Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2020

Basis of Accounting, Policy [Policy Text Block]

Basis of presentation

The unaudited condensed consolidated interim financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

The unaudited condensed consolidated interim financial information as of

June 30, 2020

and for the

six

and

three

months ended

June 30, 2020

and

2019

have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures, which are normally included in complete consolidated financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The unaudited condensed consolidated interim financial information should be read in conjunction with the financial statements and the notes thereto, included in the Company's Annual Report on Form

-K for the fiscal year ended

December 31, 2019,

previously filed with the SEC (the

“2019

Form

-K”) on

May 27, 2020.

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company's condensed consolidated financial position as of

June 30, 2020,

its condensed consolidated results of operations for the

six

and

three

months ended

June 30, 2020

and

2019,

and its condensed consolidated cash flows for the

six

months ended

June 30, 2020

and

2019,

as applicable, have been made. The interim results of operations are

not

necessarily indicative of the operating results for the full fiscal year or any future periods.

Going Concern [Policy Text Block]

Going concern

The Company incurred operating losses and

may

continue to incur operating losses, and as a result, to generate negative cash flows as the Company implements its future business plan. The Company's net loss attributable to stockholders for the

six

and

three

months ended

June 30, 2020

was approximately

US$3.28

million and

US$0.97

million, compared with approximately

US$1.52

million and

US$0.38

million for the

six

and

three

months ended

June 30, 2019,

respectively. As of

June 30, 2020,

the Company had cash and cash equivalents of approximately

US$1.06

million, compared with approximately

US$1.60

million as of

December 31, 2019.

The Company does

not

currently have sufficient cash or commitments for financing to sustain its operation for the

twelve

months from the issuance date of these financial statements. The Company plans to optimize its internet resources cost investment strategy to improve the gross profit margin of its core business and to further strengthen the accounts receivables collection management and negotiate with vendors for more favorable payment terms, all of which will help to substantially increase the cashflows from operations. However, the COVID-

outbreak incurred in the

first

fiscal quarter of

2020

in the PRC has had and

may

continue to have an adverse effect on the Company's business operations and cashflows. If the Company fails to achieve these goals, the Company

may

need additional financing to execute its business plan. If additional financing is required, the Company cannot predict whether this additional financing will be in the form of equity, debt, or another form, and the Company

may

not

be able to obtain the necessary additional capital in a timely manner, on acceptable terms, or at all. In the event that financing sources are

not

available, or that the Company is unsuccessful in increasing its gross profit margin and reducing operating losses, the Company

may

be unable to implement its current plans for expansion, repay debt obligations or respond to competitive pressures, any of which would have a material adverse effect on the Company's business, prospects, financial condition and results of operations. These factors raise substantial doubt about the Company's ability to continue as a going concern within

one

year after the date that the financial statements are issued.

The unaudited condensed consolidated financial statements as of

June 30, 2020

have been prepared under the assumption that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and the satisfaction of liabilities in the normal course of business over a reasonable period of time. The Company's ability to continue as a going concern is dependent upon its uncertain ability to increase gross profit margin and reduce operating loss from its core business and/or obtain additional financing. The accompanying financial statements as of

June 30, 2020

not

include any adjustments that might result from the outcome of these uncertainties. If the Company is unable to continue as a going concern, it

may

have to liquidate its assets and

may

receive less than the value at which those assets are carried on the financial statements.

Consolidation, Policy [Policy Text Block]

Principles of consolidation

The unaudited condensed consolidated interim financial statements include the accounts of all the subsidiaries and VIEs of the Company. All transactions and balances between the Company and its subsidiaries and VIEs have been eliminated upon consolidation.

Use of Estimates, Policy [Policy Text Block]

Use of estimates

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.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign currency translation

The exchange rates used to translate amounts in RMB into US$ for the purposes of preparing the condensed consolidated financial statements are as follows:

		June 30, 2020				December 31, 2019
Balance sheet items, except for equity accounts			7.0795				6.9762

	Six Months Ended June 30,
	2020		2019
Items in the statements of operations and comprehensive loss		7.0319		6.7808

	Three Months Ended June 30,
	2020		2019
Items in the statements of operations and comprehensive loss		7.0839		6.8137

representation is made that the RMB amounts could have been, or could be converted into US$ at the above rates.

Fair Value Measurement, Policy [Policy Text Block]

Fair value measurement

Liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as of

June 30, 2020

and

December 31, 2019

are as follows:

Fair value measurement at reporting date using

As of
June 30, 2020

Quoted Prices
in Active Markets
for Identical Assets/Liabilities
(Level 1)

Significant
Other
Observable Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

US$('000)

(Unaudited)

Warrant liabilities (Note 17)

Fair value measurement at reporting date using

As of
December 31, 2019

Quoted Prices
in Active Markets
for Identical Assets/Liabilities
(Level 1)

Significant
Other
Observable Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

US$('000)

Warrant liabilities (Note 17)

107

Revenue from Contract with Customer [Policy Text Block]

Revenue recognition

The following tables present the Company's revenues disaggregated by products and services and timing of revenue recognition:

	Six Months Ended June 30,				Three Months Ended June 30,
	2020		2019		2020		2019
	US$('000)		US$('000)		US$('000)		US$('000)
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)

Internet advertising and related services
--distribution of the right to use search engine marketing service		9,298		18,580		7,310		11,855
--online advertising placements		3,250		5,406		2,302		3,575
--sales of effective sales lead information		-		29		-		23
--data and technical services		600		5		300		-
Ecommerce O2O advertising and marketing services		1,007		-		504		-
Technical solution services		645		-		-		-
Total revenues	$	14,800	$	24,020	$	10,416	$	15,453

	Six Months Ended June 30,				Three Months Ended June 30,
	2020		2019		2020		2019
	US$('000)		US$('000)		US$('000)		US$('000)
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)

Revenue recognized over time		14,155		23,991		10,416		15,430
Revenue recognized at a point in time		645		29		-		23
Total revenues	$	14,800	$	24,020	$	10,416	$	15,453

Contract costs

For the

six

and

three

months ended

June 30, 2020

and

2019,

the Company did

not

have any significant incremental costs of obtaining contracts with customers incurred and/or costs incurred in fulfilling contracts with customers, that shall be recognized as an asset and amortized to expenses in a pattern that matches the timing of the revenue recognition of the related contract.

Contract liabilities

The table below summarized the movement of the Company's contract liabilities for the

six

months ended

June 30, 2020:

	Contract liabilities
	US$('000)

Balance as of January 1, 2020		2,006
Exchange translation adjustment		(29	)
Revenue recognized from beginning contract liability balances		(1,306	)
Advances received from customers related to unsatisfied performance obligations		948
Balance as of June 30, 2020 (Unaudited)		1,619

Advance from customers related to unsatisfied performance obligations are generally refundable. Refund of advance from cu

stomers were insignifi

cant for the

six

and

three

months ended

June 30, 2020

and

2019.

For the

six

and

three

months ended

June 30, 2020

and

2019,

there is

revenue recognized from performance obligations that were satisfied in prior periods.

Research and Development Expense, Policy [Policy Text Block]

Research and development expenses

The Company accounts for expenses for the enhancement, maintenance and technical support to the Company's Internet platforms and intellectual properties that are used in its daily operations in research and development expenses. Research and development costs are charged to expense when incurred. Expenses for research and development for the

six

months ended

June 30, 2020

and

2019

were approximately

US$0.33

million and

US$0.36

million, respectively. Expenses for research and development for the

three

months ended

June 30, 2020

and

2019

were approximately

US$0.12

million and

US$0.16

million, respectively.

Lessee, Leases [Policy Text Block]

Lease

As of

June 30, 2020,

operating lease right-of-use assets recognized by the Company was approximately

US$0.01

million. The Company had

operating lease liabilities as of

June 30, 2020.

For the

six

months ended

June 30, 2020

and

2019,

total operating lease cost recognized was approximately

US$84,000

(including approximately

US$79,000

of short-term lease cost) and

US$218,000

(including approximately

US$130,000

of short-term lease cost), respectively.

For the

three

months ended

June 30, 2020

and

2019,

total operating lease cost recognized was approximately

US$38,000

(including approximately

US$35,000

of short-term lease cost) and

US$132,000

(including approximately

US$130,000

of short-term lease cost), respectively.