XML 33 R17.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 11 - Intangible Assets, Net
 12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Intangible Assets Disclosure [Text Block]
11.
 Intangible assets, net
 
    As of December 31,
    2017   2016
    US$(’000)   US$(’000)
Intangible assets not subject to amortization:        
Domain name    
1,478
      
1,393
  
Intangible assets subject to amortization:                
Customer relationship    
2,038
      
1,920
  
Non-compete agreements    
1,122
      
1,057
  
Software technologies    
314
      
295
  
Cloud compute software technology    
1,420
      
1,338
  
Internet safety, information exchange security and data encryption software    
1,990
      
1,874
  
Intelligent marketing data service platform    
4,942
      
4,655
  
Cloud video management system    
1,454
      
1,369
  
Other computer software    
120
      
113
  
Intangible assets, cost    
14,878
      
14,014
  
Less: accumulated amortization    
(6,443
 )    
(4,875
 )
Less: accumulated impairment losses    
(4,627
 )    
(1,875
 )
Intangible assets, net    
3,808
      
7,264
  
 
 
Amortization expenses in aggregate for the years ended
December 31, 2017
and
2016
were approximately
US$1,226,000
and
US$1,324,000,
respectively.
 
The Company performed an impairment analysis on its intangible assets as of
December 31, 2017
and
2016,
respectively. The fair value of intangible assets was determined using Multi-period Excess Earning Method (the “MPEEM method”) and Replacement Cost Method. As an application of income approach, the MPEEM method is a widely-used valuation method, it determines the fair value of the asset as the present value of the cash flows attributable to it. As the asset will generally earn cash flows through interaction with other tangible and intangible assets, the contributions to cash flows of those other assets must be removed. Those assets are referred to as contributory assets which are defined as all assets that are utilized in the realization of expected future cash flows for the target asset (See Note
3
(n) for significant unobservable internally-developed inputs used in the intangible assets fair value measurement).
 
For the year ended
December 31, 2017,
the Company provided approximately
US$2.55
million impairment losses associated with intelligent marketing data service platform, cloud video management system and cloud compute software technology of its internet advertising and data service business segment, due to insufficient estimated future cash flows expected to be generated by these assets. For the year ended
December 31, 2016,
the Company did
not
recognize any impairment loss associated with its intangible assets.
 
Based on the net carrying value of the finite-lived intangible assets recorded, which weighted average remaining useful life was
6.38
years as of
December 31, 2017,
and assuming
no
further subsequent impairment of the underlying intangible assets, the estimated future amortization expenses is approximately
US$
656,000
each year for the year ending
December 31, 2018,
2019
and
2020,
approximately
US$646,000
for the year ending
December 31, 2021,
and approximately
US$497,000
for the year ending
December 31, 2022.