12.

Intangible assets, net

	As of December 31,
	2016			2015
	US$(’000)			US$(’000)
Intangible assets not subject to amortization:
Domain name		1,393			1,488
Intangible assets subject to amortization:
Contract backlog		-			191
Customer relationship		1,920			3,340
Non-compete agreements		1,057			1,321
Software technologies		295			316
Cloud compute software technology		1,338			1,429
Intelligent marketing data service platform		4,655			4,973
Internet safety, information exchange security and data encryption software		1,874			-
Cloud video management system		1,369			-
Other computer software		113			108
Intangible assets, cost		14,014			13,166
Less: accumulated amortization		(4,875	)		(4,845	)
Less: accumulated impairment losses		(1,875	)		(2,683	)
Intangible assets, net		7,264			5,638

Amortization expenses in aggregate for the years ended

December

31,

2016

and

2015

were approximately

US$1,324,000

and

US$1,413,000,

respectively.

For the year ended

December

31,

2016,

intangible assets, the related accumulated amortization and accumulated impairment loss decreased by approximately

US$1.57

million,

US$0.93

million and

US$0.64

million, respectively, due to disposal of Quanzhou Zhi Lang during the year (Note

26).

As discussed in Note

in the

fourth

quarter of

2015,

the Company exited its brand management and sales channel building business segment, as a result, the Company reduced the remaining carrying value of customer relationship of this business segment to

zero,

with a loss of approximately

US$169,000

recorded in loss from discontinued operation for the year ended

December

31,

2015.

As part of the internet advertising, marketing and data services restructuring, the Company ceased to use its domain name, www.sooe.cn acquired in

2011,

which was primarily designed to serve smaller and home office clients. The Company would concentrate its resources and focus on providing comprehensive, integrated and in-depth services to more matured and well-established SME clients. As a result, the Company reduced the remaining carrying value of the domain name to

zero,

with a loss of approximately

US$1,551,000

recorded and included in loss from continuing operations for the year ended

December

31,

2015.

As discussed in Note

(p), the Company performed an impairment analysis on its intangible assets as of

December

31,

2016

and

2015,

respectively. The fair value of intangible assets was determined using Multi-period Excess Earning Method (the “MPEEM method”) and Replacement Cost 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 (See Note

(p) for significant unobservable internally-developed inputs used in the fair value measurement).

For the years ended

December

31,

2015

the Company provided approximately

US$101,000

impairment losses associated with non-compete agreements of its internet advertising and data service business segment. For the year ended

December

31,

2016,

the Company did

t recognize any further impairment loss associated with its intangible assets.

Based on the net carrying value of the finite-lived intangible assets recorded, which weighted average remaining useful life was

6.53

years as of

December

31,

2016,

and assuming no further subsequent impairment of the underlying intangible assets, the estimated future amortization expenses is approximately

US$1,192,000

for the year ended

December

31,

2017

and approximately

$1,178,000

each year for the year ended

December

31,

2018

through

2021.