2019 Form 10-K Financial Statement

#000117184320004001 Filed on May 27, 2020

View on sec.gov

Income Statement

Concept 2019 2018 Q4 2018
Revenue $58.08M $57.15M
YoY Change 1.63% 22.54%
Cost Of Revenue $52.58M $54.73M
YoY Change -3.92% 30.24%
Gross Profit $5.498M $2.418M
YoY Change 127.38% -47.58%
Gross Profit Margin 9.47% 4.23%
Selling, General & Admin $6.317M $7.456M
YoY Change -15.28% -26.89%
% of Gross Profit 114.9% 308.35%
Research & Development $869.0K $933.0K
YoY Change -6.86% -26.01%
% of Gross Profit 15.81% 38.59%
Depreciation & Amortization $170.0K $541.0K
YoY Change -68.58% -61.95%
% of Gross Profit 3.09% 22.37%
Operating Expenses $7.186M $16.93M
YoY Change -57.55% 20.83%
Operating Profit -$1.688M -$14.51M
YoY Change -88.37% 54.42%
Interest Expense $35.00K $37.00K
YoY Change -5.41% -65.42%
% of Operating Profit
Other Income/Expense, Net $467.0K $1.149M
YoY Change -59.36% -417.4%
Pretax Income -$1.221M -$13.36M
YoY Change -90.86% 36.92%
Income Tax $49.00K $764.0K
% Of Pretax Income
Net Earnings -$1.261M -$14.03M
YoY Change -91.01% 38.52%
Net Earnings / Revenue -2.17% -24.54%
Basic Earnings Per Share
Diluted Earnings Per Share -$73.56K -$884.6K
COMMON SHARES
Basic Shares Outstanding
Diluted Shares Outstanding

Balance Sheet

Concept 2019 2018 Q4 2018
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.600M $3.740M
YoY Change -57.22% 26.78%
Cash & Equivalents $1.600M $3.742M $3.740M
Short-Term Investments
Other Short-Term Assets $6.990M $19.00K $2.180M
YoY Change 220.64% -46.44%
Inventory
Prepaid Expenses
Receivables $3.340M $6.359M $6.590M
Other Receivables $0.00 $19.00K $0.00
Total Short-Term Assets $11.94M $12.50M $12.50M
YoY Change -4.48% -26.04% -26.04%
LONG-TERM ASSETS
Property, Plant & Equipment $90.00K $142.0K $140.0K
YoY Change -35.71% -52.51% -53.33%
Goodwill
YoY Change
Intangibles $45.00K
YoY Change -98.82%
Long-Term Investments $40.00K $0.00
YoY Change -100.0%
Other Assets $710.0K $560.0K
YoY Change 26.79% -58.82%
Total Long-Term Assets $6.610M $4.468M $4.470M
YoY Change 47.87% -61.68% -61.66%
TOTAL ASSETS
Total Short-Term Assets $11.94M $12.50M $12.50M
Total Long-Term Assets $6.610M $4.468M $4.470M
Total Assets $18.55M $16.97M $16.97M
YoY Change 9.31% -40.59% -40.58%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $410.0K $2.869M $2.870M
YoY Change -85.71% 0.63% 0.7%
Accrued Expenses $500.0K $520.0K
YoY Change -3.85% -7.14%
Deferred Revenue $1.061M
YoY Change -70.19%
Short-Term Debt $430.0K $870.0K
YoY Change -50.57% -48.82%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $7.010M $9.046M $9.050M
YoY Change -22.54% -30.22% -30.17%
LONG-TERM LIABILITIES
Long-Term Debt $130.0K $130.0K
YoY Change 0.0% 0.0%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $130.0K $130.0K
YoY Change 0.0% 0.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $7.010M $9.046M $9.050M
Total Long-Term Liabilities $130.0K $130.0K
Total Liabilities $7.080M $9.174M $9.130M
YoY Change -22.45% -29.95% -31.2%
SHAREHOLDERS EQUITY
Retained Earnings -$34.51M
YoY Change 68.46%
Common Stock $16.00K
YoY Change 14.29%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $11.47M $7.843M $7.840M
YoY Change
Total Liabilities & Shareholders Equity $18.55M $16.97M $16.97M
YoY Change 9.31% -40.59% -40.58%

Cashflow Statement

Concept 2019 2018 Q4 2018
OPERATING ACTIVITIES
Net Income -$1.261M -$14.03M
YoY Change -91.01% 38.52%
Depreciation, Depletion And Amortization $170.0K $541.0K
YoY Change -68.58% -61.95%
Cash From Operating Activities -$4.311M -$5.389M
YoY Change -20.0% 308.26%
INVESTING ACTIVITIES
Capital Expenditures $11.00K
YoY Change 175.0%
Acquisitions
YoY Change
Other Investing Activities -$200.0K -$2.610M
YoY Change -92.34% 26.09%
Cash From Investing Activities -$2.158M -$3.047M
YoY Change -29.18% 46.63%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 4.352M 9.492M
YoY Change -54.15%
NET CHANGE
Cash From Operating Activities -4.311M -5.389M
Cash From Investing Activities -2.158M -3.047M
Cash From Financing Activities 4.352M 9.492M
Net Change In Cash -2.139M 790.0K
YoY Change -370.76% -125.17%
FREE CASH FLOW
Cash From Operating Activities -$4.311M -$5.389M
Capital Expenditures $11.00K
Free Cash Flow -$4.311M -$5.400M
YoY Change -20.17% 307.85%

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<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.25in"><div style="display: inline; font-style: italic; font: inherit;">1.</div></td> <td style="text-align: justify">Organization and nature of operations</td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">ChinaNet Online Holdings, Inc. (the &#x201c;Company&#x201d;) was incorporated in the State of Texas in <div style="display: inline; font-style: italic; font: inherit;"> April 2006 </div>and re-domiciled to become a Nevada corporation in <div style="display: inline; font-style: italic; font: inherit;"> October 2006. </div>On <div style="display: inline; font-style: italic; font: inherit;"> June 26, 2009, </div>the Company consummated a share exchange transaction with China Net Online Media Group Limited (the &#x201c;Share Exchange&#x201d;), a company organized under the laws of British Virgin Islands (&#x201c;China Net BVI&#x201d;). As a result of the Share Exchange, China Net BVI became a wholly owned subsidiary of the Company and the Company is now a holding company, which, through certain contractual arrangements with operating companies in the People&#x2019;s Republic of China (the &#x201c;PRC&#x201d;), is engaged in providing advertising, precision marketing, online to offline sales channel expansion and the related data and technical services to small and medium enterprises in the PRC. In early <div style="display: inline; font-style: italic; font: inherit;">2018,</div> the Company commenced to expand its business into the blockchain industry and the related technology. For the years ended <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2019 </div>and <div style="display: inline; font-style: italic; font: inherit;">2018,</div> the Company was in the process of developing its blockchain-powered platform applications (See Note <div style="display: inline; font-style: italic; font: inherit;">11</div>).</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company&#x2019;s wholly owned subsidiary, China Net BVI was incorporated in the British Virgin Islands on <div style="display: inline; font-style: italic; font: inherit;"> August 13, 2007. </div>On <div style="display: inline; font-style: italic; font: inherit;"> April 11, 2008, </div>China Net BVI became the parent holding company of a group of companies comprised of CNET Online Technology Co. Limited, a Hong Kong company (&#x201c;China Net HK&#x201d;), which established and is the parent company of Rise King Century Technology Development (Beijing) Co., Ltd., a wholly foreign-owned enterprise (&#x201c;WFOE&#x201d;) established in the PRC (&#x201c;Rise King WFOE&#x201d;). The Company refers to the transactions that resulted in China Net BVI becoming an indirect parent company of Rise King WFOE as the &#x201c;Offshore Restructuring.&#x201d;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">PRC regulations prohibit direct foreign ownership of business entities providing internet content, or ICP services in the PRC, and used to restrict foreign ownership of business entities engaging in the advertising business, which was subsequently lifted in <div style="display: inline; font-style: italic; font: inherit;"> June 2015. </div>To satisfy PRC laws and regulations, the Company conducts certain business in the PRC through its Variable Interest Entities (&#x201c;VIEs&#x201d;). Through a series of contractual agreements (the &#x201c;Contractual Agreements&#x201d; or &#x201c;VIE Agreements&#x201d;) between Rise King WFOE and Business Opportunity Online (Beijing) Network Technology Co., Ltd. (&#x201c;Business Opportunity Online&#x201d;), Beijing CNET Online Advertising Co., Ltd. (&#x201c;Beijing CNET Online&#x201d;) (collectively the &#x201c;PRC Operating Entities&#x201d; or the &#x201c;VIEs&#x201d;) and its common individual owners (the &#x201c;PRC Shareholders&#x201d; or the &#x201c;Control Group&#x201d;), the Company, through Rise King WFOE, secures significant rights to influence the PRC Operating Entities&#x2019; business operations, policies and management, approve all matters requiring shareholder approval, and the right to receive the income earned by the PRC Operating Entities. In return, Rise King WFOE provides consulting services to the PRC Operating Entities. In addition, to ensure that the PRC Operating Entities and the PRC Shareholders perform their obligations under the Contractual Arrangements, the PRC Shareholders have pledged all of their equity interests in the PRC Operating Entities to Rise King WFOE. They also entered into an option agreement with Rise King WFOE which provides that at such time as when the restrictions under PRC law on foreign ownership of Chinese companies engaging in the Internet content, information services or advertising business in China are lifted, Rise King WFOE <div style="display: inline; font-style: italic; font: inherit;"> may </div>exercise its option to purchase the equity interests in the PRC Operating Entities, directly.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Pursuant to the Contractual Agreements, all of the equity owners' rights and obligations of the VIEs were assigned to Rise King WFOE, which resulted in the equity owners lacking the ability to make decisions that have a significant effect on the VIEs, Rise King WFOE's ability to extract the profits from the operation of the VIEs and assume the residual benefits of the VIEs. Due to the fact that Rise King WFOE and its indirect parent are the sole interest holders of the VIEs, the Company included the assets, liabilities, revenues and expenses of the VIEs in its consolidated financial statements, which is consistent with the provisions of FASB Accounting Standards Codification ("ASC") Topic <div style="display: inline; font-style: italic; font: inherit;">810</div> &#x201c;Consolidation&#x201d;, subtopic <div style="display: inline; font-style: italic; font: inherit;">10.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</div> <!-- Field: Page; Sequence: 80 --> <!-- Field: /Page --> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">As of <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2019, </div>the Company&#x2019;s consolidated subsidiaries and VIEs are summarized as follows:</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</div> <div> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; margin-left: 0.25in; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="width: 39%; border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">Name of the subsidiary or VIE</div></div></td> <td style="width: 2%; text-align: center">&nbsp;</td> <td style="width: 19%; border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">Place and date of incorporation</div></div></td> <td style="width: 2%; text-align: center">&nbsp;</td> <td style="width: 13%; border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">Percentage of ownership</div></div></td> <td style="width: 2%; text-align: center">&nbsp;</td> <td style="width: 23%; border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">Principal&nbsp;activities</div></div></td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: center">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> </tr> <tr> <td><div style="display: inline; font-size: 10pt">China Net Online Media Group Limited (&#x201c;China Net BVI&#x201d;) <div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(1)</div></div></td> <td style="text-align: justify">&nbsp;</td> <td> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">British Virgin Islands,</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">August 13, 2007</div></td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">100%</div></div></td> <td style="text-align: justify">&nbsp;</td> <td><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">Investment holding company</div></div></td> </tr> <tr> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> </tr> <tr> <td><div style="display: inline; font-size: 10pt">CNET Online Technology Co. Limited (&#x201c;China Net HK&#x201d;) <div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(1)</div></div></td> <td style="text-align: justify">&nbsp;</td> <td> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Hong Kong,</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">September 4, 2007</div></td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">100%</div></div></td> <td style="text-align: justify">&nbsp;</td> <td><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">Investment holding company</div></div></td> </tr> <tr> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> </tr> <tr> <td><div style="display: inline; font-size: 10pt">ChinaNet Investment Holding Ltd. (&#x201c;ChinaNet Investment BVI&#x201d;) <div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(1)</div></div></td> <td style="text-align: justify">&nbsp;</td> <td> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">British Virgin Islands,</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">January 12, 2015</div></td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">100%</div></div></td> <td style="text-align: justify">&nbsp;</td> <td><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">Investment holding company</div></div></td> </tr> <tr> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> </tr> <tr> <td> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Grandon Investments Limited. (&#x201c;Grandon BVI&#x201d;) <div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(1)</div></div></td> <td style="text-align: justify">&nbsp;</td> <td> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">British Virgin Islands,</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">February 13, 2006</div></td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">100%</div></div></td> <td style="text-align: justify">&nbsp;</td> <td><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">Investment holding company, providing technical services</div></div></td> </tr> <tr> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: center">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> </tr> <tr> <td><div style="display: inline; font-size: 10pt">Rise King Century Technology Development (Beijing) Co., Ltd. (&#x201c;Rise King WFOE&#x201d;) <div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(1)</div></div></td> <td style="text-align: justify">&nbsp;</td> <td> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PRC,</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">January 17, 2008</div></td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">100%</div></div></td> <td style="text-align: justify">&nbsp;</td> <td><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">Investment holding company, providing technical services</div></div></td> </tr> <tr> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> </tr> <tr> <td><div style="display: inline; font-size: 10pt">Business Opportunity Online (Beijing) Network Technology Co., Ltd. (&#x201c;Business Opportunity Online&#x201d;) <div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(2)</div></div></td> <td style="text-align: justify">&nbsp;</td> <td> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PRC,</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">December 8, 2004</div></td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">100%</div></div></td> <td>&nbsp;</td> <td><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">Providing online advertising, precision marketing and the related data services</div></div></td> </tr> <tr> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr> <td><div style="display: inline; font-size: 10pt">Beijing CNET Online Advertising Co., Ltd. (&#x201c;Beijing CNET&#x201d; Online) <div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(2)</div></div></td> <td style="text-align: justify">&nbsp;</td> <td> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PRC,</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">January 27, 2003</div></td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">100%</div></div></td> <td>&nbsp;</td> <td><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">Providing TV advertising service and other value-added services</div></div></td> </tr> <tr> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> </tr> <tr> <td><div style="display: inline; font-size: 10pt">ChinaNet Online Holdings Co., Ltd. (&#x201c;ChinaNet Online PRC&#x201d;) <div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(1)</div></div></td> <td style="text-align: justify">&nbsp;</td> <td> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PRC,</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">August 31, 2015</div></td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">100%</div></div></td> <td style="text-align: justify">&nbsp;</td> <td><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">Investment holding company</div></div></td> </tr> <tr> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> </tr> <tr> <td><div style="display: inline; font-size: 10pt">Beijing Chuang Fu Tian Xia Network Technology Co., Ltd. (&#x201c;Beijing Chuang Fu Tian Xia&#x201d;) <div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(2)</div></div></td> <td style="text-align: justify">&nbsp;</td> <td> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PRC,</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">March 1, 2011</div></td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">100%</div></div></td> <td style="text-align: justify">&nbsp;</td> <td><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">Providing online advertising, precision marketing and the related data services</div></div></td> </tr> <tr> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> </tr> <tr> <td><div style="display: inline; font-size: 10pt">Business Opportunity Online (Hubei) Network Technology Co., Ltd. (&#x201c;Business Opportunity Online Hubei&#x201d;) <div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(2)</div></div></td> <td style="text-align: justify">&nbsp;</td> <td> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PRC,</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">January 28, 2011</div></td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">100%</div></div></td> <td style="text-align: justify">&nbsp;</td> <td><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">Providing online advertising, precision marketing and the related data services</div></div></td> </tr> <tr> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> </tr> <tr> <td><div style="display: inline; font-size: 10pt">Hubei CNET Advertising Media Co., Ltd. (&#x201c;Hubei CNET&#x201d;) <div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(2)</div></div></td> <td style="text-align: justify">&nbsp;</td> <td> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PRC,</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">April 18, 2011</div></td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">100%</div></div></td> <td style="text-align: justify">&nbsp;</td> <td><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">Providing TV advertising service and other value-added services</div></div></td> </tr> <tr> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> </tr> <tr> <td><div style="display: inline; font-size: 10pt">Sheng Tian Network Technology (Hubei) Co., Ltd. (&#x201c;Sheng Tian Hubei&#x201d;) <div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(2)</div></div></td> <td style="text-align: justify">&nbsp;</td> <td> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PRC,</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">July 1, 2011</div></td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">100%</div></div></td> <td style="text-align: justify">&nbsp;</td> <td><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">Providing online advertising, precision marketing and the related data services</div></div></td> </tr> <tr> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> </tr> <tr> <td><div style="display: inline; font-size: 10pt">Beijing Chuang Shi Xin Qi Advertising Media Co., Ltd. (&#x201c;Beijing Chuang Shi Xin Qi&#x201d;) <div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(2)</div></div></td> <td style="text-align: justify">&nbsp;</td> <td> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PRC,</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">April 16, 2014</div></td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">100%</div></div></td> <td style="text-align: justify">&nbsp;</td> <td><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">Providing online advertising, precision marketing and the related data services</div></div></td> </tr> <tr> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: center">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> </tr> <tr> <td><div style="display: inline; font-size: 10pt">Beijing Shi Ji Cheng Yuan Advertising Media Co., Ltd. (&#x201c;Beijing Shi Ji Cheng Yuan&#x201d;) <div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(2)</div></div></td> <td style="text-align: justify">&nbsp;</td> <td> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PRC,</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">May 22, 2014</div></td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">100%</div></div></td> <td style="text-align: justify">&nbsp;</td> <td><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">Providing online advertising, precision marketing and the related data services</div></div></td> </tr> <tr> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: center">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> </tr> <tr> <td><div style="display: inline; font-size: 10pt">Beijing Hong Da Shi Xing Network Technology Co., Ltd. (&#x201c;Beijing Hong Da Shi Xing&#x201d;) <div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(2)</div></div></td> <td style="text-align: justify">&nbsp;</td> <td> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PRC,</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">April 16, 2014</div></td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">100%</div></div></td> <td style="text-align: justify">&nbsp;</td> <td><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">Providing online advertising, precision marketing and the related data services</div></div></td> </tr> <tr> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: justify">&nbsp;</td> <td>&nbsp;</td> </tr> <tr> <td><div style="display: inline; font-size: 10pt">Business Opportunity Chain (Beijing) Technology Development Co., Ltd.&nbsp;&nbsp;&nbsp;(&#x201c;Business Opportunity Chain&#x201d;) <div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(1)</div></div></td> <td style="text-align: justify">&nbsp;</td> <td> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PRC,</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">May 11, 2018</div></td> <td style="text-align: justify">&nbsp;</td> <td style="text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">51%</div></div></td> <td style="text-align: justify">&nbsp;</td> <td><div style="display: inline; font-size: 10pt"><div style="display: inline; font-style: italic; font: inherit;">Providing research and develop and other technical support services for the blockchain business unit</div></div></td> </tr> </table> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</div> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">(<div style="display: inline; font-style: italic; font: inherit;">1</div>)</td> <td style="text-align: justify">A direct or indirect subsidiary of the Company.</td> </tr> </table> <div style=" margin-top: 0; margin-bottom: 0">&nbsp;</div> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">(<div style="display: inline; font-style: italic; font: inherit;">2</div>)</td> <td style="text-align: justify">The Company&#x2019;s consolidated VIE, or a direct or indirect subsidiary of the Company&#x2019;s consolidated VIE.</td> </tr> </table></div>
CY2019 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
4352000
CY2018 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
9492000
CY2019 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-2158000
CY2018 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-3047000
CY2019 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-4311000
CY2018 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-5389000
CY2019 us-gaap Net Income Loss
NetIncomeLoss
-1261000
CY2018 us-gaap Net Income Loss
NetIncomeLoss
-14025000
CY2019 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
-1261000
CY2018 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
-14025000
CY2019 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
467000
CY2018 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
1149000
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OperatingExpenses
7186000
CY2018 us-gaap Operating Expenses
OperatingExpenses
16930000
CY2019 us-gaap Operating Income Loss
OperatingIncomeLoss
-1688000
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PaymentsToAcquirePropertyPlantAndEquipment
11000
CY2018 us-gaap Operating Income Loss
OperatingIncomeLoss
-14512000
CY2019 us-gaap Operating Lease Cost
OperatingLeaseCost
90000
CY2019 us-gaap Operating Lease Payments
OperatingLeasePayments
91000
CY2019Q4 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
12000
CY2018Q4 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
CY2019Q4 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.06
CY2019Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P1Y76D
CY2018 us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
410000
CY2019Q4 us-gaap Operating Loss Carryforwards
OperatingLossCarryforwards
20300000
CY2018Q4 us-gaap Operating Loss Carryforwards
OperatingLossCarryforwards
19200000
CY2019Q4 us-gaap Other Assets Current
OtherAssetsCurrent
11000
CY2018Q4 us-gaap Other Assets Current
OtherAssetsCurrent
19000
CY2018 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-135000
CY2019 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
49000
CY2019Q4 us-gaap Other Liabilities Current
OtherLiabilitiesCurrent
221000
CY2018Q4 us-gaap Other Liabilities Current
OtherLiabilitiesCurrent
118000
CY2019 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
3000
CY2018 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-30000
CY2019Q4 us-gaap Other Receivables Gross Current
OtherReceivablesGrossCurrent
728000
CY2018Q4 us-gaap Other Receivables Gross Current
OtherReceivablesGrossCurrent
1784000
CY2019Q4 us-gaap Other Receivables Net Current
OtherReceivablesNetCurrent
11000
CY2018Q4 us-gaap Other Receivables Net Current
OtherReceivablesNetCurrent
19000
CY2018 us-gaap Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net
OtherThanTemporaryImpairmentLossesInvestmentsPortionRecognizedInEarningsNet
450000
CY2019 us-gaap Payments Of Stock Issuance Costs
PaymentsOfStockIssuanceCosts
15000
CY2018 us-gaap Payments Of Stock Issuance Costs
PaymentsOfStockIssuanceCosts
809000
CY2019 us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
1962000
CY2018 us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
431000
CY2019 us-gaap Payments To Acquire Interest In Subsidiaries And Affiliates
PaymentsToAcquireInterestInSubsidiariesAndAffiliates
CY2018 us-gaap Payments To Acquire Interest In Subsidiaries And Affiliates
PaymentsToAcquireInterestInSubsidiariesAndAffiliates
1889000
CY2019 us-gaap Payments To Acquire Loans Receivable
PaymentsToAcquireLoansReceivable
CY2018 us-gaap Payments To Acquire Loans Receivable
PaymentsToAcquireLoansReceivable
2107000
CY2019 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
CY2019 us-gaap Proceeds From Bank Debt
ProceedsFromBankDebt
435000
CY2018 us-gaap Proceeds From Bank Debt
ProceedsFromBankDebt
907000
CY2019 us-gaap Proceeds From Collection Of Loans Receivable
ProceedsFromCollectionOfLoansReceivable
CY2018 us-gaap Proceeds From Collection Of Loans Receivable
ProceedsFromCollectionOfLoansReceivable
4676000
CY2019 us-gaap Profit Loss
ProfitLoss
-1270000
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ProfitLoss
-14127000
CY2019Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
3026000
CY2018Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
3397000
CY2019Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
78000
CY2018Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
142000
CY2019 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
2335000
CY2018 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
1523000
CY2019 us-gaap Repayments Of Bank Debt
RepaymentsOfBankDebt
870000
CY2018 us-gaap Repayments Of Bank Debt
RepaymentsOfBankDebt
756000
CY2019 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
869000
CY2018 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
933000
CY2018Q4 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
30000
CY2019Q4 us-gaap Restricted Cash And Cash Equivalents
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30000
CY2019Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-35773000
CY2018Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-34512000
CY2019 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
58080000
CY2018 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
57146000
CY2019 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
10000
CY2018Q4 us-gaap Short Term Bank Loans And Notes Payable
ShortTermBankLoansAndNotesPayable
874000
CY2018 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
0
CY2019 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
0
CY2017 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
P3Y14D
CY2018 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
P2Y14D
CY2019 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
P1Y54D
CY2017 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1
P3Y14D
CY2018 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1
P2Y14D
CY2019 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1
P1Y54D
CY2019Q4 us-gaap Short Term Bank Loans And Notes Payable
ShortTermBankLoansAndNotesPayable
430000
CY2019 us-gaap Short Term Lease Cost
ShortTermLeaseCost
230000
CY2019Q4 us-gaap Statutory Accounting Practices Retained Earnings Not Available For Dividends
StatutoryAccountingPracticesRetainedEarningsNotAvailableForDividends
2607000
CY2018Q4 us-gaap Statutory Accounting Practices Retained Earnings Not Available For Dividends
StatutoryAccountingPracticesRetainedEarningsNotAvailableForDividends
2607000
CY2018 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
0
CY2019 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
0
CY2018 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
421000
CY2018 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
7988000
CY2019 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
4787000
CY2019Q4 us-gaap Stockholders Equity
StockholdersEquity
11470000
CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
7843000
CY2019Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
11413000
CY2018Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
7794000
CY2017Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
15463000
CY2019Q4 us-gaap Taxes Payable Current
TaxesPayableCurrent
3214000
CY2018Q4 us-gaap Taxes Payable Current
TaxesPayableCurrent
2997000
CY2019 us-gaap Use Of Estimates
UseOfEstimates
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top"><td style="width: 6.55pt"></td> <td style="width: 21pt">d)</td> <td style="text-align: justify">Use of estimates</td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27.55pt; text-align: justify; text-indent: 0in">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27.55pt; text-align: justify; text-indent: 0in">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of these consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company continually evaluates these estimates and assumptions based on the most recently available information, historical experience and various other assumptions that the Company believes to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates.</div></div></div></div>
CY2019 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
180000
CY2018 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
3500000
CY2019Q4 us-gaap Warrants And Rights Outstanding
WarrantsAndRightsOutstanding
107000
CY2018Q4 us-gaap Warrants And Rights Outstanding
WarrantsAndRightsOutstanding
606000
CY2018Q1 us-gaap Warrants And Rights Outstanding
WarrantsAndRightsOutstanding
2275000
CY2019 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
17130335
CY2018 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
15863894
CY2018 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
1970000
CY2019 us-gaap Share Based Compensation
ShareBasedCompensation
393000
CY2018 us-gaap Share Based Compensation
ShareBasedCompensation
233000
CY2017Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
835216
CY2018Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
835216
CY2019Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
755216
CY2019 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
540000
CY2017Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
2.49
CY2018Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
2.49
CY2019Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
2.43
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod
0
CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod
80000
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
0
CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
0
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
0
CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
0
CY2019Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
0
CY2018Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
0
CY2017Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
835216
CY2018Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
835216
CY2019Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
755216
CY2017Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
2.49
CY2018Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
2.49
CY2019Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
2.43
CY2018 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
0
CY2019 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
0
CY2018 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice
0
CY2019 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice
3.08
CY2018 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
0
CY2019 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
0

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