Nevada
|
20-4672080
|
(State
or other jurisdiction of incorporation or
organization)
|
(I.R.S.
Employer Identification
No.)
|
Large
accelerated filer ¨
|
Accelerated
filer ¨
|
Non-accelerated
filer ¨
|
Smaller
reporting company ¨
|
PAGE
|
||
PART
I. FINANCIAL INFORMATION
|
|
|
Item
1. Financial Statements
|
|
|
Consolidated
Balance Sheets
|
3
|
|
Consolidated
Statements of Income and Comprehensive Income
|
5
|
|
Consolidated
Statements of Cash Flows
|
7
|
|
Notes
to Consolidated Financial Statements
|
9
|
|
Item
2. Management’s Discussion and Analysis of Financial Condition and Results
of Operations
|
36
|
|
Item
3. Quantitative and Qualitative Disclosures About Market
Risk
|
56
|
|
Item
4(T). Controls and Procedures
|
56
|
|
PART
II. OTHER INFORMATION
|
|
|
Item
1. Legal Proceedings
|
57
|
|
Item
1A. Risk Factors
|
57
|
|
Item
2. Unregistered Sales of Equity Securities and Use of
Proceeds
|
57
|
|
Item
3. Defaults Upon Senior Securities
|
57
|
|
Item
4. Other Information
|
57
|
|
Item
5. Exhibits
|
57
|
|
Signatures
|
58
|
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
(US $)
|
(US $)
|
|||||||
Unaudited
|
||||||||
Assets
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 12,395 | $ | 13,917 | ||||
Accounts
receivable, net
|
4,235 | 3,173 | ||||||
Other
receivables
|
2,120 | 2,636 | ||||||
Prepayments
and deposits to suppliers
|
5,882 | 4,111 | ||||||
Due
from related parties
|
161 | 492 | ||||||
Due
from director
|
219 | - | ||||||
Inventories
|
2 | 2 | ||||||
Other
current assets
|
460 | 30 | ||||||
Total
current assets
|
25,474 | 24,361 | ||||||
Property
and equipment, net
|
1,307 | 1,355 | ||||||
Other
long-term assets
|
35 | 48 | ||||||
$ | 26,816 | $ | 25,764 | |||||
Liabilities
and Stockholders’ Equity
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$ | 500 | $ | 290 | ||||
Advances
from customers
|
428 | 914 | ||||||
Other
payables
|
11 | 27 | ||||||
Accrued
payroll and other accruals
|
266 | 191 | ||||||
Due
to related parties
|
- | 24 | ||||||
Due
to Control Group
|
1,139 | 1,142 | ||||||
Due
to director
|
282 | - | ||||||
Taxes
payable
|
1,277 | 1,978 | ||||||
Dividends
payable
|
317 | 373 | ||||||
Total
current liabilities
|
4,220 | 4,939 | ||||||
Long-term
borrowing from director
|
128 | 128 | ||||||
Warrant
liabilities
|
- | 9,564 | ||||||
Commitments
and contingencies
|
- | - |
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
(US $)
|
(US $)
|
|||||||
Unaudited
|
|
|||||||
Stockholders’
equity:
|
||||||||
Series
A convertible preferred stock, US$0.001 par value;
authorized-8,000,000 shares; issued and outstanding-3,403,600
and 4,121,600 shares at March 31, 2010 and December 31, 2009 respectively
(Liquidation preference of $2.5 per share) (see note 18)
|
3 | 4 | ||||||
Common
stock, US$0.001 par value; authorized-50,000,000 shares; issued and
outstanding 16,546,320 shares and 15,828,320 shares at March
31, 2010 and December 31, 2009 respectively
|
17 | 16 | ||||||
Additional
paid-in capital
|
18,340 | 10,574 | ||||||
Statutory
reserves
|
372 | 372 | ||||||
Retained
earnings
|
3,616 | 50 | ||||||
Accumulated
other comprehensive income
|
120 | 117 | ||||||
Total
stockholders’ equity
|
22,468 | 11,133 | ||||||
$ | 26,816 | $ | 25,764 |
Three Months Ended March 31,
|
||||||||
2010
|
2009
|
|||||||
(US $)
|
(US $)
|
|||||||
Unaudited
|
Unaudited
|
|||||||
Sales
|
||||||||
To
unrelated parties
|
$ | 10,034 | $ | 9,303 | ||||
To
related parties
|
194 | 494 | ||||||
10,228 | 9,797 | |||||||
Cost
of sales
|
6,727 | 6,277 | ||||||
Gross
margin
|
3,501 | 3,520 | ||||||
Operating
expenses
|
||||||||
Selling
expenses
|
427 | 1,462 | ||||||
General
and administrative expenses
|
794 | 349 | ||||||
Research
and development expenses
|
134 | 50 | ||||||
1,355 | 1,861 | |||||||
Income
from operations
|
2,146 | 1,659 | ||||||
Other
income (expense):
|
||||||||
Changes
in fair value of warrants
|
1,861 | - | ||||||
Interest
income
|
2 | 2 | ||||||
Other
income
|
- | 4 | ||||||
1,863 | 6 | |||||||
Income
before income tax expense
|
4,009 | 1,665 | ||||||
Income
tax expense
|
214 | 386 | ||||||
Net
income
|
3,795 | 1,279 | ||||||
Other
comprehensive income
|
||||||||
Foreign
currency translation gain
|
3 | 3 | ||||||
Comprehensive
income
|
$ | 3,798 | $ | 1,282 |
Three Months Ended March 31,
|
||||||||
2010
|
2009
|
|||||||
(US $)
|
(US $)
|
|||||||
Unaudited
|
Unaudited
|
|||||||
Net
income
|
$ | 3,795 | $ | 1,279 | ||||
Dividend
of Series A convertible preferred stock
|
(229 | ) | - | |||||
Net
income attributable to common shareholders
|
$ | 3,566 | $ | 1,279 | ||||
Earnings
per share
|
||||||||
Earnings
per common share
|
||||||||
Basic
|
$ | 0.22 | $ | 0.09 | ||||
Diluted
|
$ | 0.18 | $ | 0.09 | ||||
Weighted
average number of common shares outstanding:
|
||||||||
Basic
|
16,234,409 | 13,790,800 | ||||||
Diluted
|
21,059,683 | 13,790,800 |
Three Months Ended March 31,
|
||||||||
2010
|
2009
|
|||||||
(US $)
|
(US $)
|
|||||||
Unaudited
|
Unaudited
|
|||||||
Cash
flows from operating activities
|
||||||||
Net
income
|
$ | 3,795 | $ | 1,279 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities
|
||||||||
Depreciation
and Amortization
|
92 | 42 | ||||||
Share-based
compensation expenses
|
63 | - | ||||||
Changes
in fair value of warrants
|
(1,861 | ) | - | |||||
Changes
in operating assets and liabilities
|
||||||||
Accounts
receivable
|
(1,062 | ) | (369 | ) | ||||
Other
receivables
|
1,979 | (63 | ) | |||||
Prepayments
and deposits to suppliers
|
(1,770 | ) | (374 | ) | ||||
Due
from related parties
|
331 | 45 | ||||||
Due
from/to director
|
63 | - | ||||||
Other
current assets
|
(430 | ) | 11 | |||||
Accounts
payable
|
212 | 86 | ||||||
Advances
from customers
|
(486 | ) | 496 | |||||
Accrued
payroll and other accruals
|
75 | 77 | ||||||
Other
payables
|
(16 | ) | - | |||||
Due
to related parties
|
(24 | ) | (13 | ) | ||||
Due
to Control Group
|
(4 | ) | (256 | ) | ||||
Taxes
payable
|
(701 | ) | 532 | |||||
Net
cash provided by operating activities
|
256 | 1,493 | ||||||
Cash
flows from investing activities
|
||||||||
Purchases
of vehicles and office equipment
|
(31 | ) | (19 | ) | ||||
Purchases
of other long-term assets
|
- | (15 | ) | |||||
Net
cash used in investing activities
|
(31 | ) | (34 | ) |
Three Months Ended March 31,
|
||||||||
2010
|
2009
|
|||||||
(US $)
|
(US $)
|
|||||||
Unaudited
|
Unaudited
|
|||||||
Cash
flows from financing activities
|
||||||||
Dividend
paid to convertible preferred stockholders
|
(285 | ) | - | |||||
Increase
of short-term loan to third parties
|
(1,463 | ) | (1,461 | ) | ||||
Decrease
in short-term loan from directors
|
- | (10 | ) | |||||
Increase
in other payables
|
- | 14 | ||||||
Net
cash provided by financing activities
|
(1,748 | ) | (1,457 | ) | ||||
Effect
of exchange rate fluctuation on cash and cash equivalents
|
1 | 4 | ||||||
Net
increase in cash and cash equivalents
|
(1,522 | ) | 6 | |||||
Cash
and cash equivalents at beginning of year
|
13,917 | 2,679 | ||||||
Cash
and cash equivalents at end of year
|
$ | 12,395 | $ | 2,685 | ||||
Supplemental
disclosure of cash flow information
|
||||||||
Interest
paid
|
$ | - | $ | - | ||||
Income
taxes paid
|
$ | 1,019 | $ | 4 | ||||
Non-cash
transactions:
|
||||||||
Warrant liability
reclassify to additional paid in capital
|
$ | 7,703 | $ | - |
1.
|
Organization
and nature of operations
|
2.
|
Summary
of significant accounting policies
|
a)
|
Change
of reporting entity and basis of
presentation
|
b)
|
FASB
Establishes Accounting Standards Codification
™
|
c)
|
Principles
of Consolidation
|
d)
|
Use
of estimates
|
e)
|
Foreign
currency translation and
transactions
|
March 31,
|
December 31,
|
|||||||||||
2010
|
2009
|
2009
|
||||||||||
Balance
sheet items, except for equity accounts
|
6.8361 | 6.8456 | 6.8372 | |||||||||
Items
in the statements of income and comprehensive income, and the statements
of cash flows
|
6.8360 | 6.8466 | 6.8409 |
f)
|
Cash
and cash equivalents
|
g)
|
Accounts
receivable, net
|
h)
|
Inventories
|
i)
|
Property
and equipment, net
|
Vehicles
|
5
years
|
Office
equipment
|
3-10 years
|
Electronic
devices
|
5
years
|
j)
|
Impairment
of long-lived assets
|
k)
|
Fair
Value
|
Fair value measurement using inputs
|
Carrying amount as of | |||||||||||||||
Level 1
|
Level 2
|
Level 3
|
December 31, 2009
|
|||||||||||||
Financial instruments
|
US$(’000)
|
US$(’000)
|
US$(’000)
|
US$(’000)
|
||||||||||||
Warrant
liabilities
|
- | 9,564 | - | 9,564 |
l)
|
Revenue
recognition
|
m)
|
Cost
of sales
|
n)
|
Advertising
costs
|
o)
|
Research
and development expenses
|
p)
|
Income
taxes
|
q)
|
Uncertain
tax positions
|
r)
|
Share-based
Compensation
|
s)
|
Comprehensive
income
|
t)
|
Earnings
/ (loss) per share
|
u)
|
Commitments
and contingencies
|
v)
|
New
accounting pronouncement to be
adopted
|
3.
|
Cash
and cash equivalents
|
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
US$(’000)
(Unaudited)
|
US$(’000)
|
|||||||
Cash
|
293 | 616 | ||||||
Deposits
with short-term maturities
|
12,102 | 13,301 | ||||||
12,395 | 13,917 |
4.
|
Accounts
receivable
|
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
US$(’000)
(Unaudited)
|
US$(’000)
|
|||||||
Accounts
receivable
|
4,306 | 3,244 | ||||||
Less:
Allowance for doubtful debts
|
71 | 71 | ||||||
Accounts
receivable, net
|
4,235 | 3,173 |
5.
|
Other
receivables
|
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
US$(’000)
(Unaudited)
|
US$(’000)
|
|||||||
Advance
deposits for TV advertisement bidding
|
- | 2,261 | ||||||
Short-term
loan to third parties
|
1,463 | - | ||||||
Staff
advances for normal business purpose
|
657 | 375 | ||||||
2,120 | 2,636 |
6.
|
Prepayments
and deposits to suppliers
|
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
US$(’000)
(Unaudited)
|
US$(’000)
|
|||||||
Contract
execution guarantees to TV advertisement and internet resources
providers
|
4,114 | 3,086 | ||||||
Prepayments
to TV advertisement and internet resources providers
|
1,752 | 991 | ||||||
Other
deposits and prepayments
|
16 | 34 | ||||||
5,882 | 4,111 |
7.
|
Due
from related parties
|
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
US$(’000)
(Unaudited)
|
US$(’000)
|
|||||||
Beijing
Hongfujiali Information Technology Co., Ltd.
|
- | 439 | ||||||
Beijing
Saimeiwei Food Equipment Technology Co., Ltd.
|
93 | 53 | ||||||
Beijing
Telijie Century Environmental Technology Co., Ltd.
|
13 | - | ||||||
Beijing
Fengshangyinli Technology Co., Ltd
|
6 | - | ||||||
Soyilianmei
Advertising Co., Ltd.
|
49 | - | ||||||
161 | 492 |
8.
|
Due
from director
|
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
US$(’000)
(Unaudited)
|
US$(’000)
|
|||||||
Due
from director
|
219 | - |
9.
|
Property
and equipment
|
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
US$(’000)
(Unaudited)
|
US$(’000)
|
|||||||
Vehicles
|
423 | 423 | ||||||
Office
equipment
|
847 | 816 | ||||||
Electronic
devices
|
438 | 438 | ||||||
Total
property and equipment
|
1,708 | 1,677 | ||||||
Less:
accumulated depreciation
|
401 | 322 | ||||||
1,307 | 1,355 |
10.
|
Accrued
payroll and other accruals
|
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
US$(’000)
(Unaudited)
|
US$(’000)
|
|||||||
Accrued
payroll and staff welfare
|
190 | 131 | ||||||
Accrued
operating expenses
|
76 | 60 | ||||||
266 | 191 |
11.
|
Due
to related parties
|
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
US$(’000)
(Unaudited)
|
US$(’000)
|
|||||||
Beijing
Rongde Information Technology Co., Ltd.
|
- | - | ||||||
Beijing
Saimeiwei Food Equipments Technology Co., Ltd
|
- | 14 | ||||||
Beijing
Telijie Century Environmental Technology Co., Ltd.
|
- | 10 | ||||||
- | 24 |
12.
|
Due
to Control Group
|
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
US$(’000)
(Unaudited)
|
US$(’000)
|
|||||||
Due
to Control Group
|
1,139 | 1,142 |
13.
|
Due
to director
|
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
US$(’000)
(Unaudited)
|
US$(’000)
|
|||||||
Due
to director
|
282 | - |
14.
|
Taxation
|
|
l
|
Rise
King WFOE is a software company qualified by the related PRC governmental
authorities and was entitled to a two-year EIT exemption from its first
profitable year and a 50% reduction of its applicable EIT rate, which is
25% of its taxable income for the following three years. Rise
King WFOE had a net loss for the year ended December 31, 2008 and its
first profitable year is fiscal year 2009 which has been verified by the
local tax bureau by accepting the application filed by the
Company. Therefore, it was entitled to a two-year EIT exemption
for fiscal year 2009 through fiscal year 2010 and a 50% reduction of its
applicable EIT rate which is 25% to 12.5% for fiscal year 2011 through
fiscal year 2013.
|
|
l
|
Business
Opportunity Online was qualified as a High and New Technology Enterprise
in Beijing High-Tech Zone in 2005 and was entitled to a three-year EIT
exemption for fiscal year 2005 through fiscal year 2007 and a 50%
reduction of its applicable EIT rate for the exceeding three years for
fiscal year 2008 through fiscal year 2010. However, in March
2007, a new enterprise income tax law (the “New EIT”) in the PRC was
enacted which was effective on January 1, 2008. Subsequently, on
April 14, 2008, relevant governmental regulatory authorities released
new qualification criteria, application procedures and assessment
processes for “High and New Technology Enterprise” status under the New
EIT which would entitle the re-qualified and approved entities to a
favorable statutory tax rate of 15%. With an effective date of
September 4, 2009, Business Opportunity Online obtained the approval of
its reassessment of the qualification as a “High and New Technology
Enterprise” under the New EIT law and was entitled to a favorable
statutory tax rate of 15%. Under the previous EIT laws and
regulations, High and New Technology Enterprises enjoyed a favorable tax
rate of 15% and were exempted from income tax for three years beginning
with their first year of operations, and were entitled to a 50% tax
reduction to 7.5% for the subsequent three years and 15% thereafter. The
current EIT Law provides grandfathering treatment for enterprises that
were (1) qualified as High and New Technology Enterprises under the
previous EIT laws, and (2) established before March 16, 2007, if
they continue to meet the criteria for High and New Technology Enterprises
under the current EIT Law. The grandfathering provision allows Business
Opportunity Online to continue enjoying their unexpired tax holidays
provided by the previous EIT laws and regulations. Therefore, its income
tax was computed using a tax rate of 7.5% for the three month period ended
March 31, 2010 and the year ended December 31, 2009 due to its unexpired
tax holidays for the year 2009 through year 2010. For the three
month period ended March 31, 2009, since Business Opportunity Online had
not obtained the approval of its qualification as a “High and New
Technology Enterprise” under the New EIT law, it estimated and calculated
its income tax based on the income tax rate of 25%, the difference of the
income tax expenses between the estimated and the actual income tax
expenses for the three month period ended March 31, 2009 was approximately
US$270,000.
|
|
l
|
The
applicable income tax rate for Beijing CNET Online was 25% for the three
month period ended March 31, 2010 and
2009.
|
|
l
|
The
New EIT also imposed a 10% withholding income tax for dividends
distributed by a foreign invested enterprise to its immediate holding
company outside China, which were exempted under the previous enterprise
income tax law and rules. A lower withholding tax rate will be
applied if there is a tax treaty arrangement between mainland China and
the jurisdiction of the foreign holding company. Holding companies in Hong
Kong, for example, will be subject to a 5% withholding tax
rate. Rise King WFOE is invested by immediate holding company
in Hong Kong and will be entitled to the 5% preferential withholding tax
rate upon distribution of the dividends to its immediate holding
company.
|
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
US$(’000)
(Unaudited)
|
US$(’000)
|
|||||||
Business
tax payable
|
1,138 | 1,003 | ||||||
Culture
industry development surcharge payable
|
4 | 27 | ||||||
Value
added tax payable
|
- | 8 | ||||||
Enterprise
income tax payable
|
82 | 886 | ||||||
Individual
income tax payable
|
53 | 54 | ||||||
1,277 | 1,978 |
15.
|
Dividend
payable
|
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
US$(’000)
(Unaudited)
|
US$(’000)
|
|||||||
Dividend
payable to Series A convertible preferred stockholders
|
317 | 373 |
16.
|
Long-term
borrowing from director
|
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
US$(’000)
(Unaudited)
|
US$(’000)
|
|||||||
Long-term
borrowing from director
|
128 | 128 |
17.
|
Warrant
liabilities
|
As of
March 29, 2010
|
As of
December 31,
2009
|
Changes in
Fair Value
(Gain)/Loss
|
||||||||||
US$’000
|
US$’000
|
US$’000
|
||||||||||
Fair
value of the Warrants:
|
||||||||||||
Series
A-1 warrant
|
3,606 | 4,513 | (907 | ) | ||||||||
Series
A-2 warrant
|
3,256 | 4,019 | (763 | ) | ||||||||
Placement
agent warrants
|
841 | 1,032 | (191 | ) | ||||||||
7,703 | 9,564 | (1,861 | ) |
18.
|
Series
A convertible preferred shares
|
Gross proceeds
Allocated
|
Number of
Instruments
|
Allocated value
per instrument
|
||||||||||
US$ (’000)
|
US$
|
|||||||||||
Series
A-1 Warrant
|
2,236 | 2,060,800 | 1.08 | |||||||||
Series
A-2 Warrant
|
2,170 | 2,060,800 | 1.05 | |||||||||
Series
A preferred stock
|
5,898 | 4,121,600 | 1.43 | |||||||||
Total
|
10,304 |
19.
|
Related
party transactions
|
Three months ended March 31,
|
||||||||
2010
|
2009
|
|||||||
US$(’000)
(Unaudited)
|
US$(’000)
(Unaudited)
|
|||||||
Advertising
revenue from related parties:
|
||||||||
-Beijing
Saimeiwei Food Equipment Technology Co., Ltd,
|
142 | 283 | ||||||
-Beijing
Fengshangyinli Technology Co., Ltd.
|
13 | 31 | ||||||
-Soyilianmei
Advertising Co., Ltd.
|
- | 165 | ||||||
-Beijing
Telijie Cleaning Technology Co., Ltd.
|
- | 15 | ||||||
-Beijing
Telijie Century Environmental Technology Co., Ltd.
|
39 | - | ||||||
194 | 494 |
20.
|
Employee
defined contribution plan
|
21.
|
Concentration
of risk
|
22.
|
Commitments
|
Rental
payments
|
Server hosting and
board-band lease
payments
|
TV advertisement and
Internet resources
purchase payments
|
Total
|
|||||||||||||
US$(’000)
|
US$(’000)
|
US$(’000)
|
US$(’000)
|
|||||||||||||
Nine
month ended December 31,
|
||||||||||||||||
-2010
|
196 | 55 | 25,900 | 26,151 | ||||||||||||
Year
ended December 31,
|
||||||||||||||||
-2011
|
261 | - | 110 | 371 | ||||||||||||
-Thereafter
|
- | - | - | - | ||||||||||||
Total
|
457 | 55 | 26,010 | 26,522 |
23.
|
Segment
Reporting
|
Three months ended March 31, 2010
(Unaudited)
|
||||||||||||||||||||||||||||||||
Internet
Ad.
|
TV
Ad.
|
Bank
kiosk
|
Internet
Ad.
resources
resell
|
IIM
|
Others
|
Inter-
segment
and
reconciling
item
|
Total
|
|||||||||||||||||||||||||
US$
(‘000)
|
US$
(‘000)
|
US$
(‘000)
|
US$
(‘000)
|
US$
(‘000)
|
US$
(‘000)
|
US$
(‘000)
|
US$
(‘000)
|
|||||||||||||||||||||||||
Revenue
|
4,544 | 5,402 | 132 | 92 | 58 | - | - | 10,228 | ||||||||||||||||||||||||
Cost
of sales
|
1,129 | 5,505 | 10 | 80 | 3 | - | - | 6,727 | ||||||||||||||||||||||||
Total
operating expenses
|
633 | 140 | 16 | - | - | 566 | * | - | 1,355 | |||||||||||||||||||||||
Including:
Depreciation and amortization expense
|
26 | 29 | 16 | - | - | 21 | - | 92 | ||||||||||||||||||||||||
Operating
income(loss)
|
2,782 | (243 | ) | 106 | 12 | 55 | (566 | ) | - | 2,146 | ||||||||||||||||||||||
Changes
in fair value of warrants
|
- | - | - | - | - | 1,861 | - | 1,861 | ||||||||||||||||||||||||
Expenditure
for long-term assets
|
- | - | - | - | - | 31 | - | 31 | ||||||||||||||||||||||||
Net
income (loss)
|
2,570 | (243 | ) | 106 | 12 | 55 | 1,295 | - | 3,795 | |||||||||||||||||||||||
Total
assets
|
14,175 | 10,415 | 317 | - | - | 9,352 | (7,443 | ) | 26,816 |
Three months ended March 31, 2009
(Unaudited)
|
||||||||||||||||||||||||||||||||
Internet
Ad.
|
TV
Ad.
|
Bank
kiosk
|
Internet
Ad.
resources
resell
|
IIM
|
Others
|
Inter-
segment
and
reconciling
item
|
Total
|
|||||||||||||||||||||||||
US$
(‘000)
|
US$
(‘000)
|
US$
(‘000)
|
US$
(‘000)
|
US$
(‘000)
|
US$
(‘000)
|
US$
(‘000)
|
US$
(‘000)
|
|||||||||||||||||||||||||
Revenue
|
3,684 | 5,742 | - | 371 | - | - | - | 9,797 | ||||||||||||||||||||||||
Cost
of sales
|
858 | 5,040 | - | 364 | - | 15 | - | 6,277 | ||||||||||||||||||||||||
Total
operating expenses
|
1,566 | 175 | 21 | - | - | 99 | - | 1,861 | ||||||||||||||||||||||||
Including:
Depreciation and amortization expense
|
9 | 12 | 21 | - | - | - | - | 42 | ||||||||||||||||||||||||
Operating
income(loss)
|
1,260 | 527 | (21 | ) | 7 | - | (114 | ) | - | 1,659 | ||||||||||||||||||||||
Expenditure
for long-term assists
|
8 | 16 | - | - | - | 10 | - | 34 | ||||||||||||||||||||||||
Net
income (loss)
|
855 | 552 | (21 | ) | 7 | - | (114 | ) | - | 1,279 | ||||||||||||||||||||||
Total
assets
|
8,067 | 6,383 | 395 | - | - | 341 | (3,865 | ) | 11,321 |
24.
|
Earnings
(Loss) per share
|
Three months ended March 31,
|
||||||||
2010
|
2009
|
|||||||
US$(’000)
(Unaudited)
|
US$(’000)
(Unaudited)
|
|||||||
(Amount
in thousands except for
the
number of shares and per share
data)
|
||||||||
Net
income (numerator for diluted income per share)
|
$ | 3,795 | $ | 1,279 | ||||
Less:
Series A convertible preferred stock
|
(229 | ) | - | |||||
Net
income attributable to common shareholders (numerator
for basic income per share)
|
3,566 | 1,279 | ||||||
Weighted
average number of common shares outstanding - Basic
|
16,234,409 | 13,790,800 | ||||||
Effect
of diluted securities:
|
||||||||
Series
A Convertible preferred stock
|
3,715,511 | - | ||||||
Warrants
|
1,109,763 | - | ||||||
Weighted
average number of common shares outstanding -Diluted
|
21,059,683 | 13,790,800 | ||||||
Earnings
per share-Basic
|
$ | 0.22 | $ | 0.09 | ||||
Earnings
per share-Diluted
|
$ | 0.18 | $ | 0.09 |
25.
|
Share-based
compensation expenses
|
Underlying
stock price
|
$ | 3.43 | ||
Expected
term
|
3 | |||
Risk-free
interest rate
|
1.10 | % | ||
Dividend
yield
|
- | |||
Expected
Volatility
|
150 | % | ||
Exercise
price of the option
|
$ | 5 |
Option Outstanding
|
Option Exercisable
|
||||||||||||||||||||
Number
of
underlying
shares
|
Weighted
Average
Remaining
Contractual
Life
(Years)
|
Weighted
Average
Exercise
Price
|
Number
of
underlying
shares
|
Weighted
Average
Remaining
Contractual
Life
(Years)
|
Weighted
Average
Exercise
Price
|
||||||||||||||||
Balance,
January 1, 2010
|
54,000 | 4.92 | - | ||||||||||||||||||
Granted/Vested
|
- | $ | 5.00 | 6,750 | $ | 5.00 | |||||||||||||||
Forfeited
|
- |