for further discussion. The Company 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 Company used unobservable inputs to value them, reflecting the Company’s assessment of the assumptions market participants would use in valuing these purchased intangible assets. The Company does not use derivative instruments to manage risks. Trust bank balances held on behalf of customers Trust bank balances held on behalf of customers consist three parts: i) Rifa Securities and Rifa 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, iii) Funds received by Beijing Chuangying from customers who invest in P2P lendings which are deposited in a trust bank account. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Company’s consolidated 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. Short-term investments Short-term investments comprise marketable debt securities, which are classified as available-for-sale. 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. Gains and losses from sale of available for sales securities are recognized in short-term investment income or loss of the statements of operations and comprehensive loss. Available for sale securities are classified as current assets on the accompanying consolidated balance sheets because they are available for immediate sale. The Company 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 Company 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 Company’s intent and ability to hold the investment, in determining if impairment is needed. Property and equipment, net Property and equipment, net is carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Technology infrastructure 5 years Computer equipment 5 years Furniture, fixtures and equipment 5 years Motor vehicle 5 years Leasehold improvements Shorter of the lease term or 5 years 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 10-15 years Completed technology 5 years Customer relationship 4-5 years Certain trademarks resulting from the acquisitions of business and certain trading rights bought by the Company 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 Rifa Futures, to guarantee its customers’ settlement obligations; ii) the funds deposited with the commodities exchanges as a result of its customers’ trading. The Company needs to deposit certain percentage of its customers’ trading margins with the commodities exchanges. Leases Effective January 1, 2019, the Company adopted ASC Topic 842, Lease (“ASC 842”) using the modified retrospective method and did not restate the comparable periods. The Company categorizes leases with contractual terms longer than twelve months as either operating or finance lease. However, the Company has no finance leases for any of the periods presented. Right-of-use (“ROU”) assets represent the Company’s rights to use underlying assets for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term, reduced by lease incentives received, plus any initial direct costs, using the discount rate for the lease at the commencement date. As the implicit rate in lease is not readily determinable for the Company’s operating leases, the Company generally uses the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. Impairment of long-lived assets with definite lives The Company 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 Company 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 Company would recognize an impairment loss based on the fair value of the assets. There were no Impairment of goodwill and indefinite-lived intangible assets The Company 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. In accordance with ASC 350, “Intangibles - Goodwill and Other,” goodwill is tested at least annually for impairment, or when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable, by assessing qualitative factors or performing a quantitative analysis in determining whether it is more likely than not that its fair value exceeds the carrying value. A quantitative assessment involves determining the fair value of each reporting unit using market participant assumptions. An entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit. For purposes of reviewing impairment and the recoverability of goodwill, management must make various assumptions regarding estimated future cash flows and other factors in determining the fair values of the reporting unit, including market multiples, discount rates, etc. 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 Company performed the annual impairment tests on December 31 of each year. Based on the Company’s assessment, the Company recorded no Revenue recognition We provided precious metals spot trading, silver product sales and financial investment advisory services (“commodities brokerage services”) from 2013 to 2017. We also provide brokerage and related services outside mainland China (“Hong Kong Brokerage services”), financial information and advisory services including subscriptions services for financial data, information services and investment advisory, online P2P lending (“Financial information and advisory services”), and advertising services. We adopted ASC topic 606, Revenue from Contracts with Customers (“ASC 606”), from January 1, 2018, using the modified retrospective transition method. Because there was no change to the timing and pattern of revenue recognition, there was no material changes to the Company’s processes and internal controls and there was no adjustment to beginning retained earnings on January 1, 2018. Under ASC 606, an entity recognizes revenue as it satisfies a performance obligation when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price, including variable consideration, if any; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We only apply the five-step model to contracts when it is probable that the entity will collect the consideration to which it is entitled in exchange for the goods or services it transfers to the customer. Commodities brokerage business During the second quarter of 2017, new commodities trading was suspended by most of precious metal exchange in China. Such suspension announcements have adversely affected companies in commodity brokerage businesses in China, including us. As a result, the Company stopped providing commodities brokerage business in 2017. During 2013 to 2017, the Company derives commission income, carrying charges and trading revenues from its commodities brokerage services. The Company acted as an agent. 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 Company 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 Company and the customers and the exchange then settles with any counterparty. The exchange offsets the Company’s gains and losses and amounts receivable and amounts payable from the exchange are presented net on the consolidated balance sheets as the Company 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 Company 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 Company’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 are 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 consolidated balance sheets. 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: Year ended December 31, 2018 2019 2020 Commodities trading gain (loss) $ (9,864 ) $ — $ — Commission income 59,824 — — Carrying charges — — — $ 49,960 $ — $ — Revenue recognition Hong Kong Brokerage services The Company also derives commission from its brokerage services provided by the subsidiaries, Rifa Securities and Rifa Futures which buy or sell securities and future contracts on their customers’ behalf. The Company 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 Company derives revenue from subscription fees from subscribers to their financial data, information services and investment advisory. The Company recognizes revenues when all of the following criteria are met: (1) a contract is identified, (2) the performance obligations in the contract are identified, (3) the transaction price is determined, (4) the transaction price is allocated to the performance obligations in the contract, and (5) performance obligation is satisfied. Upon receipt of the upfront cash payments from the subscriber, the Company 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 Company recognizes revenue ratably over the life of the arrangement. Estimated refund of subscription fees is recorded as deduction of revenue and deferred revenue. The Company also derives revenue from providing services as information intermediary in online P2P lending business. We procure borrowing and lending information from independent third parties, and our professional team evaluates and selects the information provided by third parties, from the perspective of risks. Eventually we display the selected information on the platform of Yinglibao, which is our online consumer finance marketplace. We charge borrowers fixed rates for facilitating loan transactions, and the revenues are recognized upon completion of the services. Advertising revenue The Company derives its advertising fees from advertising sales on their website for a fixed period of time, generally less than one year. The Company acts as a principal and 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 Company is subject to business taxes of 3%-5% on taxable services provided to its customers. During the years ended December 31, 2018, 2019, and 2020 business taxes and related surcharges totaled $349,270, $310,257 and $152,298, respectively. The Company’s certain PRC subsidiaries, VIEs and VIEs’ subsidiaries are subject to VAT at a rate of 17% before May 1, 2018, 16% between May 1, 2018 and April 1, 2019, and 13% after April 1, 2019 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 Company 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 refund 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 2018, 2019 and 2020, the Company recognized $189,335, $96,709 and $113,590, respectively, in VAT refunds. Government subsidies The Company 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. When the grant relates to an expense item, it is recognized as income over the periods necessary to match the grant on a systematic basis to the costs that it is intended to compensate. 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. The amount of deferred revenue recognized as revenue was $15,077,745, $9,990,732 and $16,877,492 in 2018, 2019 and 2020, respectively. Equity investment without readily determinable fair value (previously known as cost method investment) Equity investments without readily determinable fair value are accounted for under the measurement alternative method of accounting. These investments are measured at cost, less any impairment, plus or minus any changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. No dividends were paid Equity method investment Under the equity method, the Company initially records its investment at cost. The Company 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 Company 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 Company 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. Also, noncontrolling interests of the Company are reported as a component of equity, separate from the parent company’s equity. Results of operations attributable to the non-controlling interest are included in the Company’s consolidated statements of comprehensive loss. Foreign currency translation The functional and reporting currency of the Company is the United States dollar (“U.S. dollar”). The financial records of the Company’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$”), respectively, which are also the functional currencies of these entities. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into functional currency at the applicable rates of exchange prevailing when the transactions occurred. Transaction gains and losses are recognized in the statements of operations. The Company’s entities with functional currency of RMB and HK$ translate their operating results and financial position into the US$, the Company’s reporting currency. Assets and liabilities are translated using the exchange rates in effect on the balance sheet date. Revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are report as cumulative translation adjustments and are shown as a separate component of other comprehensive income. Translations of amounts from RMB and HK$ into U.S. dollars were made at the following exchange rates for the respective dates and periods: At December 31, 2018 2019 2020 Consolidated balance sheets: RMB to $1.00 6.8632 6.9762 6.5249 HKD to $1.00 7.8329 7.7877 7.7530 Consolidated statements of operations and comprehensive income: RMB to $1.00 6.6174 6.8985 6.8976 HKD to $1.00 7.8380 7.8346 7.7560 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 Company included aggregate amounts of $4,271,342, $1,241,702 and $4,903,975 at December 31, 2018, 2019 and 2020, respectively, 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 Company essentially completed its development concurrently with the establishment of technological feasibility, and, accordingly, no costs have been capitalized. Advertising costs The Company expenses advertising costs as incurred. Total advertising expenses were $540,574, $87,629 and $418,153 for the years ended December 31, 2018, 2019 and 2020, 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 of our Hong Kong brokerage business and the commissions paid to the sales agents of our commodities brokerage business. Total commissions paid were $11,110,741, $7,836,793 and $6,817,544 for the years ended December 31, 2018, 2019 and 2020, respectively. Income taxes The Company accounts for income taxes using the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable values. In evaluating the ability to recover its deferred income tax assets, the Company considers all available positive and negative evidence, including its operating results, ongoing tax planning and forecasts of future taxable income on a jurisdiction-by-jurisdiction basis. In the event the Company determines that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount, it would make an adjustment to the valuation allowance that would reduce the provision for income taxes. Conversely, in the event that all or part of the net deferred tax assets are determined not to be realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made. Tax benefits related to uncertain tax positions are recognized when it is more likely than not that a tax position will be sustained during an audit. Interest and penalties related to unrecognized tax benefits are included within the provision for income tax. Comprehensive loss Comprehensive loss includes net loss, unrealized gain (loss) on short-term investments and foreign currency translation adjustments. Beginning in January 1, 2012, the Company presents the components of net income, the components of other comprehensive income and total comprehensive income a single continuous consolidated statement of comprehensive income. Share-based compensation Share-based compensation with employees is measured based on the grant date fair value of the equity instrument. The Company 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 pe |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | 3 . December 31, 2019 2020 Accounts receivable-margin clients $ 14,605,104 $ 12,707,716 Less: Allowance for expected credit losses (1,153,521 ) (2,162,339 ) Accounts receivable- margin clients, net $ 13,451,583 $ 10,545,377 Accounts receivable-others 12,616,609 14,319,525 Less: Allowance for expected credit losses (234,439 ) (252,324 ) Accounts receivable-others, net $ 12,382,170 $ 14,067,201 Accounts receivable- margin clients represent the receivables derived in the Hong Kong brokerage service in Rifa Securities, which is pledged by the customer’s purchased securities. Accounts receivable-others represent the receivables derived in Hong Kong brokerage service and other ordinary business without any collateral or other security from its customers. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | 4 . Prepaid expenses and other current assets consist of the following: December 31, 2019 2020 Prepayment of advertising fees $ 10,105 $ 32,206 Advances to suppliers 1,018,164 1,529,912 VAT refund receivable 222,847 190,790 Interest receivable 24,908 21,205 Prepayment of office rental 47,845 84,740 Advances to employees 397,885 556,554 Advances to consulting service fees 153,444 929 Consideration receivable 77,749 78,097 Other current assets 459,994 680,848 $ 2,412,941 $ 3,175,281 |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Dec. 31, 2020 | |
Short Term Investments [Abstract] | |
Short-Term Investments | 5 . As of December 31, 2019, and 2020, the Company’s short-term investment consisted of available-for-sale securities with maturities of one year or less. The Company measured the available-for-sale securities at the fair value shown by the financial institution which the Company 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, 2019 and 2020, respectively: December 31, 2019 2020 Beginning balance $ — $ 1,146,756 Purchases 10,091,454 — Redemption (8,956,178 ) (1,226,713 ) Realized gain(loss) 11,743 599 Exchange difference (263 ) 79,358 Ending balance $ 1,146,756 $ — As of the year ended December 31, 2020, there was no unrealized gain related to the ending balance of short-term investments available-for-sale. The following table provides additional information on the realized gains of the sale of available-for-sale short-term investments as of December 31, 2019 and 2020, respectively. For purposes of determining gross realized gains, the cost of short-term investments sold is based on specific identification. Year ended December 31, 2020 Exchange Proceeds Costs Gains difference Available-for-sale short-term investments $ (1,226,713 ) $ — $ 599 $ 79,358 Total $ (1,226,713 ) $ — $ 599 $ 79,358 Year ended December 31, 2019 Exchange Proceeds Costs Gains difference Available-for-sale short-term investments $ (8,956,178 ) $ 10,091,454 $ 11,743 $ (263 ) Total $ (8,956,178 ) $ 10,091,454 $ 11,743 $ (263 ) The fair value of available-for-sale short-term investments as disclosed is further discussed in Note 6. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 6 . Fair value disclosed or measured on a recurring basis The fair values of the Company’s available-for-sale short-term investments as measured as disclosed are determined based on the discounted cash flow method. The following table summarizes the Company’s financial assets measured or disclosed at fair value on a recurring basis. Fair value disclosure or measurement at December 31, 2020 using Fair value at December 31, 2020 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair value disclosure Cash and cash equivalents: $ 6,154,499 $ 6,154,499 Fair value measurement Short-term investments: Available-for-sale short-term investments $ — $ — Total assets measured at fair value $ — $ — Fair value disclosure or measurement at December 31, 2019 using Fair value at December 31, 2019 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair value disclosure Cash and cash equivalents: $ 9,599,824 $ 9,599,824 Fair value measurement Short-term investments: Available-for-sale short-term investments $ 1,146,756 $ 1,146,756 Total assets measured at fair value $ 1,146,756 $ 1,146,756 The Company’s available-for-sale short-term investments as of December 31, 2019 mainly consists of wealth management products purchased from banks. The Company values these wealth management products using alternative pricing sources and models utilizing market observable inputs, and accordingly the Company classifies the valuation techniques that use these inputs as Level 2. The following table presents changes of available-for-sale short-term investments measured on a recurring basis for the twelve-month period ended December 31, 2019 and 2020, respectively: December 31, 2019 2020 Beginning balance $ — $ 1,146,756 Purchases 10,091,454 — Redemption (8,956,178 ) (1,226,713 ) Realized gain (loss) 11,743 599 Exchange difference (263 ) 79,358 Ending balance $ 1,146,756 $ — Fair value disclosed or measured on a nonrecurring basis The Company's goodwill and intangible assets are primarily acquired through business acquisitions. The fair value for goodwill and acquired intangibles assets measured at fair value on a nonrecurring basis was categorized as Level 3 due to the use of significant unobservable inputs in the valuation. The Company used the discounted cash flow method under the income approach to measure the fair value of goodwill and acquired intangible assets. Significant unobservable inputs that were used included expected revenues, net income related to the assets, expected cash flows, and the expected life of the assets. The Company recognized no impairment loss related to intangible assets for the years ended December 31, 2018, 2019 and 2020, respectively. There was no impairment loss related to goodwill for the years ended December 31, 2018, 2019 and 2020. Fair value at December 31, 2019 Total losses in the year ended December 31, 2019 Fair value at December 31, 2020 Total losses in the year ended December 31, 2020 Non-Recurring Goodwill 108,416 — 108,901 — Intangible Assets 74,477 — 63,589 — The goodwill impairment test is further discussed in Note 2. |
Equity Investments Without Read
Equity Investments Without Readily Determinable Fair Value | 12 Months Ended |
Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Equity Investments Without Readily Determinable Fair Value | 7 . As of December 31, 2019, and 2020, we had investments in four private companies without a readily determinable fair value. We owned not more than 10% of the total investment in each such company. Under ASU 2016-01, we elected to measure these equity investments using the measurement alternative, which requires that these investments are measured at cost, less any impairment, plus or minus any changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. For the years ended December 31, 2019, these investments were not impaired and there were no observable price changes. For the year ended December 31,2020, we recorded an impairment charge of $449,432 to reduce the carrying balance of the investments. As a result, the balance shown below as of December 31, 2019 and 2020 represents the cost of the investments adjusted for exchange rate differences. As of December 31, 2019 and 2020, our equity investments without readily determinable fair value were as follows: December 31, 2019 2020 Beginning balance $ 1,631,892 $ 1,605,459 Acquisitions — — Observable price changes — — Impairment on investments — (449,432 ) Exchange difference (26,433 ) 85,371 Ending balance $ 1,605,459 $ 1,241,398 There was an impairment of $449,432 of the Company’s cost method investment for the year ended December 31, 2020 (nil for 2019 and In December 2020, we identified certain triggering events, the predicted operating cash flow was getting worse than expected due to the decrease in business activities caused by COVID-19, which indicated that our equity investments without readily determinable fair value in Shanghai Yuyou Information & Technology Co., Ltd. (“CFO Yuyou”) could be impaired. In accordance with ASU 2016-01, an equity investment without readily determinable fair value analysis was performed and determined the equity investments without readily determinable fair value charge to be recorded on its consolidated financial statements resulting from an other-than-temporary impairment. We completed an other-than-temporary impairment analysis to determine the potential equity investments without readily determinable fair value charge to be recorded on our consolidated financial statements. As a result, an impairment charge of approximately $449,432 was recorded in the loss from equity investments without readily determinable fair value on the consolidated statement of operations. The discounted cash flow fair value estimate is based on known or knowable information at the measurement date. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors. As such, the fair value of the CFO Yuyou equity investments without readily determinable fair value represents a Level 3 measurement. As a result, actual results may differ from the estimates and assumptions made for purposes of this impairment analysis. |
Equity Method Investment
Equity Method Investment | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Equity Method Investment | 8 . In June 2015, the Company paid $307,996 to acquire 20% of an investee’s the equity interest. In December 2015, the Company 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 Company. The remaining 40% equity interests in CFO Aishang was recorded as equity method investment at the disposal date, as the Company 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. The Company recognized income (loss) from equity method investment of $470, $391 and $(775,269) in the consolidated statement of comprehensive income for the year ended December 31, 2018, 2019 and 2020, respectively. The Company recognized an impairment of equity method investment of $710,392 in the consolidated statement of comprehensive income for the year ended December 31, 2020 (nil for 2019 and 2018). In December 2020, we identified certain triggering events, the predicted operating cash flow was getting worse than expected due to the decrease in business activities caused by COVID-19, which indicated that our equity method investment in Aishang (Beijing) Fortune Technology Co., Ltd. (“CFO Aishang”) could be impaired. In accordance with ASC Topic 323, an equity method impairment analysis was performed and determined the equity method impairment charge to be recorded on its consolidated financial statements resulting from an other-than-temporary impairment. We completed an other-than-temporary impairment analysis to determine the potential equity method impairment charge to be recorded on our consolidated financial statements. As a result, an impairment charge of approximately $710,392 was recorded in the loss from equity method investment on the consolidated statement of operations. The discounted cash flow fair value estimate is based on known or knowable information at the measurement date. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors. As such, the fair value of the CFO Aishang equity method investment represents a Level 3 measurement. As a result, actual results may differ from the estimates and assumptions made for purposes of this impairment analysis. The following table presents changes in equity method investment for the twelve-month period ended December 31, 2019 and 2020, respectively: December 31, 2019 2020 Beginning balance $ 778,721 $ 766,583 Equity method investment income 391 (64,877 ) Consideration Received on Disposal — — Impairment on equity method investment — (710,392 ) Exchange difference (12,529 ) 8,686 Ending balance $ 766,583 $ — |
Deconsolidation
Deconsolidation | 12 Months Ended |
Dec. 31, 2020 | |
Deconsolidation Disclosure [Abstract] | |
DECONSOLIDATION | 9 . In the first quarter of 2017, the Company fully disposed Shanghai Stockstar Asset Management Co., Ltd. ("Stockstar Asset Management") which was previously owned 100% equity interests by the Company. Pursuant to the arrangement, the total cash consideration was $1,451,723 and all the consideration was received in 2017. The Company recorded a gain on the interest sold and the retained noncontrolling investment of $1,080 in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2017. Furthermore, the Company deregistered four affiliates, which were all previously owned 59.83% equity interest by the Company. The Company recorded a loss on the interest sold and the retained noncontrolling investment of $738,397 in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2017. In the second quarter of 2017, the Company fully disposed Zhengjin (Qingdao) Wisdom Trading Co., Ltd. ("CFO Zhengjin Qingdao") which was previously owned 59.83% equity interests by the Company. Pursuant to the arrangement, the total cash consideration was $159,907 and all the consideration was received in 2017. The Company recorded a loss on the interest sold and the retained noncontrolling investment of $1,259,044 in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2017. In 2018, the Company deregistered seven affiliates, of which five were previously owned 59.83% equity interest by the Company and two were fully owned by the Company. The Company recorded a loss on the interest sold and the retained noncontrolling investment of $1,186,852 in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2018. In 2019, the Company deregistered two affiliates, of which one was previously owned 59.83% equity interest by the Company and one was fully owned by the Company. The Company recorded a loss on the interest sold and the retained noncontrolling investment of $299,645 in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2019. 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, if any, (iii) the carrying amount of any noncontrolling interest in the former subsidiary (including any accumulated other comprehensive income or loss attributable to the noncontrolling interests) on the date the subsidiary is deconsolidated, and (iv) 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. There were no deconsolidation transactions during the year ended December 31 2020. None of the disposals described above was presented as discontinued operation, because none of the disposals meets the criteria of discontinued operation. To meet the criteria of discontinued operation, the disposal group must be qualified as a component of an entity. A component of an entity may be a reportable segment or an operating segment, a reporting unit, a subsidiary, or an asset group. The entities disposed by the company don’t constitute any reportable segment or operating segments, so none of the disposals presented as discontinued operations. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 1 0 . Property and equipment, net consisted of: December 31, 2019 2020 Technology infrastructure $ 9,857,786 $ 10,498,968 Computer equipment 1,778,945 1,890,829 Furniture, fixtures and equipment 4,206,010 4,399,461 Motor vehicle 1,017,117 1,087,466 Leasehold improvements 3,577,145 3,806,039 20,437,003 21,682,764 Less: accumulated depreciation (16,165,270 ) (18,337,012 ) $ 4,271,733 $ 3,345,751 Depreciation expense for the years ended December 31, 2018, 2019 and 2020 were $1,686,588, $1,203,235 and $1,128,014, respectively. |
Acquired Intangible Assets, Net
Acquired Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets Net Excluding Goodwill Abstract | |
Acquired Intangible Assets, Net | 1 1 . ACQUIRED INTANGIBLE ASSETS, NET Intangible assets as of December 31, 2019 and 2020 were as follows: December, 31 2019 2020 Gross carrying amount Accumulated amortization Impairment Net carrying amount Gross carrying amount Accumulated amortization Impairment Net carrying amount PIBA license 111,715 (37,238 ) — 74,477 112,215 (48,626 ) — 63,589 111,715 (37,238 ) — 74,477 112,215 (48,626 ) — 63,589 Amortization expenses for the years ended December 31, 2018, 2019 and 2020 were $11,112, $11,119 and $11,223, respectively. Future amortization expenses of acquired intangible assets with determinable lives are $11,222, $11,222, $11,222, $11,222 and $18,701 for 2021, 2022, 2023, 2024, 2025 and thereafter, respectively. During 2017, the Company recorded an impairment loss on its intangible assets in the amount of $291,817 associated with the acquired commodities trading right. The Company recorded no impairment loss on its intangible assets associated with the acquired commodities trading right in 2019 and 2020. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 1 2 . Changes in goodwill for the years ended December 31, 2018, 2019 and 2020 were as follows: Commodities brokerage Investment advisory services Institution subscription services Hong Kong brokerage services Total Balance as of December 31, 2018 $ — $ — $ — $ 107,791 $ 107,791 Exchange difference — — — 625 625 Balance as of December 31, 2019 $ — $ — $ — $ 108,416 $ 108,416 Exchange difference — — — 485 485 Balance as of December 31, 2020 $ — $ — $ — $ 108,901 $ 108,901 The goodwill related to the acquisition of Rifa Wealth Management was allocated to Hong Kong brokerage services reporting unit, which was acquired on September 13, 2016. The Company performed the annual impairment tests on December 31 of each year. Based on the Company’s assessment, the Company recorded no goodwill impairment losses during the years ended December 31, 2018, 2019 and 2020. |
Accounts Payable
Accounts Payable | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Payable Current [Abstract] | |
Accounts Payable | 1 3 . Accounts payable consist of: December 31, 2019 2020 Amount due to customers of Hong Kong brokerage business $ 6,552,742 $ 3,682,662 Amount due to sales agents 112,555 120,340 Others 75,884 221,177 $ 6,741,181 $ 4,024,179 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Expenses And Other Current Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | 1 4 . Accrued expenses and other current liabilities consist of: December 31, 2019 2020 Accrued bonus $ 1,063,891 $ 1,941,988 Accrued professional service fees 558,752 688,911 Withholding individual income tax-option exercise 215,945 293,309 Value added taxes and other taxes payable 375,548 430,328 Accrued raw data cost 651,633 1,416,708 Accrued bandwidth cost (24,970 ) 37,282 Accrued welfare benefits 64,167 67,236 Funds received from third party investors (i) 9,415,798 8,530,593 Accrued sales service fees 81,623 354,488 Others 1,997,663 2,865,469 $ 14,400,050 $ 16,626,312 In November 2018, China Finance Online entered into a Share Transfer Agreement with West Platinum Limited (the “Buyer”) to sell 1,552,000 shares (“Sale Shares”), or 20% of Rifa Financial Holdings Limited (“Rifa Financial”) for HK$73.8 million (or approximately US$9.4 million) (the “Purchase Price”). ( i ) Pursuant to the Share Transfer Agreement, the completion of the equity transfer is subject to conditions, including but not limited to obtaining all necessary approvals and consents of Securities and Futures Commission of Hong Kong. As of December 31, 2019, both the register of shareholders and business registration had not been changed, therefore the equity transfer has not been completed and recorded in noncontrolling interests. In addition, the Share Transfer Agreement was subject to Rifa Financial being listed on the Main Board of the Stock Exchange of Hong Kong Limited (“HKEX”) as of December 31, 2019. If Rifa Financial is not listed on the HKEX, the Company would refund all amounts received under the Share Transfer Agreement without interest to the Buyer within two weeks from December 31, 2019. Due to the failure of Rifa Financial listing on HKEX through December 31, 2019, the shares were not transferred to the Buyer. The Company is obligated to return the Purchase Price (funds received) to the Buyer. |
Loan From Third Party
Loan From Third Party | 12 Months Ended |
Dec. 31, 2020 | |
Loan From Third Party [Abstract] | |
Loan From Third Party | 15. December 31, 2019 2020 Loan from third party $ 3,019,863 $ 3,193,610 $ 3,019,863 $ 3,193,610 The loan from third party was borrowed from Beijing Huayu Sunshine Investment Management Co., Ltd in January 3, 2019, interest free and the short term of loan is 3 years. |
Stock Options and Nonvested Sha
Stock Options and Nonvested Shares | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Options and Nonvested Shares | 1 6 . As of December 31, 2020, 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 $2,240,512, $1,113,828 and $986,833 for 2018, 2019, and 2020, 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 Company, and consultants and advisors outside the Company. We amended 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. Summary of stock options to employees and non-employees A summary of the stock option activity is as follows: 2018 2019 2020 Weighted Weighted Weighted Number average Number average Number average of options exercise price of options exercise price of options exercise price Outstanding at beginning of year 13,677,960 $ 0.46 13,202,200 $ 0.43 13,160,200 $ 0.43 Exercised (2,400 ) 0.25 (20,000 ) 0.25 — — Forfeited (473,360 ) 1.16 (22,000 ) 1.43 (2,382,500 ) 1.27 Outstanding at end of year 13,202,200 $ 0.43 13,160,200 $ 0.43 11,137,700 $ 0.21 Shares exercisable at end of year 13,202,200 $ 0.43 13,160,200 $ 0.43 11,137,700 $ 0.21 The following table summarizes information with respect to stock options outstanding at December 31, 2020: Options outstanding Option exercisable Stock option with exercise price of: Number outstanding Weighted average remaining contractual life Weighted average exercise price Aggregate intrinsic value as of December 31, 2020 Number exercisable Weighted average exercise price Aggregate intrinsic value as of December 31, 2020 $ 0.25 11,137,700 11,137,700 11,137,700 2.99 $ 0.21 $ — 11,137,700 $ 0.21 $ — Summary of stock options to employees and non-employees The total intrinsic value of options exercised during the years ended December 31, 2018, 2019 and 2020 was nil, nil, and nil, respectively. The total fair value of shares vested during the year ended December 31, 2018, 2019 and 2020 were nil, nil and nil, respectively. 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, all the granted restricted shares were vested as of January 2, 2017, of which 330,085 shares were issued to employees as of December 31, 2018. 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. As of December 31, 2016, all the share-based compensation expenses relating to the restricted shares under the 2004 Plan were recognized. 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 Company’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 nil, nil and nil for the years ended December 31, 2018, 2019 and 2020, respectively. As of December 31, 2016, all the share-based compensation expenses relating to the restricted shares under the 2007 Plan were recognized. 2010 Equity incentive plan of Rifa Financial Holdings In November 2010, Rifa 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 Rifa 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 Rifa Financial Holdings is recognized as noncontrolling interest on the Company’s consolidated financial statements since November 1, 2010, the date of grant. 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 Company, and consultants and advisors outside the Company. 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 23,000,000 as of December 31, 2020. As of December 31, 2020, 4,399,900 shares were available for future grant of awards. Options to employees During 2017 and 2018, the Company granted totaling 2,490,000 and 280,000 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. There were no grants in 2019 and 2020. 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, 2018 2019 2020 Weighted average risk free rate of return 2.52% — — Weighted average expected option life 7.34 years — — Expected volatility rate 76.44% — — 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 and 2017, the Company granted 30,000 and 200,000 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. There were no grants in 2019 and 2020. Summary of stock options to employees and non-employees A summary of the stock option activity is as follows: 2018 2019 2020 Weighted Weighted Weighted Number average Number average Number average of options exercise price of options exercise price of options exercise price Outstanding at beginning of year 3,755,000 $ 0.49 3,675,000 $ 0.48 3,475,000 $ 0.46 Granted 280,000 0.43 — — — — Exercised — — — — — — Forfeited (360,000 ) 0.62 (200,000 ) 0.72 (360,000 ) 0.52 Outstanding at end of year 3,675,000 $ 0.48 3,475,000 $ 0.46 3,115,000 $ 0.41 Shares exercisable at end of year 1,877,000 $ 0.59 2,529,000 $ 0.49 2,234,600 $ 0.43 The following table summarizes information with respect to stock options outstanding at December 31, 2020: Options outstanding Option exercisable Stock option with exercise price of: Number outstanding Weighted average remaining contractual life Weighted average exercise price Aggregate intrinsic value as of December 31, 2020 Number exercisable Weighted average exercise price Aggregate intrinsic value as of December 31, 2020 $ 0.878 575,000 575,000 $ 0.920 40,000 40,000 $ 0.302 780,000 592,800 $ 0.348 1,310,000 890,800 $ 0.348 200,000 136,000 $ 0.434 210,000 — 3,115,000 4.88 $ 0.41 — 2,234,600 $ 0.43 — Summary of stock options to employees and non-employees The weighted-average grant-date fair value of options granted during the years 2017 and 2018 was $0.24 and $0.32, respectively. The total intrinsic value of options exercised were nil during the years ended December 31, 2018, 2019 and 2020. The total fair value of shares vested during the year ended December 31, 2018, 2019 and 2020 was $646,612, $445,888 and $242,752, respectively. There were no grants in 2020. The Company recognized share-based compensation expenses of $360,884, $177,414 and $34,617 for stock option under 2014 Plan in the years ended December 31, 2018, 2019 and 2020, respectively. As of December 31, 2020, there were $955 unrecognized share-based compensation expenses relating to the stock options under 2014 Plan, which are expected to be recognized over a weighted average period of 0.1 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, all the 1,780,000 shares were vested, of which 750,885 shares were issued as of December 31, 2020. 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 became 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. As of December 31, 2020, 2,414,500 granted shares were activated, all of which were vested based on the participant’s achievement of performance target and the Company’s requisite service period stated. Furthermore, 773,685 shares were issued as of December 31, 2020. On November 8, 2016, the Company granted 200,000 restricted shares under the 2014 Plan to a selected employee. The vesting of the restricted shares is subject to rendering service to the Company for two years. As of December 31, 2020, all of 200,000 shares were vested, and no share was issued as of December 31, 2020. On July 12, 2017, the Company granted 150,000 restricted shares under the 2014 Plan to a selected employee. The vesting of the restricted shares is subject to rendering service to the Company for 2.5 years. As of December 31, 2020, 150,000 shares were vested, and 77,975 shares were issued as of December 31, 2020. On December 28, 2018, the Company granted 1,900,000 restricted shares under the 2014 Plan to a selected employee. The vesting of the restricted shares is subject to rendering service to the Company for 3 years. As of December 31, 2020, 1,292,000 shares were vested, and no share was issued as of December 31, 2020. On December 3, 2019, the Company granted 8,000,000 restricted shares under the 2014 Plan to selected employees. The vesting of the restricted shares is subject to rendering service to the Company for 2 years. As of December 31, 2020, 4,000,000 shares were vested, and no share was issued as of December 31, 2020. The Company recognized share-based compensation expenses of $497,531, $239,590 and $69,488 relating to the restricted shares granted to employees in 2018, 2019 and 2020, respectively. As of December 31, 2020, there were $231,326 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 0.93 years. 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 Company. 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 was $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 Company. 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 was $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 Company. 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 was $1,141,124, which equal to the fair value of CFO Tahoe’s 1.95% net assets at the effective date of the agreement. On May 31, 2016, Fortune Zhengjin entered into another arrangement with selected employees of the Company. Pursuant to the agreement, these employees were granted 5.35% 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 was $2,460,213, which equal to the fair value of Fortune Zhengjin’s 5.35% net assets at the effective date of the agreement. There were $1,769, $1,240,579 and $139,749 share-based compensation expenses recorded in 2018 relating to CFO Shangtong, Fortune Zhengjin and CFO Tahoe, respectively. There were $522, $625,978 and $70,324 share-based compensation expenses recorded in 2019 relating to CFO Shangtong, Fortune Zhengjin and CFO Tahoe, respectively. There were nil, $234,238 and $21,077 share-based compensation expenses recorded in 2019 relating to CFO Shangtong, Fortune Zhengjin and CFO Tahoe, respectively. As of December 31, 2020, there were nil and $43,123 and nil 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 0.5 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 7 . Hong Kong China Finance Online, Rifa Securities, Rifa Futures, Rifa Credit, Rifa Wealth Management and other nine 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 Rifa Financial Holdings and other eleven subsidiaries. PRC The Company’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, 2020 is as follows: PRC entities Chinese EIT rate Qualification for preferential tax rate CFO Genius Preferential tax rate of 15% from 2018 to 2020. HNTE CFO Tibet Preferential tax rate of 9% from 2015 to 2017 and 15% thereafter Preferential tax rate for enterprises in Tibet, China Tibet Lieqian Network Technology Co., Ltd Preferential tax rate of 15% from 2018 and thereafter Preferential tax rate for enterprises in Tibet, China CFO Chongzhi and CFO Shangtong filed their EIT by adopting the “deemed-profit method”. In 2015, Zhengjin (Jiangsu) Precious Metals Co., Ltd. also adopted this method. In 2016, CFO Qingdao Zhida 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 Company does not believe that currently the legal entities organized outside of the PRC within the Company 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 $50.7 million at December 31, 2020. And accordingly, no provision has been made for the Chinese dividend withholding taxes. There were no aggregate undistributed earnings of the Company’s VIEs and its VIEs’ subsidiaries located in the PRC that is available for distribution to the Company at December 31, 2020. 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 expense (benefit) was as follows: December 31, 2018 2019 2020 Current $ (169,033 ) $ (144,087 ) $ (203,052 ) Deferred 116,254 (72,770 ) 385,654 Total $ (52,779 ) $ (216,857 ) $ 182,602 The principal components of deferred income taxes were as follows: December 31, 2019 2020 Deferred tax assets: Deferred revenue $ 1,307,149 $ 1,870,119 Accrued expenses and other liabilities 73,693 (141,117 ) Net operating loss carrying forwards 27,126,541 28,092,663 28,507,383 29,821,665 Less: valuation allowance (27,126,541 ) (27,960,695 ) Total deferred tax assets $ 1,380,842 $ 1,860,971 Deferred tax liabilities: Account receivable and other assets (1,922 ) (2,055 ) Intangible assets (12,289 ) (10,492 ) Total deferred tax liabilities $ (14,211 ) $ (12,547 ) A valuation allowance of $27,126,541 and $27,960,695 was established as of December 31, 2019 and 2020, respectively, for the entities that have incurred losses because the Company believes that it is more likely than not that the related deferred tax assets will not be realized in the future. At December 31, 2020, operating loss carry forwards includes approximately $95.9 million which will expire by 2025, and $25.0 million which will carry forward indefinitely. Reconciliation between total income tax expense and the amount computed by applying the PRC EIT statutory rate to income before income taxes is as follows: Years ended December 31, 2018 2019 2020 Loss before tax $ (22,417,716 ) $ (12,526,891 ) $ (11,532,810 ) Income tax benefits calculated at 25% (5,604,429 ) (3,131,723 ) (2,883,202 ) Effect of PRC preferential tax rates and tax holiday 11,750 (49,582 ) (53,048 ) Effect of income tax rate difference in other jurisdictions (652,330 ) 71,057 286,347 Non-deductible expenses 2,014,345 886,418 1,219,063 Non-taxable income (929,875 ) (353,790 ) (358,045 ) Change in valuation allowance 1,612,806 714,281 834,153 Expiration of NOL 3,600,512 2,080,196 772,130 Income tax expense $ 52,779 $ 216,857 $ (182,602 ) During the years ended December 31, 2018, 2019 and 2020, 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 nil, $5,545 and $4,144, respectively. There was no significant impact of the tax holidays on basic net loss per ordinary share for the year ended December 31, 2018, 2019 and 2020, respectively . The Company did not identify significant unrecognized tax benefits for the years ended December 31, 2018, 2019 and 2020. The Company 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, 2020. In accordance with relevant PRC tax administration laws, tax years from 2015 to 2020 of the Company’s PRC subsidiaries and VIEs remain subject to tax audits as of December 31, 2020, at the tax authority’s discretion. |
American Depositary Shares ("AD
American Depositary Shares ("ADS") Plan | 12 Months Ended |
Dec. 31, 2020 | |
American Depositary Shares Plan [Abstract] | |
American Depositary Shares ("ADS") Plan | 1 8 . In September 2015, the Company 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, 2020, 1,083,955 shares were available for future exercise of options and vesting of granted shares. In April 2019, the Company 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, 2020, 4,000,000 shares were available for future exercise of options and vesting of granted shares. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 1 9 . The following table sets forth the computation of basic and diluted income (loss) per share for the years indicated: Years ended December 31, 2018 2019 2020 Net loss attributable to China Finance Online Co. Limited $ (19,950,120 ) $ (11,262,821 ) $ (10,558,169 ) Weighted average ordinary shares outstanding used in computing basic net loss per share 113,883,030 114,687,282 115,060,781 Plus: Incremental shares from assumed conversions of stock options, restricted shares and nonvested shares — — — Weighted average ordinary shares outstanding used in computing diluted net loss per share 113,883,030 114,687,282 115,060,781 Net loss per share attributable to China Finance Online Co. Limited - basic $ (0.18 ) $ (0.10 ) $ (0.09 ) - diluted $ (0.18 ) $ (0.10 ) $ (0.09 ) For the year ended December 31, 2018, 4,094,656 options, 5,637,453 restricted shares and 3,000,000 nonvested shares, were anti-dilutive, respectively, because the Company was in the loss position. For the year ended December 31, 2019, 98,901 options, 5,316,935 restricted shares and 3,000,000 nonvested shares, were anti-dilutive, respectively, because the Company was in the loss position. For the year ended December 31, 2020, no options, 6,950,018 restricted shares and 3,000,000 nonvested shares, were anti-dilutive, respectively, because the Company was in the loss position. |
Mainland China Contribution Pla
Mainland China Contribution Plan and Profit Appropriation | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Mainland China Contribution Plan and Profit Appropriation | 20 . Full time employees of the Company in the PRC participate in a government-mandated defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require the Company to accrue for these benefits based on certain percentages of the employees’ salaries. The total provisions for such employee benefits were $4,000,211, $2,708,316 and $1,614,246 for the years ended December 31, 2018, 2019 and 2020, respectively. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | 2 1 . Commodities brokerage Services Investment Advisory services Institution Subscription services Rifa Financial Holdings Brokerage services Other Total Balance as of January 1, 2018 $ (9,226,990 ) $ — $ — $ 891,919 — $ (8,335,071 ) Dividends paid to noncontrolling interest — — — — — — Changes in controlling ownership interest — — — — — — Deconsolidation 1,216,007 — — — — 1,216,007 Share-based compensation (Note 15) 529,600 — — — — 529,600 Net income (loss) (3,249,840 ) — — 729,465 — (2,520,375 ) Balance as of December 31, 2018 $ (10,731,223 ) $ — $ — $ 1,621,384 — $ (9,109,839 ) Dividends paid to noncontrolling interest — — — — — — Changes in controlling ownership interest — — — — — — Deconsolidation 295,830 — — — — 295,830 Share-based compensation (Note 15) 267,076 — — — — 267,076 Net income (loss) (1,704,695 ) — — 223,768 — (1,480,927 ) Balance as of December 31, 2019 $ (11,873,012 ) $ — $ — $ 1,845,152 — $ (10,027,860 ) Dividends paid to noncontrolling interest — — — — — — Changes in controlling ownership interest — — — — — — Deconsolidation — — — — — — Share-based compensation (Note 15) 99,540 — — — — 99,540 Net income (loss) (416,496 ) — — (375,543 ) — (792,039 ) Balance as of December 31, 2020 $ (12,189,969 ) $ — $ — $ (1,469,608 ) — $ (10,720,359 ) In November 2018, China Finance Online entered into a Share Transfer Agreement with West Platinum Limited (the “Buyer”) to sell 1,552,000 shares (“Sale Shares”), or 20% of Rifa Financial Holdings Limited (“Rifa Financial”) for HK$73.8 million (or approximately US$9.4 million) (the “Purchase Price”). Pursuant to the Share Transfer Agreement, the Buyer provided a refundable deposit to the Company of $1.4 million. The refundable deposit was not considered part of the Purchase Price. The deposit was refundable to the Buyer upon the Share Transfer approval by Securities and Futures Commission of Hong Kong (“SFC”). The Share Transfer was approved during 2018 and the Company refunded the deposit to the Buyer during 2019. Pursuant to the Share Transfer Agreement, the completion of the equity transfer is subject to conditions, including but not limited to obtaining all necessary approvals and consents of Securities and Futures Commission of Hong Kong. As of December 31, 2019, both the register of shareholders and business registration had not been changed, therefore the equity transfer has not been completed and recorded in noncontrolling interests. In addition, the Share Transfer Agreement was subject to Rifa Financial being listed on the Main Board of the Stock Exchange of Hong Kong Limited (“HKEX”) as of December 31, 2019. If Rifa Financial is not listed on the HKEX, the Company would refund all amounts received under the Share Transfer Agreement without interest to the Buyer within two weeks from December 31, 2019. Due to the failure of Rifa Financial listing on HKEX through December 31, 2019, the shares were not transferred to the Buyer. The Company is obligated to return the Purchase Price to the Buyer . |
Leases and Contingencies
Leases and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Leases and Contingencies | 2 2 . Leases Leases are classified as operating leases or finance leases in accordance with ASC 842. The Company’s operating leases mainly related to certain office premises under non-cancelable leases. Our principal executive offices as well as our subsidiaries and affiliates that locate in Beijing lease approximately 3,664 square meters. Our subsidiaries and affiliates that locate in Shanghai lease approximately 288 square meters. Our subsidiaries and affiliates that locate in Shenzhen lease approximately 760 square meters. Our subsidiaries and affiliates that locate in Wuhan lease approximately 42 square meters. Our subsidiaries and affiliates that locate in Shandong province lease approximately 300 square meters. Our subsidiaries that locate in Hong Kong lease approximately 460 square meters. As of December 31, 2020, the Company had no long-term leases that were classified as a financing lease. Most leases include one or more options to renew. The exercise of lease renewal options is typically at the Company’s sole discretion; therefore, the majority of renewals to extend the lease terms are not included in the Company’s right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates the renewal options, and when they are reasonably certain of exercise, the Company includes the renewal period in its lease term. Lease costs were as follows: Year Ended December 31, 2020 Operating lease cost (i) $ 2,446,705 Total lease cost $ 2,446,705 Short-term lease costs $ 63,691 (i) Excluding cost of short-term contracts. Short-term lease costs for year ended December 31, 2020 were $63,691. Supplemental cash flow information related to operating leases for the year ended December 31, 2020 is as follows: December 31, 2020 Operating cash payment for operating leases $ 835,956 Weighted average remaining lease term on operating leases 1.38 years Weighted average discount rate on operating leases 4.99 % Future operating leases Year ending 2021 $ 1,287,585 2022 531,839 2023 97,378 2024 — Total lease payments 1,916,803 Less: interest (121,665 ) Present value of lease payments $ 1,795,138 Legal Proceedings On June 2, 2019, one of our subsidiaries, Zhengjin (Fujian) Precious Metal Investment Co., Ltd. and its Beijing Consulting Branch Company were sued by Lin Zhang, a PRC citizen in a lawsuit filed in Xicheng District People’s Court in Beijing, PRC (the “Court”) claiming that his/her trading activities in the trading system of Haixi Commodity Trading are invalidated and the defendants shall return the transaction amount in the aggregate of RMB2,729,996, approximately $391,000. The defendants filed an application for objection to jurisdiction to the Court on October 24, 2019. The Court then issued a civil ruling No. 22769 of Beijing 0102 Minchu (2019) on May 6, 2020, and transferred the case to the Gulou District People's Court in Fuzhou City, Fujian Province, PRC for trial. The plaintiff appealed the ruling of the venue in July 2020 and was denied by the court in December 2020. This case remains in its preliminary stage. We intend to defend the actions vigorously. If the final ruling is against us, it may result in adverse effect on our financial position, results of operations or cash flows. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 2 3 . The Company has two operating segments (1) Financial services in PRC, (2) 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 Company’s chief executive officer has been identified as the chief operating decision makers. The Company’s chief operating decision maker directs the allocation of resources to operating segments based on the profitability and cash flows of each respective segment. Segment of Hong Kong brokerage services includes the revenues from brokerage services, and segment of Financial services includes the revenue from subscription revenues, mutual funds distribution revenues and advertising and enterprise value-added services revenues. The Company 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 Company’s operating segments: For the year ended December 31, 2020 Hong Kong brokerage services Financial services Other Consolidated Net revenues $ 12,110,117 $ 31,767,173 $ — $ 43,877,290 Less: intersegment sales — (3,844,193 ) — (3,844,193 ) Net revenues from external customer 12,110,117 27,922,980 — 40,033,097 Cost of revenues 6,824,093 7,971,267 (15 ) 14,795,345 Less: intersegment cost of revenues — (468,542 ) — (468,542 ) Cost of revenues after elimination 6,824,093 7,502,725 (15 ) 14,326,803 Operating expenses: General and administrative 6,181,307 5,744,905 292,750 12,218,962 Product development — 11,482,813 2,025 11,484,838 Sales and marketing 4,495,190 12,765,669 158,393 17,419,252 Total segments operating expenses 10,676,497 29,993,387 453,168 41,123,052 Less: intersegment operating expenses (835,497 ) (3,418,220 ) — (4,253,717 ) Total operating expenses 9,841,000 26,575,167 453,168 36,869,335 Income (loss) from operations $ (4,554,976 ) $ (6,154,912 ) $ (453,153 ) $ (11,163,041 ) Total segments assets 80,200,698 161,697,028 12,815,222 254,712,948 Less: intersegment asset. (21,048,187 ) (143,194,619 ) (12,512,834 ) (176,755,640 ) Total assets $ 59,152,511 $ 18,502,409 $ 302,388 $ 77,957,306 For the year ended December 31, 2019 Hong Kong brokerage services Financial services Other Consolidated Net revenues $ 15,802,418 $ 26,323,194 $ — $ 42,125,612 Less: intersegment sales (3,071 ) (6,603,751 ) — (6,606,822 ) Net revenues from external customer 15,799,347 19,719,443 — 35,518,790 Cost of revenues 7,839,764 5,348,329 — 13,188,093 Less: intersegment cost of revenues — (213,958 ) — (213,958 ) Cost of revenues after elimination 7,839,764 5,134,371 — 12,974,135 Operating expenses: General and administrative 5,616,870 5,200,622 1,428,075 12,245,567 Product development 24,011 15,502,285 7,677 15,533,973 Sales and marketing 3,380,644 9,751,017 234,661 13,366,322 Total segments operating expenses 9,021,525 30,453,924 1,670,413 41,145,862 Less: intersegment operating expenses (61,860 ) (6,389,793 ) — (6,451,653 ) Total operating expenses 8,959,665 24,064,131 1,670,413 34,694,209 Income (loss) from operations $ (1,000,082 ) $ (9,479,059 ) $ (1,670,413 ) $ (12,149,554 ) Total segments assets 89,864,646 157,264,579 12,200,897 259,330,122 Less: intersegment asset. (20,378,627 ) (138,083,606 ) (11,703,363 ) (170,165,596 ) Total assets $ 69,486,019 $ 19,180,973 $ 497,534 $ 89,164,526 For the year ended December 31, 2018 Hong Kong brokerage services Financial services Other Consolidated Net revenues $ 22,440,556 $ 34,498,830 $ 49,960 $ 56,989,346 Less: intersegment sales (96,606 ) (11,414,814 ) — (11,511,420 ) Net revenues from external customer 22,343,950 23,084,016 49,960 45,477,926 Cost of revenues 11,212,825 6,249,529 2,813 17,465,167 Less: intersegment cost of revenues — (623,252 ) — (623,252 ) Cost of revenues after elimination 11,212,825 5,626,277 2,813 16,841,915 Operating expenses: General and administrative 4,200,746 7,022,338 3,174,478 14,397,562 Product development 44,295 24,394,373 277,353 24,716,021 Sales and marketing 3,656,372 17,574,405 929,411 22,160,188 Total segments operating expenses 7,901,413 48,991,116 4,381,242 61,273,771 Less: intersegment operating expenses (238,109 ) (10,791,561 ) — (11,029,670 ) Total operating expenses 7,663,304 38,199,555 4,381,242 50,244,101 Income (loss) from operations $ 3,467,821 $ (20,741,816 ) $ (4,334,095 ) $ (21,608,090 ) Total segments assets 76,292,657 156,883,869 13,201,206 246,377,732 Less: intersegment asset. (19,992,932 ) (133,070,873 ) (12,624,577 ) (165,688,382 ) Total assets $ 56,299,725 $ 23,812,996 $ 576,629 $ 80,689,350 The Company derives revenue from external customers for each of the following services during the years presented: Years ended December 31, 2018 2019 2020 Mutual funds distribution services revenues $ 879,802 $ 735,129 $ 1,281,077 Financial information and advisory services revenues 14,891,267 10,674,164 17,465,197 Advertising revenues 7,312,947 8,310,150 9,176,706 Hong Kong brokerage services revenues 22,343,950 15,799,347 12,110,117 Others 49,960 — — Total revenue from external customers $ 45,477,926 $ 35,518,790 $ 40,033,097 Substantially all of the Company’s revenues for the years ended December 31, 2018, 2019 and 2020 were generated from the PRC and Hong Kong. As of December 31, 2018, 2019 and 2020, respectively, substantially all of long-lived assets of the Company are located in the PRC and Hong Kong. |
Statutory Reserves and Restrict
Statutory Reserves and Restricted Net Assets | 12 Months Ended |
Dec. 31, 2020 | |
Statutory Reserves And Restricted Net Assets [Abstract] | |
Statutory Reserves and Restricted Net Assets | 2 4 . PRC legal restrictions permit payments of dividends by the Company’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 Company. 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 Company’s subsidiaries. These reserve funds can only be used for specific purposes and are not distributable as cash dividends. The balance of the statutory reserves was $8,875,124 and $9,332,542 as of December 31, 2019 and 2020. 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 Company. Amounts restricted include paid-in capital and the statutory reserves of the Company’s PRC subsidiaries and VIEs. As of December 31, 2020, the aggregate amounts restricted which represented the amount of net assets of the relevant subsidiaries and VIEs in the Company not available for distribution was $1,106,322. As a result of the above restrictions, parent-only financials are presented on financial statement Schedule I. |
Financial Information of Parent
Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Financial Information of Parent Company | December 31, 2019 2020 Assets Current assets: Cash and cash equivalents $ 753,380 $ 153,167 Amounts due from subsidiaries, VIEs and VIE’s subsidiaries 9,557,835 9,031,501 Prepaid expenses and other current assets 260,303 338,458 Total current assets 10,571,518 9,523,126 Investments in subsidiaries, VIEs and VIE’s subsidiaries 39,142,555 34,559,573 Total assets $ 49,714,073 $ 44,082,699 Liabilities and shareholders’ equity Current liabilities: Accrued expenses and other current liabilities 9,936,508 9,435,958 Amounts due to subsidiaries, VIEs and VIE’s subsidiaries 14,621,679 16,537,908 Total current liabilities $ 24,558,187 $ 25,973,866 Shareholders’ equity Ordinary shares (122,098,018 and 122,098,018 shares issued and outstanding as of December 31, 2019 and 2020, respectively) 57,006,534 57,006,534 Additional paid-in capital 36,925,874 37,644,994 Accumulated other comprehensive income 6,412,555 6,401,993 Retained deficits (75,189,077 ) (82,944,688 ) Total shareholders’ equity 25,155,886 18,108,833 Total liabilities and shareholders’ equity $ 49,714,073 $ 44,082,699 CHINA FINANCE ONLINE CO. LIMITED Financial information of Parent Company Statements of Comprehensive Income (In U.S. dollars) December 31, 2018 2019 2020 Cost of revenues $ 85,493 $ 87,105 $ 85,714 Gross loss (85,493 ) (87,105 ) (85,714 ) Operating expenses: General and administrative 1,069,590 1,111,665 1,201,587 Sales and marketing 17,526 — — Share-based compensation 858,415 417,004 729,504 Total operating expenses 1,945,531 1,528,669 1,931,090 Interest income 4,851 93 3,816 Equity in deficits of subsidiaries, VIEs and VIE’s subsidiaries (17,888,289 ) (9,627,269 ) (5,734,722 ) Exchange loss, net (10,608 ) (19,871 ) (7,902 ) Other expense, net (25,050 ) — — Net loss $ (19,950,120 ) $ (11,262,821 ) $ (7,755,612 ) Other comprehensive income (loss), net of tax: Changes in foreign currency translation adjustment (362,398 ) 120,762 (10,562 ) Other comprehensive income (loss), net of tax (362,398 ) 120,762 (10,562 ) Comprehensive loss $ (20,312,518 ) $ (11,142,059 ) $ (7,766,174 ) CHINA FINANCE ONLINE CO. LIMITED Financial Information of Parent Company Statement of Shareholders’ Equity (In U.S. dollars, except share data) Additional Accumulated other Retained Total Ordinary shares paid-in comprehensive earnings shareholders’ Shares Amount capital income (loss) (deficits) equity Balance as of January 1, 2018 118,098,018 $ 57,000,417 $ 34,368,210 $ 6,654,191 $ (43,976,136 ) $ 54,046,682 Exercise of share options by employees — 600 — — — 600 Share-based compensation — — 858,415 — — 858,415 Equity pick up from compensation of VIE's subsidiaries — — 852,497 — — 852,497 Changes in controlling ownership interest — — — — — — Foreign currency translation adjustment — — — (362,398 ) — (362,398 ) Net loss — — — — (19,950,120 ) (19,950,120 ) Balance as of December 31,2018 118,098,018 $ 57,001,017 $ 36,079,122 $ 6,291,793 $ (63,926,256 ) $ 35,445,676 Issuance of ordinary shares for the plan of stock options and restricted shares 4,000,000 520 — — — 520 Exercise of share options by employees — 4,997 — — — 4,997 Share-based compensation — — 417,004 — — 417,004 Equity pick up from compensation of VIE's subsidiaries — — 429,748 — — 429,748 Changes in controlling ownership interest — — — — — — Foreign currency translation adjustment — — — 120,762 — 120,762 Net loss — — — — (11,262,821 ) (11,262,821 ) Balance as of December 31,2019 122,098,018 $ 57,006,534 $ 36,925,874 $ 6,412,555 $ (75,189,077 ) $ 25,155,886 Issuance of ordinary shares for the plan of stock options and restricted shares Exercise of share options by employees Share-based compensation 729,504 729,504 Equity pick up from compensation of VIE's subsidiaries (10,389 ) (10,389 ) Changes in controlling ownership interest Foreign currency translation adjustment (10,562 ) (10,562 ) Fractional shares sold 5 5 Net loss (7,755,612 ) (7,755,612 ) Balance as of December 31,2020 122,098,018 $ 57,006,534 $ 37,644,994 $ 6,401,993 $ (82,944,688 ) $ 18,108,833 CHINA FINANCE ONLINE CO. LIMITED Financial information of Parent Company Statements of Cash Flows (In U.S. dollars, except share-related data) December 31, 2018 2019 2020 Operating activities: Net loss $ (19,950,120 ) $ (11,262,821 ) $ (7,755,612 ) Adjustments to reconcile loss to net cash provided by operating activities: Share-based compensation 858,415 417,004 729,504 Equity in deficits of subsidiaries, VIEs and VIE’s subsidiaries 17,888,289 9,627,269 5,734,722 Changes in assets and liabilities: Prepaid expenses and other current assets 37,254 (155,445 ) (78,150 ) Amounts due from subsidiaries, VIEs and VIE’s subsidiaries 4,972 282,898 526,334 Accrued expenses and other current liabilities 235,882 225,952 468,504 Amounts due to subsidiaries, VIEs and VIE’s subsidiaries 3,319,598 1,531,471 1,916,229 Net cash provided by operating activities 2,394,290 666,328 1,541,531 Investing activities: Capital paid to subsidiaries (12,100,010 ) (7,240,000 ) (1,250,000 ) Net cash used in investing activities (12,100,010 ) (7,240,000 ) (1,250,000 ) Financing activities: Proceeds from stock options exercised by employees and Issuance of ordinary shares 600 4,997 — Proceeds from paid-in capital of noncontrolling shareholders 4,466,000 4,947,000 (891,744 ) Net cash provided by (used in) financing activities 4,466,600 4,951,997 (891,744 ) Net decrease in cash, cash and restricted cash equivalents (5,239,120 ) (1,621,675 ) (600,213 ) Cash, cash equivalents and restricted cash, beginning of the year 7,614,175 2,375,055 753,380 Cash, cash equivalents and restricted cash, end of the year $ 2,375,055 $ 753,380 $ 153,167 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 Company’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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Reclassification | Reclassification Certain amounts in the consolidated financial statements have been reclassified from their original presentation to conform to current year presentation. These reclassifications had no material impact on the consolidated financial statements as previously reported. |
Basis of Consolidation | 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. |
Correction of Statement of Balance Sheets and Cash Flows Classification | Correction of Consolidated Balance Sheet and Consolidated Statement of Cash Flows Subsequent to the issuance of the Company’s financial statements for the year ended December 31, 2019, the Company discovered an error in the balance sheet presentation of loan from third party, which was classified as accrued expenses and other current liabilities instead of non-current liabilities on the balance sheet. As a result, current liabilities were overstated and non-current liabilities were understated by approximately $3,019,863 as at December 31, 2019. As a result, net cash used in operating activities was overstated and net cash provided by financing activities was understated by $3,053,877. The consolidated balance sheet and statement of cash flows for the year ended December 31, 2019 has been restated to correct for this classification error. This error had no effect on the Company’s consolidated statements of operations or the consolidated statements of shareholders' equity. In addition, total liabilities and net decrease in cash and cash equivalents were not affected. |
Cash and Cash Equivalents | 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. |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses Accounts receivable are recognized based upon the amount due from customers for the services provided or at cost for purchased and other receivables less an allowance for expected credit losses. Prior to the adoption of ASU 2016-13, the allowance for credit losses receivable reflected our best estimate of probable losses inherent in our receivable portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available evidence. We implemented the new standard effective January 1, 2020, as discussed in the Recently Adopted Accounting Pronouncements -"Measurement of Credit Losses on Financial Instruments", below. We generally consider our accounts past due if they are outstanding over 30 days. Our past due accounts are written off against our allowance for credit losses when collection is considered to be not probable. Any recoveries of accounts previously written off are generally recognized as a reduction in bad debt expense in the period received. The carrying value of accounts receivable, net of the allowance for expected credit losses, approximates fair value. |
Fair Value Measurement | Fair value measurement Fair value is considered to be 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 Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. The three levels of inputs may be used to measure fair value include: Level 1 Level 2 Level 3 Financial instruments include cash and cash equivalents, accounts receivable, short-term investment, equity investments without readily determinable fair value, equity method investment and accounts payable. The carrying values of cash and cash equivalents, accounts receivable, short-term investments and accounts payable approximate their fair value due to their short-term maturities. The carrying value of acquired assets was nearly the fair value of the investment based on the valuation performed by the Company as of December 31, 2019 and 2020. See Note 3 for further discussion. The Company’s short-term investment consists of available-for-sale securities with maturities of one year or less. The Company measured the available-for-sale securities at the fair value shown by the financial institution which the company believes a Level 2 valuation. See Note 5 and Note 6 for further discussion. The carrying value of the equity investment without readily determinable fair value was $1,605,459 and $1,241,398 as of December 31, 2019 and 2020, which are accounted for under the measurement alternative method of accounting. These investments are measured at cost, less any impairment, plus or minus any changes resulting from observable price changes in orderly transactions for an identical or similar investment. No dividends were paid to us in history. See Note 7 for further discussion. The carrying value of the equity method investment was $766,583 and nil as of December 31, 2019 and 2020, 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. See Note 8 for further discussion. The Company measures certain assets, including intangible assets and goodwill at fair value on a nonrecurring basis when they are deemed to be impaired. The fair values of goodwill and intangible assets are determined based on valuation techniques using the best information available, and may include management judgments, future performance projections, See Note 6 for further discussion. The Company 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 Company used unobservable inputs to value them, reflecting the Company’s assessment of the assumptions market participants would use in valuing these purchased intangible assets. The Company does not use derivative instruments to manage risks. |
Trust Bank Balances Held on Behalf of Customers | Trust bank balances held on behalf of customers Trust bank balances held on behalf of customers consist three parts: i) Rifa Securities and Rifa 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, iii) Funds received by Beijing Chuangying from customers who invest in P2P lendings which are deposited in a trust bank account. |
Use of Estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Company’s consolidated 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. |
Short-term Investments | Short-term investments Short-term investments comprise marketable debt securities, which are classified as available-for-sale. 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. Gains and losses from sale of available for sales securities are recognized in short-term investment income or loss of the statements of operations and comprehensive loss. Available for sale securities are classified as current assets on the accompanying consolidated balance sheets because they are available for immediate sale. The Company 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 Company 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 Company’s intent and ability to hold the investment, in determining if impairment is needed. |
Property and Equipment, Net | Property and equipment, net Property and equipment, net is carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Technology infrastructure 5 years Computer equipment 5 years Furniture, fixtures and equipment 5 years Motor vehicle 5 years Leasehold improvements Shorter of the lease term or 5 years |
Acquired Intangible Assets, Net | 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 10-15 years Completed technology 5 years Customer relationship 4-5 years Certain trademarks resulting from the acquisitions of business and certain trading rights bought by the Company 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 Guarantee fund deposits consist of i) the funds deposited with Hong Kong Exchange and Clearing Limited by Rifa Futures, to guarantee its customers’ settlement obligations; ii) the funds deposited with the commodities exchanges as a result of its customers’ trading. The Company needs to deposit certain percentage of its customers’ trading margins with the commodities exchanges. |
Leases | Leases Effective January 1, 2019, the Company adopted ASC Topic 842, Lease (“ASC 842”) using the modified retrospective method and did not restate the comparable periods. The Company categorizes leases with contractual terms longer than twelve months as either operating or finance lease. However, the Company has no finance leases for any of the periods presented. Right-of-use (“ROU”) assets represent the Company’s rights to use underlying assets for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term, reduced by lease incentives received, plus any initial direct costs, using the discount rate for the lease at the commencement date. As the implicit rate in lease is not readily determinable for the Company’s operating leases, the Company generally uses the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. |
Impairment of Long-Lived Assets with Definite Lives | Impairment of long-lived assets with definite lives The Company 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 Company 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 Company would recognize an impairment loss based on the fair value of the assets. There were no |
Impairment of Goodwill and Indefinite-Lived Intangible Assets | Impairment of goodwill and indefinite-lived intangible assets The Company 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. In accordance with ASC 350, “Intangibles - Goodwill and Other,” goodwill is tested at least annually for impairment, or when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable, by assessing qualitative factors or performing a quantitative analysis in determining whether it is more likely than not that its fair value exceeds the carrying value. A quantitative assessment involves determining the fair value of each reporting unit using market participant assumptions. An entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit. For purposes of reviewing impairment and the recoverability of goodwill, management must make various assumptions regarding estimated future cash flows and other factors in determining the fair values of the reporting unit, including market multiples, discount rates, etc. 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 Company performed the annual impairment tests on December 31 of each year. Based on the Company’s assessment, the Company recorded no |
Revenue Recognition | Revenue recognition We provided precious metals spot trading, silver product sales and financial investment advisory services (“commodities brokerage services”) from 2013 to 2017. We also provide brokerage and related services outside mainland China (“Hong Kong Brokerage services”), financial information and advisory services including subscriptions services for financial data, information services and investment advisory, online P2P lending (“Financial information and advisory services”), and advertising services. We adopted ASC topic 606, Revenue from Contracts with Customers (“ASC 606”), from January 1, 2018, using the modified retrospective transition method. Because there was no change to the timing and pattern of revenue recognition, there was no material changes to the Company’s processes and internal controls and there was no adjustment to beginning retained earnings on January 1, 2018. Under ASC 606, an entity recognizes revenue as it satisfies a performance obligation when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price, including variable consideration, if any; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We only apply the five-step model to contracts when it is probable that the entity will collect the consideration to which it is entitled in exchange for the goods or services it transfers to the customer. Commodities brokerage business During the second quarter of 2017, new commodities trading was suspended by most of precious metal exchange in China. Such suspension announcements have adversely affected companies in commodity brokerage businesses in China, including us. As a result, the Company stopped providing commodities brokerage business in 2017. During 2013 to 2017, the Company derives commission income, carrying charges and trading revenues from its commodities brokerage services. The Company acted as an agent. 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 Company 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 Company and the customers and the exchange then settles with any counterparty. The exchange offsets the Company’s gains and losses and amounts receivable and amounts payable from the exchange are presented net on the consolidated balance sheets as the Company 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 Company 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 Company’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 are 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 consolidated balance sheets. 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: Year ended December 31, 2018 2019 2020 Commodities trading gain (loss) $ (9,864 ) $ — $ — Commission income 59,824 — — Carrying charges — — — $ 49,960 $ — $ — Revenue recognition Hong Kong Brokerage services The Company also derives commission from its brokerage services provided by the subsidiaries, Rifa Securities and Rifa Futures which buy or sell securities and future contracts on their customers’ behalf. The Company 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 Company derives revenue from subscription fees from subscribers to their financial data, information services and investment advisory. The Company recognizes revenues when all of the following criteria are met: (1) a contract is identified, (2) the performance obligations in the contract are identified, (3) the transaction price is determined, (4) the transaction price is allocated to the performance obligations in the contract, and (5) performance obligation is satisfied. Upon receipt of the upfront cash payments from the subscriber, the Company 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 Company recognizes revenue ratably over the life of the arrangement. Estimated refund of subscription fees is recorded as deduction of revenue and deferred revenue. The Company also derives revenue from providing services as information intermediary in online P2P lending business. We procure borrowing and lending information from independent third parties, and our professional team evaluates and selects the information provided by third parties, from the perspective of risks. Eventually we display the selected information on the platform of Yinglibao, which is our online consumer finance marketplace. We charge borrowers fixed rates for facilitating loan transactions, and the revenues are recognized upon completion of the services. Advertising revenue The Company derives its advertising fees from advertising sales on their website for a fixed period of time, generally less than one year. The Company acts as a principal and revenues from advertising arrangements are recognized ratably over the period the advertising is displayed. |
Business Taxes and Value Added Taxes | 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 Company is subject to business taxes of 3%-5% on taxable services provided to its customers. During the years ended December 31, 2018, 2019, and 2020 business taxes and related surcharges totaled $349,270, $310,257 and $152,298, respectively. The Company’s certain PRC subsidiaries, VIEs and VIEs’ subsidiaries are subject to VAT at a rate of 17% before May 1, 2018, 16% between May 1, 2018 and April 1, 2019, and 13% after April 1, 2019 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 Company 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 refund 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 2018, 2019 and 2020, the Company recognized $189,335, $96,709 and $113,590, respectively, in VAT refunds. |
Government Subsidies | Government subsidies The Company 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. When the grant relates to an expense item, it is recognized as income over the periods necessary to match the grant on a systematic basis to the costs that it is intended to compensate. |
Deferred Revenue | 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. The amount of deferred revenue recognized as revenue was $15,077,745, $9,990,732 and $16,877,492 in 2018, 2019 and 2020, respectively. |
Equity investment without readily determinable fair value | Equity investment without readily determinable fair value (previously known as cost method investment) Equity investments without readily determinable fair value are accounted for under the measurement alternative method of accounting. These investments are measured at cost, less any impairment, plus or minus any changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. No dividends were paid |
Equity Method Investment | Equity method investment Under the equity method, the Company initially records its investment at cost. The Company 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 Company 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 Company 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. Also, noncontrolling interests of the Company are reported as a component of equity, separate from the parent company’s equity. Results of operations attributable to the non-controlling interest are included in the Company’s consolidated statements of comprehensive loss. |
Foreign Currency Translation | Foreign currency translation The functional and reporting currency of the Company is the United States dollar (“U.S. dollar”). The financial records of the Company’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$”), respectively, which are also the functional currencies of these entities. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into functional currency at the applicable rates of exchange prevailing when the transactions occurred. Transaction gains and losses are recognized in the statements of operations. The Company’s entities with functional currency of RMB and HK$ translate their operating results and financial position into the US$, the Company’s reporting currency. Assets and liabilities are translated using the exchange rates in effect on the balance sheet date. Revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are report as cumulative translation adjustments and are shown as a separate component of other comprehensive income. Translations of amounts from RMB and HK$ into U.S. dollars were made at the following exchange rates for the respective dates and periods: At December 31, 2018 2019 2020 Consolidated balance sheets: RMB to $1.00 6.8632 6.9762 6.5249 HKD to $1.00 7.8329 7.7877 7.7530 Consolidated statements of operations and comprehensive income: RMB to $1.00 6.6174 6.8985 6.8976 HKD to $1.00 7.8380 7.8346 7.7560 |
Foreign Currency Risk | 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 Company included aggregate amounts of $4,271,342, $1,241,702 and $4,903,975 at December 31, 2018, 2019 and 2020, respectively, which were denominated in RMB. |
Product Development Expenses | 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 Company essentially completed its development concurrently with the establishment of technological feasibility, and, accordingly, no costs have been capitalized. |
Advertising Costs | Advertising costs The Company expenses advertising costs as incurred. Total advertising expenses were $540,574, $87,629 and $418,153 for the years ended December 31, 2018, 2019 and 2020, respectively, and have been included as part of sales and marketing expenses in the accompanying consolidated statements of operations. |
Commissions Paid | Commissions paid Commissions paid are the commission of our Hong Kong brokerage business and the commissions paid to the sales agents of our commodities brokerage business. Total commissions paid were $11,110,741, $7,836,793 and $6,817,544 for the years ended December 31, 2018, 2019 and 2020, respectively. |
Income Taxes | Income taxes The Company accounts for income taxes using the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable values. In evaluating the ability to recover its deferred income tax assets, the Company considers all available positive and negative evidence, including its operating results, ongoing tax planning and forecasts of future taxable income on a jurisdiction-by-jurisdiction basis. In the event the Company determines that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount, it would make an adjustment to the valuation allowance that would reduce the provision for income taxes. Conversely, in the event that all or part of the net deferred tax assets are determined not to be realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made. Tax benefits related to uncertain tax positions are recognized when it is more likely than not that a tax position will be sustained during an audit. Interest and penalties related to unrecognized tax benefits are included within the provision for income tax. |
Comprehensive Loss | Comprehensive loss Comprehensive loss includes net loss, unrealized gain (loss) on short-term investments and foreign currency translation adjustments. Beginning in January 1, 2012, the Company presents the components of net income, the components of other comprehensive income and total comprehensive income a single continuous consolidated statement of comprehensive income. |
Share-based Compensation | Share-based compensation Share-based compensation with employees is measured based on the grant date fair value of the equity instrument. The Company 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 Loss Per Share | Net loss per share Basic net loss per share attributable to China Finance Online Co. Limited is computed by dividing net 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 | Concentrations of credit risk Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash and cash equivalents, restricted cash, short-term investments, loan receivable and accounts receivable. The Company places its cash and cash equivalents, short-term investments in major financial institutions located in PRC and Hong Kong, which management considers to be of high credit quality. The Company 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 Company manages its credit risk by collecting up-front fee from its customers and billing at regular intervals during the contract period. The Company 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, 2019 2020 Amount % Amount % A $ 5,262,041 20.4 % * * *Represented less than 10% of consolidated account receivable balance. There were no customers with 10% or more of the Company’s revenues during 2018, 2019, or 2020. |
Accounting Pronouncements Adopted and Not Yet Effective | Accounting pronouncements adopted during the year ended December 31, 2020 In March 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments, (“ASU 2020-03”). ASU 2020-03 improves various financial instruments topics, including the CECL Standard. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments related to Issue 1, Issue 2, Issue 4 and Issue 5 were effective upon issuance of ASU 2020-03. The amendments related to Issue 3, Issue 6 and Issue 7 were effective for the Company beginning on January 1, 2020. The adoption of the ASU 2020-03 did not have a material impact on the Company’s consolidated financial statements. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, (“ASU 2019-04”). ASU 2019-04 clarifies and improves areas of guidance related to the recently issued standards on credit losses (ASU 2016-13), hedging (ASU 2017-12), and recognition and measurement of financial instruments (ASU 2016-01). The amendments generally have the same effective dates as their related standards. If already adopted, the amendments of ASU 2016-01 and ASU 2016-13 are effective for fiscal years beginning after December 15, 2019 and the amendments of ASU 2017-12 are effective as of the beginning of the Company’s next annual reporting period; early adoption is permitted. The adoption of the ASU 2019-04 did not have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). Financial Instruments—Credit Losses (Topic 326) amends guideline on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The adoption of the ASU 2016-13 did not have a material impact on the Company’s consolidated financial statements. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities, (“ASU 2018-17”). ASU 2018-17 requires reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety for determining whether a decision-making fee is a variable interest. The standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. Entities are required to apply the amendments in ASU 2018-17 retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. The adoption of the ASU 2018-17 did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), which eliminates, adds and modifies certain disclosure requirements for fair value measurements. The modified standard eliminates the requirement to disclose changes in unrealized gains and losses included in earnings for recurring Level 3 fair value measurements and requires changes in unrealized gains and losses be included in other comprehensive income for recurring Level 3 fair value measurements of instruments. The standard also requires the disclosure of the range and weighted average used to develop significant unobservable inputs and how weighted average is calculate for recurring and nonrecurring Level 3 fair value measurements. The amendment is effective for fiscal years beginning after December 15, 2019 and interim periods within that fiscal year, with early adoption permitted. The adoption of the ASU 2018-13 did not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which removes Step 2 from the goodwill impairment test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. Public business entity that is a U.S. Securities and Exchange Commission filer should adopt the amendments in this ASU for its annual or any interim goodwill impairment test in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of the ASU 2017-04 did not have a material impact on the Company’s consolidated financial statements. Accounting pronouncements not yet effective: In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This ASU eliminates certain exceptions to the general principles in ASC 740, Income Taxes. Specifically, it eliminates the exception to (1) the incremental approach for intraperiod tax allocation where there is a loss from continuing operations, and income or a gain from other items; (2) the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; (3) the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and (4) the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. ASU 2019-12 will be effective for the annual periods beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of the adoption of ASU 2019-12 on our consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, "Clarifying the Interactions between Topic 321 Investments—Equity Securities, Topic 323 Investments—Equity Method and Joint Ventures, and Topic 815 Derivatives and Hedging." ASU 2020-01 clarifies that a company should consider observable transactions that require a company to either apply or discontinue the equity method of accounting under Topic 323 for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. ASU 2020-01 also clarifies that, when determining the accounting for certain forward contracts and purchased options a company should not consider, whether upon settlement or exercise, if the underlying securities would be accounted for under the equity method or fair value option. ASU 2020-01 was effective for fiscal years beginning after December 15, 2020. We are currently evaluating the impact of the adoption of ASU 2020-01 on our consolidated financial statements. In October 2020, the FASB issued ASU 2020-08 In September 2020, the FASB issued ASU No. 2020-09, Debt (Topic 470). |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Showing China Finance Online's Significant Subsidiaries, VIEs and VIEs' Subsidiaries | Company name Place of incorporation or establishment Date of incorporation or acquisition Legal ownership 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 Rifa Financial Holdings Limited (“Rifa Financial Holdings”) (Formerly known as “iSTAR Financial Holdings Limited”) BVI Jul. 16, 2007 85% Investment holdings Rifa Securities Limited (“Rifa Securities”) (Formerly known as “iSTAR International Securities Co. Limited”) Hong Kong, PRC Nov. 23, 2007 85% Brokerage service Rifa Futures Limited (“Rifa Futures”) (Formerly known as “iSTAR International Futures Co. Limited”) Hong Kong, PRC Apr. 16, 2008 85% Brokerage service Rifa Asset Management Limited (“Rifa Asset Management”) Hong Kong, PRC Nov. 15, 2016 85% Asset management service Rifa Credit Limited (“Rifa Credit”) (Formerly known as “iSTAR International Credit Co. Limited”) Hong Kong, PRC Feb. 10, 2012 85% N/A Rifa Wealth Management Co. Limited (“Rifa Wealth Management”) Hong Kong, PRC Sep. 13, 2016 85% Insurance brokerage service Variable interest entities: Beijing Fuhua Innovation Technology Development Co., Ltd. (“CFO Fuhua”) Beijing, PRC Dec. 31, 2000 Nil Web portal and advertising service Shenzhen Newrand Securities Advisory and Investment Co., Ltd. (“CFO Newrand”) Shenzhen, PRC Oct. 17, 2008 Nil Securities investment advising Shanghai Stockstar Wealth Management Co., Ltd. (“Stockstar Wealth Management”) Shanghai, PRC Apr. 12, 2011 Nil N/A Beijing Huizhi Fortune Technology Co., Ltd. (“CFO Huizhi”) Beijing, PRC Jun. 14, 2012 Nil N/A Shenzhen Ganlanren Investment Management Co., Ltd. (“CFO Shenzhen Ganlanren”) Shenzhen, PRC Feb. 18, 2016 Nil N/A Beijing CFO Premium Technology Co., Ltd. (“CFO Premium”). Beijing, PRC June 2, 2009 Nil N/A Beijing CFO Glory Technology Co., Ltd. Beijing, PRC Sep. 11, 2007 Nil N/A Subsidiaries of variable interest entities: 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 Zhengjin (Tianjin) Precious Metals Investment Co., Ltd. (“CFO Zhengjin Tianjin”) Tianjin, PRC Jul. 23, 2013 Nil Commodities brokerage Beijing Jiayi Management Co., Ltd. (“CFO Zhengjin Beijing”) Beijing, PRC Jan. 13, 2014 Nil Commodities brokerage Yinglibao (Beijing) Technology Co., Ltd. (“CFO Yinglibao”) Beijing, PRC Jan. 15, 2014 Nil Internet-based financial platform Zhengjin (Jiangsu) Precious Metals Co., Ltd. (“CFO Zhengjin Jiangsu”) Nanjing, PRC Nov. 19, 2014 Nil Commodities brokerage Zhengjin (Fujian) Precious Metals Co., Ltd. (“CFO Zhengjin Fujian”) Fujian, PRC Jan. 6, 2013 Nil Commodities brokerage Qingdao Zhengjin Zhida Trading Co., Ltd. (“CFO Qingdao Zhida”) Qingdao, PRC Dec. 21, 2015 Nil Commodities brokerage Tibet Lieqian Network Technology Co., Ltd. Tibet, PRC Mar. 18, 2016 Nil Commodities brokerage Qingdao Zhengjin Taiji Trading Co., Ltd. (“CFO Qingdao Taiji”) Qingdao, PRC Mar. 23, 2016 Nil Commodities brokerage iTougu (Beijing) Network Technology Co., Ltd. (“CFO iTougu”) Beijing, PRC Dec. 8, 2014 Nil Investment advisory service platform Beijing Zhongjun Sunshine Investment and Management Co., Ltd (“CFO Zhongjun Sunshine”) Beijing, PRC Sep. 30, 2013 Nil Financial service Zhongheng Xintai (Beijing) Asset Management Co., Ltd. (“CFO Zhongheng Xintai”) Beijing, PRC Jun. 8, 2016 Nil N/A Beijing Zhengjin Wealth Management Co., Ltd. Beijing, PRC Dec. 24, 2004 Nil Commodities brokerage Shenzhen Rifa Commercial Factoring Co. Ltd. Shenzhen, PRC Oct. 20, 2016 Nil Financial service Shanghai Stockstar Information & Technology Co., Ltd. Shanghai, PRC Dec. 24, 2009 Nil N/A Shanghai Shangtong Co., Ltd. Shanghai, PRC Jun. 6, 2008 Nil N/A Shanghai Ganlan Wealth Asset Management Co., Ltd. Shanghai, PRC Dec. 19, 2014 Nil N/A Beijing Chuangying Advisory and Investment Co., Ltd. ("CFO Chuangying") Beijing, PRC Oct. 9, 1997 Nil P2P Lending Service Shanghai Chongzhi Co., Ltd. Shanghai, PRC Jun. 6, 2008 Nil N/A Tibet Fortune Jinyuan Network Technology Co., Ltd. Tibet, PRC Aug. 22, 2015 Nil N/A |
Schedule of Significant VIEs and Counterparts | VIE name Contractual arrangement date Counterpart CFO Fuhua May 27, 2004 CFO Beijing CFO Newrand July 11, 2018 CFO Software Stockstar Wealth Management April 12, 2011 CFO Zhengtong CFO Shenzhen Ganlanren April 20, 2017 CFO Software Beijing CFO Premium Technology June 2, 2009 CFO Software |
Schedule of Financial Statement Amounts and Balances of VIEs | December 31, 2019 2020 Assets Current assets: Cash and cash equivalents $ 479,309 $ 2,778,747 Accounts receivable – others, net 1,384,102 2,454,691 Others 3,385,334 4,933,628 Total current assets 5,248,745 10,167,243 Property and equipment, net 1,601,260 1,156,702 Equity investments without readily determinable fair value 1,605,459 1,716,501 Equity method investment, net 766,583 818,100 Rental deposits 451,975 483,389 Investment in subsidiaries 38,597,614 41,359,205 Deferred tax assets 1,238,319 1,717,431 Right-of-use assets 2,630,373 1,017,972 Total assets $ 52,140,328 $ 58,436,543 Third-party liabilities: Current liabilities: Accrued expenses and other current liabilities $ 16,886,760 $ 22,630,541 Accounts payable 184,720 337,787 Total current liabilities 17,071,480 22,968,328 Non-current liabilities 741,269 235,666 Total third-party liabilities $ 17,812,749 $ 23,203,994 Inter-company liabilities $ (9,272,913 ) $ (9,877,957 ) Year ended December 31, 2018 2019 2020 Net revenues $ 24,747,244 $ 17,497,599 $ 25,705,251 Net loss $ (10,013,159 ) $ (7,098,995 ) $ (2,279,211 ) Year ended December 31, 2018 2019 2020 Net cash (used in) provided by operating activities $ (8,265,834 ) $ (841,958 ) $ 2,080,985 Net cash used in investing activities (69,989 ) (1,650 ) (44,492 ) Net cash used in financing activities — — — Effect of exchange rate changes $ (621,698 ) $ 68,458 $ 477,763 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment, Net Estimated Useful Lives | Property and equipment, net is carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Technology infrastructure 5 years Computer equipment 5 years Furniture, fixtures and equipment 5 years Motor vehicle 5 years Leasehold improvements Shorter of the lease term or 5 years |
Schedule of Acquired Intangible Assets, Net Estimated Average Useful Lives | 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 10-15 years Completed technology 5 years Customer relationship 4-5 years |
Schedule of Revenue Recognition, Net | The following table presents the totally recognized net revenue from commodities trading business, consisted of: Year ended December 31, 2018 2019 2020 Commodities trading gain (loss) $ (9,864 ) $ — $ — Commission income 59,824 — — Carrying charges — — — $ 49,960 $ — $ — |
Schedule of Exchange Rates Used in Translation | Translations of amounts from RMB and HK$ into U.S. dollars were made at the following exchange rates for the respective dates and periods: At December 31, 2018 2019 2020 Consolidated balance sheets: RMB to $1.00 6.8632 6.9762 6.5249 HKD to $1.00 7.8329 7.7877 7.7530 Consolidated statements of operations and comprehensive income: RMB to $1.00 6.6174 6.8985 6.8976 HKD to $1.00 7.8380 7.8346 7.7560 |
Schedule of Accounts Receivable by Customers | Details of clients accounting for 10% or more of accounts receivable are as follows: Year ended December 31, 2019 2020 Amount % Amount % A $ 5,262,041 20.4 % * * |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | December 31, 2019 2020 Accounts receivable-margin clients $ 14,605,104 $ 12,707,716 Less: Allowance for expected credit losses (1,153,521 ) (2,162,339 ) Accounts receivable- margin clients, net $ 13,451,583 $ 10,545,377 Accounts receivable-others 12,616,609 14,319,525 Less: Allowance for expected credit losses (234,439 ) (252,324 ) Accounts receivable-others, net $ 12,382,170 $ 14,067,201 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: December 31, 2019 2020 Prepayment of advertising fees $ 10,105 $ 32,206 Advances to suppliers 1,018,164 1,529,912 VAT refund receivable 222,847 190,790 Interest receivable 24,908 21,205 Prepayment of office rental 47,845 84,740 Advances to employees 397,885 556,554 Advances to consulting service fees 153,444 929 Consideration receivable 77,749 78,097 Other current assets 459,994 680,848 $ 2,412,941 $ 3,175,281 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Short Term Investments [Abstract] | |
Schedule of Changes in Level 2 Available-for-Sale Securities Measured on a Recurring Basis | 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, 2019 and 2020, respectively: December 31, 2019 2020 Beginning balance $ — $ 1,146,756 Purchases 10,091,454 — Redemption (8,956,178 ) (1,226,713 ) Realized gain(loss) 11,743 599 Exchange difference (263 ) 79,358 Ending balance $ 1,146,756 $ — |
Schedule of Realized Gains of Sale of Available-For-Sale Short-Term Investments | The following table provides additional information on the realized gains of the sale of available-for-sale short-term investments as of December 31, 2019 and 2020, respectively. For purposes of determining gross realized gains, the cost of short-term investments sold is based on specific identification. Year ended December 31, 2020 Exchange Proceeds Costs Gains difference Available-for-sale short-term investments $ (1,226,713 ) $ — $ 599 $ 79,358 Total $ (1,226,713 ) $ — $ 599 $ 79,358 Year ended December 31, 2019 Exchange Proceeds Costs Gains difference Available-for-sale short-term investments $ (8,956,178 ) $ 10,091,454 $ 11,743 $ (263 ) Total $ (8,956,178 ) $ 10,091,454 $ 11,743 $ (263 ) |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets Measured or Disclosed at Fair Value on Recurring Basis | The following table summarizes the Company’s financial assets measured or disclosed at fair value on a recurring basis. Fair value disclosure or measurement at December 31, 2020 using Fair value at December 31, 2020 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair value disclosure Cash and cash equivalents: $ 6,154,499 $ 6,154,499 Fair value measurement Short-term investments: Available-for-sale short-term investments $ — $ — Total assets measured at fair value $ — $ — Fair value disclosure or measurement at December 31, 2019 using Fair value at December 31, 2019 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair value disclosure Cash and cash equivalents: $ 9,599,824 $ 9,599,824 Fair value measurement Short-term investments: Available-for-sale short-term investments $ 1,146,756 $ 1,146,756 Total assets measured at fair value $ 1,146,756 $ 1,146,756 |
Schedule of Level 2 Available-for-Sale Securities Measured on Recurring Basis | The Company’s available-for-sale short-term investments as of December 31, 2019 mainly consists of wealth management products purchased from banks. The Company values these wealth management products using alternative pricing sources and models utilizing market observable inputs, and accordingly the Company classifies the valuation techniques that use these inputs as Level 2. The following table presents changes of available-for-sale short-term investments measured on a recurring basis for the twelve-month period ended December 31, 2019 and 2020, respectively: December 31, 2019 2020 Beginning balance $ — $ 1,146,756 Purchases 10,091,454 — Redemption (8,956,178 ) (1,226,713 ) Realized gain (loss) 11,743 599 Exchange difference (263 ) 79,358 Ending balance $ 1,146,756 $ — |
Schedule of Fair Value Disclosed or Measured on Non-Recurring Basis | The Company's goodwill and intangible assets are primarily acquired through business acquisitions. The fair value for goodwill and acquired intangibles assets measured at fair value on a nonrecurring basis was categorized as Level 3 due to the use of significant unobservable inputs in the valuation. Fair value at December 31, 2019 Total losses in the year ended December 31, 2019 Fair value at December 31, 2020 Total losses in the year ended December 31, 2020 Non-Recurring Goodwill 108,416 — 108,901 — Intangible Assets 74,477 — 63,589 — The goodwill impairment test is further discussed in Note 2. |
Equity Investments Without Re_2
Equity Investments Without Readily Determinable Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Equity investments without Readily Determinable Fair Value Investment | December 31, 2019 2020 Beginning balance $ 1,631,892 $ 1,605,459 Acquisitions — — Observable price changes — — Impairment on investments — (449,432 ) Exchange difference (26,433 ) 85,371 Ending balance $ 1,605,459 $ 1,241,398 |
Equity Method Investment (Table
Equity Method Investment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Summary of Changes In Equity Method Investment | The following table presents changes in equity method investment for the twelve-month period ended December 31, 2019 and 2020, respectively: December 31, 2019 2020 Beginning balance $ 778,721 $ 766,583 Equity method investment income 391 (64,877 ) Consideration Received on Disposal — — Impairment on equity method investment — (710,392 ) Exchange difference (12,529 ) 8,686 Ending balance $ 766,583 $ — |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of: December 31, 2019 2020 Technology infrastructure $ 9,857,786 $ 10,498,968 Computer equipment 1,778,945 1,890,829 Furniture, fixtures and equipment 4,206,010 4,399,461 Motor vehicle 1,017,117 1,087,466 Leasehold improvements 3,577,145 3,806,039 20,437,003 21,682,764 Less: accumulated depreciation (16,165,270 ) (18,337,012 ) $ 4,271,733 $ 3,345,751 |
Acquired Intangible Assets, N_2
Acquired Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets Net Excluding Goodwill Abstract | |
Schedule of Intangible Assets | December, 31 2019 2020 Gross carrying amount Accumulated amortization Impairment Net carrying amount Gross carrying amount Accumulated amortization Impairment Net carrying amount PIBA license 111,715 (37,238 ) — 74,477 112,215 (48,626 ) — 63,589 111,715 (37,238 ) — 74,477 112,215 (48,626 ) — 63,589 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | Changes in goodwill for the years ended December 31, 2018, 2019 and 2020 were as follows: Commodities brokerage Investment advisory services Institution subscription services Hong Kong brokerage services Total Balance as of December 31, 2018 $ — $ — $ — $ 107,791 $ 107,791 Exchange difference — — — 625 625 Balance as of December 31, 2019 $ — $ — $ — $ 108,416 $ 108,416 Exchange difference — — — 485 485 Balance as of December 31, 2020 $ — $ — $ — $ 108,901 $ 108,901 |
Accounts Payable (Tables)
Accounts Payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Payable Current [Abstract] | |
Schedule of Accounts Payable | Accounts payable consist of: December 31, 2019 2020 Amount due to customers of Hong Kong brokerage business $ 6,552,742 $ 3,682,662 Amount due to sales agents 112,555 120,340 Others 75,884 221,177 $ 6,741,181 $ 4,024,179 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Expenses And Other Current Liabilities [Abstract] | |
Schedule of Accrued Expenses And Other Current Liabilities | Accrued expenses and other current liabilities consist of: December 31, 2019 2020 Accrued bonus $ 1,063,891 $ 1,941,988 Accrued professional service fees 558,752 688,911 Withholding individual income tax-option exercise 215,945 293,309 Value added taxes and other taxes payable 375,548 430,328 Accrued raw data cost 651,633 1,416,708 Accrued bandwidth cost (24,970 ) 37,282 Accrued welfare benefits 64,167 67,236 Funds received from third party investors (i) 9,415,798 8,530,593 Accrued sales service fees 81,623 354,488 Others 1,997,663 2,865,469 $ 14,400,050 $ 16,626,312 |
Loan From Third Party (Tables)
Loan From Third Party (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loan From Third Party [Abstract] | |
Summary of Loan from Third Party | December 31, 2019 2020 Loan from third party $ 3,019,863 $ 3,193,610 $ 3,019,863 $ 3,193,610 |
Stock Options and Nonvested S_2
Stock Options and Nonvested Shares (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Schedule of Stock Option Activity | A summary of the stock option activity is as follows: 2018 2019 2020 Weighted Weighted Weighted Number average Number average Number average of options exercise price of options exercise price of options exercise price Outstanding at beginning of year 13,677,960 $ 0.46 13,202,200 $ 0.43 13,160,200 $ 0.43 Exercised (2,400 ) 0.25 (20,000 ) 0.25 — — Forfeited (473,360 ) 1.16 (22,000 ) 1.43 (2,382,500 ) 1.27 Outstanding at end of year 13,202,200 $ 0.43 13,160,200 $ 0.43 11,137,700 $ 0.21 Shares exercisable at end of year 13,202,200 $ 0.43 13,160,200 $ 0.43 11,137,700 $ 0.21 |
Schedule of Information with Respect to Stock Options Outstanding | The following table summarizes information with respect to stock options outstanding at December 31, 2020: Options outstanding Option exercisable Stock option with exercise price of: Number outstanding Weighted average remaining contractual life Weighted average exercise price Aggregate intrinsic value as of December 31, 2020 Number exercisable Weighted average exercise price Aggregate intrinsic value as of December 31, 2020 $ 0.25 11,137,700 11,137,700 11,137,700 2.99 $ 0.21 $ — 11,137,700 $ 0.21 $ — |
2014 Stock Incentive Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Schedule of Stock Option Activity | A summary of the stock option activity is as follows: 2018 2019 2020 Weighted Weighted Weighted Number average Number average Number average of options exercise price of options exercise price of options exercise price Outstanding at beginning of year 3,755,000 $ 0.49 3,675,000 $ 0.48 3,475,000 $ 0.46 Granted 280,000 0.43 — — — — Exercised — — — — — — Forfeited (360,000 ) 0.62 (200,000 ) 0.72 (360,000 ) 0.52 Outstanding at end of year 3,675,000 $ 0.48 3,475,000 $ 0.46 3,115,000 $ 0.41 Shares exercisable at end of year 1,877,000 $ 0.59 2,529,000 $ 0.49 2,234,600 $ 0.43 |
Schedule of Information with Respect to Stock Options Outstanding | The following table summarizes information with respect to stock options outstanding at December 31, 2020: Options outstanding Option exercisable Stock option with exercise price of: Number outstanding Weighted average remaining contractual life Weighted average exercise price Aggregate intrinsic value as of December 31, 2020 Number exercisable Weighted average exercise price Aggregate intrinsic value as of December 31, 2020 $ 0.878 575,000 575,000 $ 0.920 40,000 40,000 $ 0.302 780,000 592,800 $ 0.348 1,310,000 890,800 $ 0.348 200,000 136,000 $ 0.434 210,000 — 3,115,000 4.88 $ 0.41 — 2,234,600 $ 0.43 — |
Schedule of Fair Value of Employee Options Estimated on the Basis of Black-Scholes Option Price Model | 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, 2018 2019 2020 Weighted average risk free rate of return 2.52% — — Weighted average expected option life 7.34 years — — Expected volatility rate 76.44% — — Dividend yield — — — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Tax Preferential Policies | A summary of the main PRC entities that subject to tax preferential policies for the year ended December 31, 2020 is as follows: PRC entities Chinese EIT rate Qualification for preferential tax rate CFO Genius Preferential tax rate of 15% from 2018 to 2020. HNTE CFO Tibet Preferential tax rate of 9% from 2015 to 2017 and 15% thereafter Preferential tax rate for enterprises in Tibet, China Tibet Lieqian Network Technology Co., Ltd Preferential tax rate of 15% from 2018 and thereafter Preferential tax rate for enterprises in Tibet, China |
Schedule of Income Tax Expense (Benefit) | Income tax expense (benefit) was as follows: December 31, 2018 2019 2020 Current $ (169,033 ) $ (144,087 ) $ (203,052 ) Deferred 116,254 (72,770 ) 385,654 Total $ (52,779 ) $ (216,857 ) $ 182,602 |
Schedule of Principal Components of Deferred Income Taxes | The principal components of deferred income taxes were as follows: December 31, 2019 2020 Deferred tax assets: Deferred revenue $ 1,307,149 $ 1,870,119 Accrued expenses and other liabilities 73,693 (141,117 ) Net operating loss carrying forwards 27,126,541 28,092,663 28,507,383 29,821,665 Less: valuation allowance (27,126,541 ) (27,960,695 ) Total deferred tax assets $ 1,380,842 $ 1,860,971 Deferred tax liabilities: Account receivable and other assets (1,922 ) (2,055 ) Intangible assets (12,289 ) (10,492 ) Total deferred tax liabilities $ (14,211 ) $ (12,547 ) |
Schedule of Reconciliation Between Total Income Tax Expense | Reconciliation between total income tax expense and the amount computed by applying the PRC EIT statutory rate to income before income taxes is as follows: Years ended December 31, 2018 2019 2020 Loss before tax $ (22,417,716 ) $ (12,526,891 ) $ (11,532,810 ) Income tax benefits calculated at 25% (5,604,429 ) (3,131,723 ) (2,883,202 ) Effect of PRC preferential tax rates and tax holiday 11,750 (49,582 ) (53,048 ) Effect of income tax rate difference in other jurisdictions (652,330 ) 71,057 286,347 Non-deductible expenses 2,014,345 886,418 1,219,063 Non-taxable income (929,875 ) (353,790 ) (358,045 ) Change in valuation allowance 1,612,806 714,281 834,153 Expiration of NOL 3,600,512 2,080,196 772,130 Income tax expense $ 52,779 $ 216,857 $ (182,602 ) |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted 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, 2018 2019 2020 Net loss attributable to China Finance Online Co. Limited $ (19,950,120 ) $ (11,262,821 ) $ (10,558,169 ) Weighted average ordinary shares outstanding used in computing basic net loss per share 113,883,030 114,687,282 115,060,781 Plus: Incremental shares from assumed conversions of stock options, restricted shares and nonvested shares — — — Weighted average ordinary shares outstanding used in computing diluted net loss per share 113,883,030 114,687,282 115,060,781 Net loss per share attributable to China Finance Online Co. Limited - basic $ (0.18 ) $ (0.10 ) $ (0.09 ) - diluted $ (0.18 ) $ (0.10 ) $ (0.09 ) |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Schedule of Noncontrolling Interests | Commodities brokerage Services Investment Advisory services Institution Subscription services Rifa Financial Holdings Brokerage services Other Total Balance as of January 1, 2018 $ (9,226,990 ) $ — $ — $ 891,919 — $ (8,335,071 ) Dividends paid to noncontrolling interest — — — — — — Changes in controlling ownership interest — — — — — — Deconsolidation 1,216,007 — — — — 1,216,007 Share-based compensation (Note 15) 529,600 — — — — 529,600 Net income (loss) (3,249,840 ) — — 729,465 — (2,520,375 ) Balance as of December 31, 2018 $ (10,731,223 ) $ — $ — $ 1,621,384 — $ (9,109,839 ) Dividends paid to noncontrolling interest — — — — — — Changes in controlling ownership interest — — — — — — Deconsolidation 295,830 — — — — 295,830 Share-based compensation (Note 15) 267,076 — — — — 267,076 Net income (loss) (1,704,695 ) — — 223,768 — (1,480,927 ) Balance as of December 31, 2019 $ (11,873,012 ) $ — $ — $ 1,845,152 — $ (10,027,860 ) Dividends paid to noncontrolling interest — — — — — — Changes in controlling ownership interest — — — — — — Deconsolidation — — — — — — Share-based compensation (Note 15) 99,540 — — — — 99,540 Net income (loss) (416,496 ) — — (375,543 ) — (792,039 ) Balance as of December 31, 2020 $ (12,189,969 ) $ — $ — $ (1,469,608 ) — $ (10,720,359 ) |
Leases and Contingencies (Table
Leases and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Lease Costs | Lease costs were as follows: Year Ended December 31, 2020 Operating lease cost (i) $ 2,446,705 Total lease cost $ 2,446,705 Short-term lease costs $ 63,691 (i) Excluding cost of short-term contracts. Short-term lease costs for year ended December 31, 2020 were $63,691. |
Supplemental Cash Flow Information Related to Operating Leases. | Supplemental cash flow information related to operating leases for the year ended December 31, 2020 is as follows: December 31, 2020 Operating cash payment for operating leases $ 835,956 Weighted average remaining lease term on operating leases 1.38 years Weighted average discount rate on operating leases 4.99 % |
Schedule of Future Minimum Payments under Non-cancelable Operating Leases | Future operating leases Year ending 2021 $ 1,287,585 2022 531,839 2023 97,378 2024 — Total lease payments 1,916,803 Less: interest (121,665 ) Present value of lease payments $ 1,795,138 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Operations of Company's Operating Segments | The following tables show the operations of the Company’s operating segments: For the year ended December 31, 2020 Hong Kong brokerage services Financial services Other Consolidated Net revenues $ 12,110,117 $ 31,767,173 $ — $ 43,877,290 Less: intersegment sales — (3,844,193 ) — (3,844,193 ) Net revenues from external customer 12,110,117 27,922,980 — 40,033,097 Cost of revenues 6,824,093 7,971,267 (15 ) 14,795,345 Less: intersegment cost of revenues — (468,542 ) — (468,542 ) Cost of revenues after elimination 6,824,093 7,502,725 (15 ) 14,326,803 Operating expenses: General and administrative 6,181,307 5,744,905 292,750 12,218,962 Product development — 11,482,813 2,025 11,484,838 Sales and marketing 4,495,190 12,765,669 158,393 17,419,252 Total segments operating expenses 10,676,497 29,993,387 453,168 41,123,052 Less: intersegment operating expenses (835,497 ) (3,418,220 ) — (4,253,717 ) Total operating expenses 9,841,000 26,575,167 453,168 36,869,335 Income (loss) from operations $ (4,554,976 ) $ (6,154,912 ) $ (453,153 ) $ (11,163,041 ) Total segments assets 80,200,698 161,697,028 12,815,222 254,712,948 Less: intersegment asset. (21,048,187 ) (143,194,619 ) (12,512,834 ) (176,755,640 ) Total assets $ 59,152,511 $ 18,502,409 $ 302,388 $ 77,957,306 For the year ended December 31, 2019 Hong Kong brokerage services Financial services Other Consolidated Net revenues $ 15,802,418 $ 26,323,194 $ — $ 42,125,612 Less: intersegment sales (3,071 ) (6,603,751 ) — (6,606,822 ) Net revenues from external customer 15,799,347 19,719,443 — 35,518,790 Cost of revenues 7,839,764 5,348,329 — 13,188,093 Less: intersegment cost of revenues — (213,958 ) — (213,958 ) Cost of revenues after elimination 7,839,764 5,134,371 — 12,974,135 Operating expenses: General and administrative 5,616,870 5,200,622 1,428,075 12,245,567 Product development 24,011 15,502,285 7,677 15,533,973 Sales and marketing 3,380,644 9,751,017 234,661 13,366,322 Total segments operating expenses 9,021,525 30,453,924 1,670,413 41,145,862 Less: intersegment operating expenses (61,860 ) (6,389,793 ) — (6,451,653 ) Total operating expenses 8,959,665 24,064,131 1,670,413 34,694,209 Income (loss) from operations $ (1,000,082 ) $ (9,479,059 ) $ (1,670,413 ) $ (12,149,554 ) Total segments assets 89,864,646 157,264,579 12,200,897 259,330,122 Less: intersegment asset. (20,378,627 ) (138,083,606 ) (11,703,363 ) (170,165,596 ) Total assets $ 69,486,019 $ 19,180,973 $ 497,534 $ 89,164,526 For the year ended December 31, 2018 Hong Kong brokerage services Financial services Other Consolidated Net revenues $ 22,440,556 $ 34,498,830 $ 49,960 $ 56,989,346 Less: intersegment sales (96,606 ) (11,414,814 ) — (11,511,420 ) Net revenues from external customer 22,343,950 23,084,016 49,960 45,477,926 Cost of revenues 11,212,825 6,249,529 2,813 17,465,167 Less: intersegment cost of revenues — (623,252 ) — (623,252 ) Cost of revenues after elimination 11,212,825 5,626,277 2,813 16,841,915 Operating expenses: General and administrative 4,200,746 7,022,338 3,174,478 14,397,562 Product development 44,295 24,394,373 277,353 24,716,021 Sales and marketing 3,656,372 17,574,405 929,411 22,160,188 Total segments operating expenses 7,901,413 48,991,116 4,381,242 61,273,771 Less: intersegment operating expenses (238,109 ) (10,791,561 ) — (11,029,670 ) Total operating expenses 7,663,304 38,199,555 4,381,242 50,244,101 Income (loss) from operations $ 3,467,821 $ (20,741,816 ) $ (4,334,095 ) $ (21,608,090 ) Total segments assets 76,292,657 156,883,869 13,201,206 246,377,732 Less: intersegment asset. (19,992,932 ) (133,070,873 ) (12,624,577 ) (165,688,382 ) Total assets $ 56,299,725 $ 23,812,996 $ 576,629 $ 80,689,350 |
Schedule of Revenue From External Customers | The Company derives revenue from external customers for each of the following services during the years presented: Years ended December 31, 2018 2019 2020 Mutual funds distribution services revenues $ 879,802 $ 735,129 $ 1,281,077 Financial information and advisory services revenues 14,891,267 10,674,164 17,465,197 Advertising revenues 7,312,947 8,310,150 9,176,706 Hong Kong brokerage services revenues 22,343,950 15,799,347 12,110,117 Others 49,960 — — Total revenue from external customers $ 45,477,926 $ 35,518,790 $ 40,033,097 |
Organization and Principal Ac_3
Organization and Principal Activities - Schedule of Showing China Finance Online's Significant Subsidiaries, VIEs and VIEs' Subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Beijing Fuhua Innovation Technology Development Co., Ltd. ("CFO Fuhua") | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Beijing, PRC |
Date of incorporation or acquisition | Dec. 31, 2000 |
Legal ownership interest | 0.00% |
Principal activity | Web portal and advertising service |
Shenzhen Newrand Securities Advisory and Investment Co., Ltd. ("CFO Newrand") | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Shenzhen, PRC |
Date of incorporation or acquisition | Oct. 17, 2008 |
Legal ownership interest | 0.00% |
Principal activity | Securities investment advising |
Shanghai Stockstar Wealth Management Co., Ltd. ("Stockstar Wealth Management") | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Shanghai, PRC |
Date of incorporation or acquisition | Apr. 12, 2011 |
Legal ownership interest | 0.00% |
Principal activity | N/A |
Beijing Huizhi Fortune Technology Co., Ltd. ("CFO Huizhi") | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Beijing, PRC |
Date of incorporation or acquisition | Jun. 14, 2012 |
Legal ownership interest | 0.00% |
Principal activity | N/A |
Shenzhen Ganlanren Investment Management Co., Ltd. ("CFO Shenzhen Ganlanren") | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Shenzhen, PRC |
Date of incorporation or acquisition | Feb. 18, 2016 |
Legal ownership interest | 0.00% |
Principal activity | N/A |
Beijing CFO Premium Technology Co., Ltd. ("CFO Premium") | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Beijing, PRC |
Date of incorporation or acquisition | Jun. 2, 2009 |
Legal ownership interest | 0.00% |
Principal activity | N/A |
Beijing CFO Glory Technology Co., Ltd. | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Beijing, PRC |
Date of incorporation or acquisition | Sep. 11, 2007 |
Principal activity | N/A |
Shenzhen Newrand Securities Training Center ("CFO Newrand Training") | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Shenzhen, PRC |
Date of incorporation or acquisition | Oct. 17, 2008 |
Legal ownership interest | 0.00% |
Principal activity | Securities investment training |
Fortune (Beijing) Huiying Investment Consulting Co., Ltd. ("CFO Huiying") | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Beijing, PRC |
Date of incorporation or acquisition | Dec. 18, 2009 |
Legal ownership interest | 0.00% |
Principal activity | N/A |
Shenzhen Tahoe Investment and Development Co., Ltd ("CFO Tahoe") | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Shenzhen, PRC |
Date of incorporation or acquisition | Sep. 30, 2013 |
Legal ownership interest | 0.00% |
Principal activity | N/A |
Zhengjin (Tianjin) Precious Metals Investment Co., Ltd. ("CFO Zhengjin Tianjin") | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Tianjin, PRC |
Date of incorporation or acquisition | Jul. 23, 2013 |
Legal ownership interest | 0.00% |
Principal activity | Commodities brokerage |
Beijing Jiayi Management Co., Ltd. ("CFO Zhengjin Beijing") | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Beijing, PRC |
Date of incorporation or acquisition | Jan. 13, 2014 |
Legal ownership interest | 0.00% |
Principal activity | Commodities brokerage |
Yinglibao (Beijing) Technology Co., Ltd. ("CFO Yinglibao") | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Beijing, PRC |
Date of incorporation or acquisition | Jan. 15, 2014 |
Legal ownership interest | 0.00% |
Principal activity | Internet-based financial platform |
Zhengjin (Jiangsu) Precious Metals Co., Ltd. ("CFO Zhengjin Jiangsu") | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Nanjing, PRC |
Date of incorporation or acquisition | Nov. 19, 2014 |
Legal ownership interest | 0.00% |
Principal activity | Commodities brokerage |
Zhengjin (Fujian) Precious Metals Co., Ltd. ("CFO Zhengjin Fujian") | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Fujian, PRC |
Date of incorporation or acquisition | Jan. 6, 2013 |
Legal ownership interest | 0.00% |
Principal activity | Commodities brokerage |
Qingdao Zhengjin Zhida Trading Co., Ltd. ("CFO Qingdao Zhida") | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Qingdao, PRC |
Date of incorporation or acquisition | Dec. 21, 2015 |
Legal ownership interest | 0.00% |
Principal activity | Commodities brokerage |
Tibet Lieqian Network Technology Co., Ltd | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Tibet, PRC |
Date of incorporation or acquisition | Mar. 18, 2016 |
Legal ownership interest | 0.00% |
Principal activity | Commodities brokerage |
Qingdao Zhengjin Taiji Trading Co., Ltd. ("CFO Qingdao Taiji") | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Qingdao, PRC |
Date of incorporation or acquisition | Mar. 23, 2016 |
Legal ownership interest | 0.00% |
Principal activity | Commodities brokerage |
iTougu (Beijing) Network Technology Co., Ltd. ("CFO iTougu") | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Beijing, PRC |
Date of incorporation or acquisition | Dec. 8, 2014 |
Legal ownership interest | 0.00% |
Principal activity | Investment advisory service platform |
Beijing Zhongjun Sunshine Investment and Management Co., Ltd ("CFO Zhongjun Sunshine") | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Beijing, PRC |
Date of incorporation or acquisition | Sep. 30, 2013 |
Legal ownership interest | 0.00% |
Principal activity | Financial service |
Zhongheng Xintai (Beijing) Asset Management Co., Ltd. ("CFO Zhongheng Xintai") | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Beijing, PRC |
Date of incorporation or acquisition | Jun. 8, 2016 |
Legal ownership interest | 0.00% |
Principal activity | N/A |
Beijing Zhengjin Wealth Management Co., Ltd. | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Beijing, PRC |
Date of incorporation or acquisition | Dec. 24, 2004 |
Principal activity | Commodities brokerage |
Shenzhen Rifa Commercial Factoring Co. Ltd. | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Shenzhen, PRC |
Date of incorporation or acquisition | Oct. 20, 2016 |
Principal activity | Financial service |
Shanghai Stockstar Information & Technology Co., Ltd. | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Shanghai, PRC |
Date of incorporation or acquisition | Dec. 24, 2009 |
Principal activity | N/A |
Shanghai Shangtong Co., Ltd. | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Shanghai, PRC |
Date of incorporation or acquisition | Jun. 6, 2008 |
Principal activity | N/A |
Shanghai Ganlan Wealth Asset Management Co., Ltd. | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Shanghai, PRC |
Date of incorporation or acquisition | Dec. 19, 2014 |
Principal activity | N/A |
Beijing Chuangying Advisory and Investment Co., Ltd. ("CFO Chuangying") | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Beijing, PRC |
Date of incorporation or acquisition | Oct. 9, 1997 |
Legal ownership interest | 0.00% |
Principal activity | P2P Lending Service |
Shanghai Chongzhi Co., Ltd. | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Shanghai, PRC |
Date of incorporation or acquisition | Jun. 6, 2008 |
Principal activity | N/A |
Tibet Fortune Jinyuan Network Technology Co., Ltd. | VIEs | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Tibet, PRC |
Date of incorporation or acquisition | Aug. 22, 2015 |
Principal activity | N/A |
China Finance Online (Beijing) Co., Ltd. ("CFO Beijing") | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Beijing, PRC |
Date of incorporation or acquisition | Jul. 9, 1998 |
Legal ownership interest | 100.00% |
Principal activity | N/A |
Fortune Software (Beijing) Co., Ltd. ("CFO Software") | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Beijing, PRC |
Date of incorporation or acquisition | Dec. 7, 2004 |
Legal ownership interest | 100.00% |
Principal activity | N/A |
Shenzhen Genius Information Technology Co., Ltd. ("CFO Genius") | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Shenzhen, PRC |
Date of incorporation or acquisition | Sep. 21, 2006 |
Legal ownership interest | 100.00% |
Principal activity | Subscription service |
Zhengyong Information & Technology (Shanghai) Co., Ltd. ("CFO Zhengyong") | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Shanghai, PRC |
Date of incorporation or acquisition | Aug. 17, 2008 |
Legal ownership interest | 100.00% |
Principal activity | N/A |
Zhengtong Information Technology (Shanghai) Co., Ltd ("CFO Zhengtong") | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Shanghai, PRC |
Date of incorporation or acquisition | Jun. 24, 2008 |
Legal ownership interest | 100.00% |
Principal activity | N/A |
Rifa Financial Holdings Limited ("Rifa Financial Holdings") (Formerly known as "iSTAR Financial Holdings Limited") | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | BVI |
Date of incorporation or acquisition | Jul. 16, 2007 |
Legal ownership interest | 85.00% |
Principal activity | Investment holdings |
Rifa Securities Limited ("Rifa Securities") (Formerly known as "iSTAR International Securities Co. Limited") | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Hong Kong, PRC |
Date of incorporation or acquisition | Nov. 23, 2007 |
Legal ownership interest | 85.00% |
Principal activity | Brokerage service |
Rifa Futures Limited ("Rifa Futures") (Formerly known as "iSTAR International Futures Co. Limited") | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Hong Kong, PRC |
Date of incorporation or acquisition | Apr. 16, 2008 |
Legal ownership interest | 85.00% |
Principal activity | Brokerage service |
Rifa Asset Management Limited ("Rifa Asset Management") | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Hong Kong, PRC |
Date of incorporation or acquisition | Nov. 15, 2016 |
Legal ownership interest | 85.00% |
Principal activity | Asset management service |
Rifa Credit Limited ("Rifa Credit") (Formerly known as "iSTAR International Credit Co. Limited") | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Hong Kong, PRC |
Date of incorporation or acquisition | Feb. 10, 2012 |
Legal ownership interest | 85.00% |
Principal activity | N/A |
Rifa Wealth Management Co. Limited ("Rifa Wealth Management") | |
Condensed Financial Statements Captions [Line Items] | |
Place of incorporation or establishment | Hong Kong, PRC |
Date of incorporation or acquisition | Sep. 13, 2016 |
Legal ownership interest | 85.00% |
Principal activity | Insurance brokerage service |
Organization and Principal Ac_4
Organization and Principal Activities - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Organization And Principal Activities [Line Items] | |||
Net loss | $ (11,350,208) | $ (12,743,748) | $ (22,470,495) |
Cash outflow from operating activities | 4,346,713 | 8,245,623 | 32,714,475 |
Cash and cash equivalents | 6,154,499 | 9,599,824 | 12,493,135 |
Overdue balance payable to third party investors | 8,500,000 | ||
VIEs | |||
Organization And Principal Activities [Line Items] | |||
Consolidated assets as collateral for obligations | 0 | ||
Cash outflow from operating activities | (2,080,985) | 841,958 | 8,265,834 |
Cash and cash equivalents | 2,778,747 | 479,309 | |
VIEs | COVID-19 | |||
Organization And Principal Activities [Line Items] | |||
Net loss | (11,400,000) | (12,700,000) | (22,500,000) |
Cash outflow from operating activities | 4,300,000 | $ 8,200,000 | $ 32,700,000 |
Working capital deficit | 1,700,000 | ||
Cash and cash equivalents | $ 6,200,000 | ||
Strategic Consulting Services Agreement | |||
Organization And Principal Activities [Line Items] | |||
Service agreement, term | 20 years | ||
VIE's income before tax | 30.00% | ||
Technical Support Services Agreement | |||
Organization And Principal Activities [Line Items] | |||
Service agreement, term | 10 years | ||
VIE's income before tax | 30.00% | ||
Operating Support Services Agreement | |||
Organization And Principal Activities [Line Items] | |||
Service agreement, term | 10 years | ||
VIE's income before tax | 40.00% |
Organization and Principal Ac_5
Organization and Principal Activities - Schedule of Significant VIEs and Counterparts (Details) | 12 Months Ended |
Dec. 31, 2020 | |
CFO Fuhua | |
Variable Interest Entity [Line Items] | |
Contractual arrangement date | May 27, 2004 |
Counterpart | CFO Beijing |
CFO Newrand | |
Variable Interest Entity [Line Items] | |
Contractual arrangement date | July 11, 2018 |
Counterpart | CFO Software |
Stockstar Wealth Management | |
Variable Interest Entity [Line Items] | |
Contractual arrangement date | April 12, 2011 |
Counterpart | CFO Zhengtong |
CFO Shenzhen Ganlanren | |
Variable Interest Entity [Line Items] | |
Contractual arrangement date | April 20, 2017 |
Counterpart | CFO Software |
Beijing CFO Premium Technology | |
Variable Interest Entity [Line Items] | |
Contractual arrangement date | June 2, 2009 |
Counterpart | CFO Software |
Organization and Principal Ac_6
Organization and Principal Activities - Schedule of Financial Statement Amounts and Balances of VIEs - Balance Sheets (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | |||
Cash and cash equivalents | $ 6,154,499 | $ 9,599,824 | $ 12,493,135 |
Accounts receivable – others, net | 14,067,201 | 12,382,170 | |
Total current assets | 68,251,461 | 75,980,758 | |
Property and equipment, net | 3,345,751 | 4,271,733 | |
Equity investments without readily determinable fair value | 1,241,398 | 1,605,459 | |
Equity method investment, net | 766,583 | 778,721 | |
Deferred tax assets | 1,860,971 | 1,380,842 | |
Total assets | 77,957,306 | 89,164,526 | $ 80,689,350 |
Current liabilities: | |||
Accrued expenses and other current liabilities | 2,865,469 | 1,997,663 | |
Total current liabilities | 69,930,396 | 69,403,608 | |
VIEs | |||
Current assets: | |||
Cash and cash equivalents | 2,778,747 | 479,309 | |
Accounts receivable – others, net | 2,454,691 | 1,384,102 | |
Others | 4,933,628 | 3,385,334 | |
Total current assets | 10,167,243 | 5,248,745 | |
Property and equipment, net | 1,156,702 | 1,601,260 | |
Equity investments without readily determinable fair value | 1,716,501 | 1,605,459 | |
Equity method investment, net | 818,100 | 766,583 | |
Rental deposits | 483,389 | 451,975 | |
Investment in subsidiaries | 41,359,205 | 38,597,614 | |
Deferred tax assets | 1,717,431 | 1,238,319 | |
Total assets | 58,436,543 | 52,140,328 | |
Right-of-use assets | 1,017,972 | 2,630,373 | |
Current liabilities: | |||
Accrued expenses and other current liabilities | 22,630,541 | 16,886,760 | |
Accounts payable | 337,787 | 184,720 | |
Total current liabilities | 22,968,328 | 17,071,480 | |
Non-current liabilities | 235,666 | 741,269 | |
Total third-party liabilities | 23,203,994 | 17,812,749 | |
Inter-company liabilities | $ (9,877,957) | $ (9,272,913) |
Organization and Principal Ac_7
Organization and Principal Activities - Schedule of Financial Statement Amounts and Balances of VIEs - Comprehensive Income ( (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||
Net revenues | $ 40,033,097 | $ 35,518,790 | $ 45,477,926 |
Net loss | (10,558,169) | (11,262,821) | (19,950,120) |
VIEs | |||
Variable Interest Entity [Line Items] | |||
Net revenues | 25,705,251 | 17,497,599 | 24,747,244 |
Net loss | $ (2,279,211) | $ (7,098,995) | $ (10,013,159) |
Organization and Principal Ac_8
Organization and Principal Activities - Schedule of Financial Statement Amounts and Balances of VIEs - Cash Flow (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||
Net cash (used in) provided by operating activities | $ (4,346,713) | $ (8,245,623) | $ (32,714,475) |
Net cash used in investing activities | 1,168,178 | (2,687,813) | 106,411 |
Net cash used in financing activities | (924,965) | 8,005,874 | 4,466,600 |
Effect of exchange rate changes | 658,175 | 34,251 | (93,906) |
VIEs | |||
Variable Interest Entity [Line Items] | |||
Net cash (used in) provided by operating activities | 2,080,985 | (841,958) | (8,265,834) |
Net cash used in investing activities | (44,492) | (1,650) | (69,989) |
Effect of exchange rate changes | $ 477,763 | $ 68,458 | $ (621,698) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | Apr. 01, 2019 | Mar. 31, 2019 | May 01, 2018 | Apr. 30, 2018 | Sep. 01, 2012 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of Significant Accounting Policies [Line Items] | ||||||||
Right-of-use assets | $ 2,073,263 | $ 3,988,004 | ||||||
Net cash (used in) provided by operating activities | (4,346,713) | (8,245,623) | $ (32,714,475) | |||||
Net cash provided by financing activities | (924,965) | 8,005,874 | 4,466,600 | |||||
Equity investments without readily determinable fair value | 1,241,398 | 1,605,459 | ||||||
Equity method investment | 766,583 | 778,721 | ||||||
Impairment losses on long-lived assets | 0 | 0 | 0 | |||||
Goodwill impairment losses | 0 | 0 | 0 | |||||
Impairment loss on indefinite intangible assets | 0 | 0 | 0 | |||||
VAT tax rate | 13.00% | 16.00% | 16.00% | 17.00% | 6.00% | |||
Business taxes and related surcharges | $ 152,298 | 310,257 | 349,270 | |||||
VAT payable subscription-based revenue, percentage | 3.00% | |||||||
VAT refunds | $ 113,590 | 96,709 | 189,335 | |||||
Deferred revenue recognized | 16,877,492 | 9,990,732 | 15,077,745 | |||||
Cash and cash equivalents | 4,903,975 | 1,241,702 | 4,271,342 | |||||
Advertising expenses, total | 418,153 | 87,629 | 540,574 | |||||
Commissions paid, total | $ 6,817,544 | $ 7,836,793 | $ 11,110,741 | |||||
Revenue | Customer Concentration Risk | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% | |||||
Minimum | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Business tax on services provided | 3.00% | |||||||
Maximum | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Business tax on services provided | 5.00% | |||||||
Revision of Prior Period, Error Correction, Adjustment | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Increase in current liabilities | $ 3,019,863 | |||||||
Decrease in non-current liabilities | 3,019,863 | |||||||
Net cash (used in) provided by operating activities | 3,053,877 | |||||||
Net cash provided by financing activities | $ (3,053,877) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Property and Equipment, Net Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Technology Infrastructure | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, net estimated useful lives | 5 years |
Computer Equipment | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, net estimated useful lives | 5 years |
Furniture, Fixtures and Equipment | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, net estimated useful lives | 5 years |
Motor Vehicle | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, net estimated useful lives | 5 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, net estimated useful lives | Shorter of the lease term or 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Acquired Intangible Assets, Net Estimated Average Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2020 | |
License And Related Trademarks | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Definite-lived intangible assets, useful life | 15 years |
License And Related Trademarks | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Definite-lived intangible assets, useful life | 10 years |
Completed Technology | |
Finite-Lived Intangible Assets [Line Items] | |
Definite-lived intangible assets, useful life | 5 years |
Customer Relationships | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Definite-lived intangible assets, useful life | 5 years |
Customer Relationships | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Definite-lived intangible assets, useful life | 4 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Revenue Recognition, Net (Details) - Commodities Brokerage Services | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Summary of Significant Accounting Policies [Line Items] | |
Commodities trading gain (loss) | $ (9,864) |
Commission income | 59,824 |
Total net revenue from commodities trading business | $ 49,960 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Exchange Rates Used in Translation (Details) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
RMB | Consolidated Statements of Operations and Comprehensive | |||
Summary of Significant Accounting Policies [Line Items] | |||
Foreign currency exchange rate | 6.8976 | 6.8985 | 6.6174 |
RMB | Consolidated Balance Sheets | |||
Summary of Significant Accounting Policies [Line Items] | |||
Foreign currency exchange rate | 6.5249 | 6.9762 | 6.8632 |
HKD | Consolidated Statements of Operations and Comprehensive | |||
Summary of Significant Accounting Policies [Line Items] | |||
Foreign currency exchange rate | 7.7560 | 7.8346 | 7.8380 |
HKD | Consolidated Balance Sheets | |||
Summary of Significant Accounting Policies [Line Items] | |||
Foreign currency exchange rate | 7.7530 | 7.7877 | 7.8329 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Accounts Receivable by Customers (Details) - Accounts Receivable - Customer Concentration Risk - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | ||
Concentrations of credit risk accounts receivable | $ 5,262,041 | |
Concentration risk, percentage | 10.00% | 20.40% |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Schedule of Accounts Receivable by Customers (Parenthetical) (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Receivable | Customer Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% | 20.40% |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Accounts receivable-margin clients | $ 12,707,716 | $ 14,605,104 |
Less: Allowance for expected credit losses | (2,162,339) | (1,153,521) |
Accounts receivable- margin clients, net | 10,545,377 | 13,451,583 |
Accounts receivable-others | 14,319,525 | 12,616,609 |
Less: Allowance for expected credit losses | (252,324) | (234,439) |
Accounts receivable-others, net | $ 14,067,201 | $ 12,382,170 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Prepayment of advertising fees | $ 32,206 | $ 10,105 |
Advances to suppliers | 1,529,912 | 1,018,164 |
VAT refund receivable | 190,790 | 222,847 |
Interest receivable | 21,205 | 24,908 |
Prepayment of office rental | 84,740 | 47,845 |
Advances to employees | 556,554 | 397,885 |
Advances to consulting service fees | 929 | 153,444 |
Consideration receivable | 78,097 | 77,749 |
Other current assets | 680,848 | 459,994 |
Total | $ 3,175,281 | $ 2,412,941 |
Short-Term Investments - Schedu
Short-Term Investments - Schedule of Changes in Level 2 Available-for-Sale Securities Measured on a Recurring Basis (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Short Term Investments [Abstract] | ||
Beginning balance | $ 1,146,756 | |
Purchases | $ 10,091,454 | |
Redemption | (1,226,713) | (8,956,178) |
Realized gain(loss) | 599 | 11,743 |
Exchange difference | $ 79,358 | (263) |
Ending balance | $ 1,146,756 |
Short-Term Investments - Additi
Short-Term Investments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Short Term Investments [Abstract] | |
Net unrealized gain (loss) from available-for-sale | $ 0 |
Short-Term Investments - Sche_2
Short-Term Investments - Schedule of Realized Gains of Sale of Available-for-Sale Short-Term Investments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Investments [Line Items] | ||
Proceeds | $ (1,226,713) | $ (8,956,178) |
Costs | 10,091,454 | |
Realized gain(loss) | 599 | 11,743 |
Exchange difference | 79,358 | (263) |
Available-for-Sale Short-Term Investments | ||
Schedule of Investments [Line Items] | ||
Proceeds | (1,226,713) | (8,956,178) |
Costs | 10,091,454 | |
Realized gain(loss) | 599 | 11,743 |
Exchange difference | $ 79,358 | $ (263) |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Financial Assets Measured or Disclosed at Fair Value on Recurring Basis (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents: | |||
Cash and cash equivalents | $ 6,154,499 | $ 9,599,824 | $ 12,493,135 |
Short-term investments: | |||
Available-for-sale short-term investments | 1,146,756 | ||
Total assets measured at fair value | 1,146,756 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Cash and cash equivalents: | |||
Cash and cash equivalents | $ 6,154,499 | 9,599,824 | |
Significant Other Observable Inputs (Level 2) | |||
Short-term investments: | |||
Available-for-sale short-term investments | 1,146,756 | ||
Total assets measured at fair value | $ 1,146,756 |
Fair Value Measurement - Sche_2
Fair Value Measurement - Schedule of Level 2 Available-for-Sale Short-term Investments Measured on Recurring Basis (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||
Beginning balance | $ 1,146,756 | |
Purchases | $ 10,091,454 | |
Redemption | (1,226,713) | (8,956,178) |
Realized gain (loss) | 599 | 11,743 |
Exchange difference | $ 79,358 | (263) |
Ending balance | $ 1,146,756 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |||
Indefinite-lived Intangible assets impairment loss recognized | $ 0 | $ 0 | $ 0 |
Goodwill, impairment loss | $ 0 | $ 0 | $ 0 |
Fair Value Measurement - Sche_3
Fair Value Measurement - Schedule of Fair Value Disclosed or Measured on Non-Recurring Basis (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Intangible Assets (excluding goodwill), Total losses in the year ended | $ 0 | $ 0 | $ 0 |
Non-Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill, Fair value | 108,901 | 108,416 | |
Intangible Assets, Fair value | $ 63,589 | $ 74,477 |
Equity Investments Without Re_3
Equity Investments Without Readily Determinable Fair Value - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)Privatecompany | Dec. 31, 2019USD ($)Privatecompany | |
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
n umber of invested companies without readily determianable fair value | Privatecompany | 4 | 4 |
Impairment charge | $ | $ 449,432 | |
Maximum | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
investment percentage | 10.00% | 10.00% |
Equity Investments Without Re_4
Equity Investments Without Readily Determinable Fair Value - Schedule of Equity investments without Readily Determinable Fair Value Investment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | ||
Beginning balance | $ 1,605,459 | $ 1,631,892 |
Acquisitions | ||
Observable price changes | ||
Impairment on investments | (449,432) | |
Exchange difference | 85,371 | (26,433) |
Ending balance | $ 1,241,398 | $ 1,605,459 |
Equity Method Investment - Addi
Equity Method Investment - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | |
Schedule Of Equity Method Investments [Line Items] | |||||
Equity interests, description | the Company paid $307,996 to acquire 20% of an investee’s the equity interest. | ||||
Equity method investment, ownership percentage | 20.00% | ||||
Equity method investment, ownership transferred percentage | 59.83% | ||||
Recognized income (loss) from equity method investment | $ (775,269) | $ 391 | $ 470 | ||
Impairment of equity method investment | $ 710,392 | ||||
CFO Aishang | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method investments, fair value disclosure | $ 985,586 | ||||
Equity interests, description | The remaining 40% equity interests in CFO Aishang was recorded as equity method investment at the disposal date | ||||
Payments to acquire equity method investments | $ 307,996 | ||||
Equity method investment, ownership percentage | 55.00% | ||||
Equity method investment, ownership transferred percentage | 15.00% | ||||
Remaining equity interests | 40.00% |
Equity Method Investment - Summ
Equity Method Investment - Summary of Changes In Equity Method Investment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | ||
Beginning balance | $ 766,583 | $ 778,721 |
Equity method investment income | (64,877) | 391 |
Consideration Received on Disposal | ||
Impairment on equity method investment | (710,392) | |
Exchange difference | $ 8,686 | (12,529) |
Ending balance | $ 766,583 |
Deconsolidation - Additional In
Deconsolidation - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2020 | Dec. 31, 2019USD ($)Affiliate | Dec. 31, 2018USD ($)Affiliate | Dec. 31, 2017USD ($)Affiliate | Dec. 31, 2015 | |
Schedule Of Deconsolidation [Line Items] | |||||||
Equity method investment, ownership percentage | 59.83% | ||||||
Gain on interest sold retained noncontrolling investment | $ 299,645 | $ 1,186,852 | $ 738,397 | ||||
Number of deregistered affiliates | Affiliate | 2 | 7 | 4 | ||||
Number of previously owned deregistered affiliates | Affiliate | 1 | 5 | |||||
Number of fully owned deregistered affiliates | Affiliate | 1 | 2 | |||||
Investment in affiliates, percentage | 20.00% | ||||||
Shanghai Meining Computer Software Co., Ltd | |||||||
Schedule Of Deconsolidation [Line Items] | |||||||
Cash consideration | $ 1,451,723 | ||||||
Equity method investment, ownership percentage | 100.00% | ||||||
Gain on interest sold retained noncontrolling investment | $ 1,080 | ||||||
CFO Zhengjin Qingdao | |||||||
Schedule Of Deconsolidation [Line Items] | |||||||
Cash consideration | $ 159,907 | ||||||
Equity method investment, ownership percentage | 59.83% | ||||||
Gain on interest sold retained noncontrolling investment | $ 1,259,044 | ||||||
Affiliates [Member] | |||||||
Schedule Of Deconsolidation [Line Items] | |||||||
Investment in affiliates, percentage | 59.83% | 59.83% | |||||
iSTAR Wealth Management | |||||||
Schedule Of Deconsolidation [Line Items] | |||||||
Description of gain on interest sold retained noncontrolling investment | (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, if any, (iii) the carrying amount of any noncontrolling interest in the former subsidiary (including any accumulated other comprehensive income or loss attributable to the noncontrolling interests) on the date the subsidiary is deconsolidated, and (iv) 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. There were no deconsolidation transactions during the year ended December 31 2020. |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 21,682,764 | $ 20,437,003 |
Less: accumulated depreciation | (18,337,012) | (16,165,270) |
Property and equipment, net | 3,345,751 | 4,271,733 |
Technology Infrastructure | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,498,968 | 9,857,786 |
Computer Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,890,829 | 1,778,945 |
Furniture, Fixtures and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,399,461 | 4,206,010 |
Motor Vehicle | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,087,466 | 1,017,117 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3,806,039 | $ 3,577,145 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 1,128,014 | $ 1,203,235 | $ 1,686,588 |
Acquired Intangible Assets, N_3
Acquired Intangible Assets, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 112,215 | $ 111,715 | |
Accumulated Amortization | (48,626) | (37,238) | |
Intangible Assets (excluding goodwill), Total losses in the year ended | 0 | 0 | $ 0 |
Acquired intangible assets, net | 63,589 | 74,477 | |
PIBA License [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 112,215 | 111,715 | |
Accumulated amortization | (48,626) | (37,238) | |
Net carrying amount | $ 63,589 | $ 74,477 |
Acquired Intangible Assets, N_4
Acquired Intangible Assets, Net - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expenses | $ 11,223 | $ 11,119 | $ 11,112 | |
Future amortization expenses for 2021 | 11,222 | |||
Future amortization expenses for 2022 | 11,222 | |||
Future amortization expenses for 2023 | 11,222 | |||
Future amortization expenses for 2024 | 11,222 | |||
Future amortization expenses for 2025 and thereafter | 18,701 | |||
Loss from impairment of intangible assets | $ 0 | $ 0 | $ 291,817 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||
Balance | $ 108,416 | $ 107,791 |
Exchange difference | 485 | 625 |
Balance | 108,901 | 108,416 |
Commodities Brokerage | ||
Goodwill [Line Items] | ||
Balance | ||
Exchange difference | ||
Balance | ||
Investment Advisory Services | ||
Goodwill [Line Items] | ||
Balance | ||
Exchange difference | ||
Balance | ||
Institutional Subscription Services | ||
Goodwill [Line Items] | ||
Balance | ||
Exchange difference | ||
Balance | ||
HongKong Brokerage Services | ||
Goodwill [Line Items] | ||
Balance | 108,416 | 107,791 |
Exchange difference | 485 | 625 |
Balance | $ 108,901 | $ 108,416 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill Textual | |||
Goodwill, impairment loss | $ 0 | $ 0 | $ 0 |
Accounts Payable - Schedule of
Accounts Payable - Schedule of Accounts Payable (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Payable [Line Items] | ||
Accounts payable | $ 4,024,179 | $ 6,741,181 |
Amount due to customers of Hong Kong brokerage business [Member] | ||
Accounts Payable [Line Items] | ||
Accounts payable | 3,682,662 | 6,552,742 |
Amount due to sales agents [Member] | ||
Accounts Payable [Line Items] | ||
Accounts payable | 120,340 | 112,555 |
Others [Member] | ||
Accounts Payable [Line Items] | ||
Accounts payable | $ 221,177 | $ 75,884 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses And Other Current Liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Accrued Expenses And Other Current Liabilities [Abstract] | |||
Accrued bonus | $ 1,941,988 | $ 1,063,891 | |
Accrued professional service fees | 688,911 | 558,752 | |
Withholding individual income tax-option exercise | 293,309 | 215,945 | |
Value added taxes and other taxes payable | 430,328 | 375,548 | |
Accrued raw data cost | 1,416,708 | 651,633 | |
Accrued bandwidth cost | 37,282 | (24,970) | |
Accrued welfare benefits | 67,236 | 64,167 | |
Funds received from third party investors | [1] | 8,530,593 | 9,415,798 |
Accrued sales service fees | 354,488 | 81,623 | |
Accrued expenses and other current liabilities | 2,865,469 | 1,997,663 | |
Accrued liabilities and other liabilities current total | $ 16,626,312 | $ 14,400,050 | |
[1] | Pursuant to the Share Transfer Agreement, the completion of the equity transfer is subject to conditions, including but not limited to obtaining all necessary approvals and consents of Securities and Futures Commission of Hong Kong. As of December 31, 2019, both the register of shareholders and business registration had not been changed, therefore the equity transfer has not been completed and recorded in noncontrolling interests. In addition, the Share Transfer Agreement was subject to Rifa Financial being listed on the Main Board of the Stock Exchange of Hong Kong Limited (“HKEX”) as of December 31, 2019. If Rifa Financial is not listed on the HKEX, the Company would refund all amounts received under the Share Transfer Agreement without interest to the Buyer within two weeks from December 31, 2019. Due to the failure of Rifa Financial listing on HKEX through December 31, 2019, the shares were not transferred to the Buyer. The Company is obligated to return the Purchase Price (funds received) to the Buyer. |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities (Details Textual) $ in Millions, $ in Millions | 1 Months Ended | ||
Nov. 30, 2018USD ($)shares | Nov. 30, 2018HKD ($)shares | Dec. 31, 2020 | |
Rifa Financial Holdings Limited | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Percentage of investment | 85.00% | ||
Buyer | Share Transfer Agreement | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Number of shares sold under agreement | 1,552,000 | 1,552,000 | |
Consideration under agreement | $ 9.4 | $ 73.8 | |
Buyer | Share Transfer Agreement | Rifa Financial Holdings Limited | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Percentage of investment | 20.00% | 20.00% |
Loan From Third Party - Summary
Loan From Third Party - Summary of Loan From Third Party (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Loan from third party | $ 3,193,610 | $ 3,019,863 |
Loan From Third Party - Additio
Loan From Third Party - Additional Information (Details) | Jan. 03, 2019 |
Receivables [Abstract] | |
Interest free and the short term of loan | 3 years |
Stock Options and Nonvested S_3
Stock Options and Nonvested Shares - Additional Information (Details) | Dec. 03, 2019shares | Dec. 28, 2018shares | Jul. 12, 2017shares | Nov. 08, 2016shares | May 31, 2016USD ($) | Nov. 16, 2015$ / sharesshares | Jul. 01, 2014USD ($)Affiliate | Jan. 02, 2014shares | Jul. 01, 2015USD ($) | Jun. 30, 2014shares | Nov. 30, 2010shares | Jul. 31, 2007shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2015$ / shares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2010shares |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share-based compensation expenses | $ | $ 986,833 | $ 1,113,828 | $ 2,240,512 | ||||||||||||||||
Number of shares vested | 0 | ||||||||||||||||||
Number of affiliates | Affiliate | 2 | ||||||||||||||||||
Shenzhen Shangtong Software Co., Ltd. ("CFO Shenzhen Shangtong") | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share-based compensation expenses | $ | 522 | 1,769 | |||||||||||||||||
Share based compensation period for recognition | 6 months | ||||||||||||||||||
Shenzhen Tahoe Investment and Development Co., Ltd ("CFO Tahoe") | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share-based compensation expenses | $ | $ 21,077 | 70,324 | 139,749 | ||||||||||||||||
Share based compensation period for recognition | 6 months | ||||||||||||||||||
Fortune Zhengjin Company Limited | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share-based compensation expenses | $ | $ 234,238 | 625,978 | $ 1,240,579 | ||||||||||||||||
Unrecognized share based compensation expenses | $ | $ 43,123 | ||||||||||||||||||
Share based compensation period for recognition | 6 months | ||||||||||||||||||
Restricted Shares | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share based compensation available for grant | 773,685 | ||||||||||||||||||
Share based compensation arrangement grants in period | 2,414,500 | ||||||||||||||||||
Restricted Shares | Shenzhen Tahoe Investment and Development Co., Ltd ("CFO Tahoe") | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share based compensation period for recognition | 5 years | ||||||||||||||||||
Restricted Shares | Employees | Shenzhen Shangtong Software Co., Ltd. ("CFO Shenzhen Shangtong") | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share based compensation for rendering service | 5 years | ||||||||||||||||||
Share based payment award percentage of net assets granted | 10.00% | ||||||||||||||||||
Share based compensation arrangement by percentage of shares granted | 10.00% | ||||||||||||||||||
Share based compensation arrangement by grants in period fair value | $ | $ 28,965 | ||||||||||||||||||
Restricted Shares | Employees | Fortune Zhengjin | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share based compensation for rendering service | 5 years | 5 years | |||||||||||||||||
Share based payment award percentage of net assets granted | 5.35% | 8.00% | |||||||||||||||||
Share based compensation arrangement by percentage of shares granted | 5.35% | 8.00% | |||||||||||||||||
Share based compensation arrangement by grants in period fair value | $ | $ 2,460,213 | $ 2,464,455 | $ 4,681,533 | ||||||||||||||||
Restricted Shares | Employees | Shenzhen Tahoe Investment and Development Co., Ltd ("CFO Tahoe") | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share based payment award percentage of net assets granted | 1.95% | ||||||||||||||||||
Share based compensation arrangement by percentage of shares granted | 1.95% | ||||||||||||||||||
Share based compensation arrangement by grants in period fair value | $ | $ 1,141,124 | ||||||||||||||||||
2004 Stock incentive plan | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Number of ordinary shares authorized | 30,688,488 | ||||||||||||||||||
2004 Stock incentive plan | Restricted Shares | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share based compensation arrangement grants in period | 1,100,240 | ||||||||||||||||||
Share based compensation for rendering service | 3 years | ||||||||||||||||||
Fair value of restricted shares | $ / shares | $ 1.106 | ||||||||||||||||||
2004 Stock incentive plan | Restricted Shares | Employees | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share based compensation arrangement grants in period | 330,085 | ||||||||||||||||||
2007 Equity Incentive Plan | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share based compensation arrangement of vested in period | 8,658,048 | ||||||||||||||||||
Fair value of granted share | $ / shares | $ 0.82 | ||||||||||||||||||
2007 Equity Incentive Plan | Nonvested Ordinary Shares | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share based compensation arrangement grants in period | 3,000,000 | 10,558,493 | |||||||||||||||||
2007 Equity Incentive Plan | Nonvested Ordinary Shares | Not vested under 2007 Plan | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share based compensation arrangement grants in period | 1,900,445 | ||||||||||||||||||
2010 Equity Incentive Plan of Rifa Financial Holdings [Member] | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share based compensation arrangement grants in period | 1,500 | ||||||||||||||||||
Share based compensation for rendering service | 3 years | ||||||||||||||||||
Fair value of restricted shares | 15.00% | ||||||||||||||||||
Nonvested shares granted percentage of earnings | 15.00% | ||||||||||||||||||
2014 Stock Incentive Plan | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share-based compensation expenses | $ | $ 34,617 | 177,414 | $ 360,884 | ||||||||||||||||
Number of ordinary shares authorized | 23,000,000 | 5,000,000 | |||||||||||||||||
Share based compensation arrangement vested in period, fair value | $ | $ 242,752 | $ 445,888 | $ 646,612 | ||||||||||||||||
Share based compensation arrangement of vested in period | 200,000 | ||||||||||||||||||
Share based compensation available for grant | 4,399,900 | ||||||||||||||||||
Number of options, Granted | 280,000 | ||||||||||||||||||
Weighted average grant date fair value | $ / shares | $ 0.32 | $ 0.24 | |||||||||||||||||
Unrecognized share based compensation expenses | $ | $ 955 | ||||||||||||||||||
Share based compensation period for recognition | 1 month 6 days | ||||||||||||||||||
2014 Stock Incentive Plan | Consultant [Member] | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share based compensation arrangement grants in period | 3,000,000 | ||||||||||||||||||
Share based compensation for rendering service | 3 years | 3 years | |||||||||||||||||
Number of options, Granted | 0 | 0 | 200,000 | 30,000 | |||||||||||||||
2014 Stock Incentive Plan | Restricted Shares | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share-based compensation expenses | $ | $ 69,488 | $ 239,590 | $ 497,531 | ||||||||||||||||
Share based compensation for rendering service | 2 years | 3 years | 2 years 6 months | 2 years | 2 years | ||||||||||||||
Fair value of restricted shares | $ / shares | $ 0.742 | $ 0.878 | |||||||||||||||||
Share based compensation arrangement of vested in period | 1,780,000 | ||||||||||||||||||
Unrecognized share based compensation expenses | $ | $ 231,326 | ||||||||||||||||||
Share based compensation period for recognition | 11 months 4 days | ||||||||||||||||||
Share based compensation arrangement grants in period | 8,000,000 | 1,900,000 | 150,000 | 200,000 | |||||||||||||||
2014 Stock Incentive Plan | Restricted Shares | Employees | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share based compensation arrangement of vested in period | 150,000 | ||||||||||||||||||
Share based compensation arrangement grants in period | 77,975 | ||||||||||||||||||
2014 Stock Incentive Plan | Restricted Shares | Directors and Employees | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share based compensation arrangement grants in period | 3,800,000 | 750,885 | 1,780,000 | ||||||||||||||||
2014 Stock Incentive Plan | Restricted Shares | Employee Three | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share based compensation arrangement grants in period | 0 | ||||||||||||||||||
2014 Stock Incentive Plan | Restricted Shares | Employee One | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share based compensation arrangement of vested in period | 1,292,000 | ||||||||||||||||||
Share based compensation arrangement grants in period | 0 | ||||||||||||||||||
2014 Stock Incentive Plan | Restricted Shares | Employee Two | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share based compensation arrangement of vested in period | 4,000,000 | ||||||||||||||||||
Share based compensation arrangement grants in period | 0 | ||||||||||||||||||
2014 Stock Incentive Plan | Employee Stock Option | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||||||||||
Share based compensation for rendering service | 3 years | 3 years | |||||||||||||||||
Number of options, Granted | 0 | 0 | 280,000 | 2,490,000 |
Stock Options and Nonvested S_4
Stock Options and Nonvested Shares - Summary of Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
2004 Stock incentive plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Number of options, Outstanding at beginning of year | 13,160,200 | 13,202,200 | 13,677,960 |
Number of options, Exercised | (20,000) | (2,400) | |
Number of options, Forfeited | (2,382,500) | (22,000) | (473,360) |
Number of options, Outstanding at end of year | 11,137,700 | 13,160,200 | 13,202,200 |
Number of options , Shares exercisable at end of year | 11,137,700 | 13,160,200 | 13,202,200 |
Weighted average exercise price, Outstanding at beginning of year | $ 0.43 | $ 0.43 | $ 0.46 |
Weighted average exercise price, Exercised | 0.25 | 0.25 | |
Weighted average exercise price, Forfeited | 1.27 | 1.43 | 1.16 |
Weighted average exercise price, Outstanding at end of year | 0.21 | 0.43 | 0.43 |
Weighted average exercise price, Shares exercisable at end of year | $ 0.21 | $ 0.43 | $ 0.43 |
2014 Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Number of options, Outstanding at beginning of year | 3,475,000 | 3,675,000 | 3,755,000 |
Number of options, Granted | 280,000 | ||
Number of options, Forfeited | (360,000) | (200,000) | (360,000) |
Number of options, Outstanding at end of year | 3,115,000 | 3,475,000 | 3,675,000 |
Number of options , Shares exercisable at end of year | 2,234,600 | 2,529,000 | 1,877,000 |
Weighted average exercise price, Outstanding at beginning of year | $ 0.46 | $ 0.48 | $ 0.49 |
Weighted average exercise price, Granted | 0.43 | ||
Weighted average exercise price, Forfeited | 0.52 | 0.72 | 0.62 |
Weighted average exercise price, Outstanding at end of year | 0.41 | 0.46 | 0.48 |
Weighted average exercise price, Shares exercisable at end of year | $ 0.43 | $ 0.49 | $ 0.59 |
Stock Options and Nonvested S_5
Stock Options and Nonvested Shares - Schedule of Information with Respect to Stock Options Outstanding (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
2004 Stock incentive plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Options outstanding, Number outstanding | 11,137,700 | 13,160,200 | 13,202,200 | 13,677,960 |
Options outstanding, Weighted average remaining contractual life | 2 years 11 months 26 days | |||
Options outstanding, Weighted average exercise price | $ 0.21 | $ 0.43 | $ 0.43 | $ 0.46 |
Option exercisable, Number exercisable | 11,137,700 | 13,160,200 | 13,202,200 | |
Option exercisable, Weighted average exercise price | $ 0.21 | $ 0.43 | $ 0.43 | |
2004 Stock incentive plan | $0.25 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Options outstanding, Stock option with exercise price of: | $ 0.25 | |||
Options outstanding, Number outstanding | 11,137,700 | |||
Option exercisable, Number exercisable | 11,137,700 | |||
2014 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Options outstanding, Number outstanding | 3,115,000 | 3,475,000 | 3,675,000 | 3,755,000 |
Options outstanding, Weighted average remaining contractual life | 4 years 10 months 17 days | |||
Options outstanding, Weighted average exercise price | $ 0.41 | $ 0.46 | $ 0.48 | $ 0.49 |
Option exercisable, Number exercisable | 2,234,600 | 2,529,000 | 1,877,000 | |
Option exercisable, Weighted average exercise price | $ 0.43 | $ 0.49 | $ 0.59 | |
2014 Stock Incentive Plan | $0.878 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Options outstanding, Stock option with exercise price of: | $ 0.878 | |||
Options outstanding, Number outstanding | 575,000 | |||
Option exercisable, Number exercisable | 575,000 | |||
2014 Stock Incentive Plan | $0.920 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Options outstanding, Stock option with exercise price of: | $ 0.920 | |||
Options outstanding, Number outstanding | 40,000 | |||
Option exercisable, Number exercisable | 40,000 | |||
2014 Stock Incentive Plan | $0.302 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Options outstanding, Stock option with exercise price of: | $ 0.302 | |||
Options outstanding, Number outstanding | 780,000 | |||
Option exercisable, Number exercisable | 592,800 | |||
2014 Stock Incentive Plan | $0.348 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Options outstanding, Stock option with exercise price of: | $ 0.348 | |||
Options outstanding, Number outstanding | 1,310,000 | |||
Option exercisable, Number exercisable | 890,800 | |||
2014 Stock Incentive Plan | $0.348 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Options outstanding, Stock option with exercise price of: | $ 0.348 | |||
Options outstanding, Number outstanding | 200,000 | |||
Option exercisable, Number exercisable | 136,000 | |||
2014 Stock Incentive Plan | $0.434 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Options outstanding, Stock option with exercise price of: | $ 0.434 | |||
Options outstanding, Number outstanding | 210,000 |
Stock Options and Nonvested S_6
Stock Options and Nonvested Shares - Summary of Fair Value of Employee Options Estimated on the Basis of Black-Scholes Option Price Model (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average risk free rate of return | 2.52% |
Weighted average expected option life | 7 years 4 months 2 days |
Expected volatility rate | 76.44% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Effective profit tax rate | 16.50% | ||
Effective income tax rate | 25.00% | 25.00% | 25.00% |
Income tax rate, description | 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 | ||
Withholding taxes, percent | 10.00% | ||
Aggregate deficits | $ 50,700,000 | ||
Aggregate undistributed earnings | $ 0 | ||
Interest on domestic subsidiary | 50.00% | ||
Valuation allowance | $ 27,960,695 | $ 27,126,541 | |
Operating loss carry forwards | $ 95,900,000 | ||
Operating loss carryforwards, expiration date | Dec. 31, 2025 | ||
Operating loss carryforwards, description | operating loss carry forwards includes approximately $95.9 million which will expire by 2025, and $25.0 million which will carry forward indefinitely. | ||
Additional income tax expense | $ 4,144 | $ 5,545 | |
Unrecognized tax benefits term, description | in income taxes did not have a significant impact on the unrecognized tax benefits within 12 months from December 31, 2020 | ||
CFO Qingdao Zhida | |||
Income Taxes [Line Items] | |||
Income tax rate, description | Under this method, the qualifying entities filed their income tax by calculating as 2.5% of the gross revenues. | ||
PRC | |||
Income Taxes [Line Items] | |||
Effective income tax rate | 25.00% | ||
Income tax rate, description | 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. | ||
PRC | Earliest Tax Year | |||
Income Taxes [Line Items] | |||
Year under tax examination | 2015 | ||
PRC | Latest Tax Year | |||
Income Taxes [Line Items] | |||
Year under tax examination | 2020 | ||
HNTE | |||
Income Taxes [Line Items] | |||
Effective income tax rate | 15.00% | ||
Income tax rate, description | 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%. |
Income Taxes - Schedule of Tax
Income Taxes - Schedule of Tax Preferential Policies (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Tibet Lieqian Network Technology Co., Ltd | |
Income Tax Contingency [Line Items] | |
Chinese EIT rate | Preferential tax rate of 15% from 2018 and thereafter |
Qualification for preferential tax rate | Preferential tax rate for enterprises in Tibet, China |
CFO Genius | |
Income Tax Contingency [Line Items] | |
Chinese EIT rate | Preferential tax rate of 15% from 2018 to 2020. |
Qualification for preferential tax rate | HNTE |
CFO Tibet | |
Income Tax Contingency [Line Items] | |
Chinese EIT rate | Preferential tax rate of 9% from 2015 to 2017 and 15% thereafter |
Qualification for preferential tax rate | Preferential tax rate for enterprises in Tibet, China |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current | $ (203,052) | $ (144,087) | $ (169,033) |
Deferred | 385,654 | (72,770) | 116,254 |
Income tax expense | $ 182,602 | $ (216,857) | $ (52,779) |
Income Taxes - Schedule of Prin
Income Taxes - Schedule of Principal Components of Deferred Income Taxes (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Deferred revenue | $ 1,870,119 | $ 1,307,149 |
Accrued expenses and other liabilities | (141,117) | 73,693 |
Net operating loss carrying forwards | 28,092,663 | 27,126,541 |
Gross current deferred tax assets | 29,821,665 | 28,507,383 |
Less: valuation allowance | (27,960,695) | (27,126,541) |
Total deferred tax assets | 1,860,971 | 1,380,842 |
Deferred tax liabilities: | ||
Account receivable and other assets | (2,055) | (1,922) |
Intangible assets | (10,492) | (12,289) |
Total deferred tax liabilities | $ (12,547) | $ (14,211) |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation Between Total Income Tax Expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Loss before tax | $ (11,532,810) | $ (12,526,891) | $ (22,417,716) |
Income tax benefits calculated at 25% | (2,883,202) | (3,131,723) | (5,604,429) |
Effect of PRC preferential tax rates and tax holiday | (53,048) | (49,582) | 11,750 |
Effect of income tax rate difference in other jurisdictions | 286,347 | 71,057 | (652,330) |
Non-deductible expenses | 1,219,063 | 886,418 | 2,014,345 |
Non-taxable income | (358,045) | (353,790) | (929,875) |
Change in valuation allowance | 834,153 | 714,281 | 1,612,806 |
Expiration of NOL | 772,130 | 2,080,196 | 3,600,512 |
Income tax expense | $ (182,602) | $ 216,857 | $ 52,779 |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation Between Total Income Tax Expense (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 25.00% | 25.00% | 25.00% |
American Depositary Shares ("_2
American Depositary Shares ("ADS") Plan - Additional Information (Details) - shares | 1 Months Ended | ||
Apr. 30, 2019 | Sep. 30, 2015 | Dec. 31, 2020 | |
September 2015 | |||
American Depositary Shares [Line Items] | |||
Exercise of options and vesting of granted shares | 1,083,955 | ||
April 2019 | |||
American Depositary Shares [Line Items] | |||
Exercise of options and vesting of granted shares | 4,000,000 | ||
2004 Plan and 2014 Plan | September 2015 | |||
American Depositary Shares [Line Items] | |||
Ordinary shares issued | 4,000,000 | ||
Exchanged received | 800,000 | ||
2004 Plan and 2014 Plan | April 2019 | |||
American Depositary Shares [Line Items] | |||
Ordinary shares issued | 4,000,000 | ||
Exchanged received | 800,000 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Basic and Diluted Income (Loss) Per Share (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Income (Loss) Per Share [Abstract] | |||
Net loss attributable to China Finance Online Co. Limited | $ (10,558,169) | $ (11,262,821) | $ (19,950,120) |
Weighted average ordinary shares outstanding used in computing diluted net loss per share | 115,060,781 | 114,687,282 | 113,883,030 |
Weighted average ordinary shares outstanding used in computing basic net loss per share | 115,060,781 | 114,687,282 | 113,883,030 |
Net loss per share attributable to China Finance Online Co. Limited | |||
- basic | $ (0.09) | $ (0.10) | $ (0.18) |
- diluted | $ (0.09) | $ (0.10) | $ (0.18) |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive shares | 0 | 98,901 | 4,094,656 |
Restricted Shares | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive shares | 6,950,018 | 5,316,935 | 5,637,453 |
Nonvested Shares | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive shares | 3,000,000 | 3,000,000 | 3,000,000 |
Mainland China Contribution P_2
Mainland China Contribution Plan and Profit Appropriation - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |||
Total provisions | $ 1,614,246 | $ 2,708,316 | $ 4,000,211 |
Noncontrolling Interests - Sche
Noncontrolling Interests - Schedule of Noncontrolling Interests (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Noncontrolling Interest [Line Items] | |||
Balance, Beginning | $ (10,027,860) | ||
Share-based compensation (Note 15) | 986,833 | $ 1,113,828 | $ 2,240,512 |
Net income (loss) | (792,039) | (1,480,927) | (2,520,375) |
Balance, Ending | (10,720,359) | (10,027,860) | |
Commodities Brokerage Services | |||
Noncontrolling Interest [Line Items] | |||
Balance, Beginning | (11,873,012) | (10,731,223) | (9,226,990) |
Dividends paid to noncontrolling interest | |||
Changes in controlling ownership interest | |||
Deconsolidation | 295,830 | 1,216,007 | |
Share-based compensation (Note 15) | 99,540 | 267,076 | 529,600 |
Net income (loss) | (416,496) | (1,704,695) | (3,249,840) |
Balance, Ending | (12,189,969) | (11,873,012) | (10,731,223) |
Investment Advisory Services | |||
Noncontrolling Interest [Line Items] | |||
Balance, Beginning | |||
Dividends paid to noncontrolling interest | |||
Changes in controlling ownership interest | |||
Deconsolidation | |||
Share-based compensation (Note 15) | |||
Net income (loss) | |||
Balance, Ending | |||
Institution Subscription services [Member] | |||
Noncontrolling Interest [Line Items] | |||
Balance, Beginning | |||
Dividends paid to noncontrolling interest | |||
Changes in controlling ownership interest | |||
Deconsolidation | |||
Share-based compensation (Note 15) | |||
Net income (loss) | |||
Balance, Ending | |||
Rifa Financial Holdings Brokerage services [Member] | |||
Noncontrolling Interest [Line Items] | |||
Balance, Beginning | 1,845,152 | 1,621,384 | 891,919 |
Dividends paid to noncontrolling interest | |||
Changes in controlling ownership interest | |||
Deconsolidation | |||
Share-based compensation (Note 15) | |||
Net income (loss) | (375,543) | 223,768 | 729,465 |
Balance, Ending | (1,469,608) | 1,845,152 | 1,621,384 |
Other [Member] | |||
Noncontrolling Interest [Line Items] | |||
Balance, Beginning | |||
Dividends paid to noncontrolling interest | |||
Changes in controlling ownership interest | |||
Deconsolidation | |||
Share-based compensation (Note 15) | |||
Net income (loss) | |||
Balance, Ending | |||
Non Controlling Interest | |||
Noncontrolling Interest [Line Items] | |||
Balance, Beginning | (10,027,860) | (9,109,839) | (8,335,071) |
Dividends paid to noncontrolling interest | |||
Changes in controlling ownership interest | |||
Deconsolidation | 295,830 | 1,216,007 | |
Share-based compensation (Note 15) | 99,540 | 267,076 | 529,600 |
Net income (loss) | (792,039) | (1,480,927) | (2,520,375) |
Balance, Ending | $ (10,720,359) | $ (10,027,860) | $ (9,109,839) |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Details) $ in Millions, $ in Millions | 1 Months Ended | ||
Nov. 30, 2018USD ($)shares | Nov. 30, 2018HKD ($)shares | Dec. 31, 2020USD ($) | |
Rifa Financial Holdings Limited ("Rifa Financial Holdings") (Formerly known as "iSTAR Financial Holdings Limited") | |||
Minority Interest [Line Items] | |||
Percentage of investment | 85.00% | ||
Buyer | Share Transfer Agreement | |||
Minority Interest [Line Items] | |||
Number of shares sold under agreement | shares | 1,552,000 | 1,552,000 | |
Consideration under agreement | $ 9.4 | $ 73.8 | |
Deposits paid by the buyer not included in the purchase consideration | $ | $ 1.4 | ||
Buyer | Rifa Financial Holdings Limited ("Rifa Financial Holdings") (Formerly known as "iSTAR Financial Holdings Limited") | Share Transfer Agreement | |||
Minority Interest [Line Items] | |||
Percentage of investment | 20.00% | 20.00% |
Leases and Contingencies - Addi
Leases and Contingencies - Additional Information (Details) | May 06, 2020 | Oct. 24, 2019 | Jun. 02, 2019USD ($) | Dec. 31, 2020USD ($)Squaremetre |
Loss Contingencies [Line Items] | ||||
Finance lease, noncurrent | $ | $ 0 | |||
Zhengjin (Fujian) Precious Metal Investment Co. Ltd. [Member] | ||||
Loss Contingencies [Line Items] | ||||
Lawsuit filing date | June 2, 2019 | |||
Name of plaintiff | Zhengjin | |||
Domicile of litigation | Gulou District People's Court in Fuzhou City, Fujian Province, PRC | Xicheng District People’s Court in Beijing, PRC | ||
Plantiff's allegations | Lin Zhang, a PRC citizen in a lawsuit filed in Xicheng District People’s Court in Beijing, PRC (the “Court”) claiming that his/her trading activities in the trading system of Haixi Commodity Trading are invalidated and the defendants shall return the transaction amount in the aggregate of RMB2,729,996, approximately $391,000. | |||
Actions taken by defendant | The defendants filed an application for objection to jurisdiction to the Court on October 24, 2019. | |||
Actions taken by the Court | The Court then issued a civil ruling No. 22769 of Beijing 0102 Minchu (2019) on May 6, 2020, and transferred the case to the Gulou District People's Court in Fuzhou City, Fujian Province, PRC for trial. The plaintiff appealed the ruling of the venue in July 2020 and was denied by the court in December 2020. This case remains in its preliminary stage. | |||
Zhengjin (Fujian) Precious Metal Investment Co. Ltd. [Member] | RMB | ||||
Loss Contingencies [Line Items] | ||||
Damages sought, value | $ | $ 2,729,996 | |||
Zhengjin (Fujian) Precious Metal Investment Co. Ltd. [Member] | United States of America, Dollars | ||||
Loss Contingencies [Line Items] | ||||
Damages sought, value | $ | $ 391,000 | |||
Beijing Lease | ||||
Loss Contingencies [Line Items] | ||||
Area of lease | 3,664 | |||
Shanghai Lease | ||||
Loss Contingencies [Line Items] | ||||
Area of lease | 288 | |||
Shenzhen Lease | ||||
Loss Contingencies [Line Items] | ||||
Area of lease | 760 | |||
Wuhan Lease | ||||
Loss Contingencies [Line Items] | ||||
Area of lease | 42 | |||
Shandong Province Lease | ||||
Loss Contingencies [Line Items] | ||||
Area of lease | 300 | |||
Hong Kong Lease | ||||
Loss Contingencies [Line Items] | ||||
Area of lease | 460 |
Leases and Contingencies - Sche
Leases and Contingencies - Schedule of Lease Costs (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($) | ||
Commitments And Contingencies Disclosure [Abstract] | ||
Operating lease cost | $ 2,446,705 | [1] |
Total lease cost | 2,446,705 | |
Short-term lease costs | $ 63,691 | |
[1] | Excluding cost of short-term contracts. Short-term lease costs for year ended December 31, 2020 were $63,691. |
Leases and Contingencies - Sc_2
Leases and Contingencies - Schedule of Lease Costs (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
Short-term lease cost | $ 63,691 |
Leases and Contingencies - Sc_3
Leases and Contingencies - Schedule of Operating Leases (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
Operating cash payment for operating leases | $ 835,956 |
Weighted average remaining lease term on operating leases | 1 year 4 months 17 days |
Weighted average discount rate on operating leases | 4.99% |
Leases and Contingencies - Sc_4
Leases and Contingencies - Schedule of Future Minimum Payments under Non-cancelable Operating Leases (Details) | Dec. 31, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2021 | $ 1,287,585 |
2022 | 531,839 |
2023 | 97,378 |
Total lease payments | 1,916,803 |
Less: interest | (121,665) |
Present value of lease payments | $ 1,795,138 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment and Geographic Inform_4
Segment and Geographic Information - Schedule of Operations of Company's Operating Segments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 40,033,097 | $ 35,518,790 | $ 45,477,926 |
Cost of revenues | 14,795,345 | 13,188,093 | 17,465,167 |
Less: intersegment cost of revenues | (468,542) | (213,958) | (623,252) |
Cost of revenues after elimination | 14,326,803 | 12,974,135 | 16,841,915 |
Operating expenses: | |||
General and administrative | 12,218,962 | 12,245,567 | 14,397,562 |
Product development | 11,484,838 | 15,533,973 | 24,716,021 |
Sales and marketing | 17,419,252 | 13,366,322 | 22,160,188 |
Total segments operating expenses | 41,123,052 | 41,145,862 | 61,273,771 |
Less: intersegment operating expenses | (4,253,717) | (6,451,653) | (11,029,670) |
Total operating expenses | 36,869,335 | 34,694,209 | 50,244,101 |
Income (loss) from operations | (11,163,041) | (12,149,554) | (21,608,090) |
Total segments assets | 254,712,948 | 259,330,122 | 246,377,732 |
Less: intersegment asset balances | (176,755,640) | (170,165,596) | (165,688,382) |
Total assets | 77,957,306 | 89,164,526 | 80,689,350 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 43,877,290 | 42,125,612 | 56,989,346 |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net revenues | (3,844,193) | (6,606,822) | (11,511,420) |
Financial Services | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 27,922,980 | 19,719,443 | 23,084,016 |
Cost of revenues | 7,971,267 | 5,348,329 | 6,249,529 |
Less: intersegment cost of revenues | (468,542) | (213,958) | (623,252) |
Cost of revenues after elimination | 7,502,725 | 5,134,371 | 5,626,277 |
Operating expenses: | |||
General and administrative | 5,744,905 | 5,200,622 | 7,022,338 |
Product development | 11,482,813 | 15,502,285 | 24,394,373 |
Sales and marketing | 12,765,669 | 9,751,017 | 17,574,405 |
Total segments operating expenses | 29,993,387 | 30,453,924 | 48,991,116 |
Less: intersegment operating expenses | (3,418,220) | (6,389,793) | (10,791,561) |
Total operating expenses | 26,575,167 | 24,064,131 | 38,199,555 |
Income (loss) from operations | (6,154,912) | (9,479,059) | (20,741,816) |
Total segments assets | 161,697,028 | 157,264,579 | 156,883,869 |
Less: intersegment asset balances | (143,194,619) | (138,083,606) | (133,070,873) |
Total assets | 18,502,409 | 19,180,973 | 23,812,996 |
Financial Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 31,767,173 | 26,323,194 | 34,498,830 |
Financial Services | Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net revenues | (3,844,193) | (6,603,751) | (11,414,814) |
HongKong Brokerage Services | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 12,110,117 | 15,799,347 | 22,343,950 |
Cost of revenues | 6,824,093 | 7,839,764 | 11,212,825 |
Cost of revenues after elimination | 6,824,093 | 7,839,764 | 11,212,825 |
Operating expenses: | |||
General and administrative | 6,181,307 | 5,616,870 | 4,200,746 |
Product development | 24,011 | 44,295 | |
Sales and marketing | 4,495,190 | 3,380,644 | 3,656,372 |
Total segments operating expenses | 10,676,497 | 9,021,525 | 7,901,413 |
Less: intersegment operating expenses | (835,497) | (61,860) | (238,109) |
Total operating expenses | 9,841,000 | 8,959,665 | 7,663,304 |
Income (loss) from operations | (4,554,976) | (1,000,082) | 3,467,821 |
Total segments assets | 80,200,698 | 89,864,646 | 76,292,657 |
Less: intersegment asset balances | (21,048,187) | (20,378,627) | (19,992,932) |
Total assets | 59,152,511 | 69,486,019 | 56,299,725 |
HongKong Brokerage Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 12,110,117 | 15,802,418 | 22,440,556 |
HongKong Brokerage Services | Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net revenues | (3,071) | (96,606) | |
Other | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 49,960 | ||
Cost of revenues | (15) | 2,813 | |
Cost of revenues after elimination | (15) | 2,813 | |
Operating expenses: | |||
General and administrative | 292,750 | 1,428,075 | 3,174,478 |
Product development | 2,025 | 7,677 | 277,353 |
Sales and marketing | 158,393 | 234,661 | 929,411 |
Total segments operating expenses | 453,168 | 1,670,413 | 4,381,242 |
Total operating expenses | 453,168 | 1,670,413 | 4,381,242 |
Income (loss) from operations | (453,153) | (1,670,413) | (4,334,095) |
Total segments assets | 12,815,222 | 12,200,897 | 13,201,206 |
Less: intersegment asset balances | (12,512,834) | (11,703,363) | (12,624,577) |
Total assets | $ 302,388 | $ 497,534 | 576,629 |
Other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net revenues | $ 49,960 |
Segment and Geographic Inform_5
Segment and Geographic Information - Schedule of Revenue From External Customers (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total revenue from external customers | $ 40,033,097 | $ 35,518,790 | $ 45,477,926 |
Mutual Funds Distribution Services Revenues | |||
Segment Reporting Information [Line Items] | |||
Total revenue from external customers | 1,281,077 | 735,129 | 879,802 |
Financial Information And Advisory Services Revenues | |||
Segment Reporting Information [Line Items] | |||
Total revenue from external customers | 17,465,197 | 10,674,164 | 14,891,267 |
Advertising Revenues | |||
Segment Reporting Information [Line Items] | |||
Total revenue from external customers | 9,176,706 | 8,310,150 | 7,312,947 |
Hong Kong Brokerage Services Revenues | |||
Segment Reporting Information [Line Items] | |||
Total revenue from external customers | $ 12,110,117 | $ 15,799,347 | 22,343,950 |
Others | |||
Segment Reporting Information [Line Items] | |||
Total revenue from external customers | $ 49,960 |
Statutory Reserves and Restri_2
Statutory Reserves and Restricted Net Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statutory Reserves And Restricted Net Assets [Abstract] | ||
Statutory reserve tax profit, description | 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 Company’s subsidiaries | |
Statutory reserves | $ 9,332,542 | $ 8,875,124 |
Statutory reserves not available for distribution | $ 1,106,322 |
Schedule I - Balance Sheets (De
Schedule I - Balance Sheets (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 6,154,499 | $ 9,599,824 | $ 12,493,135 | |
Prepaid expenses and other current assets | 3,175,281 | 2,412,941 | ||
Total current assets | 68,251,461 | 75,980,758 | ||
Total assets | 77,957,306 | 89,164,526 | 80,689,350 | |
Current liabilities: | ||||
Total current liabilities | 69,930,396 | 69,403,608 | ||
Shareholders’ equity | ||||
Ordinary shares (122,098,018 and 122,098,018 shares issued and outstanding as of December 31, 2019 and 2020, respectively) | 57,006,534 | 57,006,534 | ||
Additional paid-in capital | 37,813,172 | 36,925,874 | ||
Accumulated other comprehensive income | 6,286,949 | 6,412,555 | ||
Retained deficits | (85,747,246) | (75,189,077) | ||
Total shareholders’ equity attributable to China Finance Online Co. Limited shareholders | 15,359,409 | 25,155,886 | ||
Total liabilities and shareholders’ equity | 77,957,306 | 89,164,526 | ||
Parent Company [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 153,167 | 753,380 | ||
Amounts due from subsidiaries, VIEs and VIE’s subsidiaries | 9,031,501 | 9,557,835 | ||
Prepaid expenses and other current assets | 338,458 | 260,303 | ||
Total current assets | 9,523,126 | 10,571,518 | ||
Investment in subsidiaries | 34,559,573 | 39,142,555 | ||
Total assets | 44,082,699 | 49,714,073 | ||
Current liabilities: | ||||
Accrued expenses and other current liabilities | 9,435,958 | 9,936,508 | ||
Amounts due to subsidiaries, VIEs and VIE’s subsidiaries | 16,537,908 | 14,621,679 | ||
Total current liabilities | 25,973,866 | 24,558,187 | ||
Shareholders’ equity | ||||
Ordinary shares (122,098,018 and 122,098,018 shares issued and outstanding as of December 31, 2019 and 2020, respectively) | 57,006,534 | 57,006,534 | ||
Additional paid-in capital | 37,644,994 | 36,925,874 | ||
Accumulated other comprehensive income | 6,401,993 | 6,412,555 | ||
Retained deficits | (82,944,688) | (75,189,077) | ||
Total shareholders’ equity attributable to China Finance Online Co. Limited shareholders | 18,108,833 | 25,155,886 | $ 35,445,676 | $ 54,046,682 |
Total liabilities and shareholders’ equity | $ 44,082,699 | $ 49,714,073 |
Schedule I - Balance Sheets (Pa
Schedule I - Balance Sheets (Parenthetical) (Details) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Balance Sheet Statements Captions [Line Items] | ||
Ordinary shares, shares issued | 122,098,018 | 122,098,018 |
Ordinary shares, shares outstanding | 122,098,018 | 122,098,018 |
Parent Company [Member] | ||
Condensed Balance Sheet Statements Captions [Line Items] | ||
Ordinary shares, shares issued | 122,098,018 | 122,098,018 |
Ordinary shares, shares outstanding | 122,098,018 | 122,098,018 |
Schedule I - Financial informat
Schedule I - Financial information of Parent Company - Statements of Comprehensive Income (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Statement Of Income Captions [Line Items] | |||
Cost of revenues | $ 14,326,803 | $ 12,974,135 | $ 16,841,915 |
Gross profit | 25,706,294 | 22,544,655 | 28,636,011 |
Operating expenses: | |||
General and administrative | 12,218,962 | 12,245,567 | 14,397,562 |
Sales and marketing | 17,419,252 | 13,366,322 | 22,160,188 |
Share-based Compensation | 986,833 | 1,113,828 | 2,240,512 |
Total operating expenses | 36,869,335 | 34,694,209 | 50,244,101 |
Interest income | 18,141 | 33,397 | 96,679 |
Exchange gain (loss), net | (227,336) | (134,172) | 246,680 |
Other expense, net | 1,064,127 | 22,692 | 34,498 |
Net loss attributable to China Finance Online Co. Limited | (10,558,169) | (11,262,821) | (19,950,120) |
Other comprehensive income (loss), net of tax: | |||
Changes in foreign currency translation adjustment | (125,606) | 120,762 | (362,398) |
Other comprehensive income (loss), net of tax | (125,606) | 120,762 | (362,398) |
Comprehensive loss | (11,475,814) | (12,622,986) | (22,832,893) |
Parent Company [Member] | |||
Condensed Statement Of Income Captions [Line Items] | |||
Cost of revenues | 85,714 | 87,105 | 85,493 |
Gross profit | (85,714) | (87,105) | (85,493) |
Operating expenses: | |||
General and administrative | 1,201,587 | 1,111,665 | 1,069,590 |
Sales and marketing | 17,526 | ||
Share-based Compensation | 729,504 | 417,004 | 858,415 |
Total operating expenses | 1,931,090 | 1,528,669 | 1,945,531 |
Interest income | 3,816 | 93 | 4,851 |
Equity in deficits of subsidiaries, VIEs and VIE’s subsidiaries | (5,734,722) | (9,627,269) | (17,888,289) |
Exchange gain (loss), net | (7,902) | (19,871) | (10,608) |
Other expense, net | (25,050) | ||
Net loss attributable to China Finance Online Co. Limited | (7,755,612) | (11,262,821) | (19,950,120) |
Other comprehensive income (loss), net of tax: | |||
Changes in foreign currency translation adjustment | (10,562) | 120,762 | (362,398) |
Other comprehensive income (loss), net of tax | (10,562) | 120,762 | (362,398) |
Comprehensive loss | $ (7,766,174) | $ (11,142,059) | $ (20,312,518) |
Schedule I - Financial inform_2
Schedule I - Financial information of Parent Company - Statement of Shareholders' Equity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Financial Statements Captions [Line Items] | |||
Balance | $ 25,155,886 | ||
Issuance of ordinary shares for the plan of share options and restricted shares | $ 520 | ||
Exercise of share options by employees | 4,997 | $ 600 | |
Share-based compensation | 986,833 | 1,113,828 | 2,240,512 |
Net loss | (10,558,169) | (11,262,821) | (19,950,120) |
Balance | 15,359,409 | 25,155,886 | |
Fractional shares sold | 5 | ||
Parent Company [Member] | |||
Condensed Financial Statements Captions [Line Items] | |||
Balance | 25,155,886 | 35,445,676 | 54,046,682 |
Issuance of ordinary shares for the plan of share options and restricted shares | 520 | ||
Exercise of share options by employees | 4,997 | 600 | |
Share-based compensation | 729,504 | 417,004 | 858,415 |
Equity pick up from compensation of VIE's subsidiaries | (10,389) | 429,748 | 852,497 |
Foreign currency translation adjustment | (10,562) | 120,762 | (362,398) |
Net loss | (7,755,612) | (11,262,821) | (19,950,120) |
Balance | 18,108,833 | $ 25,155,886 | $ 35,445,676 |
Fractional shares sold | $ 5 | ||
Ordinary Shares | |||
Condensed Financial Statements Captions [Line Items] | |||
Balance, shares | 122,098,018 | 118,098,018 | 118,098,018 |
Issuance of ordinary shares for the plan of share options and restricted shares | $ 520 | ||
Issuance of ordinary shares for the plan of share options and restricted shares, shares | 4,000,000 | ||
Exercise of share options by employees | $ 4,997 | $ 600 | |
Balance, shares | 122,098,018 | 122,098,018 | 118,098,018 |
Ordinary Shares | Parent Company [Member] | |||
Condensed Financial Statements Captions [Line Items] | |||
Balance | $ 57,006,534 | $ 57,001,017 | $ 57,000,417 |
Balance, shares | 122,098,018 | 118,098,018 | 118,098,018 |
Issuance of ordinary shares for the plan of share options and restricted shares | $ 520 | ||
Issuance of ordinary shares for the plan of share options and restricted shares, shares | 4,000,000 | ||
Exercise of share options by employees | $ 4,997 | $ 600 | |
Balance | $ 57,006,534 | $ 57,006,534 | $ 57,001,017 |
Balance, shares | 122,098,018 | 122,098,018 | 118,098,018 |
Additional Paid-in Capital | |||
Condensed Financial Statements Captions [Line Items] | |||
Share-based compensation | $ 887,293 | $ 846,752 | $ 1,710,912 |
Fractional shares sold | 5 | ||
Additional Paid-in Capital | Parent Company [Member] | |||
Condensed Financial Statements Captions [Line Items] | |||
Balance | 36,925,874 | 36,079,122 | 34,368,210 |
Share-based compensation | 729,504 | 417,004 | 858,415 |
Equity pick up from compensation of VIE's subsidiaries | (10,389) | 429,748 | 852,497 |
Balance | 37,644,994 | 36,925,874 | 36,079,122 |
Fractional shares sold | 5 | ||
Accumulated Other Comprehensive Income (Loss) | Parent Company [Member] | |||
Condensed Financial Statements Captions [Line Items] | |||
Balance | 6,412,555 | 6,291,793 | 6,654,191 |
Foreign currency translation adjustment | (10,562) | 120,762 | (362,398) |
Balance | 6,401,993 | 6,412,555 | 6,291,793 |
Retained Earnings/(Deficits) | Parent Company [Member] | |||
Condensed Financial Statements Captions [Line Items] | |||
Balance | (75,189,077) | (63,926,256) | (43,976,136) |
Net loss | (7,755,612) | (11,262,821) | (19,950,120) |
Balance | $ (82,944,688) | $ (75,189,077) | $ (63,926,256) |
Schedule I - Financial inform_3
Schedule I - Financial information of Parent Company - Statement of Cash Flows (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | |||
Net loss | $ (10,558,169) | $ (11,262,821) | $ (19,950,120) |
Adjustments to reconcile loss to net cash provided by operating activities: | |||
Share-based Compensation | 986,833 | 1,113,828 | 2,240,512 |
Changes in assets and liabilities: | |||
Prepaid expenses and other current assets | (584,553) | 1,554,475 | 559,702 |
Accrued expenses and other current liabilities | 2,723,456 | (3,782,481) | (683,420) |
Net cash used in operating activities | (4,346,713) | (8,245,623) | (32,714,475) |
Investing activities: | |||
Net cash provided by (used in) investing activities | 1,168,178 | (2,687,813) | 106,411 |
Financing activities: | |||
Proceeds from stock options exercised by employees and issuance of ordinary shares | 5 | 4,997 | 600 |
Net cash provided by (used in) financing activities | (924,965) | 8,005,874 | 4,466,600 |
Net decrease in cash and cash equivalents | (3,445,325) | (2,893,311) | (28,235,370) |
Cash, cash equivalents and restricted cash at beginning of the year | 9,599,824 | 12,493,135 | 40,728,505 |
Cash, cash equivalents and restricted cash at end of the year | 6,154,499 | 9,599,824 | 12,493,135 |
Parent Company [Member] | |||
Operating activities: | |||
Net loss | (7,755,612) | (11,262,821) | (19,950,120) |
Adjustments to reconcile loss to net cash provided by operating activities: | |||
Share-based Compensation | 729,504 | 417,004 | 858,415 |
Equity in deficits of subsidiaries, VIEs and VIE’s subsidiaries | 5,734,722 | 9,627,269 | 17,888,289 |
Changes in assets and liabilities: | |||
Prepaid expenses and other current assets | (78,150) | (155,445) | 37,254 |
Amounts due from subsidiaries, VIEs and VIE’s subsidiaries | 526,334 | 282,898 | 4,972 |
Accrued expenses and other current liabilities | 468,504 | 225,952 | 235,882 |
Amounts due to subsidiaries, VIEs and VIE’s subsidiaries | 1,916,229 | 1,531,471 | 3,319,598 |
Net cash used in operating activities | 1,541,531 | 666,328 | 2,394,290 |
Investing activities: | |||
Capital paid to subsidiaries | (1,250,000) | (7,240,000) | (12,100,010) |
Net cash provided by (used in) investing activities | (1,250,000) | (7,240,000) | (12,100,010) |
Financing activities: | |||
Proceeds from stock options exercised by employees and issuance of ordinary shares | 4,997 | 600 | |
Proceeds from paid-in capital of noncontrolling shareholders | (891,744) | 4,947,000 | 4,466,000 |
Net cash provided by (used in) financing activities | (891,744) | 4,951,997 | 4,466,600 |
Net decrease in cash and cash equivalents | (600,213) | (1,621,675) | (5,239,120) |
Cash, cash equivalents and restricted cash at beginning of the year | 753,380 | 2,375,055 | 7,614,175 |
Cash, cash equivalents and restricted cash at end of the year | $ 153,167 | $ 753,380 | $ 2,375,055 |