XML 129 R5.htm IDEA: XBRL DOCUMENT v2.4.0.6
Consolidated Statements of Cash Flows (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Cash flows from operating activities    
Net income $ 3,408,000 $ 2,781,000
Adjustments to reconcile net income to net cash provided by operating activities    
Depreciation and amortization 1,637,000 1,012,000
Share-based compensation expenses 48,000 2,900,000
Changes in fair value of contingent consideration receivables 160,000 70,000
Allowances for doubtful debts 1,141,000 2,583,000
Share of losses in equity investment affiliates 449,000 219,000
Gain on deconsolidation of subsidiaries   (925,000)
Loss / (gain) on disposal of property and equipment 2,000 (3,000)
Deferred taxes (828,000) 27,000
Changes in operating assets and liabilities    
Accounts receivable (5,516,000) (2,100,000)
Other receivables 1,400,000 5,276,000
Prepayment and deposit to suppliers 882,000 (11,247,000)
Due from related parties 117,000 (130,000)
Other current assets (5,000) (197,000)
Accounts payable (158,000) 27,000
Advances from customers 335,000 (1,575,000)
Accrued payroll and other accruals 285,000 166,000
Due to director   (559,000)
Due to Control Group   (82,000)
Due to related parties (4,000) (139,000)
Other payables 72,000 490,000
Taxes payable 1,603,000 803,000
Net cash provided by (used in) operating activities 5,028,000 (603,000)
Cash flows from investing activities    
Purchases of vehicles and office equipment (314,000) (741,000)
Purchase of intangible assets   (1,445,000)
Short-term loan to unrelated entities (475,000)  
Project development deposit to a third party (2,453,000) 0
Refund of project development deposit from a third party 2,453,000  
Cash from acquisition of VIEs   330,000
Cash effect on deconsolidation of VIEs   (1,670,000)
Long-term investment in and advance to equity investment affiliates   (1,712,000)
Disposal of investment in and loan repayment from equity investment affiliate   8,885,000
Payment for acquisition of VIEs (5,775,000) (9,731,000)
Placement of term deposit (3,355,000)  
Net cash used in investing activities (9,919,000) (6,084,000)
Cash flows from financing activities    
Cash investment contributed by noncontrolling interests   378,000
Dividend paid to convertible preferred stockholders (5,000) (657,000)
Short-term loan borrowed from an equity investment affiliate 316,000 216,000
Short-term loan repaid to an equity investment affiliate (538,000)  
Repayment to legal (nominal) shareholders of Shanghai Jing Yang (158,000)  
Capital contributions received in advance from new shareholders of Zhao Shang Ke Hubei before deconsolidation   1,545,000
Net cash (used in) provided by financing activities (385,000) 1,482,000
Effect of exchange rate fluctuation on cash and cash equivalents 64,000 310,000
Net decrease in cash and cash equivalents (5,212,000) (4,895,000)
Cash and cash equivalents at beginning of the year 10,695,000 15,590,000
Cash and cash equivalents at end of the year 5,483,000 10,695,000
Supplemental disclosure of cash flow information    
Income taxes paid 75,000 319,000
Non-cash transactions:    
Restricted stock and options granted for future service 42,000 6,000
Payment for acquisition of Sou Yi Lian Mei (1) $ 1,266,000 [1] $ 550,000 [1]
[1] All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company's general assets (Note 2).