Note 28 - Subsequent Event

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Subsequent Events [Text Block]

28. Subsequent event

The Company has performed an evaluation of subsequent events through the date the financial statements were issued, and has determined that there are

no

other events that are material to the financial statements except for those has discussed in below paragraphs.

On

January 17, 2018,

the Company consummated a registered direct offering of

2,150,001

shares of the Company’s common stock to

three

institutional investors at a purchase price of

$5.15

per share. As part of the transaction, the Company also issued to the investors warrants for the purchase of up to

645,000

shares of the Company’s common stock at an exercise price of

$6.60

per share. The warrants have a term of

30

months from the date of issuance. The Company received gross proceeds of approximately

$11.1

million.

On

February 28, 2018,

the Company entered into a contract with an unrelated

third

party to development certain blockchain technology based applications. Total amount of the contract was

US$4.5

million, as of the date hereof, the Company had paid

US$2.25

million in accordance with the payment schedule set forth in the contract.

On

March 5, 2018,

the Company entered into an agreement with the noncontrolling interest holder of Chuang Fu Tian Xi to purchase the remaining

49%

equity interest of Chuang Fu Tian Xi for a total consideration of

RMB15

million (approximately

US$2.3

million), of which

50%

of the total consideration need to be paid in cash and the remaining

50%

of the total consideration will be paid in form of the Company’s common stock. As of the date hereof, the Company has paid the cash part of the consideration,

RMB7.5

million (approximately

US$1.15

million), as a prepayment to the noncontrolling interest holder of Chuang Fu Tian Xi. This transaction is expected to be consummated before

June 2018.

The Company will account for this transaction as an equity transaction with

no

gain or loss to be recognized in its consolidated statement of operations. The carrying amount of the noncontrolling interest will be adjusted to reflect the change in its ownership interest in the subsidiary, any difference between the fair value of the consideration received or paid and the amount by which the noncontrolling interest is adjusted will be recognized in equity attributable to the parent and reallocated the subsidiary’s accumulated comprehensive income, if any, among the parent and the noncontrolling interest through an adjustment to the parent’s equity.