Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document Information | |
Entity Registrant Name | iClick Interactive Asia Group Ltd |
Entity Central Index Key | 0001697818 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Entity Shell Company | false |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Ordinary shares | |
Document Information | |
Entity Common Stock, Shares Outstanding | 29,345,559 |
Ordinary Shares - Class A | |
Document Information | |
Entity Common Stock, Shares Outstanding | 24,524,951 |
Ordinary Shares - Class B | |
Document Information | |
Entity Common Stock, Shares Outstanding | 4,820,608 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 39,828 | $ 19,401 |
Time deposit | 0 | 25,000 |
Short-term investments | 17,427 | |
Accounts receivable, net of allowance for doubtful receivables of US$1,478 and US$1,507 as of December 31, 2017 and 2018, respectively | 65,627 | 40,798 |
Rebates receivable | 4,067 | 1,334 |
Prepaid media costs | 19,107 | 37,784 |
Other current assets | 3,242 | 3,107 |
Income tax receivable | 3 | |
Total current assets | 149,298 | 127,427 |
Non-current assets | ||
Deferred tax assets | 1,153 | 850 |
Property and equipment, net | 329 | 1,165 |
Long-term investment | 503 | 0 |
Intangible assets, net | 7,247 | 10,600 |
Goodwill | 48,496 | 48,496 |
Other assets | 232 | 284 |
Total non-current assets | 57,960 | 61,395 |
Total assets | 207,258 | 188,822 |
Current liabilities | ||
Accounts payable (including accounts payable of the consolidated variable interest entity ("VIE") and its subsidiaries without recourse to the Company of US$29 and US$45 as of December 31, 2017 and 2018, respectively) | 6,557 | 3,904 |
Deferred revenue (including deferred revenue of the consolidated VIE and its subsidiaries without recourse to the Company of US$5,986 and US$1,300 as of December 31, 2017 and 2018, respectively) | 27,191 | 33,037 |
Accrued liabilities and other current liabilities (including accrued liabilities and other current liabilities of the consolidated VIE and its subsidiaries without recourse to the Company of US$804 and US$1,776 as of December 31, 2017 and 2018, respectively) | 16,348 | 16,129 |
Bank borrowings | 9,439 | 10,486 |
Convertible notes at fair value | 34,837 | |
Income tax payable | 2,779 | 2,123 |
Total current liabilities | 97,151 | 65,679 |
Non-current liabilities | ||
Other liabilities | 673 | |
Deferred tax liabilities | 2,794 | 3,159 |
Total non-current liabilities | 3,467 | 3,159 |
Total liabilities | 100,618 | 68,838 |
Commitments and contingencies | ||
Equity | ||
Treasury shares (2,123,382 and 1,363,860 shares as of December 31, 2017 and 2018, respectively) | (576) | (2,093) |
Additional paid-in capital | 293,072 | 274,294 |
Statutory reserves | 81 | 81 |
Accumulated other comprehensive losses | (5,867) | (3,320) |
Accumulated deficit | (181,413) | (149,004) |
Total iClick Interactive Asia Group Limited shareholders' equity | 105,325 | 119,984 |
Non-controlling interest | 1,315 | |
Total equity | 106,640 | 119,984 |
Total liabilities and equity | 207,258 | 188,822 |
Ordinary Shares - Class A | ||
Equity | ||
Ordinary shares | 23 | 21 |
Ordinary Shares - Class B | ||
Equity | ||
Ordinary shares | $ 5 | $ 5 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, allowance for doubtful receivables | $ 1,507 | $ 1,478 |
Accounts payable of the consolidated variable interest entity ("VIE") and its subsidiary without recourse to the Company | 6,557 | 3,904 |
Deferred revenue | 27,191 | 33,037 |
Accrued liabilities and other current liabilities of the | $ 16,348 | $ 16,129 |
Treasury stock, shares | 1,363,860 | 2,123,382 |
VIE | ||
Accounts payable of the consolidated variable interest entity ("VIE") and its subsidiary without recourse to the Company | $ 45 | $ 29 |
Deferred revenue | 1,300 | 5,986 |
Accrued liabilities and other current liabilities of the | $ 1,776 | $ 804 |
Ordinary Shares - Class A | ||
Ordinary shares, par value | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | 80,000,000 | 80,000,000 |
Ordinary shares, shares issued | 23,166,092 | 21,238,825 |
Ordinary shares, shares outstanding | 23,166,092 | 21,238,825 |
Ordinary Shares - Class B | ||
Ordinary shares, par value | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | 20,000,000 | 20,000,000 |
Ordinary shares, shares issued | 4,820,608 | 4,820,608 |
Ordinary shares, shares outstanding | 4,820,608 | 4,820,608 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net revenues | $ 160,017 | $ 125,258 | $ 95,357 |
Cost of revenues | (120,897) | (95,733) | (61,048) |
Gross profit | 39,120 | 29,525 | 34,309 |
Operating expenses | |||
Research and development expenses | (10,737) | (5,778) | (8,584) |
Sales and marketing expenses | (32,080) | (25,935) | (28,266) |
General and administrative expenses | (23,757) | (12,983) | (26,767) |
Total operating expenses | (66,574) | (44,696) | (63,617) |
Operating loss | (27,454) | (15,171) | (29,308) |
Interest income | 421 | ||
Interest expense | (773) | (551) | (713) |
Other (losses)/gains, net | 687 | 1,841 | (1,082) |
Fair value gains/(losses) on derivative liabilities | (10,190) | 3,995 | |
Fair value losses on convertible notes | (4,837) | ||
Loss before income tax expense | (31,956) | (24,071) | (27,108) |
Income tax expense | 655 | 548 | 222 |
Net loss | (32,611) | (24,619) | (27,330) |
Net loss attributable to non-controlling interest | 202 | ||
Net loss attributable to iClick Interactive Asia Group Limited | (32,409) | (24,619) | (27,330) |
Net loss attributable to iClick Interactive Asia Group Limited's ordinary shareholders | (32,409) | (29,931) | (29,659) |
Net loss | (32,611) | (24,619) | (27,330) |
Other comprehensive loss: | |||
Foreign currency translation adjustment, net of US$nil tax | (2,547) | (79) | (139) |
Comprehensive loss | (35,158) | (24,698) | (27,469) |
Comprehensive loss attributable to non-controlling interest | 202 | ||
Comprehensive loss attributable to iClick Interactive Asia Group Limited | $ (34,956) | $ (24,698) | $ (27,469) |
Net loss per share attributable to iClick Interactive Asia Group Limited | |||
- Basic | $ (1.23) | $ (2.15) | $ (2.26) |
- Diluted | $ (1.23) | $ (2.15) | $ (2.26) |
Weighted average number of ordinary shares used in per share calculation: | |||
- Basic | 26,452,409 | 13,931,503 | 13,151,063 |
- Diluted | 26,452,409 | 13,931,503 | 13,151,063 |
Redeemable preferred stock | |||
Operating expenses | |||
Accretion to redeemable shares redemption value | $ (1,662) | $ (773) | |
Redeemable ordinary shares | |||
Operating expenses | |||
Accretion to redeemable shares redemption value | $ (3,650) | $ (1,556) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT)/EQUITY - USD ($) $ in Thousands | Ordinary shares | Treasury shares | Additional paid-in capitalRedeemable preferred stock | Additional paid-in capitalRedeemable ordinary shares | Additional paid-in capital | Accumulated deficit | Statutory reserves | Accumulated other comprehensive losses | Total iClick Interactive Asia Group Limited shareholders' equity | Non-controlling interests | Redeemable preferred stock | Redeemable ordinary shares | Total |
Beginning balance at Dec. 31, 2015 | $ 13 | $ (9,783) | $ 53,917 | $ (97,055) | $ 81 | $ (3,102) | $ (55,929) | ||||||
Beginning balance, shares at Dec. 31, 2015 | 13,104,300 | 2,654,188 | |||||||||||
Reissuance of treasury shares as share-based compensation | $ 1 | $ 6,328 | (6,329) | ||||||||||
Reissuance of treasury shares as share-based compensation, shares | 436,773 | (436,773) | |||||||||||
Reissuance of treasury shares upon exercise of employee share options and vesting of restricted share units ("RSUs") | $ 987 | (816) | $ 171 | ||||||||||
Reissuance of treasury shares upon exercise of employee share options and vesting of restricted share units ("RSUs"), shares | 68,135 | (68,135) | 68,135 | ||||||||||
Share-based compensation expense | 21,244 | $ 21,244 | |||||||||||
Preferred shares accretion | $ (773) | $ (1,556) | $ (773) | $ (1,556) | |||||||||
Net loss | (27,330) | (27,330) | |||||||||||
Foreign currency translation | (139) | (139) | |||||||||||
Ending balance at Dec. 31, 2016 | $ 14 | $ (2,468) | 65,687 | (124,385) | 81 | (3,241) | (64,312) | ||||||
Ending balance, shares at Dec. 31, 2016 | 13,609,208 | 2,149,280 | |||||||||||
Reissuance of treasury shares upon exercise of employee share options and vesting of restricted share units ("RSUs") | $ 375 | (315) | 60 | ||||||||||
Reissuance of treasury shares upon exercise of employee share options and vesting of restricted share units ("RSUs"), shares | 25,898 | (25,898) | |||||||||||
Share-based compensation expense | 5,072 | 5,072 | |||||||||||
Preferred shares accretion | $ (1,662) | $ (3,650) | $ (1,662) | $ (3,650) | |||||||||
Derecognition of derivative liabilities | 71,074 | 71,074 | |||||||||||
Issuance of ordinary shares upon Initial public offering ("IPO") | $ 2 | 28,403 | 28,405 | ||||||||||
Issuance of ordinary shares upon Initial public offering ("IPO"), shares | 2,156,250 | ||||||||||||
Conversion of preferred shares to Class A ordinary shares | $ 10 | 109,685 | 109,695 | ||||||||||
Conversion of preferred shares to Class A ordinary shares (in shares) | 10,268,077 | ||||||||||||
Net loss | (24,619) | (24,619) | |||||||||||
Foreign currency translation | (79) | (79) | |||||||||||
Ending balance at Dec. 31, 2017 | $ 26 | $ (2,093) | 274,294 | (149,004) | 81 | (3,320) | $ 119,984 | 119,984 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Dec. 31, 2017 | 119,984 | ||||||||||||
Ending balance, shares at Dec. 31, 2017 | 26,059,433 | 2,123,382 | |||||||||||
Reissuance of treasury shares upon exercise of employee share options and vesting of restricted share units ("RSUs") | $ 1 | $ 1,554 | (900) | 655 | 655 | ||||||||
Reissuance of treasury shares upon exercise of employee share options and vesting of restricted share units ("RSUs"), shares | 764,522 | (764,522) | |||||||||||
Share-based compensation expense | 19,679 | 19,679 | 19,679 | ||||||||||
RSUs vested | $ 1 | (1) | |||||||||||
RSUs vested, in shares | 1,162,745 | ||||||||||||
Net loss | (32,409) | (32,409) | $ (202) | (32,611) | |||||||||
Foreign currency translation | (2,547) | (2,547) | (2,547) | ||||||||||
Business combination | 1,517 | 1,517 | |||||||||||
Repurchase of ordinary shares | $ (37) | (37) | (37) | ||||||||||
Repurchase of ordinary shares, shares | 5,000 | ||||||||||||
Ending balance at Dec. 31, 2018 | $ 28 | $ (576) | $ 293,072 | $ (181,413) | $ 81 | $ (5,867) | $ 105,325 | $ 1,315 | 105,325 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Dec. 31, 2018 | $ 106,640 | ||||||||||||
Ending balance, shares at Dec. 31, 2018 | 27,986,700 | 1,363,860 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Net loss | $ (32,611) | $ (24,619) | $ (27,330) |
Adjustments to reconcile net loss to net cash provided by/(used in) operating activities | |||
Depreciation of property and equipment | 1,059 | 1,363 | 1,512 |
Amortization of intangible assets | 4,167 | 4,221 | 4,312 |
Loss on disposal of property and equipment | 32 | ||
Gain on bargain purchase | (285) | ||
Allowance for doubtful accounts | 92 | 910 | 99 |
Recovery of doubtful debts previously provided for | (40) | ||
Share-based compensation | 19,679 | 5,072 | 21,244 |
Fair value (gains)/losses on derivative liabilities | 10,190 | (3,995) | |
Fair value loss on convertible notes | 4,837 | ||
Convertible notes transaction expenses | 2,190 | ||
Deferred tax | (906) | (714) | (1,021) |
Changes in operating assets and liabilities, net | |||
Accounts receivable | (25,514) | (9,816) | (2,330) |
Prepayments and other assets | 4,380 | 46 | 881 |
Accrued liabilities and other current liabilities | (5,301) | 644 | 284 |
Deferred revenue | (5,915) | 5,750 | 10,763 |
Rebates receivables | (2,734) | 935 | 1,392 |
Prepaid media costs | 18,534 | (2,491) | (9,617) |
Accounts payable | 2,693 | (5,478) | (2,036) |
Income tax payable | 187 | 146 | 1,935 |
Net cash used in operating activities | (15,416) | (13,881) | (3,907) |
Cash flows from investing activities | |||
Prepayment of property and equipment | (122) | ||
Purchase of property and equipment | (249) | (148) | (884) |
Purchase of intangible assets | (120) | (17) | (22) |
Decrease/(increase) in short-term investments | (17,427) | 1,552 | |
Increase in long-term investment | (503) | ||
(Increase)/decrease in time deposit | 25,000 | (25,000) | |
Acquisition of business, net of cash received | 1,694 | ||
Net cash provided by/(used in) investing activities | 8,395 | (25,165) | 524 |
Cash flows from financing activities | |||
Proceeds from issuance of Series E convertible redeemable preferred shares | 20,000 | ||
Proceeds from exercise of share options | 656 | 60 | 171 |
Proceeds from bank borrowings | 2,229 | 5,897 | 8,232 |
Repayments of bank borrowings | (2,883) | (8,816) | (3,793) |
Repayment of amounts due to related parties | (46) | ||
Net proceeds from issuance of ordinary shares upon IPO | 28,405 | ||
Proceeds from issuance of convertible notes, net of transaction expenses | 27,810 | ||
Repurchase of ordinary shares | (37) | ||
Net cash provided by financing activities | 27,775 | 25,546 | 24,564 |
Net increase/(decrease) in cash and cash equivalents and restricted cash | 20,754 | (13,500) | 21,181 |
Cash and cash equivalents and restricted cash at the beginning of year | 19,401 | 32,514 | 11,395 |
Effect on exchange rate changes on cash and cash equivalents and restricted cash | (327) | 387 | (62) |
Cash and cash equivalents and restricted cash at the end of year | 39,828 | 19,401 | 32,514 |
Supplemental disclosure of cash flow information: | |||
Interests paid | (694) | (582) | (713) |
Cash refunded/(paid) for income taxes | $ (1,019) | (1,119) | 665 |
Non-cash investing and financing activities: | |||
IPO costs in form of other payables | 1,724 | ||
Series A Preferred Stock | |||
Non-cash investing and financing activities: | |||
Accretion to redeemable shares redemption value | 235 | 110 | |
Series B Preferred Stock | |||
Non-cash investing and financing activities: | |||
Accretion to redeemable shares redemption value | 1,427 | 662 | |
Redeemable ordinary shares | |||
Non-cash investing and financing activities: | |||
Accretion to redeemable shares redemption value | $ 3,650 | $ 1,556 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Reconciliation of cash and cash equivalents and restricted cash within the consolidated balance sheets to the amounts shown in the consolidated statements of cash flows above: | ||||
Cash and cash equivalents | $ 39,828 | $ 19,401 | $ 27,280 | |
Restricted cash, current | 0 | 0 | 5,234 | |
Cash and cash equivalents and restricted cash | $ 39,828 | $ 19,401 | $ 32,514 | $ 11,395 |
Organization and principal acti
Organization and principal activities | 12 Months Ended |
Dec. 31, 2018 | |
Organization and principal activities | |
Organization and principal activities | 1 Organization and principal activities (a) Organization and nature of operation iClick Interactive Asia Group Limited (the “Company”) and its subsidiaries are collectively referred to as the Group. The Company was incorporated under the law of Cayman Islands as a limited company on February 3, 2010. The Group is principally engaged in the provision of online marketing services. The Group’s principal operations and geographic market are in Greater China and have offices in Hong Kong and the People’s Republic of China (“the PRC”). There are also sales teams in Singapore, Taiwan and the United Kingdom. The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries and consolidated VIEs and the VIE’s subsidiaries (defined in Note 1(b)) as follows: % of direct or indirect Place of economic Date of incorporation/ Name Relationship ownership incorporation establishment Principal activities Digital Marketing Group Limited Subsidiary % October 2006 Hong Kong Dormant Tetris Media Limited Subsidiary % July 2007 Hong Kong Internet marketing services and solutions iClick Interactive Asia Limited Subsidiary % December 2008 Hong Kong Internet marketing services and solutions Optimix Media Asia Limited Subsidiary % March 2009 Hong Kong Investment holding China Search (Asia) Limited Subsidiary % September 2010 Hong Kong Internet marketing services and solutions Diablo Holdings Corporation Subsidiary % August 2010 British Virgin Islands (“BVI”) Investment holding Harmattan Capital Holdings Corporation Subsidiary % August 2010 BVI Investment holding iClick Interactive (Singapore) Pte. Ltd. Subsidiary % January 2011 Singapore Internet marketing services and solutions iClick Interactive (Beijing) Advertisement Co., Ltd Subsidiary % January 2011 The PRC Internet marketing services and solutions Search Asia Technology (Shenzhen) Co., Ltd. Subsidiary % January 2011 The PRC Internet marketing services and solutions i-Click Interactive Taiwan Limited Taiwan Branch Subsidiary’s branch % September 2011 Taiwan Internet marketing services and solutions Performance Media Group Limited Subsidiary % January 2013 Hong Kong Internet marketing services and solutions The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries and consolidated VIEs and the VIE’s subsidiaries (defined in Note 1(b)) as follows: % of direct or indirect Place of economic Date of incorporation/ Name Relationship ownership incorporation establishment Principal activities Tetris Media (Shanghai) Co., Ltd. Subsidiary % July 2013 The PRC Internet marketing services and solutions Buzzinate Company Limited Subsidiary % March 2009 Hong Kong Technology development OptAim Limited Subsidiary % July 2014 Cayman Islands Investment holding OptAim (HK) Limited Subsidiary % July 2014 Hong Kong Investment holding OptAim (Beijing) Information Technology Co., Ltd. (“OptAim WFOE”) Subsidiary % November 2014 The PRC Internet marketing services and solutions Anhui Zhiyunzhong Information Technology Co., Ltd. Subsidiary % November 2017 The PRC Internet marketing Beijing OptAim Network Technology Co., Ltd. (“Beijing OptAim”) VIE % September 2012 The PRC Internet marketing Zhiyunzhong (Shanghai) Technology Co., Ltd. (“Shanghai OptAim”) VIE’s subsidiary % September 2014 The PRC Internet marketing Shanghai Myhayo Technology Co., Ltd. (“ Myhayo”) VIE’s subsidiary % May 2017 The PRC Mobile content aggregator, digital advertising and marketing services Anhui Myhayo Technology Co., Ltd. (“Anhui Myhayo”) VIE’s subsidiary % September 2018 The PRC Mobile content aggregator, digital advertising and marketing services Arda Holdings Limited VIE % May 2010 BVI Treasury management (b) Consolidated VIE and VIE’s subsidiaries When the Company acquired OptAim WFOE in July 2015, OptAim WFOE is considered as a foreign invested enterprise and any foreign ownership in advertising business was subject to certain restrictions under the PRC laws and regulations at that time. To comply with the then-effective PRC laws and regulations, certain of the Group’s operations are conducted through Beijing OptAim and its subsidiaries Shanghai OptAim, Shanghai Myhayo and Anhui Myhayo (together, “OptAim VIE”). OptAim WFOE, a wholly-owned subsidiary of the Company, or a wholly foreign owned enterprise (“WFOE”) of the Company, entered into a series of contractual agreements among Beijing OptAim and Beijing OptAim’s legal shareholders. OptAim VIE The Company’s relationships with Beijing OptAim and its shareholders are governed by the following contractual arrangements: · Cooperative Agreement Under the cooperative agreement between OptAim WFOE, Beijing OptAim and Shanghai OptAim, OptAim WFOE has the exclusive right to provide to Beijing OptAim and Shanghai OptAim, among others, technical consulting, technical support, business consulting, and appointment and dismissal of employees. OptAim WFOE will collect a fee from Beijing OptAim and Shanghai OptAim to be determined at the sole discretion of OptAim WFOE. The term of this agreement will not expire unless OptAim WFOE provides prior written notice to Beijing OptAim and Shanghai OptAim. · Purchase Option Agreement The parties to the purchase option agreement are OptAim WFOE, Beijing OptAim and each of the shareholders of Beijing OptAim. Under the purchase option agreement, each of the shareholders of Beijing OptAim irrevocably granted OptAim WFOE or its designated representative(s) an exclusive option to purchase, to the extent permitted under PRC law, all or part of its equity interests in Beijing OptAim. OptAim WFOE or its designated representative(s) have sole discretion as to when to exercise such options, either in part or in full. Without OptAim WFOE’s prior written consent, Beijing OptAim’s shareholders shall not sell, transfer, mortgage or otherwise dispose their equity interests in Beijing OptAim. The agreement will not expire until all shares of Beijing OptAim are transferred to OptAim WFOE or its designated representative(s). · Power of Attorney Pursuant to the irrevocable power of attorney executed by the shareholders of Beijing OptAim, Beijing OptAim appointed OptAim WFOE as its attorney-in-fact to exercise all shareholders’ rights in Beijing OptAim, including, without limitation, the power to vote on all matters of Beijing OptAim requiring shareholder approval under PRC laws and regulations and the articles of association of Beijing OptAim. The power of attorney will remain in force until OptAim WFOE provides prior written notice to Beijing OptAim. · Pledge Agreement Pursuant to the pledge agreement between OptAim WFOE and the shareholders of Beijing OptAim, the shareholders of Beijing OptAim have pledged all of their equity interests in Beijing OptAim to OptAim WFOE to guarantee the performance by Beijing OptAim under the cooperative agreement, purchase option agreement, and powers of attorney. If Beijing OptAim and/or its shareholders breach their contractual obligations under those agreements, OptAim WFOE, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. Under the pledge agreement, the shareholders of Beijing OptAim are not able to provide any other guarantee by pledging the shares of Beijing OptAim, transfer or sell their pledged shares to other individual, change share capital of Beijing OptAim or transfer or sell the assets out of Beijing OptAim. The shareholders of Beijing OptAim have completed the registration of the equity pledge with the relevant office of the Administration for Industry and Commerce in accordance with the PRC Property Rights Law on June 21, 2017. Through the aforementioned contractual agreements, OptAim VIE is considered VIE in accordance with Generally Accepted Accounting Principles in the United States (“US GAAP”) because the Company, through OptAim WFOE, has the ability to: · exercise effective control over OptAim VIE whereby having the power to direct OptAim VIE’s activities that most significantly drive the economic results of OptAim VIE; · receive substantially all of the economic benefits and residual returns, and absorb substantially all the risks and expected losses from the OptAim VIE as if it was their sole shareholder; and · have an exclusive option to purchase all of the equity interests in OptAim VIE. Management evaluated the relationships among the Company, OptAim WFOE and OptAim VIE, and concluded that OptAim WFOE is the primary beneficiary of OptAim VIE. As a result, OptAim VIE’s results of operations, assets and liabilities have been included in the Group’s consolidated financial statements. As of December 31, 2017 and 2018, the total assets of OptAim VIE were US$7,867 and US$5,706, respectively, mainly comprising cash and cash equivalents, accounts receivable, prepayments and other current assets, property and equipment. As of December 31, 2017 and 2018, the total liabilities of the OptAim VIE and its subsidiaries were US$6,819 and US$3,121 respectively, mainly comprising deferred revenue, accrued liabilities and other current liabilities. In accordance with the aforementioned agreements, the Company has power to direct activities of the OptAim VIE, and can have assets transferred out of OptAim VIE. Therefore the Company considers that there is no asset in OptAim VIE that can be used only to settle obligations of the OptAim VIE, except for registered capital and PRC statutory reserves of OptAim VIE amounting to US$2,081 and US$2,081, respectively, as of December 31, 2017 and 2018. As Beijing OptAim and its subsidiaries were incorporated as limited liability companies under the PRC Company Law, the creditors do not have recourse to the general credit of the Company for all the liabilities of the OptAim VIE. Currently there is no contractual arrangement that could require the Company to provide additional financial support to OptAim VIE. As the Company is conducting its PRC online marketing services business through OptAim VIE, the Company will, if needed, provide such support on a discretion basis in the future, which could expose the Company to a loss. There is no VIE where the Company has variable interest but is not the primary beneficiary. The Company believes that the contractual arrangements among its shareholders and OptAim WFOE are in compliance with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements and if the shareholders of OptAim VIE were to reduce their interest in the Company, their interests may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms. The Company’s ability to control the OptAim VIE also depends on the power of attorney and the effect of the share pledge under the Pledge Agreement and OptAim WFOE has to vote on all matters requiring shareholder approval in OptAim VIE. As noted above, the Company believes this power of attorney is legally enforceable but may not be as effective as direct equity ownership (c) Initial Public Offering The Company completed its initial public offering (“IPO”) on December 22, 2017 on the NASDAQ Global Market and the underwriters subsequently exercised their over-allotment option on December 27, 2017. The Company issued and sold a total of 4,312,500 American Depositary Shares (“ADSs”) pursuant to these transactions. Each ADS represents 0.5 common share. The net proceeds received by the Company, after deducting commissions and offering expenses, amounted to US$28,405. Upon the completion of the IPO, all of the Company’s outstanding preferred shares were converted into common shares immediately as of the same date. |
Principal accounting policies
Principal accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Principal accounting policies | |
Principal accounting policies | 2 Principal accounting policies (a) Basis of presentation The consolidated financial statements have been prepared in accordance with the US GAAP. Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. (b) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from such estimates. The Company believes that revenue recognition, consolidation of VIE, determination of share-based compensation, measurement of redemption value of redeemable preferred shares and impairment assessment of long-lived assets and intangible assets that reflect more significant judgments and estimates used in the preparation of its consolidated financial statements. Management bases the estimates on historical experience and on various other assumptions as discussed elsewhere to the consolidated financial statements that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could materially differ from these estimates. (c) Consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIE and VIE’s subsidiaries for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, its VIE and VIE’s subsidiaries have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIE’s economic performance, and also the Group’s obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. OptAim WFOE and ultimately the Company hold all the variable interests of the VIE and its subsidiaries, and has been determined to be the primary beneficiary of the VIE. Non-controlling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of comprehensive loss, statement of changes in equity and balance sheet, respectively. (d) Foreign currency translation The reporting currency of the Company is the United States dollars (“US$”). The Company is a holding company engaged in capital raising and financing activities denominated in US$. As such, the Company’s functional currency has been determined to be the US$. The functional currency of the Company’s subsidiaries is the local currency of the country in which they are domiciled. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange existing at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into the functional currency at the applicable rates of exchange prevailing at the transaction date. Transaction gains and losses are recognized in “other (losses)/gains, net”. Assets and liabilities denominated in foreign currencies are translated at the exchange rates at the balance sheet date. Equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive loss in the consolidated statements of changes in shareholders’ deficit/equity and comprehensive loss. (e) Fair value of financial instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. When available, the Company uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Fair value measurements are based on a fair value hierarchy, based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted market prices for similar assets and liabilities; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Observable inputs are based on market data obtained from independent sources. The Company’s derivative liabilities and convertible notes are measured using unobservable inputs that require a high level of judgment to determine fair value, and thus classified as Level 3 (Note 3(c) and Note 15). The Company values its investments in wealth management products issued by a bank classified as short-term investments in the consolidated balance sheets using quoted subscription/redemption prices published by the bank, and accordingly, the Company classifies the valuation techniques that use these inputs as Level 2. The carrying amounts of cash and cash equivalents, time deposits, accounts receivable, rebate receivables, accounts payable, other financial assets and liabilities approximate to their fair values due to the short-term nature of these instruments. Based on the borrowing rates currently available to the Group for debt with similar terms, the carrying value of the short-term loan approximates to its fair value (using Level 2 inputs). Certain assets, including intangible assets and long-term investment, are also subject to measurement at fair value on a non-recurring basis if they are deemed to be impaired as a result of an impairment review. For the years ended December 31, 2016, 2017 and 2018, no impairments were recorded on those assets required to be measured at fair value on a non-recurring basis. (f) Cash, cash equivalents and restricted cash Cash and cash equivalents include cash on hand, cash in bank and time deposits placed with banks or other financial institutions, which have original maturities of three months or less and are readily convertible to known amounts of cash. Restricted cash represented bank deposits in accounts that are restricted as to withdrawal or usage. For restriction which is expected to be released within one year of the balance sheet date, the respective restricted cash balance is classified as current. As of December 31, 2017 and 2018, the Company did not have any restricted cash. In November 2016, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-18, Statements of Cash Flows (Topic 230): Restricted Cash, which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts presented in the statement of cash flows. The Company has adopted this new guidance on January 1, 2018, using the retrospective transition method. Following the adoption of this guidance: · Amounts generally described as restricted cash are now presented with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the consolidated statements of cash flows. · (Increase)/decrease in restricted cash under net cash used in investing activities amounting to (US$4,234) and US$5,234 for the years ended December 31, 2016 and 2017, respectively, has been reclassified to net increase/(decrease) in cash and cash equivalents and restricted cash in the consolidated statements of cash flows. · No impact to the consolidated statements of cash flows for the year ended December 31, 2018 as there was no restricted cash during the year. · The Company has also added a reconciliation of cash, cash equivalents, and restricted cash to the consolidated statements of cash flows. (g) Time deposit Time deposit represents demand deposit placed with a bank with an original maturity of more than three months but less than one year. Interest income is recognized using the effective interest method in the consolidated statements of comprehensive loss during the periods. Time deposit is valued based on the prevailing interest rates in the market. (h) Accounts receivable, net Accounts receivable are presented net of allowance for doubtful accounts. The Group uses specific identification in providing for bad debts when facts and circumstances indicate that collection is doubtful and based on factors listed in the following paragraph. If the financial conditions of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowance may be required. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts on an individual basis taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the customers as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. (i) Rebates receivable Rebates receivable represent sales rebates that have already been earned but not received from third party publishers. The Company earns its rebates from purchasing advertising spaces from these website publishers. (j) Short-term investments Short-term investments include investments in wealth management products issued by a bank in the PRC which are redeemable by the Company at any time. The wealth management products are unsecured with variable interest rates and primarily invested in debt securities issued by the PRC government, corporate debt securities and central bank bills. The Company measures the short-term investments at fair value using the quoted subscription or redemption prices published by the bank. The change in fair value recorded in the consolidated statements of comprehensive loss amounted to US$nil, US$nil and US$25 for the years ended December 31, 2016, 2017 and 2018, respectively. (k) Long-term investment The Group’s long-term investment as of December 31, 2018 consists of equity security without readily determinable fair value. There was no long-term investment as of December 31, 2017. The Company adopted Accounting Standards Codification ("ASC") 321 “Investments—Equity Securities” on January 1, 2018 and required to measure its equity investment at fair value and any changes in fair value are recognized in earnings. For equity security without a readily determinable fair value and does not qualify for the existing practical expedient in ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”) to estimate fair value using the net asset value per share (or its equivalent) of the investment, the Company elected to use the measurement alternative to measure its equity investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. (l) Property and equipment, net Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. The estimated useful lives are as follows: Leasehold improvements Over the shorter of lease term or 2 - 5 years Furniture and fixtures 2 - 5 years Office equipment 3 - 5 years Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statement of comprehensive loss. (m) Business combinations The Company accounts for acquisitions of entities that include inputs and processes and have the ability to create outputs as business combinations. The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805 "Business Combinations" (“ASC 805”). The cost of an acquisition is measured as the aggregate of the acquisition date fair value of the assets transferred to the sellers and liabilities incurred by the Company and equity instruments issued. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total costs of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive loss as gain on bargain purchase. During the measurement period, which can be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statement of comprehensive loss. (n) Intangible assets, net Intangible assets mainly consist of computer software licenses purchased from external parties and computer software and systems acquired through the acquisitions of OptAim, Buzzinate and Myhayo, respectively. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite lived intangible assets are tested for impairment if impairment indicators arise. Amortization of finite lived intangible assets is computed using the straight-line method over the following estimated useful lives, which are as follows: Computer software and systems 2 - 5 years (o) Impairment of long-lived assets and intangible assets For other long-lived assets including property and equipment and amortizable intangible assets, the Group evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. (p) Impairment of goodwill Impairment of goodwill assessment is performed on at least an annual basis on December 31 or whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. According to ASC 350‑20‑35, an entity may assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. The Group, however, selects proceed directly to perform a two-step goodwill impairment test. The first step compares the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of the affected reporting unit’s goodwill to the carrying value of that goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in adjusting the value of any assets or liabilities. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. The judgment in estimating the fair value of a reporting unit includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of the fair value of a reporting unit. No goodwill impairment losses were recognized for the years ended December 31, 2016, 2017 and 2018. (q) Deferred revenue The Group receives prepayments for services in advance of service performance from certain customers. The amounts received in advance are recorded as deferred revenue and recognized as revenue in the period which the corresponding services are performed. (r) Derivative financial instruments ASC 815, “Accounting for Derivative Instruments and Hedging Activities” (“ASC 815”) requires every derivative financial instrument (including certain derivative financial instruments embedded in other contracts) to be recorded on the balance sheet at fair value as either an asset or a liability. ASC 815 also requires that changes in the fair value of recorded derivatives be recognized currently in earnings unless specific hedge accounting criteria are met. The Company’s derivative financial instruments as of December 31, 2016 included the conversion features and redemption features of the preferred shares. There was no derivative financial instrument as of December 31, 2017 and 2018. (s) Convertible debt The Company determines the appropriate accounting treatment of its convertible debts in accordance with the terms in relation to the conversion feature, call and put option, and beneficial conversion feature (“BCF”). After considering the impact of such features, the Company may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the respective guidance described under ASC 815 and ASC 470 “Debt”. The conversion features of the convertible notes of the Company meets the definition of a derivative whereby no BCF shall be separately accounted for. Moreover, the Company has elected the fair value option for convertible debts accounted for as a liability in its entirety whereby the conversion features that meets the definition of a derivative are not bifurcated given that the entire debt instrument is legally a single contract therefore not to be separated into parts for purposes of applying the fair value option. Such fair value option permits the irrevocable election on an instrument-by-instrument basis at initial recognition of an asset or liability or upon an event, that gives rise to a new basis of accounting for that instrument. The convertible debts accounted for under the fair value option are carried at fair value with realized or unrealized gains and losses recorded in the consolidated statements of comprehensive loss. Convertible debts are classified as current liabilities if they are convertible or redeemable on demand or if their due date is or will be within one year from the balance sheet date. (t) Treasury shares The Company accounted for those shares repurchased as treasury shares at cost in accordance with ASC 505-30, and the treasury shares acquired are shown separately in shareholders’ equity as the Company has not yet decided on the ultimate disposition of those shares. If and when the Company cancels the treasury shares, the difference between the original issuance price and the repurchase price will be debited into additional paid-in capital. (u) Revenue recognition and cost of revenues On January 1, 2018, the Group adopted ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)” and subsequent amendments to the initial guidance or implementation guidance issued between August 2015 and December 2016 within ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 (collectively, "ASC 606") using a modified retrospective approach applied to contracts that were not completed as of January 1, 2018. The adoption did not have a material impact on the accumulated deficit as of January 1, 2018. Results for reporting periods beginning on or after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Group’s historic accounting under ASC 605. The Group’s services are the provisions of online marketing services. The Group utilizes a combination of pricing models and revenue is recognized when the related services are delivered based on the specific terms of the contract, which are commonly based on (i) agreed incentive to be earned for being a sales agent of a publisher, (ii) cost-plus or (iii) specified actions (i.e. cost per impression (“CPM”), cost per click (“CPC”), cost per action (“CPA”), cost per sale (“CPS”), cost per lead (“CPL”) or return on investment (“ROI”)) and related campaign budgets, depending on the customers’ preferences and their campaigns launched. The following table presents our revenue recognized from contracts with customers disaggregated by the three types of pricing models: For the year ended December 31, 2016 December 31, 2017 December 31, 2018 Under ASC 605 Under ASC 605 Under ASC 606 Recognized over time - Sales agent 7,924 8,311 8,671 - Cost-plus 15,378 10,788 12,192 23,302 19,099 20,863 Recognized at point in time - Specified actions 72,055 106,159 139,154 95,357 125,258 160,017 As noted above, in accordance with the modified retrospective method upon adoption of ASC 606, prior period amounts have not been adjusted. The Group recognizes revenue when the Group satisfies a performance obligation by transferring a promised service to a customer. The Group considers the following when determining if a contract exists under which the performance obligations have been satisfied: (i) contract approval by all parties, (ii) identification of each party’s rights regarding the goods or services to be transferred, (iii) specified payment terms, (iv) commercial substance of the contract, and (v) collectability of substantially all of the consideration is probable. Collectability is assessed based on a number of factors, including the creditworthiness of a customer, the size and nature of a customer’s business and transaction history. Revenues are recorded net of value-added taxes. Sales agent In the arrangement with a particular publisher, the Group acts as a sales agent for this publisher in selling marketing spaces to marketing clients. In return, the Group earns incentives from this publisher based on contractually stipulated amounts when certain spending thresholds are achieved. The Group considers this particular publisher as a customer and record such incentives as net revenues. Incentives from this publisher are calculated on both a quarterly and an annual basis in accordance with the terms as set out in the arrangement. Revenue under this arrangement is recognized over-time given the Group considers this particular publisher simultaneously receives and consumes the benefits provided by the Group's performance as the Group performs. In other words, when the Group purchases marketing spaces on behalf of the marketing clients throughout the marketing campaigns as requested by them, this particular publisher simultaneously receives and consumes the benefit of the marketing spaces being purchased and therefore the Group is entitled to incentive payment from this publisher. The Group grants rebates to marketing clients under the sales agent arrangement. The majority of marketing clients under this arrangement are not customers under either the cost-plus arrangement or specified actions arrangement. The Group records rebates granted to such marketing clients as reduction of revenue. Cost-plus For cost-plus advertisement campaigns, sales are recognized at the fair value of the amount received. Discounts granted to marketing clients under cost-plus marketing campaigns are recorded as a reduction of revenue. The determination of whether revenue should be reported on a gross or net basis is based on an assessment of whether the Group is acting as the principal or an agent in the transactions. In the normal course of business, the Group acts as an intermediary in executing transactions between website publishers and marketing clients. The specified service in the cost-plus arrangement is the provision of marketing space, which is controlled by the website publishers, rather than the Group. The Group assists the marketing clients to place orders with specific website publishers based on specification set out the marketing clients. The Group does not have the ability to direct the use of marketing space and does not have any inventory risk. Pricing is generally based on the actual advertising spending incurred by the marketing clients plus a margin. Accordingly, the Group concludes that it is not the principal in these arrangements and reports revenue earned and costs incurred related to these transactions on a net basis. Revenue under this arrangement is recognized over-time as the Group considers its customers simultaneously receive and consume the benefits provided by the Group's performance. At the time the Group purchases marketing spaces during the contract term for its customers, the customers’ advertisements could be placed throughout the marketing campaign. Revenue recognition under this arrangement is not based on an occurrence of significant act or milestone method Throughout the various services delivered to clients under the cost-plus arrangements, the Group earns rebates from publishers and grant rebates to marketing clients. The rebates that the Group grants to marketing clients under cost-plus arrangement are recorded as reduction of revenue and are recorded based on the amount the marketing clients would ultimately need to spend to earn the corresponding level of rebates. The Group is also able to reasonably estimate the spending the customers can ultimately achieve based on the historical spending patterns of the customers with similar arrangements. The rebates that the Group receives from publishers under the cost-plus arrangements are recorded as revenue. These rebates are recognized when a particular milestone is achieved (i.e. applying the relevant rebates based on the level of spending threshold actually achieved) and spending has actually occurred. Specified actions The Group, including the newly acquired subsidiaries Myhayo, also generates revenue from performing specified actions (i.e. a CPM, CPC, CPA, CPS, CPL or ROI basis). Revenue is recognized on a CPM or CPC basis as impressions or clicks are delivered while revenue on a CPA, CPS, CPL or ROI basis is recognized once agreed actions are performed. For the specified actions advertisement campaigns, the Group is the principal as it has the obligation to deliver successful actions requested by marketing clients. Also, the Group will only be paid if successful actions can be delivered and is exposed to risk of loss. In terms of pricing, the Group has complete latitude in establishing the selling prices of each of the CPM, CPC, CPA, CPS, CPL or ROI pricing model. The Group's margin may vary as the costs incurred to deliver successful actions may vary and is therefore exposed to risk of loss whereby validating its degree of responsibility to its customers. Although the inventory risk under specified actions arrangement is considered to be low, the Group concludes that it is the principal in such arrangement as it is the principal ultimately responsible for delivering successful actions and in charge of establishing the price per action. Accordingly, the Group reports revenue earned and costs incurred related to these transactions on a gross basis. Revenues under this arrangement is recognized at point-in-time when the Group is able to deliver the specified actions as requested by the customers. Upon the occurrence of the specified actions, the customers take control of the specified actions and this is when the Group recognizes the corresponding revenue. Unlike the cost-plus arrangement, when the Group purchases marketing spaces in order to deliver the specified actions, the customers do not receive and consume the benefit as the benefit to be received by the customers is the occurrence of the specified actions. Also, the Group does not create or enhance an asset that the customers control as the marketing spaces ultimately belong to the publishers. The Group does not have any right to payment for simply purchasing the marketing spaces and would only be compensated upon delivery of the specified actions. Similar to the cost-plus arrangements, the Group earns rebates from publishers and grant rebates to marketing clients under specified action arrangement. Likewise, the rebates that the Group grants to marketing clients under specified action arrangement are recorded as reduction of revenue and are recorded based on the amount the marketing clients would ultimately need to spend to earn the corresponding level of rebates based on the historical spending patterns of the customers with similar arrangements. The rebates that the Group receives from publishers under the specified action arrangements are recorded as a reduction of cost of revenues. Similar to the cost-plus arrangement, these rebates under specified action arrangements are recognized when a particular milestone is achieved (i.e. applying the relevant rebates based on the level of spending threshold actually achieved) and spending has |
Certain risks and concentration
Certain risks and concentration | 12 Months Ended |
Dec. 31, 2018 | |
Certain risks and concentration | |
Certain risks and concentration | 3 Certain risks and concentration (a) PRC regulations The Chinese market in which the Company operates poses certain macro-economic and regulatory risks and uncertainties. These uncertainties extend to the ability of the Company to engage in online marketing businesses through contractual arrangements in the PRC since the internet and marketing services industries remain regulated. The Company conducts certain of its operations in the PRC through its variable interest entity, which it consolidates as a result of a series contractual arrangements enacted. Though the PRC has, since 1978, implemented a wide range of market-oriented economic reforms, continued reforms and progress towards a full market-oriented economy are uncertain. In addition, the telecommunication, information, and media industries remain highly regulated. Restrictions are currently in place and are unclear with respect to which segments of these industries foreign owned entities, like the Company, may operate. The Chinese government may issue from time to time new laws or new interpretations on existing laws to regulate areas such as telecommunication, information and media. Regulatory risk also encompasses the interpretation by the tax authorities of current tax laws, and the Group’s legal structure and scope of operations in the PRC, which could be subject to further restrictions resulting in limitations on the Company’s ability to conduct business in the PRC. There are uncertainties regarding the interpretation and application of current and future PRC laws, rules and regulations, including but not limited to the laws, rules and regulations governing the validity and enforcement of the contractual arrangements with consolidated VIE. The Company believes that the structure for operating its business in the PRC (including the ownership structure and the contractual arrangements with the consolidated VIE is in compliance with all applicable existing PRC laws, rules and regulations, and does not violate, breach, contravene or otherwise conflict with any applicable PRC laws, rules or regulations. However, the Company cannot assure that the PRC regulatory authorities will not adopt any new regulation to restrict or prohibit foreign investments in the online marketing business through contractual arrangements in the future or that it will not determine that the ownership structure and contractual arrangements violate PRC laws, rules or regulations. If the Company and its consolidated VIE are found to be in violation of any existing or future PRC laws or regulations, or fail to obtain or maintain any of the required permits or approvals, the relevant PRC regulatory authorities would have broad discretion in dealing with such violations, including: · revoking the business licenses of such entities; · discontinuing or restricting the conduct of any transactions between the Company’s PRC subsidiaries and OptAim VIE; · imposing fines, confiscating the income of the OptAim VIE or the Company’s PRC subsidiaries, or imposing other requirements with which the Company or its PRC subsidiaries and OptAim VIE may not be able to comply; · requiring the Company to restructure its ownership structure or operations, including terminating the contractual arrangements with OptAim VIE and deregistering the equity pledges of OptAim VIE, which in turn would affect its ability to consolidate, derive economic interests from, or exert effective control over OptAim VIE; or · restricting or prohibiting its use of the proceeds of any offering to finance its business and operations in the PRC. If the imposition of any of these penalties precludes the Company from operating its business, it would no longer be in a position to generate revenue or cash from it. If the imposition of any of these penalties causes the Company to lose its rights to direct the activities of its consolidated VIEs or its rights to receive its economic benefits, the Company would no longer be able to consolidate these entities, and its financial statements would no longer reflect the results of operations from the business conducted by VIEs except to the extent that the Company receives payments from VIEs under the contractual arrangements. Either of these results, or any other significant penalties that might be imposed on the Company in this event, would have a material adverse effect on its financial condition and results of operations. Nevertheless, the laws and regulations that imposed restrictions on foreign ownership in advertising companies, including the Administrative Provisions on Foreign-Invested Advertising Enterprises were abolished in June 2015. To the extent any current or future business of OptAim VIE can be directly operated by the Company’s wholly owned subsidiaries under PRC law, the Company is in the process of transferring such business to the Company’s wholly owned subsidiaries. On January 19, 2015, the Ministry of Commerce of the PRC, or (the “MOFCOM”) released on its Website for public comment a proposed PRC law (the “Draft FIE Law”) that appears to include VIEs within the scope of entities that could be considered to be foreign invested enterprises (or “FIEs”) that would be subject to restrictions under existing PRC law on foreign investment in certain categories of industry. Specifically, the Draft FIE Law introduces the concept of “actual control” for determining whether an entity is considered to be an FIE. In addition to control through direct or indirect ownership or equity, the Draft FIE Law includes control through contractual arrangements within the definition of “actual control”. If the Draft FIE Law is passed by the People’s Congress of the PRC and goes into effect in its current form, these provisions regarding control through contractual arrangements could be construed to reach the Group’s VIE arrangement, and as a result the Group’s VIE could become explicitly subject to the current restrictions on foreign investment in certain categories of industry. The Draft FIE Law includes provisions that would exempt from the definition of foreign invested enterprises entities where the ultimate controlling shareholders are either entities organized under PRC law or individuals who are PRC citizens. The Draft FIE Law does not make clear how “control” would be determined for such purpose, and is silent as to what type of enforcement action might be taken against existing VIEs that operate in restricted industries and are not controlled by entities organized under PRC law or individuals who are PRC citizens. If a finding were made by PRC authorities under the Draft FIE Law if it becomes effective, that the Company’s operation of certain of its operations and businesses through VIE violates the Draft FIE Law, regulatory authorities with jurisdiction over the licensing and operation of such operations and businesses may require the Company to take various actions as discussed in the paragraph above. The Group’s management considers the possibility of such a finding by PRC regulatory authorities under the Draft VIE law, if it becomes effective, to be remote. OptAim VIE holds assets that are important to the operation of the Group’s business, including patents for proprietary technology and trademarks. If OptAim VIE falls into bankruptcy and all or part of its assets become subject to liens or rights of third-party creditors, the Group may be unable to conduct major part of its business activities in the PRC, which could have a material adverse effect on the Group’s future financial position, results of operations or cash flows. However, the Group believes this is a normal business risk many companies face. The Group will continue to closely monitor the financial conditions of OptAim VIE. OptAim VIE’s assets comprise both recognized and unrecognized revenue-producing assets. The recognized revenue-producing assets include leasehold improvements, computers and network equipment and self-developed computer software which are recognized in the Company’s consolidated balance sheet. The unrecognized revenue-producing assets mainly consist of patents, trademarks and assembled workforce which are not recorded in the financial statements of OptAim VIE as it did not meet the recognition criteria set in ASC 350‑30‑25. The following financial information of the OptAim VIE and its subsidiaries excluding the intercompany items with the Company’s subsidiaries was included in the accompanying financial statements as of December 31, 2017 and 2018 and for the years ended December 31, 2016, 2017 and 2018: As of December 31, 2017 2018 Assets Current assets Cash and cash equivalents 1,585 1,865 Accounts receivable, net 5,553 2,357 Other current assets 552 604 Total current assets 7,690 4,826 Non-current assets Property and equipment, net 14 9 Intangible assets — 697 Other non-current assets 163 174 Total non-current assets 177 880 Total assets 7,867 5,706 Liabilities Current liabilities Accounts payable 29 45 Deferred revenue 5,986 1,300 Accrued liabilities and other current liabilities 804 1,776 Total current liabilities 6,819 3,121 Non-current liabilities Deferred tax liabilities — 238 Total non-current liabilities — 238 Total liabilities 6,819 3,359 For the years ended December 31, 2016 2017 2018 Net revenues 52,215 25,302 2,902 Net (loss)/profit (322) 1,646 (47) Net cash provided by operating activities 1,043 539 281 Net cash used in investing activities (3) — (1) Net increase in cash and cash equivalents 1,040 539 280 In accordance with the VIE arrangements, the Group has the power to direct activities of the OptAim VIE, and can have assets transferred out of the OptAim VIE. Therefore, the Group considers that there are no assets of the OptAim VIE can be used only to settle their obligations. (b) Foreign exchange risk Assets and liabilities of non-US$ functional currency entities are translated into US$ using the applicable exchange rates at the balance sheet date. Items in the statements of comprehensive loss are translated into US$ using the average exchange rate during the period. Equity accounts were translated at their historical exchange rates. The resulting translation adjustments are accumulated as a component of accumulated other comprehensive income on the consolidated statements of shareholders’ (deficit)/equity. Certain of the Group’s operating activities are transacted in Renminbi (“RMB”), which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. The revenues and expenses of the Group’s subsidiaries, VIE and VIE’s subsidiaries in the PRC are generally denominated in RMB and their assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies, and remittances of foreign currencies into the PRC and exchange of foreign currencies into RMB require approval by foreign exchange administrative authorities and certain supporting documentation. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices and signed contracts. The value of 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. Certain of the Group’s operating activities are transacted in Hong Kong Dollars (“HK$”). Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations. The Group considers the foreign exchange risk in relation to transactions denominated in HK$ with respect to US$ is not significant as HK$ is pegged to US$. (i) Financial assets and liabilities measured at fair value The following table sets forth, by level within the fair value hierarchy (see Note 2(e)), financial assets and liabilities measured at fair value as of December 31, 2018. As required by ASC 820, financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the respective fair value measurement. There were no financial assets or liabilities measured at fair value as of December 31, 2017. As of December 31, 2018 Fair value measurements using Quoted prices in active Significant market for other Significant identical observable Unobservable Total fair assets inputs inputs value (Level 1) (Level 2) (Level 3) Short-term investments 17,427 — 17,427 — Convertible notes at fair value (34,837) — — (34,837) (17,410) — 17,427 (34,837) (ii) Equity securities without readily determinable fair values The equity securities without readily determinable fair value are recorded at fair value only if an impairment or observable price adjustment is recognized in the current period. There were no fair value changes related to such equity securities classified as long-term investment in the consolidated balance sheets for the years ended December 31, 2016, 2017 and 2018. (d) Concentration risk (i) Concentration of revenues For the year ended December 31, 2016, two customers accounted for 18% and 11% of the net revenues, respectively. For the year ended December 31, 2017, no individual customer accounted for more than 10% of the net revenues. For the year ended December 31, 2018, one customer accounted for 14% of the net revenues. (ii) Concentration of accounts receivable The Group has not experienced any significant recoverability issue with respect to its accounts receivable. The Group conducts credit evaluations on its customers and generally does not require collateral or other security from such customers. The Group grants up to 180 days of credit term to customers and periodically evaluates the creditworthiness of the existing customers in determining an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. As of December 31, 2017 and 2018, no individual customer accounted for more than 10% of the consolidated accounts receivable. The top 10 accounts receivable accounted for 42% and 48% of the consolidated accounts receivable as of December 31, 2017 and 2018, respectively. (iii) Credit risk As of December 31, 2017 and 2018, substantially all of the Group’s cash and cash equivalents were placed with financial institutions in Hong Kong and the PRC. Management chooses these institutions because of their reputations and track records for stability, and their known large cash reserves, and management periodically reviews these institutions’ reputations, track records, and reported reserves. Management expects that any additional institutions that the Group uses for its cash and bank deposits will be chosen with similar criteria for soundness. The balances in the PRC are not insured since it is not a market practice in the PRC. Nevertheless under the PRC law, it is required that a commercial bank in the PRC that holds third party cash deposits should maintain a certain percentage of total customer deposits taken in a statutory reserve fund for protecting the depositors’ rights over their interests in deposited money. PRC banks are subject to a series of risk control regulatory standards; PRC bank regulatory authorities are empowered to take over the operation and management of any PRC bank that faces a material credit crisis. The Group believes that it is not exposed to unusual risks as these financial institutions are PRC banks with high credit quality. The Group had not experienced any losses on its deposits of cash and cash equivalents during the years ended December 31, 2016, 2017 and 2018 and believes that its credit risk to be minimal. |
Business acquisition
Business acquisition | 12 Months Ended |
Dec. 31, 2018 | |
Business acquisition | |
Business acquisition | 4 Business acquisition In November 2018, Beijing VIE acquired 40% equity interest of Myhayo from an independent third party. The Company obtains control over Myhayo with its controlling voting right at the level of both shareholders and board of directors, as the other shareholder of Myhayo expects the operating effectiveness brought about by the control over Myhayo by the Company to be of their best interests. Myhayo and its underlying subsidiary is a mobile content aggregator of articles and short videos in the PRC, which presents customized feeds to users via its mobile application. The Company expects to increase its market share in the PRC online marketing segment, particularly in relation to mobile platforms. The total purchase consideration for 40% equity interest of Myhayo amounted to US$726 by cash. The acquisition was recorded as a business combination. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Fair value of consideration transferred: Cash 726 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash 2,420 Other current assets 6,329 Property and equipment 8 Intangible asset 697 Current liabilities (6,688) Deferred tax liabilities (238) Non-controlling interests (1,517) Total identifiable net assets acquired 1,011 Gain on bargain purchase (Note 21) 285 As of December 31, 2018, purchase consideration payable of US$726 was settled and there was no adjustment to the purchase consideration amounts. This business combination resulted in a gain of bargain purchase because the purchase price was lower than the fair value of assets acquired and liabilities assumed. The gain on bargain purchase is attributable to the Group’s bargaining power and ability in negotiating the agreed terms of the transaction with the existing shareholder who has been seeking for strategic investors that could bring synergies to Myhayo. Acquisition-related costs were immaterial and were included in general and administrative expenses for the year ended December 31, 2018. In determining the fair value of the intangible asset, an income approach was used. In this approach, significant estimates consist of discount rate of 29.4% and a growth rate on revenue ranges from 50% to 106.8%. The estimated amounts recognized on the acquired identifiable intangible asset and its estimated useful life are shown in the following table: Gross carrying Estimated useful life amount A self-developed computer software and system 4 years 697 Pro-forma results related to the acquisition in accordance ASC 805 have not been presented because the acquisition of Myhayo is not material, where net revenue and net loss of the acquired entity is less than 5% of the Company’s consolidated net revenue and net loss for the year ended December 31, 2018. |
Cash and cash equivalents and t
Cash and cash equivalents and time deposit | 12 Months Ended |
Dec. 31, 2018 | |
Cash and cash equivalents and time deposit | |
Cash and cash equivalents and time deposit | 5 Cash and cash equivalents and time deposit Cash and cash equivalents represent cash on hand, cash held at bank, and short-term deposits placed with banks or other financial institutions, which have original maturities of three months or less. The Group had US$25,000 and US$nil of time deposit as of December 31, 2017 and 2018, respectively, with an original maturity of 3.2 months in 2017 denominated in US dollars. Cash on hand and cash held at bank balance as of December 31, 2017 and 2018 primarily consist of the following currencies: As of December 31, 2017 2018 Amount equivalent Amount equivalent RMB 50,600 7,694 61,312 8,904 HK$ 18,099 2,332 10,337 1,317 US$ 33,639 33,639 29,185 29,185 SGD 432 323 263 190 TWD 7,014 235 5,700 181 Euro (“EUR”) 106 126 38 43 Others 67 52 6 8 44,401 39,828 |
Long-term investment
Long-term investment | 12 Months Ended |
Dec. 31, 2018 | |
Long-term investment | |
Long-term investment | 6 Long-term investment The Company’s long-term investment consists of equity investment at fair value without readily determinable fair value purchased in 2018. Equity security without a readily determinable fair value and over which the Company has neither significant influence nor control through investments in common stock or in-substance common stock. The carrying value of the equity security without readily determinable fair values was US$503 as of December 31, 2018. There was no fair value change related to the investment for the year ended December 31, 2018. The investment is not considered material to the Company’s financial position. As of December 31, 2017 and 2018, the Company made investment in equity investment without a readily determinable fair value with an amount of US$nil and US$503, respectively. |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Dec. 31, 2018 | |
Accounts receivable, net | |
Accounts receivable, net | 7 Accounts receivable, net As of December 31, 2017 2018 Accounts receivable, gross 42,276 67,134 Less: allowance for doubtful accounts (1,478) (1,507) Accounts receivable, net 40,798 65,627 The following table presents the movement in the allowance for doubtful accounts: For the years ended December 31, 2016 2017 2018 Balance at the beginning of year 1,733 1,693 1,478 Additions for the year 99 910 92 Recoveries — (40) — Accounts receivable written off (99) (1,134) (15) Exchange differences (40) 49 (48) Balance at the end of year 1,693 1,478 1,507 |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2018 | |
Other assets | |
Other assets | 8 Other assets The other assets consist of the following: As of December 31, 2017 2018 Current Deposits 2,248 984 Prepayments 266 1,262 VAT receivable 379 325 Others 214 671 3,107 3,242 Non-current Rental deposits 284 232 284 232 |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 31, 2018 | |
Property and equipment, net | |
Property and equipment, net | 9 Property and equipment, net Property and equipment consist of the following: As of December 31, 2017 2018 Cost: Office equipment 4,661 4,327 Leasehold improvements 1,763 1,487 Furniture and fixtures 753 693 Total cost 7,177 6,507 Less: Accumulated depreciation (5,882) (6,046) Exchange differences (130) (132) Property and equipment, net 1,165 329 Depreciation expense recognized for the years ended December 31, 2016, 2017 and 2018 are summarized as follows: For the years ended December 31, 2016 2017 2018 Cost of revenues 11 6 6 Research and development 199 108 124 Sales and marketing expenses 838 582 504 General and administrative expenses 464 667 425 Total 1,512 1,363 1,059 |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Dec. 31, 2018 | |
Intangible assets, net | |
Intangible assets, net | 10 Intangible assets, net Intangible assets consist of the following: As of December 31, 2017 2018 Cost: Computer software 21,593 22,382 Less: Accumulated amortization Computer software (10,994) (15,136) Exchange differences 1 1 Intangible assets, net 10,600 7,247 Amortization expense recognized for the years ended December 31, 2016, 2017 and 2018 are summarized as follows: For the years ended December 31, 2016 2017 2018 Cost of revenues 4,149 4,147 4,147 Research and development 28 3 1 Sales and marketing expenses 19 17 3 General and administrative expenses 116 54 16 4,312 4,221 4,167 The estimated aggregate amortization expense for each of the next five years as of December 31, 2018 is: Computer software 2019 4,361 2020 2,498 2021 215 2022 173 2023 — 7,247 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill. | |
Goodwill | 11 Goodwill Movements on goodwill during the year were as follows: Buzzinate OptAim Total Balance as of January 1, 2017, December 31, 2017 and 2018 2,958 45,538 48,496 Goodwill is not deductible for tax purposes. The Group performs the annual impairment test on December 31 of each year using a two-step process as explained in Note 2(p). In the first step of the goodwill impairment test, the Group estimated the fair value of its reporting unit using the market approach. Under the market approach, the Company utilized the market capitalization of its publicly-traded shares to determine the fair value of the Group, as a single reporting unit. According to the assessment of the first step, the fair value of the reporting unit exceeded its carrying amount and goodwill was not considered impaired. Accordingly, the second step was not required. Based on the impairment tests performed, no impairment of goodwill was recorded for all years presented. |
Deferred revenue
Deferred revenue | 12 Months Ended |
Dec. 31, 2018 | |
Deferred revenue | |
Deferred revenue | 12 Deferred revenue As of December 31, 2017 2018 Deferred revenue, current 33,037 27,191 |
Accrued liabilities and other l
Accrued liabilities and other liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Accrued liabilities and other liabilities | |
Accrued liabilities and other liabilities | 13 Accrued liabilities and other liabilities Accrued liabilities and other liabilities consist of the following: As of December 31, 2017 2018 Current Rebates payable to customers 3,257 2,209 VAT and other taxes payable 2,659 3,548 Security deposit received from customers 686 551 Accrued employee benefits 2,741 3,980 Accrued professional fees 4,167 3,359 Accrued marketing and hosting expense 1,831 1,342 Others 788 1,359 16,129 16,348 Non-current Deferred other income — |
Bank borrowings
Bank borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Bank borrowings | |
Bank borrowings | 14 Bank borrowings As of December 31, 2017 2018 1-year revolving loan denominated in RMB (Note (i), (v)) 7,603 — Half-year revolving loans denominated in RMB (Note (i), (ii), (v)) — 9,439 1-year revolving loan denominated in US$ (Note (iii)) 2,800 — 2-year demand loan agreement denominated in US$ (Note (iv)) 83 — 10,486 9,439 Note: (i) On December 27, 2017, the Company, through its PRC subsidiaries, renewed a one-year revolving loan agreement with a bank amounting to RMB50 million (equivalent to US$7,603). The interest rate of this loan facility was the benchmark interest rate determined by the People’s Bank of China for loans over one year granted by financial institutions plus 1.65% per annum. This loan was subsequently renewed for one year in December 2018 of limit up to RMB70 million. Out of this loan facility, the PRC subsidiaries had utilized RMB50 million (equivalent to US$7,261) at the interest rate determined by the People’s Bank of China for loans over half year granted by financial institutions plus 2.65% per annum. (ii) On September 21, 2018, the Company, through a PRC subsidiary, entered into a half-year revolving loan agreement with a bank of limit up to RMB30 million. Out of this loan facility, the PRC subsidiary had utilized RMB15 million (equivalent to US$2,178). The Company provides corporate guarantee and accounts receivable as pledge to secure the obligations under this revolving loan. The interest rate of this loan facility was the benchmark interest rate determined by the People’s Bank of China for loans over half year granted by financial institutions plus 2.65% per annum. (iii) On December 21, 2016, the Company, through a Hong Kong subsidiary, renewed a one-year loan facility agreement with a bank amounting to US$3,000. Out of this loan facility, the Hong Kong subsidiary had utilized US$2,800 as of December 31, 2017. The interest rate of this short-term loan facility was determined by three-month LIBOR plus 5.55% for the year ended December 31, 2017. The loan was repaid on December 20, 2018. (iv) On January 20, 2016, the Company, through a Hong Kong subsidiary, entered into a two-year loan agreement with a bank amounting to US$2,000. Out of this loan facility, the Hong Kong subsidiaries had utilized US$83 as of December 31, 2017. The interest rate of this loan was the benchmark interest rate determined by three-month LIBOR plus 7.00% per annum. The bank facility agreement includes repayable on demand clauses such that the bank borrowing are classified as current liabilities as of December 31, 2017. The loan was repaid on January 20, 2018. (v) As of December 31, 2017 and 2018, certain financial covenants (minimum monthly adjusted quick ratio and minimum quarterly EBITDA as defined in the banking facilities agreements) as set out in these loan agreements have been breached. The relevant subsidiaries have obtained waiver letters for waiving the requirements to meet the financial covenants. As of the date of this report, the bank cannot demand for immediate repayment. (vi) In March 2017, the Company entered into a facility agreement for working capital loans with a bank, which provides for a RMB30 million ( equivalent to approximately US$4.3 million) 18‑month revolving loan. The Company provide corporate guarantee and accounts receivable as pledge to secure the obligations under this revolving loan. The interest rate of this loan facility is fixed at 5.75% per annum. As of December 31,2017 and 2018, the Company had not drawn down under this revolving loan. The weighted average interest rate for bank loans outstanding as of December 31, 2017 and 2018 was 6.33% and 7.00% per annum, respectively. Other than those shown above, the Company did not have any significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2017 and 2018. |
Convertible notes at fair value
Convertible notes at fair value | 12 Months Ended |
Dec. 31, 2018 | |
Convertible notes at fair value | |
Convertible notes at fair value | 15 Convertible notes at fair value On September 12, 2018, the Company issued US$30,000 of zero-coupon convertible notes (“the Notes”) at par. The Notes mature on September 12, 2023 and are non-interest bearing, unless the Notes are redeemed or repaid upon the occurrence of events of default or relevant events as defined in the agreement whereby an interest of 5% per annum would be charged. The Company considers the likelihood of occurrence of events or relevant events as defined in the agreement to be remote. Holder of the Notes has the option to convert the Notes at any time on or after October 22, 2018 up to the close of business of the maturity date (the “Conversion Period”). Any outstanding principal amount not converted within the Conversion Period will mandatorily be converted on the maturity date. The Notes can be converted into the Company’s ADSs at an conversion price of 92% of the lowest of (i) the volume weighted average prices (“VWAP”) of the ADSs over the period from the issue date to the conversion date, (ii) the VWAP of the ADSs over the five trading day period preceding the conversion date, and (iii) a fixed price of USD8. Notwithstanding the foregoing, in no event will the Conversion Price be less than USD2.78. The Company will not issue any fractional ADSs upon conversion of the Notes and will instead pay cash in lieu of any fractional ADSs deliverable upon conversion. If the VWAP of ADSs on the conversion date is lower than that on September 12, 2018, the Company may make an election to settle in whole by paying the holder of the Notes a cash alternative amount (which is equivalent to principal amount to be converted divided by 92%). Notwithstanding anything to the contrary in the Notes, no ordinary shares (including ordinary shares represented by ADSs) will be delivered to the Notes holder if such delivery would result in the aggregate number of ordinary shares (including ordinary shares represented by ADSs) to be delivered taken together with the aggregate number of ordinary shares delivered by the Company since the issue date to exceed 19.9% of the Company's outstanding common stock as of the issue date (the "Share Cap"). In such event, the Company's obligation will be satisfied by delivering the maximum number of ADSs such that the delivery does not exceed the Share Cap and any portion of the principal amount that is not so converted will be settled by the Company by paying the cash settlement amount ("Cash Settlement Amount") to such converting holder. The Cash Settlement Amount is the remaining amount divided by 92%. Concurrently with the issuance of the Notes, the Company offered a put option to the holder of the Notes, whereby the holder has the right to require the Company to repurchase all of the outstanding Notes for cash at a price equal to 100% of the outstanding principal amount plus accrued and unpaid interest to the repurchase date in case of the occurrence of any of the relevant events as defined in the agreement prior to the maturity date. The Company considers the likelihood of occurrence of such relevant events to be remote. The Company also concluded that the feature of contingent put options being considered clearly and closely related to its debt host does not need to be considered as an embedded derivative to be bifurcated. For both the convertible debt and conversion option which are recognized as financial liabilities, the Company has elected the fair value option under ASC 825-10 to measure the entire instrument at fair value with realized or unrealized gains and losses recorded in the consolidated statements of comprehensive loss. Also, ASC 825-10-25-11 requires financial instrument that is legally a single contract not to be separated into parts for purposes of applying the fair value option. Issuance costs related to the Notes for which the fair value option is elected amounting to US$2,190 have been recognized in earnings as incurred and not deferred in accordance with ASC 825-10-25-3. The fair value of the Notes was determined using a Monte Carlo simulation with the key assumptions being volatility of 44.32% and risk-free interest rate of 2.52%. The volatility was based on the implied historical volatility of certain comparable companies. The risk-free interest rate is equal to the yield, as of the measurement date, of the zero-coupon U.S. Treasury bill that is commensurate with the remaining period until the maturity of the Notes. |
Redeemable convertible preferre
Redeemable convertible preferred shares | 12 Months Ended |
Dec. 31, 2018 | |
Redeemable shares | |
Redeemable convertible preferred shares | 16 Redeemable convertible preferred shares Series A preferred shares On February 17, 2010, the Company entered into an agreement (“Series A Agreement”) to issue Series A preferred shares and preferred share warrants to a third-party investor (“Investor A”) for a total cash consideration of US$1,200. Accordingly, the Company issued 1,142,857 Series A preferred shares at US$1.05 per share; and warrants to purchase 342,857 Series A preferred shares at US$1.05 per share (“Series A Warrants”) at the option of Investor A. Pursuant to the Series A Agreement, the Company also granted an option, exercisable within one year from the date of agreement, to Investor A where the Company would issue 761,905 Series A preferred shares at US$1.05 per share (“Series A‑1 preferred shares”) and warrants to purchase 228,571 Series A preferred shares at US$1.05 per share (“Series A‑1 Warrants”) at the option of Investor A. On September 29, 2010, Investor A exercised the option and the Group received a total consideration of US$800. During the year ended December 31, 2013, both Series A Warrants and Series A‑1 Warrants were fully exercised. In December 2017, Series A preferred shares had been automatically converted into 2,476,190 Class A ordinary shares after closing of IPO. Series B preferred shares On February 21, 2011, the Company entered into agreements (“Series B Agreements”) to issue Series B preferred shares and preferred share warrants to two other third-party investors (“Investors B”) for an aggregate cash consideration of US$7,000. Pursuant to the Series B Agreements, the Company issued 1,266,667 Series B preferred shares at US$5.53 per share; and warrants to purchase 542,858 Series B preferred shares at US$5.53 per share (“Series B Warrants”) at the option of Investors B. During the year ended December 31, 2013, the Series B Warrants were fully exercised. On May 16, 2011, the Company entered into an agreement (“Series B‑1 Agreement”) to issue additional Series B preferred shares to another third-party investor (“Investor B‑1”) for a total consideration of US$4,285 (“Series B‑1 preferred shares”). Pursuant to the Series B‑1 Agreement, the Company issued 723,808 Series B‑1 preferred shares at US$5.92 per share. On September 24, 2015, the Company repurchased from Investor B‑1 723,808 Series B‑1 preferred shares at a consideration of US$11,581. For accounting purposes, the Company determined the per share fair value of Series B‑1 preferred shares to be US$19.58 on September 24, 2015, the date of repurchase. The per share repurchase price of US$16.00 was mutually negotiated at the time of the repurchase transaction. There were no other arrangements with Investor B‑1. Investor B‑1 was willing to sell its Series B‑1 preferred shares at the US$16.00 per share price as it would provide liquidity to Investor B‑1. For the Series B‑1 preferred shares repurchased, the Company recorded the excess of purchase price over the carrying value of US$2,591 to accumulated deficit as deemed contribution from Series B‑1 preferred shareholders. In December 2017, Series B preferred shares had been automatically converted into 1,889,249 Class A ordinary shares after closing of IPO. Series C preferred shares On December 16, 2013, the Company entered into an agreement (“Series C Agreement”) to issue Series C preferred shares to another third-party investor (“Investor C”) for a total cash consideration of US$13,000. Pursuant to the Series C Agreement, the Company issued 1,599,186 Series C preferred shares at US$8.13 per share. In December 2017, Series C preferred shares had been automatically converted into 1,599,186 Class A ordinary shares after closing of IPO. Series D preferred shares On December 30, 2014, the Company entered into an agreement (“Series D Agreement”) to issue Series D preferred shares to another third-party investor (“Investor D”) for a total cash consideration of US$48,000. Pursuant to the Series D Agreement, the Company issued 2,493,018 Series D preferred shares at US$19.25 per share. The Company was also obligated to issue additional Series D preferred shares to Investor D at no consideration, the total number of which is based on a formula stipulated in the agreement, if the gross billing of the Group as defined in the Series D Agreement for the year ended December 31, 2017 is less than US$85,000. Considering the gross billing of the Group as defined in the Series D Agreement for the year ended December 31, 2017 was more than US$85,000, no additional Series D preferred shares were issued. In December 2017, Series D preferred shares had been automatically converted into 2,493,018 Class A ordinary shares after closing of IPO. Series E preferred shares On December 28, 2016, the Company entered into an agreement (“Series E Agreement”) to issue Series E preferred shares to another third-party investor (“Investor E”) for a total cash consideration of US$20,000. Pursuant to the Series E Agreement, the Company issued 1,068,114 Series E preferred shares at US$18.72 per share. In December 2017, Series E preferred shares had been automatically converted into 1,068,114 Class A ordinary shares after closing of IPO. The key terms of the Series A, B, C, D and E preferred shares are as follows: Dividend rights Subject to the approval and declaration by the Board of Directors, the holders of the preferred shares are entitled to receive dividends in the following order: · Series E preferred shareholders are entitled to receive dividends at an amount equal to 8% of the issue price prior to and in preference to any dividend on the Series D preferred Shares, Series B preferred shares, Series A preferred shares, Series C preferred shares and ordinary shares or any other class or series of shares · the Series D preferred shareholders are entitled to receive dividends at an amount equal to 8% of the issue price prior to and in preference to any dividends on the Series B, Series A and Series C preferred shares and ordinary shares or any other class or series of shares; · the Series B preferred shareholders are entitled to receive dividends at an amount equal to 8% of the issue price prior to and in preference to any dividends on the Series A and Series C preferred shares and ordinary shares or any other class or series of shares; · the Series A preferred shareholders are entitled to receive dividends at an amount equal to 8% of the issue price prior to and in preference to any dividends on the Series C preferred shares and ordinary shares or any other class or series of shares; · any remaining dividends shall be distributed on a pro rata basis to holders of all the preferred shares and ordinary shares on a fully diluted and as-if converted basis. Voting rights The holders of the Series A, B, C, D and E preferred shares shall be entitled to such number of votes equal to the whole number of ordinary shares into which such Series A, B, C, D and E preferred shares are convertible. Liquidation preference In the event of a liquidating transaction as defined in the Company’s Memorandum and Articles of Association as 1) a winding up or other dissolution of the Company or any of its subsidiaries, 2) a merger or acquisition of the Company or any of its subsidiaries in which the shareholders of the Company do not directly or indirectly own a majority of the outstanding shares of the surviving corporation, 3) a sale of all or substantially all of the assets of the Company or assets of its subsidiaries, or 4) government policies promulgated or interpreted after the closing that prohibit investment or exit of the Company by foreign investors, provided, that, in the case of 2) and 3), only when such merger, acquisition or sale implies a valuation of the Company on a fully diluted basis of less than US$550,000, available assets and funds are distributed as following manner. The holders of Series E, Series D, Series B and Series A preferred shares are entitled to receive an amount equal to i) 110% prior to or on December 28, 2017 or ii) 120% from January 1, 2018, 150%, 150% and 200%, respectively, of the issue price as defined in the Company’s Memorandum and Articles of Association (adjusted for share dividends, splits, combinations, recapitalizations or similar events, and plus all accrued or declared but unpaid dividends thereon minus all paid cash or non-cash dividends and distributions paid thereon since issue date). If the assets of the Company shall be insufficient to make the payment of the amount in full, then the assets of the Company shall be distributed ratably to the holders of preferred shares in proportion to the amount each holder would otherwise be entitled to receive in order of 1) Series E, 2) Series D, 3) Series B and then 4) Series A. If the liquidating transaction is a qualified merger or acquisition of the Company in which the shareholders of the Company do not directly or indirectly own a majority of the outstanding shares of the surviving corporation or a sale of all or substantially all of the assets of the Company, in each case, which implies i) an equity valuation of the Group of US$300,000 or higher, the distribution to the holders of Series B and Series A preferred shares shall be reduced to 0% of issue price or ii) an equity valuation of the Group of US$250,000 or higher, but lower than US$300,000, the distribution to the holders of Series B and Series A preferred shares shall be reduced to 100% of issue price as defined in the Company’s Memorandum and Articles of Association. After the full amount has been paid to holders of Series E, Series D, Series B and Series A, any remaining funds or assets of the Company legally available for distribution shall be distributed pro rata among the holders of preferred shares on an as-converted basis together with the holders of the ordinary shares. Conversion rights Each share of the Series A, B, C, D and E preferred shares is convertible at the option of the holder, at any time after the issuance of such shares, and each share can be converted into one ordinary share of the Company. The conversion is subject to adjustments for certain events, including but not limited to additional equity securities issuance share dividends, distribution, subdivisions, redemptions, combinations, or consolidation of ordinary shares. The conversion price is also subject to adjustment in the event the Company issues additional ordinary shares at a price per share that is less than such conversion price. In such case, the conversion price shall be reduced to adjust for dilution on a weighted average basis. In addition, each share of the Series A, B, C, D and E preferred shares would automatically be converted into ordinary shares of the Company (i) upon the closing of an initial public offering of the Company’s shares or (ii) upon the election of holders of at least a majority of the then issued and outstanding preferred shares, voting together as a single class on an as-if-converted basis. The Company has determined that there was no BCF attributable to the Series A, A‑1, B, B‑1, C, D and E preferred shares because the accounting conversion of these preferred shares upon issuance were higher than the fair value of the Company’s ordinary shares as determined by the Company with the assistance from an independent valuation. Anti-dilution provision Pursuant to the provisions of Series B Agreement, there is an anti-dilution provision which prevents the original ownership interest of ordinary shares, Series B preferred shares and Series B preferred share warrants (as if converted into Series B preferred shares) owned by Investors B to be diluted. In May 2011, the Company issued 457,611 ordinary shares of the Company to Mr. Cong and Mr. Liu in exchange for Mr. Cong and Mr. Liu would procure the grant of an exclusive reseller agreement from Baidu Online Network Technology (Beijing) Co. Ltd. (“Baidu”) for Hong Kong, Macau, Taiwan and Singapore for a period up to December 31, 2012. In accordance with the Series B Agreement, the issuance of the ordinary shares was considered an event which triggered the anti-dilution provision. As a result, the Company was required to issue additional 100,452 ordinary shares and 55,807 Series B preferred shares and to amend the conversion price of Series B preferred share warrants to maintain the original ownership interests of these ordinary shares, preferred shares and preferred shares warrants owned by Investors B. There were no BCF for the issuance of additional Series B preferred shares and the value of the additional ordinary shares and Series B preferred shares issued amounted to US$421 and US$320, respectively, was charged to additional paid-in capital as a deemed dividend. Although the anti-dilution provision was triggered in May 2011, the Company only issued the additional ordinary shares and Series B preferred shares in May 2013. Accordingly, the Company recorded such obligation to issue additional ordinary shares and Series B preferred shares as liabilities until the corresponding ordinary shares and preferred shares were issued in May 2013. Redemption right The Series A and B preferred shares are redeemable at any time after the earlier of: (i) the 4th anniversary of the closing of sale and purchase of the Series A Agreement and Series B Agreement, respectively; or (ii) the occurrence of a material breach as defined in the subscription agreements. The holders of Series C preferred shares can redeem the preferred shares at any time after the earlier of: (i) the 2 nd anniversary of the closing of sale and purchase of the Series C Agreement; (ii) the occurrence of any liquidating transaction as defined in the subscription agreements; (iii) Mr. Hsieh, Wing Hong Sammy, ceasing to exert day-to-day management and operational control over the Group; or (iv) any holder of the Series B preferred shares or the Series A preferred shares or the Series D preferred shares or the Series E preferred shares electing for redemption. The holders of Series D preferred shares can redeem the preferred shares at any time after the earlier of: (i) the 2 nd anniversary of the closing of sale and purchase of the Series D preferred shares; (ii) the occurrence of any liquidating transaction as defined in the subscription agreements; (iii) Mr. Hsieh, Wing Hong Sammy, ceasing to exert day-to-day management and operational control over the Group; (iv) the occurrence of material breach of any warranty and covenants specified in the Series D Agreement; or (v) any holder of the Series A, Series B, or Series C preferred shares electing for redemption. The holders of Series E preferred shares can redeem the preferred shares at any time after the earlier of: (i) the occurrence of any liquidating transaction as defined in the subscription agreements; (i) the failure of the Group to achieve the following targets: (1) the audited consolidated revenues from the principal business (excluding any non-operating and non-recurring revenue) of the Group as of and for the twelve months ending on December 31, 2017 being no less than US$200,000; and (2) the audited consolidated revenues from the principal business (excluding any non-operating and non-recurring revenue) of the Group as of and for the twelve months ending on December 31, 2018 being no less than US$300,000; (iii) the termination of the employment with the relevant Group Company by Mr. Hsieh, Wing Hong Sammy, Tang Jian or Lee, Yanshu before the consummation of a Qualified IPO as defined in the Company’s Memorandum and Articles of Association (i.e. the first firm commitment underwritten registered public offering by the Company of its ordinary shares for its own account that results in such securities being listed or registered on NASDAQ, New York Stock Exchange, Hong Kong Stock Exchange, the Shenzhen Stock Exchange, Shanghai Stock Exchange or such other international recognized stock exchange approved in writing by certain of its preferred shareholders with an implied market capitalization of the Company immediately prior to such offering of not less than US$600 million; and which results in aggregate net proceeds to the Company of not less than US$150 million); (iv) the failure of the Company to consummate a Qualified IPO prior to or on June 30, 2018 (iv) the occurrence of material breach of any warranty and covenants specified in the Series E Agreement; or (v) any holder of the Series A, Series B, Series C or Series D preferred shares electing for redemption. The redemption price for Series A and B preferred shares is equal to the greater of (1) 200% or 150%, respectively, of the original issue price (plus all declared but unpaid dividends) or (2) the fair market value of the preferred shares subject to redemption as determined by an independent appraiser. With respect to the redemption price for Series C preferred shares, it is equal to 200% of the original issue price (proportionally adjusted for share splits and stack dividends). For the redemption price for Series D preferred shares, it shall be equal to the greater of (1) a price reflecting an implied valuation (on a fully-diluted basis) of the Company at US$500,000, (2) the highest redemption price that would have been received by any other shareholders of the Company if their shares have become redeemable (proportionally adjusted for share splits and stack dividends), or (3) a price reflecting the implied valuation (on a fully-diluted basis) of the Company used in any liquidating transaction as defined in the Company’s Memorandum and Articles of Association. For the redemption price for Series E preferred shares is equal to the greater of (1) 100% of the Series E issue price, plus 9.5% annual compound interest thereon calculated from the Series E original issue date to the date of receipt of the Series E redemption price, plus all declared but unpaid dividends thereon to the date of redemption, proportionally adjusted for stock splits, stock dividends, and the like, or (2) the highest redemption price that would have been received by any other shareholder of the Company if their shares have become redeemable, proportionally adjusted for stock splits, stock dividends, or (3) a price reflecting the implied valuation (on a fully-diluted basis) of the Company used in any Liquidating Transaction as defined in the Company’s Memorandum and Articles of Association. Upon the completion of Series D Agreement, the redemption date of Series A, A‑1, B, B‑1 and C preferred share was changed to December 30, 2016. The redemption date of Series A, A‑1, B, C and D preferred share was further changed to December 28, 2018 upon the completion Series E Agreement. Such change was considered as a modification and no gain or loss was recorded. However, considered the modification was occurred in connection with the issuance of Series D preferred shares and Series E preferred shares, there was a transfer of value from the existing preferred shareholders to new preferred shareholders and ordinary shareholders. With respect to the modification relating to the issuance of Series D preferred share, the transfer of value was considered insignificant. For the modification relating to the issuance of Series E preferred share, the transfer of value was recorded from additional paid in capital to retained earnings. The Company has determined that the Series A, A‑1, B, B‑1, C, D and E preferred shares should be classified as mezzanine equity after considering the features of the preferred shares as described above. The conversion features and redemption features as mentioned below, Series A Warrants, Series A‑1 Warrants and Series B Warrants are initially measured at its fair value and the initial carrying value for Series A, A‑1, B, B‑1, C, D and E preferred shares is allocated on a residual basis as the warrants are liability classified. There were no BCF for the Series A, A‑1, B, B‑1, C, D and E preferred shares. The Company has determined that conversion feature embedded in the Series A, A‑1, B, B‑1, D and E preferred share is required to be bifurcated and accounted for as derivative liabilities as the economic characteristics and risks of the embedded conversion are not clearly and closely related to that of the preferred shares and there is a mechanism in place for net settlement. However, Series C preferred shares does not have a mechanism in place for net settlement and therefore, bifurcation is considered unnecessary. The Company has also determined the redemption feature embedded in the Series C, D and E preferred shares is required to be bifurcated and accounted for as derivative liabilities as the economic characteristics and risk of the embedded redemption features are not clearly and closely related to that of the preferred shares. For Series A, A‑1, B and B‑1 preferred shares, the corresponding redemption feature is not required to be bifurcated and accounted for as derivative liabilities as the economic characteristic and risk of the embedded redemption feature are clearly and closely related to that of the preferred shares. Due to the redemption features described above with respect to Series A, A‑1, B and B‑1 preferred shares, the Company recognizes the changes in the redemption value immediately as they occur by way of accreting their respective carrying amounts to the redemption value to the first redemption date, using the effective interest method. The accretion is recorded against retained earnings, or in the absence of retained earnings, by charges against additional paid in capital. Once additional paid-in capital has been exhausted, additional charges are recorded by increasing the accumulated deficit of the Company. In determining the fair value of these preferred shares for purposes of determining the conversion feature and redemption feature as of December 31, 2017, a business valuation of the Company was estimated. Significant factors, assumptions and methodologies used in determining the business valuation include applying the discounted cash flow approach, and such approach involves certain significant estimates which are as follows: As of December 31, 2017 Terminal growth rate 3.0 % Weighted average cost of capital 18.3 % Growth rate on average spending per customer 3.0 % - % Series A Years ended December 31, 2017 2018 Beginning balance 5,597 — Accretion to redemption value 235 — Conversion to Class A ordinary shares (5,832) — Ending balance — — Series B Years ended December 31, 2017 2018 Beginning balance 9,807 — Accretion to redemption value 1,427 — Conversion to Class A ordinary shares (11,234) — Ending balance — — Series C Years ended December 31, 2017 2018 Beginning balance 10,733 — Conversion to Class A ordinary shares (10,733) — Ending balance — — Series D Years ended December 31, 2017 2018 Beginning balance 43,956 — Gain from wavier on anti-dilution (632) — Conversion to Class A ordinary shares (43,324) — Ending balance — — Series E Years ended December 31, 2017 2018 Beginning balance 18,845 — Issuance of preferred shares — — Conversion to Class A ordinary shares (18,845) — Ending balance — — |
Redeemable ordinary shares
Redeemable ordinary shares | 12 Months Ended |
Dec. 31, 2018 | |
Redeemable ordinary shares | |
Redeemable ordinary shares | 17 Redeemable ordinary shares On December 30, 2014, concurrent with the issuance of Series D preferred shares to Investor D, the Company issued 742,320 ordinary shares to Investor D at US$16.17 per share, of which 99,022 shares were transferred from treasury shares held by the Company and 643,298 shares were newly issued shares. The aggregate consideration was US$12,000. Investor D shall have an option to require the Company to repurchase all of the ordinary shares if a qualified IPO is not consummated by the 2 nd anniversary of the closing of sale and purchase of the Series D preferred shares. The redemption price shall equal to the issue price, plus accrued interest at a non-compound interest rate of 12% per annum. In December 2016, the redeemable date of the ordinary shares was further changed to December 28, 2017 upon the completion of Series E Agreement. The change in value of such modification was insignificant. As these ordinary shares are contingently redeemable, they are classified as mezzanine equity. The Company recognizes the accretion charge using the effective interest method. In December 2017, redeemable ordinary shares had been automatically converted into 742,320 Class A ordinary shares after the closing of IPO. |
Ordinary shares
Ordinary shares | 12 Months Ended |
Dec. 31, 2018 | |
Ordinary shares | |
Ordinary shares | 18 Ordinary shares The Company’s Memorandum and Articles of Association authorizes the Company to issue 100,000,000 shares of US$0.001 par value per ordinary share as of December 31, 2017 and 2018, respectively. Each ordinary share is entitled to one vote in shareholders meeting of the Company. The holders of ordinary shares are also entitled to receive dividends whenever funds are legally available and when declared by the board of directors, which is subject to the approval by the holders of the number of ordinary shares and Series A, B, C, D and E preferred shares representing a majority of the aggregate voting power of all outstanding shares. As of December 31, 2017 and 2018, there were 26,059,433 and 27,986,700 ordinary shares outstanding, respectively. At the time the Company adopted the 2010 Employee Share Option Plan (the “2010 Share Option Plan”) and 2018 Post IPO Share Incentive Plan, the Company, together with the then shareholders, also decided to allot ordinary shares with par value of US$0.001 to Arda Holdings Limited (“Arda”), a British Virgin Islands company owned by the Group’s chairman and chief executive officer at no consideration. Arda will only hold these ordinary shares on trust for the benefit of the employees who are under the 2010 Share Option Plan and 2018 Post IPO Share Incentive Plan and the dealing of these ordinary shares is under the direction of the board of directors of the Company. The Company considered Arda to be a variable interest entity as this entity has no equity at risk. The Company further considered that it is the primary beneficiary because the purchase of Arda is to hold treasury shares on behalf of the Company and the dealings of those transactions are under the direction of the Company’s board of directors. Given the structure of this arrangement, while these ordinary shares have been legally issued, they do not bear the attributes of unrestricted, issued and outstanding shares. Therefore, the ordinary shares issued to Arda are accounted for as treasury shares of the Company until these ordinary shares are earned by the Company’s employees, officers, directors or consultants for service provided to the Group. The Company allotted 627,811 shares during the year the 2010 Share Option Plan was adopted. No additional shares have been allotted during the years ended December 31, 2016, 2017 and 2018 to Arda. Arda does not hold any other assets or liabilities as at December 31, 2017 and 2018, nor earn any income nor incur any expenses for the years ended December 31, 2016, 2017 and 2018. In December 2017, the Company completed its initial public offering in which the Company newly issued 2,156,250 Class A ordinary shares and all of the Company’s Series A, Series B, Series C, Series D, Series E preferred shares and redeemable ordinary shares were automatically converted into 10,268,077 Class A ordinary shares. Immediately prior to the completion of IPO in December 2017, the Company redesignated 2,500,580 Class A ordinary shares held by Wing Hong Sammy Hsieh and 2,320,028 Class A ordinary shares held by Jian Tang into Class B ordinary shares on a one-for-one basis. The holders of Class A ordinary shares shall have one vote in respect of each Class A ordinary share held, the holders of Class B ordinary shares shall have twenty votes in respect of each Class B ordinary share held. As of December 31, 2018, the Company is authorized to issue 100,000,000 shares of US$0.001 par value per ordinary share, out of which 80,000,000 shares are Class A ordinary shares and 20,000,000 shares are Class B ordinary shares. |
Repurchase of shares
Repurchase of shares | 12 Months Ended |
Dec. 31, 2018 | |
Repurchase of shares | |
Repurchase of shares | 19 Repurchase of shares In November 2018, the board of directors of the Company authorized a share repurchase program (the “Repurchase Program”) whereby the Company may repurchase up to US$10,000 of the common shares or ADSs of the Company from November 28, 2018 to November 27, 2019. The share repurchases may be made on the open market at prevailing market prices, in negotiated transactions off the market, and/or in other legally permissible means from time to time as market conditions warrant in compliance with applicable requirements of Rule 10b5-1 and/or Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended, at times and in such amounts as the Company deems appropriate. The Company has publicly announced the Repurchase Program on November 28, 2018. The following table is a summary of the shares repurchased by the Company during 2018 under the share repurchase program. No shares were repurchased during 2018 except during the month indicated and all shares were purchased through publicly purchasing from the open market pursuant to the share repurchase program. Total Number of ADSs Purchased as Part of the Publicly Average Price Period Announced Plan Paid Per ADS December 20, 2018 10,000 3.7175 For the year ended December 31, 2018 10,000 During the years ended December 31, 2016, 2017 and 2018, nil, nil and 10,000 ADSs were repurchased at an aggregate consideration of US$nil, US$nil and US$37 under the Repurchase Program. The remaining unused amount of US$9,963 will no longer be available for repurchase after November 27, 2019. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2018 | |
Share-based compensation | |
Share-based compensation | 20 Share -based compensation (a) Share option plan The Company’s 2010 Share Option Plan provides for the grant of incentive share options to the Company’s employees, officers, directors or consultants. The Company’s board of directors administers the 2010 Share Option Plan, selects the individuals to whom options will be granted, determines the number of options to be granted, and the term and exercise price of each option. During the years ended December 31, 2016, 2017 and 2018, the Company granted share options to non-employees, employees, officers and directors of the Group. These options were granted with exercise prices denominated in the US$, which is the functional currency of the Company. The table below sets forth information regarding share options granted over the years: Exercise Vesting price at Number of Term period grant date Grant Date share options (year) (year) (US$) April 1, 2016 32,200 10.25 4.00 20.0000 April 1, 2016 79,116 10.25 4.00 6.0000 July 1, 2016 10,000 10.00 4.00 20.0000 July 1, 2016 1,000 10.00 4.00 12.0000 January 1, 2017 4,400 10.01 4.00 20.0000 January 1, 2017 (Note ii) 180,000 10.01 1.67 0.0010 January 1, 2017 100,800 10.01 4.00 8.1290 April 1, 2017 5,000 10.01 4.00 12.0000 July 1, 2017 12,000 8.51 2.50 8.1290 (i) The Company modified certain terms of the options in 2017 previously granted on February 1, 2015, which these modifications were related to either the vesting period or the exercise price. The incremental costs resulting from such modifications were assessed to be insignificant. (ii) The following table summarizes the share option activity for the years ended December 31, 2016, 2017 and 2018: Weighted Weighted average Weighted average remaining Aggregate average grant date contractual intrinsic Number of exercise price fair value life value share options US$ US$ years US$’000 At January 1, 2016 1,592,443 4.90 8.58 23,641 Granted 122,316 10.42 13.81 Exercised (68,135) 2.51 Forfeited (154,439) 7.14 At December 31, 2016 1,492,185 5.23 7.80 18,631 Vested and expected to vest at December 31, 2016 1,083,293 4.25 9.64 7.15 14,494 Exercisable to vest at December 31, 2016 928,597 3.68 10.77 7.44 12,615 Weighted Weighted Weighted average average Aggregate average grant date remaining intrinsic Number of exercise price fair value contractual value share options US$ US$ life years US$’000 At January 1, 2017 1,492,185 5.23 — 7.80 18,631 Granted 302,200 8.37 11.67 — — Exercised (25,898) 2.37 — — — Forfeited (225,911) 7.34 — — — At December 31, 2017 1,542,576 5.62 7.24 19,387 Vested and expected to vest at December 31, 2017 1,199,712 4.75 10.71 6.55 16,081 Exercisable to vest at December 31, 2017 1,118,812 4.72 11.35 6.87 15,035 At January 1, 2018 1,542,576 5.62 7.24 19,387 Exercised (503,712) 1.28 Forfeited (130,455) 9.19 At December 31, 2018 908,409 7.52 6.27 2,724 Vested and expected to vest at December 31, 2018 862,372 4.69 11.39 5.58 2,793 Exercisable to vest at December 31, 2018 823,341 4.52 12.02 5.88 2,634 Forfeitures are estimated at the time of grant. If necessary, forfeitures are revised in subsequent periods if actual forfeitures differ from those estimates. Based upon the Company’s historical and expected forfeitures for share options granted, the directors of the Company estimated that its future forfeiture rate would be 6% and 11% for employees and 23% and 17% for senior management in 2017 and 2018, respectively. The aggregate intrinsic value in the table above represents the difference between the estimated fair value of the Company’s ordinary shares as of December 31, 2017 and 2018 and the exercise price. All share-based payments to employees are measured based on their grant-date fair values. Compensation expense is recognized based on the vesting schedule over the requisite service period. Total fair values of options vested and recognized as expenses as of December 31, 2016, 2017 and 2018 were US$3,688, US$3,681 and US$5,349 respectively. As of December 31, 2017 and 2018, there were 150,000 share options granted to certain employees which the vesting was subject to the earlier occurrence of any of the following events, either: the Company being approved to be listed on a stock exchange with an expected market capitalization of no less than US$500,000; or (ii) a merger or acquisition of the Company or any of its subsidiaries at a valuation of US$500,000 or above in which the shareholders of the Company shall no longer hold a majority of the outstanding shares of the surviving corporation. None of the options were vested as of December 31, 2017 and 2018. As of December 31, 2017 and 2018, there were US$4,666 and US$921 of unrecognized share-based compensation expenses related to share options, which were expected to be recognized over a weighted-average vesting period of 2.04 and 1.14 years, respectively. To the extent the actual forfeiture rate is different from the Company’s estimate, the actual share-based compensation related to these awards may be different from the expectation. The binomial option pricing model is used to determine the fair value of the share options granted to employees and non-employees. The fair values of share options granted/modified during the years ended December 31, 2016, 2017 and 2018 were estimated using the following assumptions: Expected Risk-free Dividend Volatility term interest rate yield rate (in years) Date (Note i) (Note ii) (Note iii) (Note iv) Granted during the years ended December 31, 2016 and 2017: April 1, 2016 2.00 % 0 % 49.37 % NA July 1, 2016 1.62 % 0 % 50.52 % NA January 1, 2017 2.67 % 0 % 50.75 % NA April 1, 2017 2.59 % 0 % 50.79 % NA July 1, 2017 2.35 % 0 % 47.59 % NA Modified during the year ended December 31, 2018: September 1, 2018 (Note v) % 0 % % NA September 1, 2018 (Note vi) % 0 % % NA Notes: (i) The risk-free interest rate of periods within the contractual life of the share option is based on the yield of US Treasury Strips sourced from Bloomberg as of the valuation dates. (ii) The Company has no history or expectation of paying dividends on its ordinary shares. (iii) Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates. (iv) The time to expire is assumed to be the option’s contractual term while early exercise multiples, being 2.2x and 2.8x for general staff and management staff, respectively, and post-vesting employment termination behavior have been factored into the model to derive the fair values of the share options. (v) It refers to the modification of options previously granted on January 1, 2015. (vi) It refers to the modification of options previously granted on January 1, 2017. (b) Post-IPO share incentive plan The Company’s post-IPO share incentive plan provides for the grant of incentive share options and RSUs to the Company’s employees, officers, directors or consultants. The Company’s board of directors administers the post-IPO share incentive plan, selects the individuals to whom options and RSUs will be granted, determines the number of options and RSUs to be granted, and the term and exercise price of each option and RSU. During the year ended December 31, 2018, the Company granted RSUs to non-employees, employees, officers and directors of the Group. The table below sets forth information regarding RSUs granted during the year ended December 31, 2018: Vesting Number of period Grant Date RSUs (year) September 1, 2018 (Note i) 514,991 0.01 September 17, 2018 (Note i) 53,686 0.03 September 17, 2018 (Note vi) 23,452 0.29 October 25, 2018 (Note i) 100,000 0.02 October 25, 2018 (Note vi) 5,000 0.18 October 29, 2018 (Note vi) 431,760 0.01 October 25, 2018 (Note vi) 138,855 0.00 October 25, 2018 (Note iii) 105,000 3.19 October 25, 2018 (Note iii) 37,500 2.19 October 25, 2018 (Note v) 75,000 0 December 14, 2018 (Note viii) 50,000 2.00 July 1, 2018 (Note iv) 22,000 3.50 July 1, 2018 (Note iv) 118,020 4.00 October 1, 2018 (Note iv) 1,800 4.00 July 1, 2018 (Note vii) 260,810 0.49 July 1, 2018 (Note vii) 12,500 0.54 Notes: (i) These RSUs were granted to non-employees for their past services and immediately vested on grant date. (ii) These RSUs were granted to employees for their past services and immediately vested on the grant date. (iii) These RSUs were scheduled to be vested over two to three years on a monthly basis. (iv) These RSUs were scheduled to be vested over four years. One-fourth of the awards shall be vested upon the end of the first semi-anniversary dates of the grants or the first anniversary dates of the grants, and the remaining of the awards shall be vested on straight-line basis at the end of the remaining anniversary years. (v) On October 25, 2018, the Company authorized and communicated the issuance of RSUs to an officer of the Company which are subject to certain market conditions based on achievement of average closing stock prices. The Company determines the grant-date fair value of these RSUs using the Monte Carlo simulation model utilizes multiple input variables to determine the stock-based compensation expense. The fair value of these RSUs were US$5, as determined using a Monte Carlo simulation with the following assumptions: a historical volatility of 37.02%, 0% dividend yield and a risk-free interest rate of 2.90%. The historical volatility was based on the average volatility of the comparable companies for the most recent 2-year period. The stock price projection for the Company assumes a 0% dividend yield. This is mathematically equivalent to reinvesting dividends in the issuing entity over the performance period. The risk-free interest rate is equal to the yield, as of the measurement date, of the zero-coupon U.S. Treasury bill that is commensurate with the remaining performance measurement period. None of these RSUs were forfeited or expired during the year ended December 31, 2018. (vi) These RSUs were granted to non-employees for their past services and vested within one year. (vii) These RSUs were granted to employees for their past services and vested within one year. (viii) This RSU was granted to a non-employee for his service and vest over two years on a quarterly basis starting from the service inception date on January 1, 2019. The following table summarizes the activity of the service-based RSUs for the year ended December 31, 2018: Weighted average Number of grant date RSUs fair value At January 1, 2018 — — Granted 1,950,374 8.72 Vested (1,569,792) 9.94 Forfeited (4,310) 12.70 At December 31, 2018 376,272 8.02 Vested and expected to vest at December 31, 2018 376,272 8.02 Forfeitures are estimated at the time of grant. If necessary, forfeitures are revised in subsequent periods if actual forfeitures differ from those estimates. Based upon the Company’s expected forfeitures for RSUs granted, the directors of the Company estimated that its future forfeiture rate would be 1% for employees and 0% for non-employees in 2018. All share-based payments to employees are measured based on their grant-date fair values. Compensation expense is recognized based on the vesting schedule over the requisite service period. Total fair values and intrinsic value of RSUs vested and recognized as expenses as of December 31, 2018 were US$14,330. (c) Issuance of shares to certain employees with performance conditions On December 28, 2016, the Company authorized and communicated the issuance of restricted ordinary shares of 1,068,114 and 801,086 of the Company to certain employees upon fulfillment of certain performance conditions (mainly financial performance related) for the fiscal years of 2017 and 2018, respectively and these employees have to be remained employed by the Company. Considering the likelihood of achieving the performance conditions are not probable as of December 31, 2017 and 2018, no share-based compensation expense has been recorded. Total fair value of these shares were US$32,869. Significant factors, assumptions and methodologies used in determining the business valuation include applying the discounted cash flow approach, and such approach involves certain significant estimates. They are terminal growth rate of 3.0%, weighted average cost of capital of 18.3% and growth rate on average spending per customer ranges from 3.0% to 19.0%. All these restricted ordinary shares were forfeited and expired as of December 31, 2018. (d) Issuance of shares to certain employees On December 28, 2016, the Company and three of the Company’s shareholders agreed to transfer a total of 998,338 shares of the Company’s ordinary shares held by them to certain employees of the Company at no cost for services previously provided for. The fair value of the shares transferred and the corresponding share-based compensation expense and additional paid in capital was US$17,555 and included in general and administrative expenses. In determining the fair value of shares of the Company transferred to these employees, a business valuation of the Company was performed by management with the assistance of an external valuer. Significant factors, assumptions and methodologies used in determining the business valuation include applying the discounted cash flow approach, and such approach involves certain significant estimates. They are terminal growth rate of 3.0%, weighted average cost of capital of 18.3% and growth rate on average spending per customer ranges from 3.0% to 19.0%. Total compensation costs recognized for the years ended December 31, 2016, 2017 and 2018 are as follows: For the years ended December 31, 2016 2017 2018 Cost of revenues 52 49 347 Research and development 985 937 6,587 Sales and marketing 2,160 2,179 4,811 General and administrative 18,047 1,907 7,934 Total 21,244 5,072 19,679 |
Other (losses)_gains, net
Other (losses)/gains, net | 12 Months Ended |
Dec. 31, 2018 | |
Other (losses)/gains, net | |
Other (losses)/gains, net | 21 Other (losses)/gains, net For the years ended December 31, 2016 2017 2018 Net exchange (loss)/gain (1,147) 1,257 (857) Forfeiture of advances from customers (Note (i)) — 432 1,088 Gain on bargain purchase — — 285 Others 65 152 171 Total (1,082) 1,841 687 Note: (i) The forefeited advances from customers are recognized as other gains when the contractual obligation of the Company to provide the agreed services no longer existed legally due to passage of time. |
Income tax
Income tax | 12 Months Ended |
Dec. 31, 2018 | |
Income tax | |
Income tax | 22 Income tax (i) Cayman Islands Under the current tax laws of Cayman Islands, the Company and its subsidiaries are not subject to tax on income or capital gains. Besides, upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. (ii) Hong Kong profits tax Entities incorporated in Hong Kong are subject to Hong Kong profits tax at a rate of 16.5% on the estimated assessable profit for the years ended December 31, 2016, 2017 and 2018. (iii) PRC Enterprise Income Tax (“EIT”) The Company’s subsidiaries, VIE and VIE’s subsidiaries in the PRC are governed by the Enterprise Income Tax Law (“EIT Law”). Pursuant to the EIT Law and its implementation rules, enterprises in the PRC are generally subjected to tax at a statutory rate of 25%. High and new technology enterprises (“HNTE”) will enjoy a preferential enterprise income tax rate of 15% under the EIT Law. OptAim WFOE, the Company’s subsidiary in the PRC, which is qualified as a HNTE under the EIT Law, is eligible for a preferential enterprise income tax rate of 15% for the period from 2018 to 2020, so long as it obtains approval from relevant tax authority if it is profitable during the period. In addition, according to the EIT Law and its implementation rules, foreign enterprises, which have no establishment or place in the PRC but derive dividends, interest, rents, royalties and other income (including capital gains) from sources in the PRC shall be subject to PRC withholding tax (“WHT”) at 10% (a further reduced WHT rate may be available according to the applicable double tax treaty or arrangement). The 10% WHT is applicable to any dividends to be distributed from the Group’s PRC subsidiaries to the Group’s overseas companies unless otherwise exempted pursuant to applicable tax treaties or tax arrangements between the PRC government and the government of other jurisdiction which the WHT is reduced to 5%. Although there are undistributed earnings of the Company’s subsidiaries in the PRC that are available for distribution to the Company, the undistributed earnings of the Company’s subsidiaries located in the PRC are considered to be indefinitely reinvested, because the Group does not have any present plan to pay any cash dividends on its ordinary shares in the foreseeable future and intends to retain most of its available funds and any future earnings for use in the operation and expansion of its business. Accordingly, no deferred tax liability has been accrued for the Chinese dividend withholding taxes that would be payable upon the distribution of those amounts to the Company as of December 31, 2017 and 2018. The undistributed earnings from the Company’s subsidiaries in the PRC as of December 31, 2017 and 2018 amounted US$330 and US$1,610 would be due if these earnings were remitted as dividends as of December 31, 2017 and 2018. An estimated foreign withholding taxes of US$17 and US$81 would be due if these earnings were remitted as dividends as of December 31, 2017 and 2018, respectively. Composition of income tax expense The current and deferred portions of income tax expense included in the consolidated statements of comprehensive loss are as follows: For the years ended December 31, 2016 2017 2018 Current income tax expense 1,283 1,262 1,561 Deferred tax benefits (1,061) (714) (906) Income tax expense 222 548 655 Deferred tax assets and liabilities Deferred taxes were measured using the enacted tax rates for the periods in which they are expected to be reversed. The tax effects of temporary differences that give rise to the deferred tax asset balances as of December 31, 2017 and 2018 are as follows: As of December 31, 2017 2018 Deferred tax assets Tax losses carried forward 7,573 6,385 Share-based payments 850 884 Temporary difference on deferred income — 269 Less: Valuation allowance (Note (a)) (7,573) (6,385) 850 1,153 Deferred tax liabilities Acquired intangible assets (2,638) (1,760) Outside basis difference (Note (b)) (486) (1,004) Others (35) (30) (3,159) (2,794) Note: (a) Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future taxable income exclusive of reversing temporary differences and tax loss carryforwards. Valuation allowance was provided for net operating loss carryforwards because it was more likely than not that such deferred tax assets will not be realized based on the Group’s estimate of its future taxable income. If events occur in the future that allow the Group to realize more of its deferred income tax than the presently recorded amounts, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur. Movement of valuation allowance is as follows: For the years ended December 31, 2017 2018 Beginning balance 6,838 7,573 Additions 735 199 Reversals (Note i) — (1,387) Ending balance 7,573 6,385 Note: (i) The reversals comprise of tax loss carryforwards which were expired in 2018 and tax loss carryforwards which were utilized to offset taxable income during the year ended December 31, 2018. (b) The deferred tax liabilities are recorded for the undistributed earnings in the Group’s VIE and its subsidiaries. Tax loss carryforwards As of December 31, 2018, the Group had tax loss carryforwards of approximately US$26,911, which can be carried forward to offset future taxable income. The net operating tax loss carryforwards will begin to expire as follows: As of December 31, 2018 2020 6,270 2021 7,856 2022 8,356 2023 398 Tax loss with no expiry 4,031 26,911 In accordance with PRC Tax Administration Law on the Levying and Collection of Taxes, the PRC tax authorities generally have up to five years to claw back underpaid tax plus penalties and interest for PRC entities’ tax filings. In the case of tax evasion, which is not clearly defined in the law, there is no limitation on the tax years open for investigation. Accordingly, the PRC entities’ tax years from 2012 to 2018 remain subject to examination by the tax authorities. There were no ongoing examinations by tax authorities as of December 31, 2017 and 2018. Reconciliation between the expense of income taxes computed by applying the statutory tax rates to loss before income taxes and the actual provision for income taxes is as follows: For the years ended December 31, 2016 2017 2018 Tax benefit calculated at statutory tax rates (Note i) (4,509) (3,972) (7,989) Effect of differences between statutory tax rates and foreign effective tax rates 213 (1,172) 2,804 Non-taxable other income (738) (275) (274) Non-deductible expenses (Note ii) 4,208 4,861 6,784 Valuation allowance 1,034 735 (1,188) Outside basis difference (Note iii) — 486 518 Others 14 (115) — Income tax expense 222 548 655 Note: (i) The Group’s major operation during the years ended December 31, 2016 and 2017 was conducted in Hong Kong. Accordingly, the Group prepared its tax rate reconciliation starting with the Hong Kong statutory tax rate for the years ended December 31, 2016 and 2017. The Group’s major operation during the year ended December 31, 2018 was conducted in the PRC. Accordingly, the Group prepared its tax rate reconciliation starting with the PRC statutory tax rate during the year ended December 31, 2018. (ii) Non-deductible expenses were mainly related to share-based compensation expenses, fair value losses on derivative liabilities and fair value losses on convertible notes. (iii) Outside basis difference is related to undistributed earnings in the Group’s VIE and its subsidiaries. |
Basic and diluted net loss per
Basic and diluted net loss per share | 12 Months Ended |
Dec. 31, 2018 | |
Basic and diluted net loss per share | |
Basic and diluted net loss per share | 23 Basic and diluted net loss per share Basic and diluted net loss per share for the years ended December 31, 2016, 2017 and 2018 are calculated as follows: For the years ended December 31, 2016 2017 2018 Numerator: Net loss attributable to ordinary shareholders of the Company (27,330) (24,619) (32,409) Accretion of convertible redeemable preferred shares redemption value (773) (1,662) — Accretion to redeemable ordinary shares redemption value (1,556) (3,650) — Numerator of basic net loss per share (29,659) (29,931) (32,409) Denominator: Denominator for basic and diluted net loss per share - weighted average shares outstanding 13,151,063 13,931,503 26,452,409 Basic net loss per share (2.26) (2.15) (1.23) Diluted net loss per share (2.26) (2.15) (1.23) The Company’s preferred shares are participating securities and as such would be included in the calculation of basic earnings per share under the two-class method. According to the contractual terms of the preferred shares, the preferred shares do not have a contractual obligation to share in the losses of the Company. Therefore no loss was allocated to the preferred shares in the computation of basic loss per share for the years ended December 31, 2016, 2017 and 2018. The preferred shares, redeemable ordinary shares, share options, RSUs and convertible notes were excluded from the computation of diluted net loss per ordinary share for the periods presented because including them would have had an anti-dilutive effect. The following ordinary share equivalents were excluded from the computation of diluted net loss per ordinary share for the periods presented because including them would have had an anti-dilutive effect: As of December 31, 2016 2017 2018 Preferred shares -- weighted average (thousands) 8,469 — — Share options and RSUs -- weighted average (thousands) 1,091 1,071 505 Redeemable ordinary shares -- weighted average (thousands) 742 — — Convertible notes -- weighted average (thousands) — — |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related party transactions | |
Related party transactions | 24 Related party transactions The table below sets forth the major related parties and their relationships with the Company as of December 31, 2018: Related party Relationship with the Company Aladdin Fintech Company Limited An entity controlled by a director of the Company (a) The Group entered into the following transactions with the major related parties: For the years ended December 31, Transactions 2016 2017 2018 Net revenues: Platform development fee income, license fee income and maintenance services income from Aladdin Fintech Company Limited — — Revenues from the related party represented 0.3% of total net revenues of the Group for the year ended December 31, 2018 (b) The Group had the following balance with the related party: As of December 31, 2017 2018 Accounts receivable from Aladdin Fintech Company Limited — 350 As of December 31, 2018, the balance with the related party related to outstanding receivables of platform development fee income, license fee income and maintenance services income, which represented 0.5% of the Group’s total accounts receivable. |
Segment
Segment | 12 Months Ended |
Dec. 31, 2018 | |
Segment | |
Segment | 25 Segment The Company considers operating segments to be components of the Company in which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The chief operating decision maker for the Company is the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company has one business activity, and there are no segment managers who are held accountable for operations, operating results or plans for levels or components below the consolidated unit level. Accordingly, the Company has determined that it has a single operating and reportable segment. Revenue generated for the respective countries are summarized as follows: For the years ended December 31, 2016 2017 2018 PRC 71,214 105,380 141,926 Hong Kong 22,766 18,287 17,004 Others 1,377 1,591 1,087 95,357 125,258 160,017 The Group’s long-lived assets are located in the following countries: As of December 31, 2017 2018 PRC 858 231 Hong Kong 300 92 Others 7 6 1,165 329 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and contingencies | |
Commitments and contingencies | 26 Commitments and contingencies (a) Operating lease commitments The Group leases facilities under non-cancellable operating leases expiring on different dates. The terms of substantially all of these leases are two years or less. Payments under operating leases are expensed on a straight-line basis over the periods of the respective leases. Total office rental expenses under all operating leases were US$3,024, US$1,862 and US$2,737 for the years ended December 31, 2016, 2017 and 2018, respectively. As of December 31, 2018, future minimum payments under non-cancellable operating leases for office rental consist of the following: 2019 1,763 2020 1,099 2021 558 3,420 (b) Purchase commitments As of December 31, 2017 and 2018, no purchase commitments were related to the purchase of space for its online marketing services. (c) Litigation In the ordinary course of the business, the Group is subject to periodic legal or administrative proceedings. As of December 31, 2017 and 2018, the Group is not a party to any legal or administrative proceedings which will have a material adverse effect on the Group’s business, financial position, results of operations and cash flows. |
Subsequent event
Subsequent event | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent event | |
Subsequent event | 27 Subsequent event On January 1, 2019, the Group has completed an investment in 34.38% equity interest of Changyi (Shanghai) Information Technology Co., Ltd. (“Changyi”), a company incorporated in the PRC and an independent software vendor based in Shanghai, the PRC, at a total cash consideration of RMB42.6 million (equivalent to approximately US$6,187). Changyi became a subsidiary of the Company effective from January 1, 2019 as the Company has established control over Changyi through certain shareholder agreements. Other shareholders of Changyi expects the operating effectiveness brought about by the control over Changyi by the Company to be of their best interests. Based on the preliminary assessment performed, the Group expects to record this acquisition as a business combination accounted for using the acquisition method of accounting. The Group is in the process of finalizing the assessment on the accounting treatment of this acquisition and the resulting impact to the consolidated financial statements of the Group. |
Restricted net assets
Restricted net assets | 12 Months Ended |
Dec. 31, 2018 | |
Restricted net assets | |
Restricted net assets | 28 Restricted net assets Relevant PRC laws and regulations permit payments of dividends by the Group’s subsidiary, VIE and its subsidiaries incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Group’s subsidiary and the VIE in the PRC are required to annually appropriate 10% of their net after-tax income to the statutory general reserve fund prior to payment of any dividends, unless such reserve funds have reached 50% of their respective registered capital. As a result of these and other restrictions under PRC laws and regulations, the Group’s subsidiaries, VIE and its subsidiaries incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Company either in the form of dividends, loans or advances. There are no significant differences between US GAAP and PRC accounting standards in connection with the reported net assets of the legally owned subsidiary in the PRC and the VIE. Even though the Company currently does not require any such dividends, loans or advances from the PRC entities for working capital and other funding purposes, the Company may in the future require additional cash resources from them due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends or distributions to our shareholders. Except for the above, there is no other restriction on use of proceeds generated by the Group’s subsidiaries, VIE and its subsidiaries to satisfy any obligations of the Company. As of December 31, 2017 and 2018, the total restricted net assets of the Company’s subsidiaries and OptAim VIE incorporated in the PRC and subjected to restriction amounted to approximately US$9,631 and US$65,659, respectively. Except for the above there is no other restriction on the use of proceeds generated by the Company’s subsidiaries, VIE and VIE’s subsidiaries to satisfy any obligations of the Company. |
ADDITIONAL INFORMATION_ CONDENS
ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY | 12 Months Ended |
Dec. 31, 2018 | |
ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY | |
ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY | ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY Rules 12‑04(a) and 4‑08(e)(3) of Regulation S-X require condensed financial information as to the financial position, cash flows and results of operations of a parent company as of and for the same periods for which the audited consolidated financial statements have been presented when the restricted net assets of the consolidated subsidiaries together exceed 25% of consolidated net assets as of the end of the most recently completed fiscal year. The following condensed financial statements of the Company have been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the Company used the equity method to account for its investment in its subsidiaries and VIEs. Such investment is presented on the separate condensed balance sheets of the Company as “Investment in subsidiaries and VIEs” and “Accumulated losses in excess of investment in subsidiaries and VIEs.” The Company, its subsidiaries and VIEs were included in the consolidated financial statements whereby the inter-company balances and transactions were eliminated upon consolidation. The Company’s share of income from its subsidiaries and VIEs is reported as share of income from subsidiaries and VIEs in the condensed financial statements. The Company is a Cayman Islands company and, therefore, is not subjected to income taxes for all years presented. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. As of December 31, 2017 and 2018, there were no material commitments or contingencies, significant provisions for long-term obligations or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any. Inter-company charges, share-based compensation and other miscellaneous expenses for the years ended December 31, 2016, 2017 and 2018, which were previously recognized at the parent company level, had been pushed down to the WFOE/VIE level given the majority of services were provided to the WFOE/VIE entities. The condensed financial statements of the parent company should be read in conjunction with the Company’s consolidated financial statements and the accompanying notes thereto. For purposes of these condensed financial statements, the Company’s wholly owned and majority owned subsidiaries are recorded based upon its proportionate share of the subsidiaries’ net assets (similar to presenting them on the equity method). CONDENSED BALANCE SHEETS AS OF DECEMBER 31, 2017 AND 2018 (US$’000, except share data and per share data, or otherwise noted) As of December 31, 2017 2018 Assets Current assets Cash and cash equivalents 6,440 2,132 Amounts due from subsidiaries and VIEs 74,193 98,829 Other assets 1,194 929 Total current assets 81,827 101,890 Non-current assets Deferred tax assets — 269 Investments in subsidiaries and VIEs 41,407 40,759 Long-term investment — 503 Total non-current assets 41,407 41,531 Total assets 123,234 143,421 Liabilities and shareholders’ equity Current liabilities Accrued liabilities and other current liabilities 3,250 2,586 Convertible notes at fair value — 34,837 Total current liabilities 3,250 37,423 Non-current liability Other liabilities — 673 Total non-current liability — 673 Total liabilities 3,250 38,096 Commitments and contingencies — — Shareholders’ equity Ordinary shares 26 28 Treasury shares (2,093) (576) Other shareholders’ equity 122,051 105,873 Total shareholders’ equity 119,984 105,325 Total liabilities and shareholders’ equity 123,234 143,421 CONDENSED STATEMENTS OF COMPREHENSIVE LOSS FOR THE YEARS ENDED DECEMBER 31, 2016, 2017 AND 2018 (US$’000, except share data and per share data, or otherwise noted) For the years ended December 31, 2016 2017 2018 Operating expenses General and administrative expenses (21,655) (6,928) (27,643) Total operating expenses (21,655) (6,928) (27,643) Operating loss Other gains/(losses), net 145 (116) 403 Fair value gains/(losses) on derivative liabilities 3,995 (10,190) — Fair value losses on convertible notes — — (4,837) Loss from subsidiaries and VIEs (9,815) (7,385) (264) Loss before income tax expense (27,330) (24,619) (32,341) Income tax expense — — (68) Net loss attributable to iClick Interactive Asia Group Limited (27,330) (24,619) (32,409) Accretion to convertible redeemable preferred shares redemption value (773) (1,662) — Accretion to redeemable ordinary shares redemption value (1,556) (3,650) — Net loss attributable to iClick Interactive Asia Group Limited's ordinary shareholders (29,659) (29,931) (32,409) Net loss attributable to iClick Interactive Asia Group Limited (27,330) (24,619) (32,409) Other comprehensive loss: Foreign currency translation adjustment, net of tax (139) (79) (2,547) Comprehensive loss attributable to iClick Interactive Asia Group Limited (27,469) (24,698) (34,956) CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2016, 2017 AND 2018 (US$'000, except share data and per share data, or otherwise noted) For the years ended December 31, 2016 2017 2018 Cash flows from operating activities: Net cash used in operating activities (8,083) (34,030) (32,234) Cash flows from investing activities: Increase in long-term investment — — (503) Net cash used in investing activities — — (503) Cash flows from financing activities: Proceeds from issuance of Series E convertible redeemable preferred shares 20,000 — — Proceeds from exercise of share options 171 60 656 Proceeds from issuance of convertible notes — — 27,810 Repurchase of ordinary shares — — (37) Net proceeds from issuance of ordinary shares upon IPO — 28,405 — Net cash provided by financing activities 20,171 28,465 28,429 Net increase/(decrease) in cash and cash equivalents 12,088 (5,565) (4,308) |
Principal accounting policies (
Principal accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Principal accounting policies | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements have been prepared in accordance with the US GAAP. Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. |
Use of estimates | (b) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from such estimates. The Company believes that revenue recognition, consolidation of VIE, determination of share-based compensation, measurement of redemption value of redeemable preferred shares and impairment assessment of long-lived assets and intangible assets that reflect more significant judgments and estimates used in the preparation of its consolidated financial statements. Management bases the estimates on historical experience and on various other assumptions as discussed elsewhere to the consolidated financial statements that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could materially differ from these estimates. |
Consolidation | (c) Consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIE and VIE’s subsidiaries for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, its VIE and VIE’s subsidiaries have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIE’s economic performance, and also the Group’s obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. OptAim WFOE and ultimately the Company hold all the variable interests of the VIE and its subsidiaries, and has been determined to be the primary beneficiary of the VIE. Non-controlling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of comprehensive loss, statement of changes in equity and balance sheet, respectively. |
Foreign currency translation | (d) Foreign currency translation The reporting currency of the Company is the United States dollars (“US$”). The Company is a holding company engaged in capital raising and financing activities denominated in US$. As such, the Company’s functional currency has been determined to be the US$. The functional currency of the Company’s subsidiaries is the local currency of the country in which they are domiciled. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange existing at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into the functional currency at the applicable rates of exchange prevailing at the transaction date. Transaction gains and losses are recognized in “other (losses)/gains, net”. Assets and liabilities denominated in foreign currencies are translated at the exchange rates at the balance sheet date. Equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive loss in the consolidated statements of changes in shareholders’ deficit/equity and comprehensive loss. |
Fair value of financial instruments | (e) Fair value of financial instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. When available, the Company uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Fair value measurements are based on a fair value hierarchy, based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted market prices for similar assets and liabilities; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Observable inputs are based on market data obtained from independent sources. The Company’s derivative liabilities and convertible notes are measured using unobservable inputs that require a high level of judgment to determine fair value, and thus classified as Level 3 (Note 3(c) and Note 15). The Company values its investments in wealth management products issued by a bank classified as short-term investments in the consolidated balance sheets using quoted subscription/redemption prices published by the bank, and accordingly, the Company classifies the valuation techniques that use these inputs as Level 2. The carrying amounts of cash and cash equivalents, time deposits, accounts receivable, rebate receivables, accounts payable, other financial assets and liabilities approximate to their fair values due to the short-term nature of these instruments. Based on the borrowing rates currently available to the Group for debt with similar terms, the carrying value of the short-term loan approximates to its fair value (using Level 2 inputs). Certain assets, including intangible assets and long-term investment, are also subject to measurement at fair value on a non-recurring basis if they are deemed to be impaired as a result of an impairment review. For the years ended December 31, 2016, 2017 and 2018, no impairments were recorded on those assets required to be measured at fair value on a non-recurring basis. |
Cash, cash equivalents and restricted cash | (f) Cash, cash equivalents and restricted cash Cash and cash equivalents include cash on hand, cash in bank and time deposits placed with banks or other financial institutions, which have original maturities of three months or less and are readily convertible to known amounts of cash. Restricted cash represented bank deposits in accounts that are restricted as to withdrawal or usage. For restriction which is expected to be released within one year of the balance sheet date, the respective restricted cash balance is classified as current. As of December 31, 2017 and 2018, the Company did not have any restricted cash. In November 2016, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-18, Statements of Cash Flows (Topic 230): Restricted Cash, which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts presented in the statement of cash flows. The Company has adopted this new guidance on January 1, 2018, using the retrospective transition method. Following the adoption of this guidance: · Amounts generally described as restricted cash are now presented with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the consolidated statements of cash flows. · (Increase)/decrease in restricted cash under net cash used in investing activities amounting to (US$4,234) and US$5,234 for the years ended December 31, 2016 and 2017, respectively, has been reclassified to net increase/(decrease) in cash and cash equivalents and restricted cash in the consolidated statements of cash flows. · No impact to the consolidated statements of cash flows for the year ended December 31, 2018 as there was no restricted cash during the year. · The Company has also added a reconciliation of cash, cash equivalents, and restricted cash to the consolidated statements of cash flows. |
Time deposit | (g) Time deposit Time deposit represents demand deposit placed with a bank with an original maturity of more than three months but less than one year. Interest income is recognized using the effective interest method in the consolidated statements of comprehensive loss during the periods. Time deposit is valued based on the prevailing interest rates in the market. |
Accounts receivable, net | (h) Accounts receivable, net Accounts receivable are presented net of allowance for doubtful accounts. The Group uses specific identification in providing for bad debts when facts and circumstances indicate that collection is doubtful and based on factors listed in the following paragraph. If the financial conditions of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowance may be required. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts on an individual basis taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the customers as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. |
Rebates receivable | (i) Rebates receivable Rebates receivable represent sales rebates that have already been earned but not received from third party publishers. The Company earns its rebates from purchasing advertising spaces from these website publishers. |
Short-term investments and Long-term investment | (j) Short-term investments Short-term investments include investments in wealth management products issued by a bank in the PRC which are redeemable by the Company at any time. The wealth management products are unsecured with variable interest rates and primarily invested in debt securities issued by the PRC government, corporate debt securities and central bank bills. The Company measures the short-term investments at fair value using the quoted subscription or redemption prices published by the bank. The change in fair value recorded in the consolidated statements of comprehensive loss amounted to US$nil, US$nil and US$25 for the years ended December 31, 2016, 2017 and 2018, respectively. (k) Long-term investment The Group’s long-term investment as of December 31, 2018 consists of equity security without readily determinable fair value. There was no long-term investment as of December 31, 2017. The Company adopted Accounting Standards Codification ("ASC") 321 “Investments—Equity Securities” on January 1, 2018 and required to measure its equity investment at fair value and any changes in fair value are recognized in earnings. For equity security without a readily determinable fair value and does not qualify for the existing practical expedient in ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”) to estimate fair value using the net asset value per share (or its equivalent) of the investment, the Company elected to use the measurement alternative to measure its equity investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. |
Property and equipment, net | (l) Property and equipment, net Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. The estimated useful lives are as follows: Leasehold improvements Over the shorter of lease term or 2 - 5 years Furniture and fixtures 2 - 5 years Office equipment 3 - 5 years Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statement of comprehensive loss. |
Business combinations | (m) Business combinations The Company accounts for acquisitions of entities that include inputs and processes and have the ability to create outputs as business combinations. The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805 "Business Combinations" (“ASC 805”). The cost of an acquisition is measured as the aggregate of the acquisition date fair value of the assets transferred to the sellers and liabilities incurred by the Company and equity instruments issued. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total costs of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive loss as gain on bargain purchase. During the measurement period, which can be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statement of comprehensive loss. |
Intangible assets, net | (n) Intangible assets, net Intangible assets mainly consist of computer software licenses purchased from external parties and computer software and systems acquired through the acquisitions of OptAim, Buzzinate and Myhayo, respectively. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite lived intangible assets are tested for impairment if impairment indicators arise. Amortization of finite lived intangible assets is computed using the straight-line method over the following estimated useful lives, which are as follows: Computer software and systems 2 - 5 years |
Impairment of long-lived assets and intangible assets and Impairment of goodwill | (o) Impairment of long-lived assets and intangible assets For other long-lived assets including property and equipment and amortizable intangible assets, the Group evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. (p) Impairment of goodwill Impairment of goodwill assessment is performed on at least an annual basis on December 31 or whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. According to ASC 350‑20‑35, an entity may assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. The Group, however, selects proceed directly to perform a two-step goodwill impairment test. The first step compares the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of the affected reporting unit’s goodwill to the carrying value of that goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in adjusting the value of any assets or liabilities. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. The judgment in estimating the fair value of a reporting unit includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of the fair value of a reporting unit. No goodwill impairment losses were recognized for the years ended December 31, 2016, 2017 and 2018. |
Deferred revenue | (q) Deferred revenue The Group receives prepayments for services in advance of service performance from certain customers. The amounts received in advance are recorded as deferred revenue and recognized as revenue in the period which the corresponding services are performed. |
Derivative financial instruments | (r) Derivative financial instruments ASC 815, “Accounting for Derivative Instruments and Hedging Activities” (“ASC 815”) requires every derivative financial instrument (including certain derivative financial instruments embedded in other contracts) to be recorded on the balance sheet at fair value as either an asset or a liability. ASC 815 also requires that changes in the fair value of recorded derivatives be recognized currently in earnings unless specific hedge accounting criteria are met. The Company’s derivative financial instruments as of December 31, 2016 included the conversion features and redemption features of the preferred shares. There was no derivative financial instrument as of December 31, 2017 and 2018. |
Convertible debt | (s) Convertible debt The Company determines the appropriate accounting treatment of its convertible debts in accordance with the terms in relation to the conversion feature, call and put option, and beneficial conversion feature (“BCF”). After considering the impact of such features, the Company may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the respective guidance described under ASC 815 and ASC 470 “Debt”. The conversion features of the convertible notes of the Company meets the definition of a derivative whereby no BCF shall be separately accounted for. Moreover, the Company has elected the fair value option for convertible debts accounted for as a liability in its entirety whereby the conversion features that meets the definition of a derivative are not bifurcated given that the entire debt instrument is legally a single contract therefore not to be separated into parts for purposes of applying the fair value option. Such fair value option permits the irrevocable election on an instrument-by-instrument basis at initial recognition of an asset or liability or upon an event, that gives rise to a new basis of accounting for that instrument. The convertible debts accounted for under the fair value option are carried at fair value with realized or unrealized gains and losses recorded in the consolidated statements of comprehensive loss. Convertible debts are classified as current liabilities if they are convertible or redeemable on demand or if their due date is or will be within one year from the balance sheet date. |
Treasury shares | (t) Treasury shares The Company accounted for those shares repurchased as treasury shares at cost in accordance with ASC 505-30, and the treasury shares acquired are shown separately in shareholders’ equity as the Company has not yet decided on the ultimate disposition of those shares. If and when the Company cancels the treasury shares, the difference between the original issuance price and the repurchase price will be debited into additional paid-in capital. |
Revenue recognition and cost of revenues | (u) Revenue recognition and cost of revenues On January 1, 2018, the Group adopted ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)” and subsequent amendments to the initial guidance or implementation guidance issued between August 2015 and December 2016 within ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 (collectively, "ASC 606") using a modified retrospective approach applied to contracts that were not completed as of January 1, 2018. The adoption did not have a material impact on the accumulated deficit as of January 1, 2018. Results for reporting periods beginning on or after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Group’s historic accounting under ASC 605. The Group’s services are the provisions of online marketing services. The Group utilizes a combination of pricing models and revenue is recognized when the related services are delivered based on the specific terms of the contract, which are commonly based on (i) agreed incentive to be earned for being a sales agent of a publisher, (ii) cost-plus or (iii) specified actions (i.e. cost per impression (“CPM”), cost per click (“CPC”), cost per action (“CPA”), cost per sale (“CPS”), cost per lead (“CPL”) or return on investment (“ROI”)) and related campaign budgets, depending on the customers’ preferences and their campaigns launched. The following table presents our revenue recognized from contracts with customers disaggregated by the three types of pricing models: For the year ended December 31, 2016 December 31, 2017 December 31, 2018 Under ASC 605 Under ASC 605 Under ASC 606 Recognized over time - Sales agent 7,924 8,311 8,671 - Cost-plus 15,378 10,788 12,192 23,302 19,099 20,863 Recognized at point in time - Specified actions 72,055 106,159 139,154 95,357 125,258 160,017 As noted above, in accordance with the modified retrospective method upon adoption of ASC 606, prior period amounts have not been adjusted. The Group recognizes revenue when the Group satisfies a performance obligation by transferring a promised service to a customer. The Group considers the following when determining if a contract exists under which the performance obligations have been satisfied: (i) contract approval by all parties, (ii) identification of each party’s rights regarding the goods or services to be transferred, (iii) specified payment terms, (iv) commercial substance of the contract, and (v) collectability of substantially all of the consideration is probable. Collectability is assessed based on a number of factors, including the creditworthiness of a customer, the size and nature of a customer’s business and transaction history. Revenues are recorded net of value-added taxes. Sales agent In the arrangement with a particular publisher, the Group acts as a sales agent for this publisher in selling marketing spaces to marketing clients. In return, the Group earns incentives from this publisher based on contractually stipulated amounts when certain spending thresholds are achieved. The Group considers this particular publisher as a customer and record such incentives as net revenues. Incentives from this publisher are calculated on both a quarterly and an annual basis in accordance with the terms as set out in the arrangement. Revenue under this arrangement is recognized over-time given the Group considers this particular publisher simultaneously receives and consumes the benefits provided by the Group's performance as the Group performs. In other words, when the Group purchases marketing spaces on behalf of the marketing clients throughout the marketing campaigns as requested by them, this particular publisher simultaneously receives and consumes the benefit of the marketing spaces being purchased and therefore the Group is entitled to incentive payment from this publisher. The Group grants rebates to marketing clients under the sales agent arrangement. The majority of marketing clients under this arrangement are not customers under either the cost-plus arrangement or specified actions arrangement. The Group records rebates granted to such marketing clients as reduction of revenue. Cost-plus For cost-plus advertisement campaigns, sales are recognized at the fair value of the amount received. Discounts granted to marketing clients under cost-plus marketing campaigns are recorded as a reduction of revenue. The determination of whether revenue should be reported on a gross or net basis is based on an assessment of whether the Group is acting as the principal or an agent in the transactions. In the normal course of business, the Group acts as an intermediary in executing transactions between website publishers and marketing clients. The specified service in the cost-plus arrangement is the provision of marketing space, which is controlled by the website publishers, rather than the Group. The Group assists the marketing clients to place orders with specific website publishers based on specification set out the marketing clients. The Group does not have the ability to direct the use of marketing space and does not have any inventory risk. Pricing is generally based on the actual advertising spending incurred by the marketing clients plus a margin. Accordingly, the Group concludes that it is not the principal in these arrangements and reports revenue earned and costs incurred related to these transactions on a net basis. Revenue under this arrangement is recognized over-time as the Group considers its customers simultaneously receive and consume the benefits provided by the Group's performance. At the time the Group purchases marketing spaces during the contract term for its customers, the customers’ advertisements could be placed throughout the marketing campaign. Revenue recognition under this arrangement is not based on an occurrence of significant act or milestone method Throughout the various services delivered to clients under the cost-plus arrangements, the Group earns rebates from publishers and grant rebates to marketing clients. The rebates that the Group grants to marketing clients under cost-plus arrangement are recorded as reduction of revenue and are recorded based on the amount the marketing clients would ultimately need to spend to earn the corresponding level of rebates. The Group is also able to reasonably estimate the spending the customers can ultimately achieve based on the historical spending patterns of the customers with similar arrangements. The rebates that the Group receives from publishers under the cost-plus arrangements are recorded as revenue. These rebates are recognized when a particular milestone is achieved (i.e. applying the relevant rebates based on the level of spending threshold actually achieved) and spending has actually occurred. Specified actions The Group, including the newly acquired subsidiaries Myhayo, also generates revenue from performing specified actions (i.e. a CPM, CPC, CPA, CPS, CPL or ROI basis). Revenue is recognized on a CPM or CPC basis as impressions or clicks are delivered while revenue on a CPA, CPS, CPL or ROI basis is recognized once agreed actions are performed. For the specified actions advertisement campaigns, the Group is the principal as it has the obligation to deliver successful actions requested by marketing clients. Also, the Group will only be paid if successful actions can be delivered and is exposed to risk of loss. In terms of pricing, the Group has complete latitude in establishing the selling prices of each of the CPM, CPC, CPA, CPS, CPL or ROI pricing model. The Group's margin may vary as the costs incurred to deliver successful actions may vary and is therefore exposed to risk of loss whereby validating its degree of responsibility to its customers. Although the inventory risk under specified actions arrangement is considered to be low, the Group concludes that it is the principal in such arrangement as it is the principal ultimately responsible for delivering successful actions and in charge of establishing the price per action. Accordingly, the Group reports revenue earned and costs incurred related to these transactions on a gross basis. Revenues under this arrangement is recognized at point-in-time when the Group is able to deliver the specified actions as requested by the customers. Upon the occurrence of the specified actions, the customers take control of the specified actions and this is when the Group recognizes the corresponding revenue. Unlike the cost-plus arrangement, when the Group purchases marketing spaces in order to deliver the specified actions, the customers do not receive and consume the benefit as the benefit to be received by the customers is the occurrence of the specified actions. Also, the Group does not create or enhance an asset that the customers control as the marketing spaces ultimately belong to the publishers. The Group does not have any right to payment for simply purchasing the marketing spaces and would only be compensated upon delivery of the specified actions. Similar to the cost-plus arrangements, the Group earns rebates from publishers and grant rebates to marketing clients under specified action arrangement. Likewise, the rebates that the Group grants to marketing clients under specified action arrangement are recorded as reduction of revenue and are recorded based on the amount the marketing clients would ultimately need to spend to earn the corresponding level of rebates based on the historical spending patterns of the customers with similar arrangements. The rebates that the Group receives from publishers under the specified action arrangements are recorded as a reduction of cost of revenues. Similar to the cost-plus arrangement, these rebates under specified action arrangements are recognized when a particular milestone is achieved (i.e. applying the relevant rebates based on the level of spending threshold actually achieved) and spending has actually occurred. Adoption of ASC 606 Under ASC 605, the Group recorded rebates granted to marketing clients under the sales agent arrangement as cost of revenues as (i) the Group considered these rebates were for an identifiable benefit that was separable from the marketing clients’ purchase of the Group's services and (ii) the Group was able to reasonably estimate the fair value of the benefit received from granting these rebates. However, the notion of “separate identifiable benefit” under ASC 605 was not carried forward into ASC 606. ASC 606 requires the rebates granted to marketing clients under sales agent arrangement to be recorded as a reduction of revenue unless the Group is receiving a distinct good or service with the payment to the marketing clients. Given the Group cannot establish such a distinct good or service with the payment to marketing clients under the sales agent arrangement, rebates to marketing clients under this arrangement are recorded as a reduction of revenue under ASC 606. The resulting impact to the consolidated financial statements for the year ended December 31, 2018 was a decrease of US$2,654 in net revenues, with a corresponding decrease in cost of revenues. The following table illustrates the effect of the adoption of ASC 606 by presenting a comparison of selected line items from the Group’s consolidated statements of comprehensive loss for the year ended December 31, 2018, as actually reported and as they would have been reported under ASC 605, without the adoption of ASC 606 (in thousands, except per share data): Without Effect of adoption of change As reported ASC 606 higher/(lower) Net revenues 160,017 162,671 (2,654) Cost of revenues (120,897) (123,551) (2,654) Gross profit 39,120 39,120 — Loss before income tax expense (31,956) (31,956) — Income tax expense (655) (655) — Net loss (32,611) (32,611) — Basic net loss per share attributable to iClick Interactive Asia Group Limited (1.23) (1.23) — Diluted net loss per share attributable to iClick Interactive Asia Group Limited (1.23) (1.23) — The adoption of ASC 606 did not change the Group’s consolidated balance sheet, consolidated statement of cash flows, or consolidated statement of changes in equity for the year ended December 31, 2018. Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represents amounts invoiced and revenue recognized prior to invoicing when the Group has satisfied its performance obligations and has the unconditional right to payment. The allowance for doubtful accounts is estimated based upon the Group’s assessment of various factors, including historical experience, the age of the accounts receivable balances, current economic conditions and other factors that may affect the Group’s customers’ ability to pay. The Group normally does not have contract assets, which are primarily unbilled accounts receivable that are conditional on something other than the passage of time. Deferred revenue represents contract liabilities which related to unsatisfied performance obligations at the end of the period. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following reporting period. Revenue recognized during the year ended December 31, 2018 relating to deferred revenue as of January 1, 2018 was US$25,410. For the amount remained as deferred revenue as of January 1, 2018 but not recognized as revenue during the year ended December 31, 2018, there is still a contractual obligation for the Company to provide service whereby the Company is not obliged to make any refund of the amount received from customers. Such amount will be recognized as revenue when all of the revenue recognition criteria are met. Changes in deferred revenue balance for the year ended December 31, 2018 were as follows: Balance as of January 1, 2018 33,037 Additions to deferred revenue Recognition of deferred revenue as revenues Exchange differences Balance as of December 31, 2018 Revenue recognized in the current period from performance obligations related to prior periods was not material. Practical Expedients The Group has used the following practical expedients as allowed under ASC 606: (i) The transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, has not been disclosed as substantially all of the Group’s contracts have a duration of one year or less. (ii) Payment terms and conditions vary by contract type, although terms generally include a requirement of prepayment or payment within one year or less. In instances where the timing of revenue recognition differs from the timing of invoicing, the Group has determined that its contracts generally do not include a significant financing component. (iii) The Group generally expenses sales commissions when incurred because the amortization period would be one year or less. These costs are recorded within sales and marketing expenses. |
Prepaid media costs | (v) Prepaid media costs Prepaid media costs represent prepayments for online space paid by the Group to third party publishers of websites. Upon utilization, media costs are recognized in cost of revenues when the Group is determined as acting as the principal. However, when the Group is determined as acting as the agent, those costs are recognized as deduction to revenue by the Group. These prepayments are classified as current considering the corresponding online spaces are expected to be purchased and utilized within twelve months from the date of payments. |
Research and development expenses | (w) Research and development expenses Research and development expenses consist primarily of (i) salary and welfare for research and development personnel, (ii) rental expenses and (iii) depreciation of office premise and servers utilized by research and development personnel. Costs incurred during the research stage are expensed as incurred. Costs incurred in the development stage, prior to the establishment of technological feasibility, which is when a working model is available, are expensed when incurred. The Company accounts for internal use software development costs in accordance with guidance on intangible assets and internal use software. This requires capitalization of qualifying costs incurred during the software’s application development stage and to expense costs as they are incurred during the preliminary project and post implementation/operation stages. The Group incurred development costs in connection with an internal-use ERP software to further enhance management to monitor the business. While internal and external costs incurred during the preliminary project stage are expensed as incurred, costs relating to activities during the application development stages have been capitalized. For the years ended December 31, 2016, 2017 and 2018, the Company has capitalized development costs related to ERP software of US$nil, US$nil and US$119 as intangible assets. In addition, the Group incurred other research and development costs in relation to other internal use software used to support its operations. Any development costs qualified for capitalization were immaterial for the periods presented. For the years ended December 31, 2016, 2017 and 2018, the Company has not capitalized any other costs related to internal use software. |
Sales and marketing expenses | (x) Sales and marketing expenses Sales and marketing expenses consist primarily of (i) advertising and marketing expenses, and (ii) salary and welfare for sales and marketing personnel. Advertising expenses are recorded as sales and marketing expenses when incurred, and totaled US$1,246, US$1,727 and US$4,574 for the years ended December 31, 2016, 2017 and 2018, respectively. |
General and administrative expenses | (y) General and administrative expenses General and administrative expenses consist primarily of (i) salary and welfare for general and administrative personnel, (ii) allowance for doubtful receivables, and (iii) professional service fees. |
Operating leases | (z) Operating leases Leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of comprehensive loss on a straight-line basis over the lease periods. The Group had no capital leases for the years ended December 31, 2016, 2017 and 2018. |
Employee social security and welfare benefits | (aa) Employee social security and welfare benefits Employees of the Group in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated multi-employer defined contribution plan. The Group is required to contribute to the plan based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group’s obligations are limited to the amounts contributed and no legal obligation beyond the contributions made. The Group also makes payments to other defined contribution plans for employees employed by subsidiaries outside the PRC. |
Non-controlling interests | (ab) Non-controlling interests The non-controlling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interests are presented on the face of the consolidated statement of comprehensive loss as an allocation of the total income or loss for the year between non-controlling interest holders and the shareholders of the Company. |
Income taxes | (ac) Income taxes Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purpose. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive loss in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. Uncertain tax positions The guidance on accounting for uncertainties in income taxes prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Guidance was also provided on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Group’s uncertain tax positions and determining its provision for income taxes. The Group recognizes interests and penalties, if any, under accrued expenses and other current liabilities on its consolidated balance sheets and under other expenses in its statements of operations and comprehensive loss. The Group did not recognize any significant interest and penalties associated with uncertain tax positions for the years ended December 31, 2016, 2017 and 2018. As of December 31, 2017 and 2018, the Group did not have any significant unrecognized uncertain tax positions. |
Share-based compensation | (ad) Share-based compensation The Company accounts for share-based compensation expenses in accordance with ASC subtopic 718‑10 (“ASC 718‑10”), “ Compensation-Stock Compensation”, for share-based awards to employees. Under the fair value recognition provisions of ASC 718‑10, share-based compensation costs are measured at the grant date. The share-based compensation expenses have been categorized as either general and administrative expenses, sales and marketing expenses or research and development expenses, depending on the job functions of the grantees. Option and RSUs granted to employees For the options and RSUs granted to employees, the compensation expense is recognized using the graded-vesting attribution approach over the requisite service period, which is generally the vesting period. Forfeitures are estimated at the time of grant, with such estimate updated periodically and with actual forfeitures recognized currently to the extent they differ from the estimate. In determining the fair value of the Company’s share options, the binomial option pricing model has been applied. The fair value of RSUs is determined with reference to the fair value of the underlying shares. Option modification According to ASC 718, a change in any of the terms or conditions of equity based awards shall be accounted for as a modification of the award. Therefore, the Company calculates incremental compensation cost of a modification as the excess of the fair value of the modified option over the fair value of the original option immediately before its terms are modified. For vested options, the Company would recognize incremental compensation costs on the date of modification and for unvested options, the Company would recognize, prospectively and over the remaining requisite service period, the sum of the incremental compensation costs and the remaining unrecognized compensation costs for the original award. Option and RSUs granted to non-employees For share-based awards granted to non-employees, the Company accounts for the related share-based compensation expenses in accordance with ASC subtopic, 505-50 (“ASC 505-50”), "Equity-Based Payments to Non-Employees". Under the provision of ASC 505-50, options of the Company issued to non-employees are measured based on fair value of the options which are determined by using the binomial option pricing model and RSUs of the Company issued to non-employees are measured based on fair value of the RSUs which are determined with reference to the fair value of the underlying shares. These options and RSUs are measured as of the earlier of the date at which either: (1) commitment for performance by the non-employee has been reached; or (2) the non-employee’s performance is complete. |
Statutory reserves | (ae) Statutory reserves The Company’s subsidiaries, consolidated VIE and its subsidiaries incorporated in the PRC are required on an annual basis to make appropriations of retained earnings set at certain percentage of after-tax profit determined in accordance with PRC accounting standards and regulations (“PRC GAAP”). Appropriation to the statutory general reserve should be at least 10% of the after tax net income determined in accordance with the legal requirements in the PRC until the reserve is equal to 50% of the entities’ registered capital. The Group is not required to make appropriation to other reserve funds and the Group does not have any intentions to make appropriations to any other reserve funds. The general reserve fund can only be used for specific purposes, such as setting off the accumulated losses, enterprise expansion or increasing the registered capital. Appropriations to the general reserve funds are classified in the consolidated balance sheets as statutory reserves. There are no legal requirements in the PRC to fund these reserves by transfer of cash to restricted accounts, and the Group was not done so. Relevant laws and regulations permit payments of dividends by the PRC subsidiaries and affiliated companies only out of their retained earnings, if any, as determined in accordance with respective accounting standards and regulations. Accordingly, the above balances are not allowed to be transferred to the Company in terms of cash dividends, loans or advances. |
Related parties | (af) Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. |
Dividends | (ag) Dividends Dividends are recognized when declared. No dividends were declared for the years ended December 31, 2016, 2017 and 2018, respectively. The Group does not have any present plan to pay any dividends on ordinary shares in the foreseeable future. The Group currently intends to retain the available funds and any future earnings to operate and expand its business. |
Loss per share | (ah) Loss per share Basic loss per share is computed by dividing net loss attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year using the two class method. The Group uses the two-class method to calculate net loss per share though both classes share the same rights in dividends. Therefore, basic and diluted loss per share are the same for both classes of ordinary shares. Using the two class method, net loss is allocated between ordinary shares and other participating securities (i.e. preferred shares) based on their participating rights. Diluted loss per share is calculated by dividing net loss attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalents shares outstanding during the year. Dilutive equivalent shares are excluded from the computation of diluted loss per share if their effects would be anti-dilutive. Ordinary share equivalents consist of the ordinary shares issuable in connection with the Group’s convertible notes, convertible non-redeemable and redeemable preferred shares using the if-converted method, and ordinary shares issuable upon the conversion of the stock options and vesting of RSUs, using the treasury stock method. |
Comprehensive loss | (ai) Comprehensive loss Comprehensive loss is defined as the change in shareholders’ deficit of the Company during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive loss is reported in the consolidated statements of comprehensive loss. Accumulated other comprehensive losses of the Group include the foreign currency translation adjustments. |
Segment reporting | (aj) Segment reporting Operating segments are defined as components of an enterprise engaging in businesses activities for which separate financial information is available that is regularly evaluated by the Group’s chief operating decision makers in deciding how to allocate resources and assess performance. The Group’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results including revenue, gross profit and operating profit at a consolidated level only. The Group does not distinguish between markets for the purpose of making decisions about resources allocation and performance assessment. Hence, the Group has only one operating segment and one reportable segment. |
Recently issued accounting pronouncements | (ak) Recently issued accounting pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires that a lessee should recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expenses for such lease generally on a straight-line basis over the lease term. The new leases standard also provides lessees with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component. If a lessee makes that accounting policy election, it is required to account for the non-lease components together with the associated lease component as a single lease component and to provide certain disclosures. Entities were initially required to adopt the new leases standard using a modified retrospective transition method. Under that transition method, an entity initially applies the new leases standard (subject to specific transition requirements and optional practical expedients) at the beginning of the earliest period presented in the financial statements. In July 2018, the FASB issued ASU 2018-11, which provides another transition method in addition to the existing transition method by allowing entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption consistent with preparers’ requests. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for public entities. The Company will adopt this new guidance for the year ending December 31, 2019 and interim periods in the year ending December 31, 2019. Upon transition, the Company plans to apply the package of practical expedients permitted under Topic 842 transition guidance to the entire lease portfolio at January 1, 2019. As a result, the Company is not required to reassess (i) whether any expired or existing contracts are or contain leases, (ii) the classification of any expired or existing leases, and (iii) initial direct costs for any existing leases. As a result of the adoption of ASC 842, The Company estimated that approximately US$2.6 million would be recognized as total right-of-use assets and total lease liabilities, respectively, in the consolidated balance sheet as of January 1, 2019. Other than disclosed, the Company does not expect the new standard to have a material impact on the consolidated financial statements. In June 2016, the FASB issued ASU 2016-13—Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which changes the accounting for recognizing impairments of financial assets. Under ASU 2016-13, credit losses for certain types of financial instruments will be estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. The new guidance will be effective for the Company starting in the first quarter of fiscal 2021. Early adoption is permitted starting in the first quarter of fiscal 2020. The Company is currently assessing the impact this guidance will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles — Goodwill and Other (Topic 350): simplifying the test for goodwill impairment”, the guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not the difference between the fair value and carrying amount of goodwill which was the step 2 test before. The ASU should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting (Topic 718)(“ASU 2018-07”). ASU 2018-07 issued final guidance aligning the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees, with certain exceptions. Under the guidance, the measurement of equity-classified nonemployee awards will be fixed at the grant date, which may lower their cost and reduce volatility in the income statement. The guidance is effective for public business entities (“PBEs”) in annual periods beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted, but no earlier than an entity’s adoption date of ASC 606. The Company does not expect ASU 2018-07 to have a material impact to the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”) which eliminates, adds and modifies certain disclosure requirements for fair value measurements. Under the guidance, public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The guidance is effective for all entities for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The Company does not expect ASU 2018-13 to have a material impact to the Company’s consolidated financial statements. |
Organization and principal ac_2
Organization and principal activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization and principal activities | |
Summary of Subsidiaries of Company and Consolidated Variable Interest Entities | The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries and consolidated VIEs and the VIE’s subsidiaries (defined in Note 1(b)) as follows: % of direct or indirect Place of economic Date of incorporation/ Name Relationship ownership incorporation establishment Principal activities Digital Marketing Group Limited Subsidiary % October 2006 Hong Kong Dormant Tetris Media Limited Subsidiary % July 2007 Hong Kong Internet marketing services and solutions iClick Interactive Asia Limited Subsidiary % December 2008 Hong Kong Internet marketing services and solutions Optimix Media Asia Limited Subsidiary % March 2009 Hong Kong Investment holding China Search (Asia) Limited Subsidiary % September 2010 Hong Kong Internet marketing services and solutions Diablo Holdings Corporation Subsidiary % August 2010 British Virgin Islands (“BVI”) Investment holding Harmattan Capital Holdings Corporation Subsidiary % August 2010 BVI Investment holding iClick Interactive (Singapore) Pte. Ltd. Subsidiary % January 2011 Singapore Internet marketing services and solutions iClick Interactive (Beijing) Advertisement Co., Ltd Subsidiary % January 2011 The PRC Internet marketing services and solutions Search Asia Technology (Shenzhen) Co., Ltd. Subsidiary % January 2011 The PRC Internet marketing services and solutions i-Click Interactive Taiwan Limited Taiwan Branch Subsidiary’s branch % September 2011 Taiwan Internet marketing services and solutions Performance Media Group Limited Subsidiary % January 2013 Hong Kong Internet marketing services and solutions The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries and consolidated VIEs and the VIE’s subsidiaries (defined in Note 1(b)) as follows: % of direct or indirect Place of economic Date of incorporation/ Name Relationship ownership incorporation establishment Principal activities Tetris Media (Shanghai) Co., Ltd. Subsidiary % July 2013 The PRC Internet marketing services and solutions Buzzinate Company Limited Subsidiary % March 2009 Hong Kong Technology development OptAim Limited Subsidiary % July 2014 Cayman Islands Investment holding OptAim (HK) Limited Subsidiary % July 2014 Hong Kong Investment holding OptAim (Beijing) Information Technology Co., Ltd. (“OptAim WFOE”) Subsidiary % November 2014 The PRC Internet marketing services and solutions Anhui Zhiyunzhong Information Technology Co., Ltd. Subsidiary % November 2017 The PRC Internet marketing Beijing OptAim Network Technology Co., Ltd. (“Beijing OptAim”) VIE % September 2012 The PRC Internet marketing Zhiyunzhong (Shanghai) Technology Co., Ltd. (“Shanghai OptAim”) VIE’s subsidiary % September 2014 The PRC Internet marketing Shanghai Myhayo Technology Co., Ltd. (“ Myhayo”) VIE’s subsidiary % May 2017 The PRC Mobile content aggregator, digital advertising and marketing services Anhui Myhayo Technology Co., Ltd. (“Anhui Myhayo”) VIE’s subsidiary % September 2018 The PRC Mobile content aggregator, digital advertising and marketing services Arda Holdings Limited VIE % May 2010 BVI Treasury management |
Principal accounting policies_2
Principal accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Principal accounting policies | |
Schedule of estimated useful lives of property and equipment | The estimated useful lives are as follows: Leasehold improvements Over the shorter of lease term or 2 - 5 years Furniture and fixtures 2 - 5 years Office equipment 3 - 5 years |
Schedule of estimated useful lives of finite lived intangible assets | Computer software and systems 2 - 5 years |
Schedule of revenue recognized from contracts with customers disaggregated by the three types of pricing models | The following table presents our revenue recognized from contracts with customers disaggregated by the three types of pricing models: For the year ended December 31, 2016 December 31, 2017 December 31, 2018 Under ASC 605 Under ASC 605 Under ASC 606 Recognized over time - Sales agent 7,924 8,311 8,671 - Cost-plus 15,378 10,788 12,192 23,302 19,099 20,863 Recognized at point in time - Specified actions 72,055 106,159 139,154 95,357 125,258 160,017 |
Schedule of effect of the adoption of ASC 606 | The following table illustrates the effect of the adoption of ASC 606 by presenting a comparison of selected line items from the Group’s consolidated statements of comprehensive loss for the year ended December 31, 2018, as actually reported and as they would have been reported under ASC 605, without the adoption of ASC 606 (in thousands, except per share data): Without Effect of adoption of change As reported ASC 606 higher/(lower) Net revenues 160,017 162,671 (2,654) Cost of revenues (120,897) (123,551) (2,654) Gross profit 39,120 39,120 — Loss before income tax expense (31,956) (31,956) — Income tax expense (655) (655) — Net loss (32,611) (32,611) — Basic net loss per share attributable to iClick Interactive Asia Group Limited (1.23) (1.23) — Diluted net loss per share attributable to iClick Interactive Asia Group Limited (1.23) (1.23) — |
Schedule of changes in deferred revenue | Balance as of January 1, 2018 33,037 Additions to deferred revenue Recognition of deferred revenue as revenues Exchange differences Balance as of December 31, 2018 |
Certain risks and concentrati_2
Certain risks and concentration (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Certain risks and concentration | |
Schedule of Financial Information of VIEs and its subsidiary Excluding Intercompany Items with Company's Subsidiaries | As of December 31, 2017 2018 Assets Current assets Cash and cash equivalents 1,585 1,865 Accounts receivable, net 5,553 2,357 Other current assets 552 604 Total current assets 7,690 4,826 Non-current assets Property and equipment, net 14 9 Intangible assets — 697 Other non-current assets 163 174 Total non-current assets 177 880 Total assets 7,867 5,706 Liabilities Current liabilities Accounts payable 29 45 Deferred revenue 5,986 1,300 Accrued liabilities and other current liabilities 804 1,776 Total current liabilities 6,819 3,121 Non-current liabilities Deferred tax liabilities — 238 Total non-current liabilities — 238 Total liabilities 6,819 3,359 For the years ended December 31, 2016 2017 2018 Net revenues 52,215 25,302 2,902 Net (loss)/profit (322) 1,646 (47) Net cash provided by operating activities 1,043 539 281 Net cash used in investing activities (3) — (1) Net increase in cash and cash equivalents 1,040 539 280 |
Schedule of Estimated Fair Values of Financial Assets and Liabilities | As of December 31, 2018 Fair value measurements using Quoted prices in active Significant market for other Significant identical observable Unobservable Total fair assets inputs inputs value (Level 1) (Level 2) (Level 3) Short-term investments 17,427 — 17,427 — Convertible notes at fair value (34,837) — — (34,837) (17,410) — 17,427 (34,837) |
Business acquisition (Tables)
Business acquisition (Tables) - Mahayo | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of recognized amounts of identifiable assets acquired and liabilities assumed: | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Fair value of consideration transferred: Cash 726 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash 2,420 Other current assets 6,329 Property and equipment 8 Intangible asset 697 Current liabilities (6,688) Deferred tax liabilities (238) Non-controlling interests (1,517) Total identifiable net assets acquired 1,011 Gain on bargain purchase (Note 21) 285 |
Schedule of estimated amounts recognized on acquired identifiable intangible asset and its estimated useful life: | The estimated amounts recognized on the acquired identifiable intangible asset and its estimated useful life are shown in the following table: Gross carrying Estimated useful life amount A self-developed computer software and system 4 years 697 |
Cash and cash equivalents and_2
Cash and cash equivalents and time deposit (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash and cash equivalents and time deposit | |
Schedule of Cash on Hand and Cash Held at Bank | Cash on hand and cash held at bank balance as of December 31, 2017 and 2018 primarily consist of the following currencies: As of December 31, 2017 2018 Amount equivalent Amount equivalent RMB 50,600 7,694 61,312 8,904 HK$ 18,099 2,332 10,337 1,317 US$ 33,639 33,639 29,185 29,185 SGD 432 323 263 190 TWD 7,014 235 5,700 181 Euro (“EUR”) 106 126 38 43 Others 67 52 6 8 44,401 39,828 |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounts receivable, net | |
Summary of Accounts Receivable | As of December 31, 2017 2018 Accounts receivable, gross 42,276 67,134 Less: allowance for doubtful accounts (1,478) (1,507) Accounts receivable, net 40,798 65,627 |
Summary of Movement in Allowance for Doubtful Accounts | The following table presents the movement in the allowance for doubtful accounts: For the years ended December 31, 2016 2017 2018 Balance at the beginning of year 1,733 1,693 1,478 Additions for the year 99 910 92 Recoveries — (40) — Accounts receivable written off (99) (1,134) (15) Exchange differences (40) 49 (48) Balance at the end of year 1,693 1,478 1,507 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other assets | |
Summary of Other Assets | The other assets consist of the following: As of December 31, 2017 2018 Current Deposits 2,248 984 Prepayments 266 1,262 VAT receivable 379 325 Others 214 671 3,107 3,242 Non-current Rental deposits 284 232 284 232 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property and equipment, net | |
Summary of Property and Equipment | Property and equipment consist of the following: As of December 31, 2017 2018 Cost: Office equipment 4,661 4,327 Leasehold improvements 1,763 1,487 Furniture and fixtures 753 693 Total cost 7,177 6,507 Less: Accumulated depreciation (5,882) (6,046) Exchange differences (130) (132) Property and equipment, net 1,165 329 |
Summary of Depreciation Expense Recognized | Depreciation expense recognized for the years ended December 31, 2016, 2017 and 2018 are summarized as follows: For the years ended December 31, 2016 2017 2018 Cost of revenues 11 6 6 Research and development 199 108 124 Sales and marketing expenses 838 582 504 General and administrative expenses 464 667 425 Total 1,512 1,363 1,059 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible assets, net | |
Summary of Intangible assets | Intangible assets consist of the following: As of December 31, 2017 2018 Cost: Computer software 21,593 22,382 Less: Accumulated amortization Computer software (10,994) (15,136) Exchange differences 1 1 Intangible assets, net 10,600 7,247 |
Summary of Amortization Expense Recognized | Amortization expense recognized for the years ended December 31, 2016, 2017 and 2018 are summarized as follows: For the years ended December 31, 2016 2017 2018 Cost of revenues 4,149 4,147 4,147 Research and development 28 3 1 Sales and marketing expenses 19 17 3 General and administrative expenses 116 54 16 4,312 4,221 4,167 |
Summary of Estimated Aggregate Amortization Expense | The estimated aggregate amortization expense for each of the next five years as of December 31, 2018 is: Computer software 2019 4,361 2020 2,498 2021 215 2022 173 2023 — 7,247 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill. | |
Summary of Movements on Goodwill | Movements on goodwill during the year were as follows: Buzzinate OptAim Total Balance as of January 1, 2017, December 31, 2017 and 2018 2,958 45,538 48,496 |
Deferred revenue (Tables)
Deferred revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred revenue | |
Schedule of deferred revenue | As of December 31, 2017 2018 Deferred revenue, current 33,037 27,191 |
Accrued liabilities and other_2
Accrued liabilities and other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accrued liabilities and other liabilities | |
Summary of accrued liabilities and other liabilities | As of December 31, 2017 2018 Current Rebates payable to customers 3,257 2,209 VAT and other taxes payable 2,659 3,548 Security deposit received from customers 686 551 Accrued employee benefits 2,741 3,980 Accrued professional fees 4,167 3,359 Accrued marketing and hosting expense 1,831 1,342 Others 788 1,359 16,129 16,348 Non-current Deferred other income — |
Bank borrowings (Tables)
Bank borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Bank borrowings | |
Summary of bank borrowings | As of December 31, 2017 2018 1-year revolving loan denominated in RMB (Note (i), (v)) 7,603 — Half-year revolving loans denominated in RMB (Note (i), (ii), (v)) — 9,439 1-year revolving loan denominated in US$ (Note (iii)) 2,800 — 2-year demand loan agreement denominated in US$ (Note (iv)) 83 — 10,486 9,439 Note: (i) On December 27, 2017, the Company, through its PRC subsidiaries, renewed a one-year revolving loan agreement with a bank amounting to RMB50 million (equivalent to US$7,603). The interest rate of this loan facility was the benchmark interest rate determined by the People’s Bank of China for loans over one year granted by financial institutions plus 1.65% per annum. This loan was subsequently renewed for one year in December 2018 of limit up to RMB70 million. Out of this loan facility, the PRC subsidiaries had utilized RMB50 million (equivalent to US$7,261) at the interest rate determined by the People’s Bank of China for loans over half year granted by financial institutions plus 2.65% per annum. (ii) On September 21, 2018, the Company, through a PRC subsidiary, entered into a half-year revolving loan agreement with a bank of limit up to RMB30 million. Out of this loan facility, the PRC subsidiary had utilized RMB15 million (equivalent to US$2,178). The Company provides corporate guarantee and accounts receivable as pledge to secure the obligations under this revolving loan. The interest rate of this loan facility was the benchmark interest rate determined by the People’s Bank of China for loans over half year granted by financial institutions plus 2.65% per annum. (iii) On December 21, 2016, the Company, through a Hong Kong subsidiary, renewed a one-year loan facility agreement with a bank amounting to US$3,000. Out of this loan facility, the Hong Kong subsidiary had utilized US$2,800 as of December 31, 2017. The interest rate of this short-term loan facility was determined by three-month LIBOR plus 5.55% for the year ended December 31, 2017. The loan was repaid on December 20, 2018. (iv) On January 20, 2016, the Company, through a Hong Kong subsidiary, entered into a two-year loan agreement with a bank amounting to US$2,000. Out of this loan facility, the Hong Kong subsidiaries had utilized US$83 as of December 31, 2017. The interest rate of this loan was the benchmark interest rate determined by three-month LIBOR plus 7.00% per annum. The bank facility agreement includes repayable on demand clauses such that the bank borrowing are classified as current liabilities as of December 31, 2017. The loan was repaid on January 20, 2018. (v) As of December 31, 2017 and 2018, certain financial covenants (minimum monthly adjusted quick ratio and minimum quarterly EBITDA as defined in the banking facilities agreements) as set out in these loan agreements have been breached. The relevant subsidiaries have obtained waiver letters for waiving the requirements to meet the financial covenants. As of the date of this report, the bank cannot demand for immediate repayment. (vi) In March 2017, the Company entered into a facility agreement for working capital loans with a bank, which provides for a RMB30 million ( equivalent to approximately US$4.3 million) 18‑month revolving loan. The Company provide corporate guarantee and accounts receivable as pledge to secure the obligations under this revolving loan. The interest rate of this loan facility is fixed at 5.75% per annum. As of December 31,2017 and 2018, the Company had not drawn down under this revolving loan. |
Redeemable convertible prefer_2
Redeemable convertible preferred shares (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Redeemable shares | |
Schedule of significant factors, assumptions and methodologies used in determining the business valuation | As of December 31, 2017 Terminal growth rate 3.0 % Weighted average cost of capital 18.3 % Growth rate on average spending per customer 3.0 % - % |
Schedule of the changes in redeemable convertible preferred shares | Series A Years ended December 31, 2017 2018 Beginning balance 5,597 — Accretion to redemption value 235 — Conversion to Class A ordinary shares (5,832) — Ending balance — — Series B Years ended December 31, 2017 2018 Beginning balance 9,807 — Accretion to redemption value 1,427 — Conversion to Class A ordinary shares (11,234) — Ending balance — — Series C Years ended December 31, 2017 2018 Beginning balance 10,733 — Conversion to Class A ordinary shares (10,733) — Ending balance — — Series D Years ended December 31, 2017 2018 Beginning balance 43,956 — Gain from wavier on anti-dilution (632) — Conversion to Class A ordinary shares (43,324) — Ending balance — — Series E Years ended December 31, 2017 2018 Beginning balance 18,845 — Issuance of preferred shares — — Conversion to Class A ordinary shares (18,845) — Ending balance — — |
Repurchase of shares (Tables)
Repurchase of shares (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Repurchase of shares | |
Summary of the shares repurchased | Total Number of ADSs Purchased as Part of the Publicly Average Price Period Announced Plan Paid Per ADS December 20, 2018 10,000 3.7175 For the year ended December 31, 2018 10,000 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based compensation | |
Summary of share options granted | Exercise Vesting price at Number of Term period grant date Grant Date share options (year) (year) (US$) April 1, 2016 32,200 10.25 4.00 20.0000 April 1, 2016 79,116 10.25 4.00 6.0000 July 1, 2016 10,000 10.00 4.00 20.0000 July 1, 2016 1,000 10.00 4.00 12.0000 January 1, 2017 4,400 10.01 4.00 20.0000 January 1, 2017 (Note ii) 180,000 10.01 1.67 0.0010 January 1, 2017 100,800 10.01 4.00 8.1290 April 1, 2017 5,000 10.01 4.00 12.0000 July 1, 2017 12,000 8.51 2.50 8.1290 (i) The Company modified certain terms of the options in 2017 previously granted on February 1, 2015, which these modifications were related to either the vesting period or the exercise price. The incremental costs resulting from such modifications were assessed to be insignificant. (ii) |
Summary of share option activity | The following table summarizes the share option activity for the years ended December 31, 2016, 2017 and 2018: Weighted Weighted average Weighted average remaining Aggregate average grant date contractual intrinsic Number of exercise price fair value life value share options US$ US$ years US$’000 At January 1, 2016 1,592,443 4.90 8.58 23,641 Granted 122,316 10.42 13.81 Exercised (68,135) 2.51 Forfeited (154,439) 7.14 At December 31, 2016 1,492,185 5.23 7.80 18,631 Vested and expected to vest at December 31, 2016 1,083,293 4.25 9.64 7.15 14,494 Exercisable to vest at December 31, 2016 928,597 3.68 10.77 7.44 12,615 Weighted Weighted Weighted average average Aggregate average grant date remaining intrinsic Number of exercise price fair value contractual value share options US$ US$ life years US$’000 At January 1, 2017 1,492,185 5.23 — 7.80 18,631 Granted 302,200 8.37 11.67 — — Exercised (25,898) 2.37 — — — Forfeited (225,911) 7.34 — — — At December 31, 2017 1,542,576 5.62 7.24 19,387 Vested and expected to vest at December 31, 2017 1,199,712 4.75 10.71 6.55 16,081 Exercisable to vest at December 31, 2017 1,118,812 4.72 11.35 6.87 15,035 At January 1, 2018 1,542,576 5.62 7.24 19,387 Exercised (503,712) 1.28 Forfeited (130,455) 9.19 At December 31, 2018 908,409 7.52 6.27 2,724 Vested and expected to vest at December 31, 2018 862,372 4.69 11.39 5.58 2,793 Exercisable to vest at December 31, 2018 823,341 4.52 12.02 5.88 2,634 |
Summary of assumption for fair values of share options granted/modified | The fair values of share options granted/modified during the years ended December 31, 2016, 2017 and 2018 were estimated using the following assumptions: Expected Risk-free Dividend Volatility term interest rate yield rate (in years) Date (Note i) (Note ii) (Note iii) (Note iv) Granted during the years ended December 31, 2016 and 2017: April 1, 2016 2.00 % 0 % 49.37 % NA July 1, 2016 1.62 % 0 % 50.52 % NA January 1, 2017 2.67 % 0 % 50.75 % NA April 1, 2017 2.59 % 0 % 50.79 % NA July 1, 2017 2.35 % 0 % 47.59 % NA Modified during the year ended December 31, 2018: September 1, 2018 (Note v) % 0 % % NA September 1, 2018 (Note vi) % 0 % % NA Notes: (i) The risk-free interest rate of periods within the contractual life of the share option is based on the yield of US Treasury Strips sourced from Bloomberg as of the valuation dates. (ii) The Company has no history or expectation of paying dividends on its ordinary shares. (iii) Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates. (iv) The time to expire is assumed to be the option’s contractual term while early exercise multiples, being 2.2x and 2.8x for general staff and management staff, respectively, and post-vesting employment termination behavior have been factored into the model to derive the fair values of the share options. (v) It refers to the modification of options previously granted on January 1, 2015. (vi) It refers to the modification of options previously granted on January 1, 2017. |
Summary of RSUs granted | Vesting Number of period Grant Date RSUs (year) September 1, 2018 (Note i) 514,991 0.01 September 17, 2018 (Note i) 53,686 0.03 September 17, 2018 (Note vi) 23,452 0.29 October 25, 2018 (Note i) 100,000 0.02 October 25, 2018 (Note vi) 5,000 0.18 October 29, 2018 (Note vi) 431,760 0.01 October 25, 2018 (Note vi) 138,855 0.00 October 25, 2018 (Note iii) 105,000 3.19 October 25, 2018 (Note iii) 37,500 2.19 October 25, 2018 (Note v) 75,000 0 December 14, 2018 (Note viii) 50,000 2.00 July 1, 2018 (Note iv) 22,000 3.50 July 1, 2018 (Note iv) 118,020 4.00 October 1, 2018 (Note iv) 1,800 4.00 July 1, 2018 (Note vii) 260,810 0.49 July 1, 2018 (Note vii) 12,500 0.54 Notes: (i) These RSUs were granted to non-employees for their past services and immediately vested on grant date. (ii) These RSUs were granted to employees for their past services and immediately vested on the grant date. (iii) These RSUs were scheduled to be vested over two to three years on a monthly basis. (iv) These RSUs were scheduled to be vested over four years. One-fourth of the awards shall be vested upon the end of the first semi-anniversary dates of the grants or the first anniversary dates of the grants, and the remaining of the awards shall be vested on straight-line basis at the end of the remaining anniversary years. (v) On October 25, 2018, the Company authorized and communicated the issuance of RSUs to an officer of the Company which are subject to certain market conditions based on achievement of average closing stock prices. The Company determines the grant-date fair value of these RSUs using the Monte Carlo simulation model utilizes multiple input variables to determine the stock-based compensation expense. The fair value of these RSUs were US$5, as determined using a Monte Carlo simulation with the following assumptions: a historical volatility of 37.02%, 0% dividend yield and a risk-free interest rate of 2.90%. The historical volatility was based on the average volatility of the comparable companies for the most recent 2-year period. The stock price projection for the Company assumes a 0% dividend yield. This is mathematically equivalent to reinvesting dividends in the issuing entity over the performance period. The risk-free interest rate is equal to the yield, as of the measurement date, of the zero-coupon U.S. Treasury bill that is commensurate with the remaining performance measurement period. None of these RSUs were forfeited or expired during the year ended December 31, 2018. (vi) These RSUs were granted to non-employees for their past services and vested within one year. (vii) These RSUs were granted to employees for their past services and vested within one year. (viii) This RSU was granted to a non-employee for his service and vest over two years on a quarterly basis starting from the service inception date on January 1, 2019. |
Summary of RSUs activity | The following table summarizes the activity of the service-based RSUs for the year ended December 31, 2018: Weighted average Number of grant date RSUs fair value At January 1, 2018 — — Granted 1,950,374 8.72 Vested (1,569,792) 9.94 Forfeited (4,310) 12.70 At December 31, 2018 376,272 8.02 Vested and expected to vest at December 31, 2018 376,272 8.02 |
Summary of compensation costs recognized | For the years ended December 31, 2016 2017 2018 Cost of revenues 52 49 347 Research and development 985 937 6,587 Sales and marketing 2,160 2,179 4,811 General and administrative 18,047 1,907 7,934 Total 21,244 5,072 19,679 |
Other (losses)_gains, net (Tabl
Other (losses)/gains, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other (losses)/gains, net | |
Tabular disclosure of (loss) gain related to nonoperating activities, classified as other | For the years ended December 31, 2016 2017 2018 Net exchange (loss)/gain (1,147) 1,257 (857) Forfeiture of advances from customers (Note (i)) — 432 1,088 Gain on bargain purchase — — 285 Others 65 152 171 Total (1,082) 1,841 687 Note: (i) The forefeited advances from customers are recognized as other gains when the contractual obligation of the Company to provide the agreed services no longer existed legally due to passage of time. |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income tax | |
Disclosure of current and deferred portions of income tax expense | The current and deferred portions of income tax expense included in the consolidated statements of comprehensive loss are as follows: For the years ended December 31, 2016 2017 2018 Current income tax expense 1,283 1,262 1,561 Deferred tax benefits (1,061) (714) (906) Income tax expense 222 548 655 |
Disclosure of deferred tax assets and liabilities | The tax effects of temporary differences that give rise to the deferred tax asset balances as of December 31, 2017 and 2018 are as follows: As of December 31, 2017 2018 Deferred tax assets Tax losses carried forward 7,573 6,385 Share-based payments 850 884 Temporary difference on deferred income — 269 Less: Valuation allowance (Note (a)) (7,573) (6,385) 850 1,153 Deferred tax liabilities Acquired intangible assets (2,638) (1,760) Outside basis difference (Note (b)) (486) (1,004) Others (35) (30) (3,159) (2,794) Note: (a) Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future taxable income exclusive of reversing temporary differences and tax loss carryforwards. Valuation allowance was provided for net operating loss carryforwards because it was more likely than not that such deferred tax assets will not be realized based on the Group’s estimate of its future taxable income. If events occur in the future that allow the Group to realize more of its deferred income tax than the presently recorded amounts, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur. Movement of valuation allowance is as follows: For the years ended December 31, 2017 2018 Beginning balance 6,838 7,573 Additions 735 199 Reversals (Note i) — (1,387) Ending balance 7,573 6,385 Note: (i) The reversals comprise of tax loss carryforwards which were expired in 2018 and tax loss carryforwards which were utilized to offset taxable income during the year ended December 31, 2018. (b) The deferred tax liabilities are recorded for the undistributed earnings in the Group’s VIE and its subsidiaries. |
Disclosure of movement of valuation allowance | Movement of valuation allowance is as follows: For the years ended December 31, 2017 2018 Beginning balance 6,838 7,573 Additions 735 199 Reversals (Note i) — (1,387) Ending balance 7,573 6,385 Note: (i) The reversals comprise of tax loss carryforwards which were expired in 2018 and tax loss carryforwards which were utilized to offset taxable income during the year ended December 31, 2018. |
Disclosure of operating tax loss carry forwards expiring years | The net operating tax loss carryforwards will begin to expire as follows: As of December 31, 2018 2020 6,270 2021 7,856 2022 8,356 2023 398 Tax loss with no expiry 4,031 26,911 |
Disclosure of reconciliation between expense of income taxes | For the years ended December 31, 2016 2017 2018 Tax benefit calculated at statutory tax rates (Note i) (4,509) (3,972) (7,989) Effect of differences between statutory tax rates and foreign effective tax rates 213 (1,172) 2,804 Non-taxable other income (738) (275) (274) Non-deductible expenses (Note ii) 4,208 4,861 6,784 Valuation allowance 1,034 735 (1,188) Outside basis difference (Note iii) — 486 518 Others 14 (115) — Income tax expense 222 548 655 Note: (i) The Group’s major operation during the years ended December 31, 2016 and 2017 was conducted in Hong Kong. Accordingly, the Group prepared its tax rate reconciliation starting with the Hong Kong statutory tax rate for the years ended December 31, 2016 and 2017. The Group’s major operation during the year ended December 31, 2018 was conducted in the PRC. Accordingly, the Group prepared its tax rate reconciliation starting with the PRC statutory tax rate during the year ended December 31, 2018. (ii) Non-deductible expenses were mainly related to share-based compensation expenses, fair value losses on derivative liabilities and fair value losses on convertible notes. (iii) Outside basis difference is related to undistributed earnings in the Group’s VIE and its subsidiaries. |
Basic and diluted net loss pe_2
Basic and diluted net loss per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Basic and diluted net loss per share | |
Summary of basic and diluted net loss per share | Basic and diluted net loss per share for the years ended December 31, 2016, 2017 and 2018 are calculated as follows: For the years ended December 31, 2016 2017 2018 Numerator: Net loss attributable to ordinary shareholders of the Company (27,330) (24,619) (32,409) Accretion of convertible redeemable preferred shares redemption value (773) (1,662) — Accretion to redeemable ordinary shares redemption value (1,556) (3,650) — Numerator of basic net loss per share (29,659) (29,931) (32,409) Denominator: Denominator for basic and diluted net loss per share - weighted average shares outstanding 13,151,063 13,931,503 26,452,409 Basic net loss per share (2.26) (2.15) (1.23) Diluted net loss per share (2.26) (2.15) (1.23) |
Computation of diluted net loss per ordinary share | The following ordinary share equivalents were excluded from the computation of diluted net loss per ordinary share for the periods presented because including them would have had an anti-dilutive effect: As of December 31, 2016 2017 2018 Preferred shares -- weighted average (thousands) 8,469 — — Share options and RSUs -- weighted average (thousands) 1,091 1,071 505 Redeemable ordinary shares -- weighted average (thousands) 742 — — Convertible notes -- weighted average (thousands) — — |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related party transactions | |
Schedule of the major related parties and their relationships with the Company | The table below sets forth the major related parties and their relationships with the Company as of December 31, 2018: Related party Relationship with the Company Aladdin Fintech Company Limited An entity controlled by a director of the Company |
Schedule of transactions with the major related parties | (a) The Group entered into the following transactions with the major related parties: For the years ended December 31, Transactions 2016 2017 2018 Net revenues: Platform development fee income, license fee income and maintenance services income from Aladdin Fintech Company Limited — — |
Schedule of balance with related party | (b) The Group had the following balance with the related party: As of December 31, 2017 2018 Accounts receivable from Aladdin Fintech Company Limited — 350 |
Segment (Tables)
Segment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment | |
Summary of revenue generated for the respective countries | Revenue generated for the respective countries are summarized as follows: For the years ended December 31, 2016 2017 2018 PRC 71,214 105,380 141,926 Hong Kong 22,766 18,287 17,004 Others 1,377 1,591 1,087 95,357 125,258 160,017 |
Summary of long-lived assets | The Group’s long-lived assets are located in the following countries: As of December 31, 2017 2018 PRC 858 231 Hong Kong 300 92 Others 7 6 1,165 329 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and contingencies | |
Summary of operating leases for office rental | As of December 31, 2018, future minimum payments under non-cancellable operating leases for office rental consist of the following: 2019 1,763 2020 1,099 2021 558 3,420 |
Organization and principal ac_3
Organization and principal activities - Subsidiaries (Details) | Dec. 31, 2018 |
Digital Marketing Group Limited | |
Ownership: | |
Subsidiary direct or indirect ownership (as a percent) | 100.00% |
Tetris Media Limited | |
Ownership: | |
Subsidiary direct or indirect ownership (as a percent) | 100.00% |
iClick Interactive Asia Limited | |
Ownership: | |
Subsidiary direct or indirect ownership (as a percent) | 100.00% |
Optimix Media Asia Limited | |
Ownership: | |
Subsidiary direct or indirect ownership (as a percent) | 100.00% |
China Search (Asia) Limited | |
Ownership: | |
Subsidiary direct or indirect ownership (as a percent) | 100.00% |
Diablo Holdings Corporation | |
Ownership: | |
Subsidiary direct or indirect ownership (as a percent) | 100.00% |
Harmattan Capital Holdings Corporation | |
Ownership: | |
Subsidiary direct or indirect ownership (as a percent) | 100.00% |
iClick Interactive (Singapore) Pte Ltd | |
Ownership: | |
Subsidiary direct or indirect ownership (as a percent) | 100.00% |
iClick Interactive (Beijing) Advertisement Co Ltd | |
Ownership: | |
Subsidiary direct or indirect ownership (as a percent) | 100.00% |
Search Asia Technology (Shenzhen) Co Ltd | |
Ownership: | |
Subsidiary direct or indirect ownership (as a percent) | 100.00% |
iClick Interactive Taiwan Limited Taiwan Branch | |
Ownership: | |
Subsidiary direct or indirect ownership (as a percent) | 100.00% |
Performance Media Group Limited | |
Ownership: | |
Subsidiary direct or indirect ownership (as a percent) | 100.00% |
Tetris Media (Shanghai) Co Ltd | |
Ownership: | |
Subsidiary direct or indirect ownership (as a percent) | 100.00% |
Buzzinate Company Limited | |
Ownership: | |
Subsidiary direct or indirect ownership (as a percent) | 100.00% |
OptAim Limited | |
Ownership: | |
Subsidiary direct or indirect ownership (as a percent) | 100.00% |
OptAim (HK) Limited | |
Ownership: | |
Subsidiary direct or indirect ownership (as a percent) | 100.00% |
OptAim (Beijing) Information Technology Co Ltd | |
Ownership: | |
Subsidiary direct or indirect ownership (as a percent) | 100.00% |
Anhui Zhiyunzhong Information Technology Co Ltd | |
Ownership: | |
Subsidiary direct or indirect ownership (as a percent) | 100.00% |
Organization and principal ac_4
Organization and principal activities - Consolidated VIE's (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Beijing OptAim Network Technology Co., Ltd. ("Beijing OptAim") | |
Ownership: | |
VIE direct or indirect ownership (as a percent) | 100.00% |
Zhiyunzhong (Shanghai) Technology Co., Ltd. ("Shanghai OptAim") | |
Ownership: | |
VIE direct or indirect ownership (as a percent) | 100.00% |
Shanghai Myhayo Technology Co., Ltd. ("Shanghai Myhayo") | |
Ownership: | |
VIE direct or indirect ownership (as a percent) | 40.00% |
Anhui Myhayo Technology Co., Ltd. ("Anhui Myhayo") | |
Ownership: | |
VIE direct or indirect ownership (as a percent) | 40.00% |
Arda Holdings Limited | |
Ownership: | |
VIE direct or indirect ownership (as a percent) | 100.00% |
Organization and principal ac_5
Organization and principal activities - OptAim (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Consolidated VIE and VIE's subsidiary | ||
Total assets | $ 207,258 | $ 188,822 |
Total Liabilities | 100,618 | 68,838 |
OptAim VIE | ||
Consolidated VIE and VIE's subsidiary | ||
Total assets | 5,706 | 7,867 |
Total Liabilities | 3,121 | 6,819 |
Registered capital and statutory reserve | $ 2,081 | $ 2,081 |
Organization and principal ac_6
Organization and principal activities - IPO (Details) - American Depository Shares - Initial public offering $ in Thousands | Dec. 22, 2017USD ($)shares |
Initial Public Offering | |
Shares issued and sold (in shares) | shares | 4,312,500 |
Number of common shares for each ADS | 0.5 |
Net proceeds from issuance of ordinary shares upon IPO | $ | $ 28,405 |
Principal accounting policies -
Principal accounting policies - Fair value of financial instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Principal accounting policies | |||
Impairments of assets | $ 0 | $ 0 | $ 0 |
Principal accounting policies_3
Principal accounting policies - Cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Restricted cash, current | $ 0 | $ 0 | $ 5,234 |
Net increase/(decrease) in cash and cash equivalents and restricted cash in the consolidated statements of cash flows | $ 20,754 | (13,500) | 21,181 |
ASU 2016-18 | Proforma Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
(Increase)/decrease in restricted cash | 5,234 | 4,234 | |
Net increase/(decrease) in cash and cash equivalents and restricted cash in the consolidated statements of cash flows | $ (5,234) | $ 4,234 |
Principal accounting policies_4
Principal accounting policies - Short-term investments and Long-term investment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Principal accounting policies | |||
Interest income from short-term investment | $ 25,000 | $ 0 | $ 0 |
Long-term investment | $ 503,000 | $ 0 |
Principal accounting policies_5
Principal accounting policies - Property and equipment, net (Details) - Minimum | 12 Months Ended |
Dec. 31, 2018 | |
Leasehold improvements | |
Property, Plant and Equipment | |
PP&E useful life (in years) | 2 years |
Furniture and fixtures | |
Property, Plant and Equipment | |
PP&E useful life (in years) | 2 years |
Office equipment | |
Property, Plant and Equipment | |
PP&E useful life (in years) | 3 years |
Principal accounting policies_6
Principal accounting policies - Intangible assets, net (Details) - Computer Software and systems | 12 Months Ended |
Dec. 31, 2018 | |
Minimum | |
Finite-Lived Intangible Assets | |
Useful life (in years) | 2 years |
Maximum | |
Finite-Lived Intangible Assets | |
Useful life (in years) | 5 years |
Principal accounting policies_7
Principal accounting policies - Impairment of goodwill & Derivative financial instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Principal accounting policies | |||
Goodwill impairment loss recognized | $ 0 | $ 0 | $ 0 |
Principal accounting policies_8
Principal accounting policies - Revenue recognition and cost of revenues - Disaggregation by pricing models (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ 160,017 | $ 125,258 | $ 95,357 |
Without adoption of ASC 606 | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 125,258 | 95,357 | |
Recognized over time | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 20,863 | ||
Recognized over time | Without adoption of ASC 606 | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 19,099 | 23,302 | |
Recognized over time | Sales agent | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 8,671 | ||
Recognized over time | Sales agent | Without adoption of ASC 606 | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 8,311 | 7,924 | |
Recognized over time | Cost-plus | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 12,192 | ||
Recognized over time | Cost-plus | Without adoption of ASC 606 | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 10,788 | 15,378 | |
Recognized at point in time | Specified actions | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ 139,154 | ||
Recognized at point in time | Specified actions | Without adoption of ASC 606 | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ 106,159 | $ 72,055 |
Principal accounting policies_9
Principal accounting policies - Revenue Recognition and cost of revenues - Effect of the adoption of ASC 606 (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net revenues | $ 160,017 | $ 125,258 | $ 95,357 |
Cost of revenues | (120,897) | (95,733) | (61,048) |
Gross profit | 39,120 | 29,525 | 34,309 |
Loss before income tax expense | (31,956) | (24,071) | (27,108) |
Income tax expense | (655) | (548) | (222) |
Net loss | $ (32,611) | $ (24,619) | $ (27,330) |
Basic net loss per share attributable to iClick Interactive Asia Group Limited | $ (1.23) | $ (2.15) | $ (2.26) |
Diluted net loss per share attributable to iClick Interactive Asia Group Limited | $ (1.23) | $ (2.15) | $ (2.26) |
Without adoption of ASC 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net revenues | $ 125,258 | $ 95,357 | |
ASU 2014-09 | Without adoption of ASC 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net revenues | $ 162,671 | ||
Cost of revenues | (123,551) | ||
Gross profit | 39,120 | ||
Loss before income tax expense | (31,956) | ||
Income tax expense | (655) | ||
Net loss | $ (32,611) | ||
Basic net loss per share attributable to iClick Interactive Asia Group Limited | $ (1.23) | ||
Diluted net loss per share attributable to iClick Interactive Asia Group Limited | $ (1.23) | ||
ASU 2014-09 | Effect of change Higher/(Lower) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net revenues | $ (2,654) | ||
Cost of revenues | $ (2,654) |
Principal accounting policie_10
Principal accounting policies - Revenue recognition and cost of revenues - Contract balances (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Principal accounting policies | |
Revenue recognized during the year ended December 31, 2018 relating to deferred revenue as of January 1, 2018 | $ 25,410 |
Changes in deferred revenue | |
Balance at the beginning of the year | 33,037 |
Additions to deferred revenue | 192,822 |
Recognition of deferred revenue as revenues | (197,698) |
Exchange differences | (970) |
Balance at the end of the year | $ 27,191 |
Principal accounting policie_11
Principal accounting policies - Revenue recognition and cost of revenues - Practical Expedients (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Principal accounting policies | |
Practical expedients of transaction price allocated to the performance obligation | true |
Practical expedients of payment terms and conditions vary by contract type | false |
Practical expedients for general expenses sales commission incurred of amortization period | false |
Principal accounting policie_12
Principal accounting policies - Research and development expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Principal accounting policies | |||
Capitalized development costs related to ERP software as intangible assets | $ 119 | $ 0 | $ 0 |
Principal accounting policie_13
Principal accounting policies - Sales and marketing expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Principal accounting policies | |||
Advertising expenses | $ 4,574 | $ 1,727 | $ 1,246 |
Principal accounting policie_14
Principal accounting policies - General and administrative expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Principal accounting policies | |||
General and administrative expenses | $ 23,757 | $ 12,983 | $ 26,767 |
Principal accounting policie_15
Principal accounting policies - Operating leases (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Principal accounting policies | |||
Capital leases | $ 0 | $ 0 | $ 0 |
Principal accounting policie_16
Principal accounting policies - Uncertain tax positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Principal accounting policies | |||
Interest and penalties associated with uncertain tax positions | $ 0 | $ 0 | $ 0 |
Uncertain tax positions | $ 0 | $ 0 | $ 0 |
Principal accounting policie_17
Principal accounting policies - Statutory reserves (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Principal accounting policies | |||
Percentage of after tax net income transferred to statutory general reserve | 10.00% | 10.00% | 10.00% |
Limit of statutory reserve fund as a percentage of registered capital, after which allocations to statutory reserve fund are no longer required | 50.00% | 50.00% | 50.00% |
Principal accounting policie_18
Principal accounting policies - Dividends (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Principal accounting policies | |||
Dividends declared | $ 0 | $ 0 | $ 0 |
Principal accounting policie_19
Principal accounting policies - Segment reporting (Details) - segment | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Principal accounting policies | |||
Number of operating segments | 1 | 1 | 1 |
Number of reportable segments | 1 | 1 | 1 |
Principal accounting policie_20
Principal accounting policies - Recently issued accounting pronouncements (Details) - Restatement Adjustment - ASC 842 $ in Millions | Jan. 01, 2019USD ($) |
Recently issued accounting pronouncements | |
Total right-of-use assets | $ 2.6 |
Total lease liabilities | $ 2.6 |
Certain risks and concentrati_3
Certain risks and concentration - PRC Regulations OptAim Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | |||
Cash and cash equivalents | $ 39,828 | $ 19,401 | $ 27,280 |
Accounts receivable, net | 65,627 | 40,798 | |
Other current assets | 3,242 | 3,107 | |
Total current assets | 149,298 | 127,427 | |
Non-current assets | |||
Property and equipment, net | 329 | 1,165 | |
Intangible assets | 7,247 | 10,600 | |
Other non-current assets | 232 | 284 | |
Total non-current assets | 57,960 | 61,395 | |
Total assets | 207,258 | 188,822 | |
Current liabilities | |||
Accounts payable | 6,557 | 3,904 | |
Deferred revenue | 27,191 | 33,037 | |
Accrued liabilities and other current liabilities | 16,348 | 16,129 | |
Total current liabilities | 97,151 | 65,679 | |
Non-current liabilities | |||
Deferred tax liabilities | 2,794 | 3,159 | |
Total non-current liabilities | 3,467 | 3,159 | |
Total liabilities | 100,618 | 68,838 | |
OptAim VIE | |||
Non-current assets | |||
Total assets | 5,706 | 7,867 | |
Non-current liabilities | |||
Total liabilities | 3,121 | 6,819 | |
VIE | OptAim VIE | |||
Current assets | |||
Cash and cash equivalents | 1,865 | 1,585 | |
Accounts receivable, net | 2,357 | 5,553 | |
Other current assets | 604 | 552 | |
Total current assets | 4,826 | 7,690 | |
Non-current assets | |||
Property and equipment, net | 9 | 14 | |
Intangible assets | 697 | ||
Other non-current assets | 174 | 163 | |
Total non-current assets | 880 | 177 | |
Total assets | 5,706 | 7,867 | |
Current liabilities | |||
Accounts payable | 45 | 29 | |
Deferred revenue | 1,300 | 5,986 | |
Accrued liabilities and other current liabilities | 1,776 | 804 | |
Total current liabilities | 3,121 | 6,819 | |
Non-current liabilities | |||
Deferred tax liabilities | 238 | ||
Total non-current liabilities | 238 | ||
Total liabilities | $ 3,359 | $ 6,819 |
Certain risks and concentrati_4
Certain risks and concentration - PRC Regulations OptAim Statement of Loss and Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial Information: | |||
Net revenues | $ 160,017 | $ 125,258 | $ 95,357 |
Net loss attributable to iClick Interactive Asia Group Limited | (32,409) | (24,619) | (27,330) |
Net cash provided by operating activities | (15,416) | (13,881) | (3,907) |
Net cash used in investing activities | 8,395 | (25,165) | 524 |
Net increase in cash and cash equivalents and restricted cash | 20,754 | (13,500) | 21,181 |
OptAim VIE | VIE | |||
Financial Information: | |||
Net revenues | 2,902 | 25,302 | 52,215 |
Net loss attributable to iClick Interactive Asia Group Limited | (47) | 1,646 | (322) |
Net cash provided by operating activities | 281 | 539 | 1,043 |
Net cash used in investing activities | (1) | (3) | |
Net increase in cash and cash equivalents and restricted cash | $ 280 | $ 539 | $ 1,040 |
Certain risks and concentrati_5
Certain risks and concentration - Fair value measurements (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Fair value measurement | |
Short-term investments | $ 17,427 |
Convertible notes at fair value | (34,837) |
Financial assets and liabilities | (17,410) |
Level 2 | |
Fair value measurement | |
Short-term investments | 17,427 |
Financial assets and liabilities | 17,427 |
Level 3 | |
Fair value measurement | |
Convertible notes at fair value | (34,837) |
Financial assets and liabilities | $ (34,837) |
Certain risks and concentrati_6
Certain risks and concentration - Concentration risk (Details) - customer | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration of revenues | Customer concentration risk | |||
Concentration risk | |||
Number of individual customers | 0 | 2 | |
Concentration risk (in percent) | 10.00% | ||
Concentration of revenues | Customer concentration risk | Customer One | |||
Concentration risk | |||
Number of individual customers | 1 | ||
Concentration risk (in percent) | 14.00% | 18.00% | |
Concentration of revenues | Customer concentration risk | Customer Two | |||
Concentration risk | |||
Concentration risk (in percent) | 11.00% | ||
Concentration of accounts receivable | |||
Concentration risk | |||
Maximum term of credit to customers (in days) | 180 days | ||
Concentration of accounts receivable | Customer concentration risk | |||
Concentration risk | |||
Number of individual customers | 0 | 0 | |
Concentration risk (in percent) | 10.00% | 10.00% | |
Concentration of accounts receivable | Customer concentration risk | Top Ten Customers | |||
Concentration risk | |||
Number of individual customers | 10 | 10 | |
Concentration risk (in percent) | 48.00% | 42.00% |
Business acquisition - Myhayo -
Business acquisition - Myhayo - Identifiable assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Nov. 30, 2018 | Dec. 31, 2018 |
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||
Gain on bargain purchase (Note 21) | $ 285 | ||
Settlement of purchase consideration payable | $ (1,694) | ||
Mahayo | |||
Business acquisition | |||
Equity interest (as a percent) | 40.00% | ||
Fair value of cash consideration transferred | $ 726 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||
Cash | 2,420 | ||
Other current assets | 6,329 | ||
Property and equipment | 8 | ||
Intangible asset | 697 | ||
Current liabilities | (6,688) | ||
Deferred tax liabilities | (238) | ||
Non-controlling interests | (1,517) | ||
Total identifiable net assets acquired | 1,011 | ||
Gain on bargain purchase (Note 21) | $ 285 | ||
Settlement of purchase consideration payable | $ 726 |
Business acquisition - Myhayo_2
Business acquisition - Myhayo - Additional Information (Details) - Mahayo - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Nov. 30, 2018 | Dec. 31, 2018 | |
Business acquisition | ||
Gross carrying amount | $ 697 | |
Maximum net revenue (loss) as a percent of consolidated net revenue (loss) | 5.00% | |
Income approach | Fair value inputs discount rate | ||
Business acquisition | ||
Intangible asset measurement input | 29.40% | |
Computer Software and systems | ||
Business acquisition | ||
Gross carrying amount | $ 697 | |
Minimum | Income approach | Terminal growth rate | ||
Business acquisition | ||
Intangible asset measurement input | 50.00% | |
Maximum | Income approach | Terminal growth rate | ||
Business acquisition | ||
Intangible asset measurement input | 106.80% |
Cash and cash equivalents and_3
Cash and cash equivalents and time deposit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | |
Cash and cash equivalents and time deposit | ||
Time deposit | $ 25,000 | $ 0 |
Maturity (in months) | 3 months 6 days |
Cash and cash equivalents and_4
Cash and cash equivalents and time deposit - Cash on hand and cash held at bank (Details) € in Thousands, ¥ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2018TWD ($) | Dec. 31, 2018SGD ($) | Dec. 31, 2018HKD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017TWD ($) | Dec. 31, 2017SGD ($) | Dec. 31, 2017HKD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) |
Cash and cash equivalents and time deposit | ||||||||||||
Cash on hand and cash held at bank | $ 39,828 | $ 44,401 | ||||||||||
RMB | ||||||||||||
Cash and cash equivalents and time deposit | ||||||||||||
Cash on hand and cash held at bank | ¥ 61,312 | 8,904 | ¥ 50,600 | 7,694 | ||||||||
HK$ | ||||||||||||
Cash and cash equivalents and time deposit | ||||||||||||
Cash on hand and cash held at bank | $ 10,337 | 1,317 | $ 18,099 | 2,332 | ||||||||
US$ | ||||||||||||
Cash and cash equivalents and time deposit | ||||||||||||
Cash on hand and cash held at bank | 29,185 | 33,639 | ||||||||||
SGD | ||||||||||||
Cash and cash equivalents and time deposit | ||||||||||||
Cash on hand and cash held at bank | $ 263 | 190 | $ 432 | 323 | ||||||||
TWD | ||||||||||||
Cash and cash equivalents and time deposit | ||||||||||||
Cash on hand and cash held at bank | $ 5,700 | 181 | $ 7,014 | 235 | ||||||||
Euro | ||||||||||||
Cash and cash equivalents and time deposit | ||||||||||||
Cash on hand and cash held at bank | € 38 | 43 | € 106 | 126 | ||||||||
Others | ||||||||||||
Cash and cash equivalents and time deposit | ||||||||||||
Cash and Cash Equivalents and Time Deposits | 8 | 52 | ||||||||||
Cash on hand and cash held at bank | $ 6 | $ 67 |
Long-term investment (Details)
Long-term investment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Long-term investment | ||
Equity investment without a readily determinable fair value | $ 503 | $ 0 |
Fair value change related to investment | $ 0 |
Accounts receivables, net (Deta
Accounts receivables, net (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts receivable, net | ||||
Accounts receivable, gross | $ 67,134 | $ 42,276 | ||
Less: allowance for doubtful accounts | (1,507) | (1,478) | $ (1,693) | $ (1,733) |
Accounts receivable, net | $ 65,627 | $ 40,798 |
Accounts receivables, net - Dou
Accounts receivables, net - Doubtful accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for doubtful accounts receivable | |||
Balance at the beginning of year | $ 1,478 | $ 1,693 | $ 1,733 |
Additions for the year | 92 | 910 | 99 |
Recoveries | (40) | ||
Accounts receivable written off | (15) | (1,134) | (99) |
Exchange differences | (48) | 49 | (40) |
Balance at the end of year | $ 1,507 | $ 1,478 | $ 1,693 |
Other assets (Details)
Other assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current | ||
Deposits | $ 984 | $ 2,248 |
Prepayments | 1,262 | 266 |
VAT receivable | 325 | 379 |
Others | 671 | 214 |
Other assets, Current | 3,242 | 3,107 |
Non-current | ||
Rental deposits | 232 | 284 |
Other assets, Non-current | $ 232 | $ 284 |
Property and equipment, net (De
Property and equipment, net (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property and equipment, net | ||
Property and equipment, gross | $ 6,507 | $ 7,177 |
Less: Accumulated depreciation | (6,046) | (5,882) |
Exchange differences | (132) | (130) |
Property and equipment, net | 329 | 1,165 |
Office equipment | ||
Property and equipment, net | ||
Property and equipment, gross | 4,327 | 4,661 |
Leasehold improvements | ||
Property and equipment, net | ||
Property and equipment, gross | 1,487 | 1,763 |
Furniture and fixtures | ||
Property and equipment, net | ||
Property and equipment, gross | $ 693 | $ 753 |
Property and equipment, net - D
Property and equipment, net - Depreciation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property and equipment, net | |||
Depreciation expense | $ 1,059 | $ 1,363 | $ 1,512 |
Cost of revenues | |||
Property and equipment, net | |||
Depreciation expense | 6 | 6 | 11 |
Research and development | |||
Property and equipment, net | |||
Depreciation expense | 124 | 108 | 199 |
Sales and marketing expenses | |||
Property and equipment, net | |||
Depreciation expense | 504 | 582 | 838 |
General and administrative expenses | |||
Property and equipment, net | |||
Depreciation expense | $ 425 | $ 667 | $ 464 |
Intangible assets, net (Details
Intangible assets, net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible assets, net | ||
Cost: Computer software | $ 22,382 | $ 21,593 |
Less: Accumulated amortization Computer software | (15,136) | (10,994) |
Exchange differences | 1 | 1 |
Intangible assets, net | $ 7,247 | $ 10,600 |
Intangible assets, net - Amorti
Intangible assets, net - Amortization expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Intangible assets, net | |||
Amortization expense | $ 4,167 | $ 4,221 | $ 4,312 |
Cost of revenues | |||
Intangible assets, net | |||
Amortization expense | 4,147 | 4,147 | 4,149 |
Research and development | |||
Intangible assets, net | |||
Amortization expense | 1 | 3 | 28 |
Sales and marketing expenses | |||
Intangible assets, net | |||
Amortization expense | 3 | 17 | 19 |
General and administrative expenses | |||
Intangible assets, net | |||
Amortization expense | $ 16 | $ 54 | $ 116 |
Intangible assets, net - Estima
Intangible assets, net - Estimated amortization expense (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Intangible assets, net | ||
2019 | $ 4,361 | |
2020 | 2,498 | |
2021 | 215 | |
2022 | 173 | |
2023 | 0 | |
Intangible assets, net | $ 7,247 | $ 10,600 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill | ||
Goodwill | $ 48,496 | $ 48,496 |
Buzzinate Company Limited | ||
Goodwill | ||
Goodwill | 2,958 | |
OptAim Limited | ||
Goodwill | ||
Goodwill | $ 45,538 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($)item | |
Goodwill. | |||
Number of reporting unit | item | 1 | 1 | 1 |
Impairment of goodwill | $ | $ 0 | $ 0 | $ 0 |
Deferred revenue (Details)
Deferred revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred revenue | ||
Deferred revenue, current | $ 27,191 | $ 33,037 |
Accrued liabilities and other_3
Accrued liabilities and other liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current | ||
Rebates payable to customers | $ 2,209 | $ 3,257 |
VAT and other taxes payable | 3,548 | 2,659 |
Security deposit received from customers | 551 | 686 |
Accrued employee benefits | 3,980 | 2,741 |
Accrued professional fees | 3,359 | 4,167 |
Accrued marketing and hosting expense | 1,342 | 1,831 |
Others | 1,359 | 788 |
Accrued liabilities and other current liabilities | 16,348 | $ 16,129 |
Non-current | ||
Deferred other income | $ 673 |
Bank borrowings (Details)
Bank borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Bank borrowings | ||
Bank borrowings | $ 9,439 | $ 10,486 |
1-year revolving loan denominated in RMB | ||
Bank borrowings | ||
Bank borrowings | 7,603 | |
Half-year revolving loans denominated in RMB | ||
Bank borrowings | ||
Bank borrowings | $ 9,439 | |
1-year revolving loan denominated in US$ | ||
Bank borrowings | ||
Bank borrowings | 2,800 | |
2-year demand loan agreement denominated in US$ | ||
Bank borrowings | ||
Bank borrowings | $ 83 |
Bank borrowings - Additional in
Bank borrowings - Additional information (Details) $ in Thousands, ¥ in Millions | Sep. 21, 2018CNY (¥) | Dec. 27, 2017CNY (¥) | Dec. 21, 2016USD ($) | Jan. 20, 2016USD ($) | Dec. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 27, 2018CNY (¥) | Sep. 21, 2018USD ($) | Dec. 27, 2017USD ($) | Mar. 31, 2017USD ($) |
Bank borrowings | ||||||||||||
Bank borrowings | $ 10,486 | $ 9,439 | ||||||||||
1-year revolving loan denominated in RMB | ||||||||||||
Bank borrowings | ||||||||||||
Term (in years) | 1 year | 1 year | ||||||||||
Bank borrowings | 7,603 | |||||||||||
1-year revolving loan denominated in RMB | People's bank of china interest rate | ||||||||||||
Bank borrowings | ||||||||||||
Basis spread (in percent) | 1.65% | 2.65% | ||||||||||
1-year revolving loan denominated in US$ | ||||||||||||
Bank borrowings | ||||||||||||
Term (in years) | 1 year | |||||||||||
Borrowing capacity | $ 3,000 | |||||||||||
Bank borrowings | $ 2,800 | |||||||||||
1-year revolving loan denominated in US$ | London interbank offered rate (LIBOR) | ||||||||||||
Bank borrowings | ||||||||||||
Basis spread (in percent) | 5.55% | |||||||||||
2-year demand loan agreement denominated in US$ | ||||||||||||
Bank borrowings | ||||||||||||
Term (in years) | 2 years | |||||||||||
Borrowing capacity | $ 2,000 | |||||||||||
Bank borrowings | $ 83 | |||||||||||
2-year demand loan agreement denominated in US$ | London interbank offered rate (LIBOR) | ||||||||||||
Bank borrowings | ||||||||||||
Basis spread (in percent) | 7.00% | |||||||||||
Half-year revolving loans denominated in RMB | ||||||||||||
Bank borrowings | ||||||||||||
Borrowing capacity | ¥ | ¥ 30 | ¥ 70 | ||||||||||
Bank borrowings | 9,439 | |||||||||||
Half-year revolving loans denominated in RMB | People's bank of china interest rate | ||||||||||||
Bank borrowings | ||||||||||||
Borrowing capacity | ¥ | ¥ 50 | |||||||||||
Bank borrowings | ¥ | ¥ 15 | ¥ 50 | ||||||||||
Basis spread (in percent) | 2.65% | |||||||||||
Half-year revolving loans denominated in USD | ||||||||||||
Bank borrowings | ||||||||||||
Borrowing capacity | $ 7,603 | |||||||||||
Bank borrowings | $ 7,261 | $ 2,178 | ||||||||||
RMB 18 months revolving loan | ||||||||||||
Bank borrowings | ||||||||||||
Term (in years) | 18 months | |||||||||||
Borrowing capacity | ¥ 30 | $ 4,300 | ||||||||||
Interest rate (in percent) | 5.75% | 5.75% |
Bank borrowings - Weighted aver
Bank borrowings - Weighted average interest rate (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
Bank borrowings | ||
Weighted average interest rate for bank loans outstanding | 7.00% | 6.33% |
Convertible notes at fair val_2
Convertible notes at fair value (Details) | Sep. 12, 2018USD ($) | Dec. 31, 2018USD ($)$ / sharesD |
Debt Instrument [Line Items] | ||
Convertible notes transaction expenses | $ 2,190,000 | |
Convertible notes | ||
Debt Instrument [Line Items] | ||
Notes issued at par | $ 30,000,000 | |
Interest rate payable on default (as a percent) | 5.00% | |
Conversion price percentage | 92.00% | |
Threshold trading day period (in days) | D | 5 | |
Fixed price | $ / shares | 8 | |
Maximum aggregate percentage of ordinary shares delivered | 19.90% | |
Percentage of repurchase price | 100.00% | |
Convertible notes | Minimum | ||
Debt Instrument [Line Items] | ||
Conversion Price | $ / shares | $ 2.78 | |
Volatility | Convertible notes | ||
Debt Instrument [Line Items] | ||
Measurement input | 44.32 | |
Risk-free interest rate | Convertible notes | ||
Debt Instrument [Line Items] | ||
Measurement input | 2.52 |
Redeemable convertible prefer_3
Redeemable convertible preferred shares - Series A preferred shares (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 22, 2017 | Sep. 29, 2010 | Feb. 17, 2010 | Dec. 31, 2017 | Dec. 31, 2016 |
Redeemable convertible preferred shares | |||||
Proceeds from issuance of shares | $ 20,000 | ||||
Conversion of preferred shares to Class A ordinary shares (in shares) | 742,320 | ||||
Series A Preferred Stock | |||||
Redeemable convertible preferred shares | |||||
Proceeds from issuance of shares | $ 800 | $ 1,200 | |||
Shares issued (in shares) | 1,142,857 | ||||
Number of shares issued under option | 761,905 | ||||
Price per share | $ 1.05 | ||||
Price per share issued under option | $ 1.05 | ||||
Warrants issued (in shares) | 228,571 | 342,857 | |||
Warrants issued, price per share | $ 1.05 | $ 1.05 | |||
Ordinary Shares - Class A | |||||
Redeemable convertible preferred shares | |||||
Conversion of preferred shares to Class A ordinary shares (in shares) | 2,476,190 |
Redeemable convertible prefer_4
Redeemable convertible preferred shares - Series B preferred shares (Details) $ / shares in Units, $ in Thousands | Dec. 22, 2017shares | Sep. 24, 2015USD ($)$ / sharesshares | May 16, 2011USD ($)$ / sharesshares | Feb. 21, 2011USD ($)Counterparty$ / sharesshares | Dec. 31, 2017shares | Dec. 31, 2016USD ($) |
Redeemable convertible preferred shares | ||||||
Proceeds from issuance of shares | $ | $ 20,000 | |||||
Conversion of preferred shares to Class A ordinary shares (in shares) | 742,320 | |||||
Series B Preferred Stock | ||||||
Redeemable convertible preferred shares | ||||||
Number of counterparty | Counterparty | 2 | |||||
Proceeds from issuance of shares | $ | $ 4,285 | $ 7,000 | ||||
Shares issued (in shares) | 723,808 | 1,266,667 | ||||
Price per share | $ / shares | $ 5.92 | $ 5.53 | ||||
Warrants issued (in shares) | 542,858 | |||||
Warrants issued, price per share | $ / shares | $ 5.53 | |||||
Shares repurchased (in shares) | 723,808 | |||||
Consideration paid for share repurchase | $ | $ 11,581 | |||||
Fair value (per share) | $ / shares | $ 19.58 | |||||
Repurchase price (per share) | $ / shares | $ 16 | |||||
Deemed contribution upon repurchase of Series B-1 preferred shares | $ | $ 2,591 | |||||
Conversion of preferred shares to Class A ordinary shares (in shares) | 1,889,249 |
Redeemable convertible prefer_5
Redeemable convertible preferred shares - Series C preferred shares (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 22, 2017 | Dec. 16, 2013 | Dec. 31, 2017 | Dec. 31, 2016 |
Redeemable convertible preferred shares | ||||
Proceeds from issuance of shares | $ 20,000 | |||
Conversion of preferred shares to Class A ordinary shares (in shares) | 742,320 | |||
Series C Preferred Stock | ||||
Redeemable convertible preferred shares | ||||
Proceeds from issuance of shares | $ 13,000 | |||
Shares issued (in shares) | 1,599,186 | |||
Price per share | $ 8.13 | |||
Conversion of preferred shares to Class A ordinary shares (in shares) | 1,599,186 |
Redeemable convertible prefer_6
Redeemable convertible preferred shares - Series D preferred shares (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 22, 2017 | Dec. 30, 2014 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Redeemable convertible preferred shares | |||||
Proceeds from issuance of shares | $ 20,000 | ||||
Conversion of preferred shares to Class A ordinary shares (in shares) | 742,320 | ||||
Series D Preferred Stock | |||||
Redeemable convertible preferred shares | |||||
Proceeds from issuance of shares | $ 48,000 | ||||
Shares issued (in shares) | 2,493,018 | ||||
Price per share | $ 19.25 | ||||
Conversion of preferred shares to Class A ordinary shares (in shares) | 2,493,018 | ||||
Series D Preferred Stock | Billing requirement of 85,000 | |||||
Redeemable convertible preferred shares | |||||
Proceeds from issuance of shares | $ 0 | ||||
Shares issued (in shares) | 0 | ||||
Obligation fair value | $ 85,000 | $ 85,000 |
Redeemable convertible prefer_7
Redeemable convertible preferred shares - Series E preferred shares (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 22, 2017 | Dec. 28, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Redeemable convertible preferred shares | ||||
Proceeds from issuance of shares | $ 20,000 | |||
Conversion of preferred shares to Class A ordinary shares (in shares) | 742,320 | |||
Series E Preferred Stock | ||||
Redeemable convertible preferred shares | ||||
Proceeds from issuance of shares | $ 20,000 | |||
Shares issued (in shares) | 1,068,114 | |||
Price per share | $ 18.72 | |||
Conversion of preferred shares to Class A ordinary shares (in shares) | 1,068,114 |
Redeemable convertible prefer_8
Redeemable convertible preferred shares - Dividend rights (Details) | Dec. 28, 2016 | Dec. 30, 2014 | May 16, 2011 | Feb. 21, 2011 | Feb. 07, 2010 |
Series E Preferred Stock | |||||
Redeemable convertible preferred shares | |||||
Dividends as a percent of issue price | 8.00% | ||||
Series D Preferred Stock | |||||
Redeemable convertible preferred shares | |||||
Dividends as a percent of issue price | 8.00% | ||||
Series B Preferred Stock | |||||
Redeemable convertible preferred shares | |||||
Dividends as a percent of issue price | 8.00% | 8.00% | |||
Series A Preferred Stock | |||||
Redeemable convertible preferred shares | |||||
Dividends as a percent of issue price | 8.00% |
Redeemable convertible prefer_9
Redeemable convertible preferred shares - Liquidation preference (Details) | Jan. 01, 2018 | Dec. 28, 2017 | May 16, 2011 | Feb. 21, 2011 | Feb. 17, 2010 | Dec. 31, 2017 |
Redeemable convertible preferred shares | ||||||
Liquidation preference, percentage | 110.00% | |||||
Series E Preferred Stock | ||||||
Redeemable convertible preferred shares | ||||||
Redemption price percentage | 120.00% | 100.00% | ||||
Series D Preferred Stock | ||||||
Redeemable convertible preferred shares | ||||||
Redemption price percentage | 150.00% | |||||
Series B Preferred Stock | ||||||
Redeemable convertible preferred shares | ||||||
Redemption price percentage | 150.00% | 150.00% | ||||
Series B Preferred Stock | Equity valuation of the group of US 300M or higher | ||||||
Redeemable convertible preferred shares | ||||||
Liquidation preference, percentage | 0.00% | 0.00% | ||||
Series B Preferred Stock | Equity valuation of the group of greater than US $250M but less than US $300M | ||||||
Redeemable convertible preferred shares | ||||||
Liquidation preference, percentage | 100.00% | 100.00% | ||||
Series A Preferred Stock | ||||||
Redeemable convertible preferred shares | ||||||
Redemption price percentage | 200.00% | 200.00% | ||||
Series A Preferred Stock | Equity valuation of the group of US 300M or higher | ||||||
Redeemable convertible preferred shares | ||||||
Liquidation preference, percentage | 0.00% | |||||
Series A Preferred Stock | Equity valuation of the group of greater than US $250M but less than US $300M | ||||||
Redeemable convertible preferred shares | ||||||
Liquidation preference, percentage | 100.00% |
Redeemable convertible prefe_10
Redeemable convertible preferred shares - Anti-dilution provision (Details) - USD ($) $ in Thousands | May 16, 2011 | Feb. 21, 2011 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Redeemable convertible preferred shares | |||||
Dividends | $ 0 | $ 0 | $ 0 | ||
Ordinary shares | |||||
Redeemable convertible preferred shares | |||||
Shares issued during period (in shares) | 2,156,250 | ||||
Anti-dilusion provision - required share issuance (in shares) | 100,452 | ||||
Dividends | $ 421 | ||||
Ordinary shares | Mr. Cong and Mr. Liu | |||||
Redeemable convertible preferred shares | |||||
Shares issued during period (in shares) | 457,611 | ||||
Series B Preferred Stock | |||||
Redeemable convertible preferred shares | |||||
Shares issued during period (in shares) | 723,808 | 1,266,667 | |||
Anti-dilusion provision - required share issuance (in shares) | 55,807 | ||||
Dividends | $ 320 |
Redeemable convertible prefe_11
Redeemable convertible preferred shares - Redemption rights (Details) - USD ($) | Jan. 01, 2018 | Dec. 31, 2017 | Nov. 30, 2017 |
Series E Preferred Stock | |||
Redeemable convertible preferred shares | |||
Redemption price percentage | 120.00% | 100.00% | |
Annual compound interest | 9.50% | ||
Series E Preferred Stock | Minimum | |||
Redeemable convertible preferred shares | |||
Implied market capitalization | $ 600,000,000 | ||
Expected proceeds from IPO | 150,000,000 | ||
Series E Preferred Stock | Redemption criteria period one | Minimum | |||
Redeemable convertible preferred shares | |||
Redeemable revenue criteria | 200,000 | ||
Series E Preferred Stock | Redemption criteria period two | Minimum | |||
Redeemable convertible preferred shares | |||
Redeemable revenue criteria | $ 300,000 | ||
Series B Preferred Stock | |||
Redeemable convertible preferred shares | |||
Redemption price percentage | 150.00% | 150.00% | |
Series A Preferred Stock | |||
Redeemable convertible preferred shares | |||
Redemption price percentage | 200.00% | 200.00% | |
Series C Preferred Stock | |||
Redeemable convertible preferred shares | |||
Redemption price percentage | 200.00% | ||
Series D Preferred Stock | |||
Redeemable convertible preferred shares | |||
Redemption price percentage | 150.00% | ||
Implied valuation of preferred stock | $ 500,000 |
Redeemable convertible prefe_12
Redeemable convertible preferred shares - Significant estimates (Details) - Conversion features and redemption features of preferred stock - Discounted cash flow approach | 12 Months Ended |
Dec. 31, 2017 | |
Terminal growth rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Valuation measurement input | 3.00% |
Weighted average cost of capital | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Valuation measurement input | 18.30% |
Maximum | Average spending per customer | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Valuation measurement input | 19.00% |
Redeemable convertible prefe_13
Redeemable convertible preferred shares - Significant estimates used to calculate fair value (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Series A Preferred Stock | |
Redeemable convertible preferred shares | |
Beginning balance | $ 5,597 |
Accretion to redemption value | 235 |
Conversion to Class A ordinary shares | (5,832) |
Ending balance | |
Series B Preferred Stock | |
Redeemable convertible preferred shares | |
Beginning balance | 9,807 |
Accretion to redemption value | 1,427 |
Conversion to Class A ordinary shares | (11,234) |
Ending balance | |
Series C Preferred Stock | |
Redeemable convertible preferred shares | |
Beginning balance | 10,733 |
Conversion to Class A ordinary shares | (10,733) |
Ending balance | |
Series D Preferred Stock | |
Redeemable convertible preferred shares | |
Beginning balance | 43,956 |
Gain from wavier on anti-dilution | (632) |
Conversion to Class A ordinary shares | (43,324) |
Ending balance | |
Series E Preferred Stock | |
Redeemable convertible preferred shares | |
Beginning balance | 18,845 |
Conversion to Class A ordinary shares | $ (18,845) |
Ending balance |
Redeemable ordinary shares (Det
Redeemable ordinary shares (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 30, 2014 | Dec. 31, 2017 | Dec. 31, 2017 |
Class of Stock | |||
Conversion of preferred shares to Class A ordinary shares | 742,320 | ||
Redeemable ordinary shares | Investor D | |||
Class of Stock | |||
Ordinary shares, shares issued | 742,320 | ||
Price per share | $ 16.17 | ||
Shares transferred from treasury shares (in shares) | 99,022 | ||
Shares issued during period (in shares) | 643,298 | ||
Proceeds from stock transaction | $ 12,000 | ||
Redeemable ordinary shares | Investor D | 2017 | |||
Class of Stock | |||
Accrued non-compound interest rate (as a percent) | 12.00% |
Ordinary shares (Details)
Ordinary shares (Details) | Dec. 22, 2017shares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2018Vote$ / sharesshares | Dec. 31, 2017Vote$ / sharesshares | Dec. 31, 2016shares | Dec. 31, 2015shares | Dec. 31, 2010shares |
Class of Stock | |||||||
Conversion of preferred shares to Class A ordinary shares | 742,320 | ||||||
Ordinary Shares - Class A | |||||||
Class of Stock | |||||||
Ordinary shares, shares authorized | 80,000,000 | 80,000,000 | 80,000,000 | ||||
Ordinary shares, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Ordinary shares, shares outstanding | 21,238,825 | 23,166,092 | 21,238,825 | ||||
Conversion of preferred shares to Class A ordinary shares | 2,476,190 | ||||||
Ordinary Shares - Class B | |||||||
Class of Stock | |||||||
Ordinary shares, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 | ||||
Ordinary shares, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Ordinary shares, shares outstanding | 4,820,608 | 4,820,608 | 4,820,608 | ||||
Ordinary shares | |||||||
Class of Stock | |||||||
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 | |||||
Ordinary shares, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Number of votes per share | Vote | 1 | ||||||
Ordinary shares, shares outstanding | 26,059,433 | 27,986,700 | 26,059,433 | 13,609,208 | 13,104,300 | ||
Issuance of ordinary shares | 2,156,250 | ||||||
Conversion of preferred shares to Class A ordinary shares | 10,268,077 | ||||||
Ordinary shares | Ordinary Shares - Class A | |||||||
Class of Stock | |||||||
Number of votes per share | Vote | 1 | ||||||
Ordinary shares | Ordinary Shares - Class B | |||||||
Class of Stock | |||||||
Number of votes per share | Vote | 20 | ||||||
Ordinary shares | Wing Hong Sammy Hsieh | |||||||
Class of Stock | |||||||
Conversion of ordinary shares | 2,500,580 | ||||||
Ordinary shares | Jian Tang | |||||||
Class of Stock | |||||||
Conversion of ordinary shares | 2,320,028 | ||||||
Ordinary shares | Initial public offering | |||||||
Class of Stock | |||||||
Issuance of ordinary shares | 2,156,250 | ||||||
Conversion of preferred shares to Class A ordinary shares | 10,268,077 | ||||||
Ordinary shares | 2010 Share Option Plan | Arda Holdings Limited | |||||||
Class of Stock | |||||||
Common stock, allotted | 627,811 | ||||||
Additional shares allotted | 0 | 0 | 0 |
Repurchase of shares (Details)
Repurchase of shares (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 20, 2018 | Dec. 31, 2018 | Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Repurchase of shares | |||||
Common shares or ADS authorized in share repurchase program | $ 10,000 | ||||
Total Number of ADSs Purchased as Part of the Publicly Announced Plan | 10,000 | 10,000 | 0 | 0 | |
Average Price Paid Per ADS | $ 3.7175 | ||||
Aggregate consideration for ADS repurchased | $ 37 | ||||
Remaining unused amount will no longer available for repurchase after November 27, 2019 | $ 9,963 |
Share-based compensation - Shar
Share-based compensation - Share options granted (Details) - USD ($) | Jul. 01, 2017 | Apr. 01, 2017 | Jan. 01, 2017 | Jul. 01, 2016 | Apr. 01, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based compensation | ||||||||
Number of Share Options | 302,200 | 122,316 | ||||||
Exercise price at grant date | $ 8.37 | $ 10.42 | ||||||
Share-based compensation expense | $ 19,679,000 | $ 5,072,000 | $ 21,244,000 | |||||
April 1, 2016 | ||||||||
Share-based compensation | ||||||||
Number of Share Options | 32,200 | |||||||
Term (year) | 10 years 3 months | |||||||
Vesting period (year) | 4 years | |||||||
Exercise price at grant date | $ 20 | |||||||
April 1, 2016 | ||||||||
Share-based compensation | ||||||||
Number of Share Options | 79,116 | |||||||
Term (year) | 10 years 3 months | |||||||
Vesting period (year) | 4 years | |||||||
Exercise price at grant date | $ 6 | |||||||
July 1, 2016 | ||||||||
Share-based compensation | ||||||||
Number of Share Options | 10,000 | |||||||
Term (year) | 10 years | |||||||
Vesting period (year) | 4 years | |||||||
Exercise price at grant date | $ 20 | |||||||
July 1, 2016 | ||||||||
Share-based compensation | ||||||||
Number of Share Options | 1,000 | |||||||
Term (year) | 10 years | |||||||
Vesting period (year) | 4 years | |||||||
Exercise price at grant date | $ 12 | |||||||
January 1, 2017 | ||||||||
Share-based compensation | ||||||||
Number of Share Options | 4,400 | |||||||
Term (year) | 10 years 4 days | |||||||
Vesting period (year) | 4 years | |||||||
Exercise price at grant date | $ 20 | |||||||
January 1, 2017 | ||||||||
Share-based compensation | ||||||||
Number of Share Options | 180,000 | |||||||
Term (year) | 10 years 4 days | |||||||
Vesting period (year) | 1 year 8 months 1 day | |||||||
Exercise price at grant date | $ 0.0010 | |||||||
Share-based compensation expense | $ 1,495,000 | |||||||
January 1, 2017 | ||||||||
Share-based compensation | ||||||||
Number of Share Options | 100,800 | |||||||
Term (year) | 10 years 4 days | |||||||
Vesting period (year) | 4 years | |||||||
Exercise price at grant date | $ 8.1290 | |||||||
April 1, 2017 | ||||||||
Share-based compensation | ||||||||
Number of Share Options | 5,000 | |||||||
Term (year) | 10 years 4 days | |||||||
Vesting period (year) | 4 years | |||||||
Exercise price at grant date | $ 12 | |||||||
July 1, 2017 | ||||||||
Share-based compensation | ||||||||
Number of Share Options | 12,000 | |||||||
Term (year) | 8 years 6 months 4 days | |||||||
Vesting period (year) | 2 years 6 months | |||||||
Exercise price at grant date | $ 8.1290 |
Share-based compensation - Sh_2
Share-based compensation - Share option activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based compensation | ||||
Number of Share Options, Beginning balance | 1,542,576 | 1,492,185 | 1,592,443 | |
Number of Share Options, Granted | 302,200 | 122,316 | ||
Number of Share Options, Exercised | (503,712) | (25,898) | ||
Number of Share Options, Forfeited | (130,455) | (225,911) | (154,439) | |
Number of Share Options, Ending balance | 908,409 | 1,542,576 | 1,492,185 | 1,592,443 |
Number of Share Options, Vested and expected to vest | 862,372 | 1,199,712 | 1,083,293 | |
Number of Share Options, Exercisable to vest | 823,341 | 1,118,812 | 928,597 | |
Weighted average exercise price, Beginning balance | $ 5.62 | $ 5.23 | $ 4.90 | |
Weighted average exercise price, Granted | 8.37 | 10.42 | ||
Weighted average exercise price, Exercised | 1.28 | 2.37 | 2.51 | |
Weighted average exercise price, Forfeited | 9.19 | 7.34 | 7.14 | |
Weighted average exercise price, Ending balance | 7.52 | 5.62 | 5.23 | $ 4.90 |
Weighted average exercise price, Vested and expected to vest | 4.69 | 4.75 | 4.25 | |
Weighted average exercise price, Exercisable to vest | 4.52 | 4.72 | 3.68 | |
Weighted average grant date fair value, Granted | 11.67 | 13.81 | ||
Weighted average grant date fair value, Vested and expected to vest | 11.39 | 10.71 | 9.64 | |
Weighted average grant date fair value, Exercisable to vest | $ 12.02 | $ 11.35 | $ 10.77 | |
Weighted average remaining contractual life years | 6 years 3 months 7 days | 7 years 2 months 27 days | 7 years 9 months 18 days | 8 years 6 months 29 days |
Weighted average remaining contractual life years, Vested and expected to vest | 5 years 6 months 29 days | 6 years 6 months 18 days | 7 years 1 month 24 days | |
Weighted average remaining contractual life years, Exercisable to vest | 5 years 10 months 17 days | 6 years 10 months 13 days | 7 years 5 months 9 days | |
Aggregate intrinsic value | $ 2,724 | $ 19,387 | $ 18,631 | $ 23,641 |
Aggregate intrinsic value, Vested and expected to vest | 2,793 | 16,081 | 14,494 | |
Aggregate intrinsic value, Exercisable to vest | $ 2,634 | $ 15,035 | $ 12,615 |
Share-based compensation - Addi
Share-based compensation - Additional information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based compensation | |||
Total fair values of options vested and recognized as expenses | $ 5,349,000 | $ 3,681,000 | $ 3,688,000 |
Share options granted | 302,200 | 122,316 | |
Unrecognized share-based compensation expenses | $ 921,000 | $ 4,666,000 | |
Weighted-average expense recognition period | 1 year 1 month 21 days | 2 years 15 days | |
Stock options vesting based on performance | |||
Share-based compensation | |||
Number of options vested | 0 | 0 | |
Employees | |||
Share-based compensation | |||
Expected future forfeiture rate | 11.00% | 6.00% | |
Share options granted | 150,000 | 150,000 | |
Employees | Stock options vesting based on performance | Minimum | Vesting Condition One | |||
Share-based compensation | |||
Expected market capitalization for option vesting | $ 500,000 | $ 500,000 | |
Employees | Stock options vesting based on performance | Minimum | Merger or acquisition of company | |||
Share-based compensation | |||
Total merger and acquisition | $ 500,000 | $ 500,000 | |
Management | |||
Share-based compensation | |||
Expected future forfeiture rate | 17.00% | 23.00% |
Share-based compensation - Summ
Share-based compensation - Summary of fair values of share options granted/modified (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Grant Date April 1, 2016 | |
Share-based compensation | |
Risk-free interest rate | 2.00% |
Dividend yield | 0.00% |
Volatility rate | 49.37% |
Grant Date July 1, 2016 | |
Share-based compensation | |
Risk-free interest rate | 1.62% |
Dividend yield | 0.00% |
Volatility rate | 50.52% |
Grant Date January 1, 2017 | |
Share-based compensation | |
Risk-free interest rate | 2.67% |
Dividend yield | 0.00% |
Volatility rate | 50.75% |
Grant Date April 1, 2017 | |
Share-based compensation | |
Risk-free interest rate | 2.59% |
Dividend yield | 0.00% |
Volatility rate | 50.79% |
Grant Date July 1, 2017 | |
Share-based compensation | |
Risk-free interest rate | 2.35% |
Dividend yield | 0.00% |
Volatility rate | 47.59% |
Modified Date September 1, 2018 | |
Share-based compensation | |
Risk-free interest rate | 2.83% |
Dividend yield | 0.00% |
Volatility rate | 42.72% |
Modified Date September 1, 2018 | |
Share-based compensation | |
Risk-free interest rate | 2.92% |
Dividend yield | 0.00% |
Volatility rate | 44.65% |
Share-based compensation - RSUs
Share-based compensation - RSUs Granted (Details) - $ / shares | Jan. 01, 2019 | Oct. 25, 2018 | Dec. 31, 2018 |
RSUs | |||
Share-based compensation | |||
Grant-date fair value | $ 5 | ||
Volatility rate | 37.02% | ||
Dividend yield | 0.00% | ||
Risk-free interest rate | 2.90% | ||
Forfeited | 0 | ||
RSUs | Minimum | |||
Share-based compensation | |||
Vesting period (year) | 2 years | ||
RSUs | Maximum | |||
Share-based compensation | |||
Vesting period (year) | 3 years | ||
Service-based RSUs | |||
Share-based compensation | |||
Grant-date fair value | $ 8.72 | ||
Forfeited | 4,310 | ||
Service-based RSUs | Employees | Maximum | |||
Share-based compensation | |||
Vesting period (year) | 1 year | ||
Service-based RSUs | Non-employees | Maximum | |||
Share-based compensation | |||
Term (year) | 2 years | ||
Vesting period (year) | 1 year | ||
September 1, 2018 | RSUs | |||
Share-based compensation | |||
Number of RSUs | 514,991 | ||
Term (year) | 4 days | ||
September 17, 2018 | RSUs | |||
Share-based compensation | |||
Number of RSUs | 53,686 | ||
Term (year) | 11 days | ||
September 17, 2018 | RSUs | |||
Share-based compensation | |||
Number of RSUs | 23,452 | ||
Term (year) | 3 months 15 days | ||
October 25, 2018 | RSUs | |||
Share-based compensation | |||
Number of RSUs | 100,000 | ||
Term (year) | 7 days | ||
October 25, 2018 | RSUs | |||
Share-based compensation | |||
Number of RSUs | 5,000 | ||
Term (year) | 2 months 5 days | ||
October 29, 2018 | RSUs | |||
Share-based compensation | |||
Number of RSUs | 431,760 | ||
Term (year) | 4 days | ||
October 25, 2018 | RSUs | |||
Share-based compensation | |||
Number of RSUs | 138,855 | ||
Term (year) | 0 years | ||
October 25, 2018 | RSUs | |||
Share-based compensation | |||
Number of RSUs | 105,000 | ||
Term (year) | 3 years 2 months 9 days | ||
October 25, 2018 | RSUs | |||
Share-based compensation | |||
Number of RSUs | 37,500 | ||
Term (year) | 2 years 2 months 9 days | ||
October 25, 2018 | RSUs | |||
Share-based compensation | |||
Number of RSUs | 75,000 | ||
Term (year) | 0 years | ||
December 14, 2018 | RSUs | |||
Share-based compensation | |||
Number of RSUs | 50,000 | ||
Term (year) | 2 years | ||
July 1, 2018 | RSUs | |||
Share-based compensation | |||
Number of RSUs | 22,000 | ||
Term (year) | 3 years 6 months | ||
July 1, 2018 | RSUs | |||
Share-based compensation | |||
Number of RSUs | 118,020 | ||
Term (year) | 4 years | ||
October 1, 2018 | RSUs | |||
Share-based compensation | |||
Number of RSUs | 1,800 | ||
Term (year) | 4 years | ||
July 1, 2018 | RSUs | |||
Share-based compensation | |||
Number of RSUs | 260,810 | ||
Term (year) | 5 months 27 days | ||
July 1, 2018 | RSUs | |||
Share-based compensation | |||
Number of RSUs | 12,500 | ||
Term (year) | 6 months 15 days |
Share-based compensation - RS_2
Share-based compensation - RSUs Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 25, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
RSUs | |||
Number of RSUs | |||
Forfeited | 0 | ||
Weighted average grant date fair value | |||
Granted | $ 5 | ||
Additional information | |||
Total fair values of RSUs vested | $ 14,330 | ||
Intrinsic value of RSUs vested | $ 14,330 | ||
Service-based RSUs | |||
Number of RSUs | |||
Granted | 1,950,374 | ||
Exercised | (1,569,792) | ||
Forfeited | (4,310) | ||
End of the year | 376,272 | ||
Vested and expected to vest at end of the year | 376,272 | ||
Weighted average grant date fair value | |||
Granted | $ 8.72 | ||
Exercised | 9.94 | ||
Forfeited | 12.70 | ||
End of the year | 8.02 | ||
Vested and expected to vest at end of the year | $ 8.02 | ||
Employees | |||
Additional information | |||
Expected future forfeiture rate | 11.00% | 6.00% | |
Employees | RSUs | |||
Additional information | |||
Expected future forfeiture rate | 1.00% | ||
Non-employees | RSUs | |||
Additional information | |||
Expected future forfeiture rate | 0.00% |
Share-based compensation - Issu
Share-based compensation - Issuance of shares to certain employees with performance conditions (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 28, 2016 | |
Share-based compensation | ||||
Share-based compensation expense | $ 19,679,000 | $ 5,072,000 | $ 21,244,000 | |
Restricted ordinary shares | ||||
Share-based compensation | ||||
Share-based compensation expense | $ 0 | |||
Total fair value of shares | $ 32,869,000 | |||
Restricted ordinary shares | Discounted cash flow approach | Terminal growth rate | ||||
Share-based compensation | ||||
Valuation measurement input | 3.00% | |||
Restricted ordinary shares | Discounted cash flow approach | Weighted average cost of capital | ||||
Share-based compensation | ||||
Valuation measurement input | 18.30% | |||
Restricted ordinary shares | Minimum | Discounted cash flow approach | Average spending per customer | ||||
Share-based compensation | ||||
Valuation measurement input | 3.00% | |||
Restricted ordinary shares | Maximum | Discounted cash flow approach | Average spending per customer | ||||
Share-based compensation | ||||
Valuation measurement input | 19.00% | |||
Fiscal Year 2017 | Restricted ordinary shares | ||||
Share-based compensation | ||||
Restricted ordinary shares authorized for issuance | 1,068,114 | |||
Fiscal Year 2018 | Restricted ordinary shares | ||||
Share-based compensation | ||||
Restricted ordinary shares authorized for issuance | 801,086 |
Share-based compensation - Is_2
Share-based compensation - Issuance of shares to certain employees (Details) - USD ($) | Dec. 28, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based compensation | ||||
Share-based compensation expense | $ 19,679,000 | $ 5,072,000 | $ 21,244,000 | |
General and administrative expenses | ||||
Share-based compensation | ||||
Share-based compensation expense | $ 7,934,000 | $ 1,907,000 | $ 18,047,000 | |
Employees receiving shares directly | ||||
Share-based compensation | ||||
Ordinary shares transferred from the company and three of its shareholders to certain employees | 998,338 | |||
Discounted cash flow approach | Terminal growth rate | Employees receiving shares directly | ||||
Share-based compensation | ||||
Valuation measurement input | 3.00% | |||
Discounted cash flow approach | Weighted average cost of capital | Employees receiving shares directly | ||||
Share-based compensation | ||||
Valuation measurement input | 18.30% | |||
Minimum | Discounted cash flow approach | Average spending per customer | Employees receiving shares directly | ||||
Share-based compensation | ||||
Valuation measurement input | 3.00% | |||
Maximum | Discounted cash flow approach | Average spending per customer | Employees receiving shares directly | ||||
Share-based compensation | ||||
Valuation measurement input | 19.00% | |||
Employee Stock Option | Employees receiving shares directly | General and administrative expenses | ||||
Share-based compensation | ||||
Share-based compensation expense | $ 17,555,000 |
Share-based compensation - Su_2
Share-based compensation - Summary of compensation costs recognized (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Compensation costs | |||
Compensation cost recognized | $ 19,679,000 | $ 5,072,000 | $ 21,244,000 |
Cost of revenues | |||
Compensation costs | |||
Compensation cost recognized | 347,000 | 49,000 | 52,000 |
Research and development | |||
Compensation costs | |||
Compensation cost recognized | 6,587,000 | 937,000 | 985,000 |
Sales and marketing expenses | |||
Compensation costs | |||
Compensation cost recognized | 4,811,000 | 2,179,000 | 2,160,000 |
General and administrative expenses | |||
Compensation costs | |||
Compensation cost recognized | $ 7,934,000 | $ 1,907,000 | $ 18,047,000 |
Other (losses)_gains, net (Deta
Other (losses)/gains, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other (losses)/gains, net | |||
Net exchange (loss)/gain | $ (857) | $ 1,257 | $ (1,147) |
Forfeiture of advances from customers (Note (i)) | 1,088 | 432 | |
Gain on bargain purchase | 285 | ||
Others | 171 | 152 | 65 |
Total | $ 687 | $ 1,841 | $ (1,082) |
Income tax - Additional Informa
Income tax - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Hong Kong | |||
Income tax | |||
Statutory Income Tax Rate | 16.50% | 16.50% | 16.50% |
PRC | |||
Income tax | |||
Statutory Income Tax Rate | 25.00% | 25.00% | 25.00% |
Preferential enterprise tax rate | 15.00% | ||
Statutory withholding tax rate | 10.00% | 10.00% | 10.00% |
Tax arrangements between the PRC government and the government of other jurisdiction | 5.00% | 5.00% | 5.00% |
Undistributed earnings from subsidiaries | $ 1,610 | $ 330 | |
Estimated foreign withholding taxes that would be due if these earnings were remitted as dividends | $ 81 | $ 17 |
Income tax - Disclosure of curr
Income tax - Disclosure of current and deferred portions of income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income tax | |||
Current income tax expense | $ 1,561 | $ 1,262 | $ 1,283 |
Deferred tax benefits | (906) | (714) | (1,061) |
Income tax expense | $ 655 | $ 548 | $ 222 |
Income tax - Disclosure of defe
Income tax - Disclosure of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets | |||
Tax losses carried forward | $ 6,385 | $ 7,573 | |
Share-based payments | 884 | 850 | |
Temporary difference on deferred income | 269 | ||
Less: Valuation allowance | (6,385) | (7,573) | $ (6,838) |
Deferred tax assets net | 1,153 | 850 | |
Deferred tax liabilities | |||
Acquired intangible assets | (1,760) | (2,638) | |
Outside basis difference | (1,004) | (486) | |
Others | (30) | (35) | |
Deferred tax liabilities net | $ (2,794) | $ (3,159) |
Income tax - Disclosure of move
Income tax - Disclosure of movement of valuation allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax | ||
Beginning balance | $ 7,573 | $ 6,838 |
Additions | 199 | 735 |
Reversals | (1,387) | |
Ending balance | $ 6,385 | $ 7,573 |
Income tax - Disclosure of oper
Income tax - Disclosure of operating tax loss carry forwards expiring years (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Income tax | |
Operating loss carry forwards | $ 26,911 |
Underpaid tax claw back period | 5 years |
2020 | |
Income tax | |
Operating loss carry forwards | $ 6,270 |
2021 | |
Income tax | |
Operating loss carry forwards | 7,856 |
2022 | |
Income tax | |
Operating loss carry forwards | 8,356 |
2023 | |
Income tax | |
Operating loss carry forwards | 398 |
Tax Loss With No Expiry | |
Income tax | |
Operating loss carry forwards | $ 4,031 |
Income tax - Disclosure of reco
Income tax - Disclosure of reconciliation between expense of income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income tax | |||
Tax benefit calculated at statutory tax rates | $ (7,989) | $ (3,972) | $ (4,509) |
Effect of differences between statutory tax rates and foreign effective tax rates | 2,804 | (1,172) | 213 |
Non-taxable other income | (274) | (275) | (738) |
Non-deductible expenses | 6,784 | 4,861 | 4,208 |
Valuation allowance | (1,188) | 735 | 1,034 |
Outside basis difference | 518 | 486 | |
Others | (115) | 14 | |
Income tax expense | $ 655 | $ 548 | $ 222 |
Basic and diluted net loss pe_3
Basic and diluted net loss per share - Summary of basic and diluted net loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||
Net Income (Loss) Attributable to Parent | $ (32,409) | $ (24,619) | $ (27,330) |
Numerator of basic net loss per share | $ (32,409) | $ (29,931) | $ (29,659) |
Denominator: | |||
Denominator for basic and diluted net loss per share - weighted average shares outstanding | 26,452,409 | 13,931,503 | 13,151,063 |
Basic net loss per share attributable to iClick Interactive Asia Group Limited | $ (1.23) | $ (2.15) | $ (2.26) |
Diluted net loss per share attributable to iClick Interactive Asia Group Limited | $ (1.23) | $ (2.15) | $ (2.26) |
Loss allocated to preferred shares | $ 0 | $ 0 | $ 0 |
Redeemable preferred stock | |||
Numerator: | |||
Accretion to redeemable shares redemption value | (1,662) | (773) | |
Redeemable ordinary shares | |||
Numerator: | |||
Accretion to redeemable shares redemption value | $ (3,650) | $ (1,556) |
Basic and diluted net loss pe_4
Basic and diluted net loss per share - Computation of diluted net loss per ordinary share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Redeemable Convertible Preferred Stock | |||
Basic and diluted net loss per share | |||
Ordinary shares equivalent excluded from computation of diluted net loss per ordinary share | 8,469 | ||
Employee Stock Option | |||
Basic and diluted net loss per share | |||
Ordinary shares equivalent excluded from computation of diluted net loss per ordinary share | 505 | 1,071 | 1,091 |
Redeemable ordinary shares | |||
Basic and diluted net loss per share | |||
Ordinary shares equivalent excluded from computation of diluted net loss per ordinary share | 742 | ||
Convertible notes | |||
Basic and diluted net loss per share | |||
Ordinary shares equivalent excluded from computation of diluted net loss per ordinary share | 929 |
Related party transactions - ma
Related party transactions - major related parties and their relationships (Details) - Aladdin Fintech Company Limited - Platform development fee income, license fee income and maintenance services income $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | |
Net revenues | $ 500 |
Percentage of revenues from related party | 0.30% |
Related party transactions - Ba
Related party transactions - Balance with related party (Details) - Aladdin Fintech Company Limited $ in Thousands | Dec. 31, 2018USD ($) |
Related Party Transaction [Line Items] | |
Accounts receivable from related party | $ 350 |
Percentage of related party receivables | 0.50% |
Segment (Details)
Segment (Details) - segment | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment | |||
Number of operating segments | 1 | 1 | 1 |
Segment - Summary of revenue ge
Segment - Summary of revenue generated for the respective countries (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment | |||
Net revenues | $ 160,017 | $ 125,258 | $ 95,357 |
PRC | |||
Segment | |||
Net revenues | 141,926 | 105,380 | 71,214 |
Hong Kong | |||
Segment | |||
Net revenues | 17,004 | 18,287 | 22,766 |
Others | |||
Segment | |||
Net revenues | $ 1,087 | $ 1,591 | $ 1,377 |
Segment - Summary of long-lived
Segment - Summary of long-lived assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Segment | ||
Long-lived assets | $ 329 | $ 1,165 |
PRC | ||
Segment | ||
Long-lived assets | 231 | 858 |
Hong Kong | ||
Segment | ||
Long-lived assets | 92 | 300 |
Others | ||
Segment | ||
Long-lived assets | $ 6 | $ 7 |
Commitments and contingencies -
Commitments and contingencies - Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and contingencies | |||
Total office rental expenses under all operating leases | $ 2,737 | $ 1,862 | $ 3,024 |
Maximum | |||
Commitments and contingencies | |||
Operating leases expiring period | 2 years |
Commitments and contingencies_2
Commitments and contingencies - Summary of operating leases for office rental (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and contingencies | |
2019 | $ 1,763 |
2020 | 1,099 |
2021 | 558 |
Future minimum payments under non-cancellable operating leases for office rental | $ 3,420 |
Commitments and contingencies_3
Commitments and contingencies - Purchase commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and contingencies | ||
Purchase commitments related to purchase of space | $ 0 | $ 0 |
Subsequent event (Details)
Subsequent event (Details) - Subsequent event - Changyi $ in Thousands, ¥ in Millions | Jan. 01, 2019CNY (¥) | Jan. 01, 2019USD ($) |
Subsequent event | ||
Equity interest (as a percent) | 34.38% | 34.38% |
Cash consideration | ¥ 42.6 | $ 6,187 |
Restricted net assets - Additio
Restricted net assets - Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted net assets | |||
Percentage of net after-tax income of Group's subsidiary and VIE required to be annually appropriated to the statutory general reserve fund prior to payment of any dividends | 10.00% | 10.00% | 10.00% |
Limit of statutory reserve fund as a percentage of registered capital, after which allocations to statutory reserve fund are no longer required | 50.00% | 50.00% | 50.00% |
Restricted net assets | $ 65,659 | $ 9,631 |
ADDITIONAL INFORMATION_ CONDE_2
ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - Additional information (Details) | 12 Months Ended |
Dec. 31, 2018 | |
ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY | |
Minimum percentage requirement | 25.00% |
ADDITIONAL INFORMATION_ CONDE_3
ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - CONDENSED BALANCE SHEETS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||||
Cash and cash equivalents | $ 39,828 | $ 19,401 | $ 27,280 | |
Other assets | 3,242 | 3,107 | ||
Total current assets | 149,298 | 127,427 | ||
Non-current assets | ||||
Deferred tax assets | 1,153 | 850 | ||
Long-term investment | 503 | 0 | ||
Total non-current assets | 57,960 | 61,395 | ||
Total assets | 207,258 | 188,822 | ||
Current liabilities | ||||
Accrued liabilities and other current liabilities | 16,348 | 16,129 | ||
Convertible notes at fair value | 34,837 | |||
Total current liabilities | 97,151 | 65,679 | ||
Non-current liability | ||||
Other liabilities | 673 | |||
Total non-current liabilities | 3,467 | 3,159 | ||
Total liabilities | 100,618 | 68,838 | ||
Commitments and contingencies | ||||
Equity | ||||
Treasury shares | (576) | (2,093) | ||
Total iClick Interactive Asia Group Limited shareholders' equity | 105,325 | 119,984 | $ (64,312) | $ (55,929) |
Total liabilities and shareholders' equity | 207,258 | 188,822 | ||
Parent Company | Reportable legal entities | ||||
Current assets | ||||
Cash and cash equivalents | 2,132 | 6,440 | ||
Amounts due from subsidiaries and VIEs | 98,829 | 74,193 | ||
Other assets | 929 | 1,194 | ||
Total current assets | 101,890 | 81,827 | ||
Non-current assets | ||||
Deferred tax assets | 269 | |||
Investments in subsidiaries and VIEs | 40,759 | 41,407 | ||
Long-term investment | 503 | |||
Total non-current assets | 41,531 | 41,407 | ||
Total assets | 143,421 | 123,234 | ||
Current liabilities | ||||
Accrued liabilities and other current liabilities | 2,586 | 3,250 | ||
Convertible notes at fair value | 34,837 | |||
Total current liabilities | 37,423 | 3,250 | ||
Non-current liability | ||||
Other liabilities | 673 | |||
Total non-current liabilities | 673 | |||
Total liabilities | 38,096 | 3,250 | ||
Commitments and contingencies | ||||
Equity | ||||
Ordinary shares | 28 | 26 | ||
Treasury shares | (576) | (2,093) | ||
Other shareholders' equity | 105,873 | 122,051 | ||
Total iClick Interactive Asia Group Limited shareholders' equity | 105,325 | 119,984 | ||
Total liabilities and shareholders' equity | $ 143,421 | $ 123,234 |
ADDITIONAL INFORMATION_ CONDE_4
ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - CONDENSED STATEMENTS OF COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating expenses | |||
General and administrative expenses | $ (23,757) | $ (12,983) | $ (26,767) |
Total operating expenses | (66,574) | (44,696) | (63,617) |
Operating loss | (27,454) | (15,171) | (29,308) |
Other gains/(losses), net | 687 | 1,841 | (1,082) |
Fair value gains/(losses) on derivative liabilities | (10,190) | 3,995 | |
Fair value losses on convertible notes | (4,837) | ||
Loss before income tax expense | (31,956) | (24,071) | (27,108) |
Income tax expense | (655) | (548) | (222) |
Net loss | (32,611) | (24,619) | (27,330) |
Net loss attributable to iClick Interactive Asia Group Limited's ordinary shareholders | (32,409) | (29,931) | (29,659) |
Net loss | (32,611) | (24,619) | (27,330) |
Other comprehensive loss: | |||
Foreign currency translation adjustment, net of tax | (2,547) | (79) | (139) |
Comprehensive loss attributable to iClick Interactive Asia Group Limited | (34,956) | (24,698) | (27,469) |
Redeemable preferred stock | |||
Operating expenses | |||
Accretion to redeemable shares redemption value | (1,662) | (773) | |
Redeemable ordinary shares | |||
Operating expenses | |||
Accretion to redeemable shares redemption value | (3,650) | (1,556) | |
Parent Company | Reportable legal entities | |||
Operating expenses | |||
General and administrative expenses | (27,643) | (6,928) | (21,655) |
Total operating expenses | (27,643) | (6,928) | (21,655) |
Other gains/(losses), net | 403 | (116) | 145 |
Fair value gains/(losses) on derivative liabilities | (10,190) | 3,995 | |
Fair value losses on convertible notes | (4,837) | ||
Loss from subsidiaries and VIEs | (264) | (7,385) | (9,815) |
Loss before income tax expense | (32,341) | (24,619) | (27,330) |
Income tax expense | (68) | ||
Net loss | (32,409) | (24,619) | (27,330) |
Net loss attributable to iClick Interactive Asia Group Limited's ordinary shareholders | (32,409) | (29,931) | (29,659) |
Net loss | (32,409) | (24,619) | (27,330) |
Other comprehensive loss: | |||
Foreign currency translation adjustment, net of tax | (2,547) | (79) | (139) |
Comprehensive loss attributable to iClick Interactive Asia Group Limited | $ (34,956) | (24,698) | (27,469) |
Parent Company | Reportable legal entities | Redeemable preferred stock | |||
Operating expenses | |||
Accretion to redeemable shares redemption value | (1,662) | (773) | |
Parent Company | Reportable legal entities | Redeemable ordinary shares | |||
Operating expenses | |||
Accretion to redeemable shares redemption value | $ (3,650) | $ (1,556) |
ADDITIONAL INFORMATION_ CONDE_5
ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - CONDENSED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net cash used in operating activities | $ (15,416) | $ (13,881) | $ (3,907) |
Cash flows from investing activities | |||
Increase in long-term investment | (503) | ||
Net cash provided by/(used in) investing activities | 8,395 | (25,165) | 524 |
Cash flows from financing activities: | |||
Proceeds from issuance of Series E convertible redeemable preferred shares | 20,000 | ||
Proceeds from exercise of share options | 656 | 60 | 171 |
Proceeds from issuance of convertible notes | 27,810 | ||
Repurchase of ordinary shares | (37) | ||
Net proceeds from issuance of ordinary shares upon IPO | 28,405 | ||
Net cash provided by financing activities | 27,775 | 25,546 | 24,564 |
Net increase/(decrease) in cash and cash equivalents and restricted cash | 20,754 | (13,500) | 21,181 |
Parent Company | Reportable legal entities | |||
Cash flows from operating activities: | |||
Net cash used in operating activities | (32,234) | (34,030) | (8,083) |
Cash flows from investing activities | |||
Increase in long-term investment | (503) | ||
Net cash provided by/(used in) investing activities | (503) | ||
Cash flows from financing activities: | |||
Proceeds from issuance of Series E convertible redeemable preferred shares | 20,000 | ||
Proceeds from exercise of share options | 656 | 60 | 171 |
Proceeds from issuance of convertible notes | 27,810 | ||
Repurchase of ordinary shares | (37) | ||
Net proceeds from issuance of ordinary shares upon IPO | 28,405 | ||
Net cash provided by financing activities | 28,429 | 28,465 | 20,171 |
Net increase/(decrease) in cash and cash equivalents and restricted cash | $ (4,308) | $ (5,565) | $ 12,088 |