Schedule I - Condensed Financial Information of Registrant (Tables)

12 Months Ended

Dec. 31, 2013

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract]

	December 31, 2012		December 31, 2013
	(in U.S. dollars, except number of shares)
Assets
Current assets:
Cash and cash equivalents	5,219,295		56,999
Prepaid expenses and other current assets	312,174		250,091
Amount due from subsidiaries and variable interest entities	3,003,202		15,709,401
Amount due from related parties	6,096,800		1,741,836
Total current assets	14,631,471		17,758,327
Investments in subsidiaries	21,046,640		8,082,866
Total assets	35,678,111		25,841,193

Liabilities and shareholders’ equity
Accrued expenses and other current liabilities	664,896		701,375
Amounts due to subsidiaries and variable interest entities	1,071,669		24,711,656
Amount due to related parties	375,000		375,000
Total current liabilities	2,111,565		25,788,031

Shareholders’ equity:
Ordinary shares ($0.00005 par value; 12,000,000,000 shares authorized; 4,732,446,560 and 4,730,648,360 shares issued and outstanding as of December 31, 2012 and 2013, respectively)	236,575		236,485
Additional paid-in capital	177,182,895		178,195,109
Accumulated deficit	(141,940,509	)	(176,368,243	)
Accumulated other comprehensive loss	(1,912,415	)	(2,010,189	)
Total shareholders’ equity	33,566,546		53,162
Total liabilities and shareholders’ equity	35,678,111		25,841,193

Schedule of Statement of Operations

	Year ended December 31, 2011		Year ended December 31, 2012		Year ended December 31, 2013
	(in U.S. dollars, except number of shares)
Operating expenses:
Product development	603,879		278,168		269,876
Selling and marketing	(31,880	)	30,773		54,503
General and administrative	2,433,905		1,119,757		1,403,657
Total operating expenses	3,005,904		1,428,698		1,728,036
Loss from operations	(3,005,904	)	(1,428,698	)	(1,728,036	)
Interest income	112,416		349,525		30,483
Interest expense	(375,000	)	—		—
Other expense	—		—		(739,530	)
Foreign exchange (loss) / gain	(9	)	(15,589	)	355,337
Equity in losses of subsidiaries	(46,075,410	)	(8,396,376	)	(32,345,988	)
Net loss	(49,343,907	)	(9,491,138	)	(34,427,734	)

Schedule of Statements of Cash Flows

	Year ended December 31, 2011		Year ended December 31, 2012		Year ended December 31, 2013
	(in U.S. dollars, except number of shares)
Operating activities:
Net loss	(49,343,907	)	(9,491,138	)	(34,427,734	)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	1,231,919		463,753		1,023,871
Share-based compensation cost in relation to disposition of Yisheng	522,251		—		—
Provision for Seed Music receivable (related party)	—		—		980,000
Exchange gains	—		—		(355,337	)
Equity in losses of subsidiaries	46,075,410		8,396,376		32,345,988
Prepaid expenses and other current assets	(193,214	)	122,056		62,083
Amounts due from subsidiaries and variable interest entities	—		(1,645	)	—
Amount due from related parties	(1,692,875	)	(92,159	)	74,964
Other payables and accruals	(323,956	)	(277,527	)	36,479
Amounts due to subsidiaries and variable interest entities	(77,833	)	(4,013,840	)	4,160,000
Amounts due to related parties	375,000		—		—
Net cash provided by (used in) operating activities	(3,427,205	)	(4,894,124	)	3,900,314

Investing activities:
Loan to subsidiaries	(5,762,569	)	(3,001,557	)	(12,350,863	)
Loan to related parties	(14,108,019	)	(470,000	)	—
Repayment of loans from related parties under common control of Shanda	—		14,000,000		3,300,000
Investment in subsidiary	(30,000,000	)	—		—
Net cash provided by (used in) investing activities	(49,870,588	)	10,528,443		(9,050,863	)

Financing activities:
Proceeds from exercise of options	3,750		—		46,400
Proceeds from issuance of ordinary shares to Shanda	50,000,000		—		—
Proceeds from issuance of Convertible Bond to Shanda	50,000,000		—		—
Cash paid for redemption of Convertible Bond to Shanda	(50,000,000	)	—		—
Repurchase of ordinary shares	—		(8,169,481	)	(58,147	)
Net cash provided by (used in) financing activities	50,003,750		(8,169,481	)	(11,747	)
Effect of exchange rate changes on cash and cash equivalents	—		—		—
Net decrease in cash and cash equivalents	(3,294,043	)	(2,535,162	)	(5,162,296	)
Cash and cash equivalents, beginning of year	11,048,500		7,754,457		5,219,295
Cash and cash equivalents, end of year	7,754,457		5,219,295		56,999