XML 59 R18.htm IDEA: XBRL DOCUMENT v3.20.1
Note 10 - Intangible Assets, Net
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Intangible Assets Disclosure [Text Block]
10.
 Intangible assets, net
 
    As of December 31, 2019
Items  
Gross
Carrying
Value
  
Accumulated
Amortization
   Impairment  
Net
Carrying
Value
   
US$(’000)
  
US$(’000)
  
US$(’000)
  
US$(’000)
Intangible assets not subject to amortization:                                
Domain name    
1,385
 
    
-
 
    
(1,385
)
    
-
 
Intangible assets subject to amortization:                                
Customer relationship    
1,909
 
    
(1,909
)
    
-
 
    
-
 
Non-compete agreements    
1,051
 
    
(571
)
    
(480
)
    
-
 
Software technologies    
294
 
    
(294
)
    
-
 
    
-
 
Intelligent marketing data service platform    
4,629
 
    
(1,876
)
    
(2,753
)
    
-
 
Internet safety, information exchange security and data encryption software    
1,863
 
    
(419
)
    
(1,444
)
    
-
 
Cloud video management system    
1,362
 
    
(338
)
    
(1,024
)
    
-
 
Cloud compute software technology    
1,331
 
    
(898
)
    
(408
)
    
25
 
Licensed products use right    
1,202
 
    
(15
)
    
-
 
    
1,187
 
Other computer software    
872
 
    
(185
)
    
-
 
    
687
 
Total   $
15,898
 
   $
(6,505
)
   $
(7,494
)
   $
1,899
 
 
 
    As of December 31, 2018
Items  
Gross
Carrying
Value
  
Accumulated
Amortization
   Impairment  
Net
Carrying
Value
   
US$(’000)
  
US$(’000)
  
US$(’000)
  
US$(’000)
Intangible assets not subject to amortization:                                
Domain name    
1,408
 
    
-
 
    
(1,408
)
    
-
 
Intangible assets subject to amortization:                                
Customer relationship    
1,941
 
    
(1,941
)
    
-
 
    
-
 
Non-compete agreements    
1,068
 
    
(580
)
    
(488
)
    
-
 
Software technologies    
299
 
    
(299
)
    
-
 
    
-
 
Intelligent marketing data service platform    
4,705
 
    
(1,906
)
    
(2,799
)
    
-
 
Internet safety, information exchange security and data encryption software    
1,894
 
    
(426
)
    
(1,468
)
    
-
 
Cloud video management system    
1,383
 
    
(343
)
    
(1,040
)
    
-
 
Cloud compute software technology    
1,353
 
    
(896
)
    
(415
)
    
42
 
Other computer software    
114
 
    
(111
)
    
-
 
    
3
 
Total   $
14,165
 
   $
(6,502
)
   $
(7,618
)
   $
45
 
 
Amortization expenses in aggregate for the years ended
December 31, 2019
and
2018
were approximately
US$0.11
million and
US$0.38
million, respectively.
 
The Company performs impairment analysis on its intangible assets whenever events or changes in circumstances indicate that the carrying amount of an intangible asset
may
not
be recoverable and recognizes impairment loss for the difference between the carrying amount and the fair value of the assets. The Company determines the fair value of its intangible assets using Multi-period Excess Earning Method (the “MPEEM 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.
 
Based on the Company’s assessment, the Company did
not
provide any impairment loss associate with its intangible assets for the year ended
December 31, 2019.
For the year ended
December 31, 2018,
the Company provided approximately
US$3.33
million impairment losses in the aggregate, which was associated with its intelligent marketing data service platform, cloud video management system, cloud compute software technology and Internet safety, information exchange security and data encryption software of its internet advertising and data service business segment, due to insufficient estimated future cash flows expected to be generated by these assets (See Note
3
(o) for significant unobservable internally-developed inputs used in the intangible assets fair value measurement).
 
Based on the adjusted carrying value of the finite-lived intangible assets after the deduction of the impairment losses, which has a weighted average remaining useful life of
6.52
years as of
December 31, 2019,
and assuming
no
further subsequent impairment of the underlying intangible assets, the estimated future amortization expenses is approximately
US$0.82
million for the year ending
December 31, 2020,
approximately
US$0.13
million for the year ending
December 31, 2021,
and approximately
US$
0.12
million each year for the year ending
December 31, 2022
through
2024.