Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2017

Basis of Accounting, Policy [Policy Text Block]

a)	Basis of presentation

The 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 condensed consolidated interim financial information as of

September 30, 2017

and for the

nine

and

three

months ended

September 30, 2017

and

2016

have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures, which are normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The condensed consolidated interim financial information should be read in conjunction with the financial statements and the notes thereto, included in the

2016

Form

-K.

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

September 30, 2017,

its consolidated results of operations for the

nine

and

three

months ended

September 30, 2017

and

2016,

and its consolidated cash flows for the

nine

months ended

September 30, 2017

and

2016,

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.

Consolidation, Policy [Policy Text Block]

Principles of consolidation

The condensed consolidated interim financial statements include the financial statements 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 condensed 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:

	September 30, 2017		December 31, 2016

Balance sheet items, except for equity accounts		6.6369		6.9370

	Nine Months Ended September 30,
	2017		2016

Items in the statements of operations and comprehensive loss, and statements of cash flows		6.7983		6.5771

	Three Months Ended September 30,
	2017		2016
Items in the statements of operations and comprehensive loss, and statements of cash flows		6.6676		6.6648

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

Advertising Costs, Policy [Policy Text Block]

Advertising costs

Advertising costs for the Company’s own brand building are

not

includable in cost of revenues, they are expensed when incurred or amortized over the estimated beneficial period and are included in “sales and marketing expenses” in the statements of operations and comprehensive loss. For the

nine

months ended

September 30, 2017

and

2016,

advertising expenses for the Company’s own brand building were approximately

US$1,583,000

and

US$1,684,000,

respectively. For the

three

months ended

September 30, 2017

and

2016,

advertising expenses for the Company’s own brand building were approximately

US$480,000

and

US$724,000,

respectively.

Research and Development Expense, Policy [Policy Text Block]

Research and development expenses

The Company accounts for the cost of developing and upgrading technologies and platforms and intellectual property that are used in its daily operations in research and development cost. Research and development costs are charged to expense when incurred. Expenses for research and development for the

nine

months ended

September 30, 2017

and

2016

were approximately

US$1,012,000

and

US$1,530,000,

respectively. Expenses for research and development for the

three

months ended

September 30, 2017

and

2016

were approximately

US$312,000

and

US$514,000,

respectively.

New Accounting Pronouncements, Policy [Policy Text Block]

Impact of recently issued accounting standards

May 2014,

the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”)

No.

2014

09,

“Revenue from Contracts with Customers (Topic

606

)” (as further amended or clarified by other related ASUs issued subsequently in

2015,

2016

and

2017

). ASU

No.

2014

clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and IFRS. Simultaneously, this ASU supersedes the revenue recognition requirements in ASC Topic

605

-Revenue Recognition and most industry-specific guidance throughout the Industry Topics of the Codification. The core principle of this ASU requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the

five

steps: (

) identify the contract(s) with a customer; (

) identify the performance obligations in the contract; (

) determine the transaction price; (

) allocate the transaction price to the performance obligations in the contract; (

) recognize revenue when (or as) the entity satisfies a performance obligation. For public business entities, certain

not

-for-profit entities, and certain employee benefit plans, the amendments in ASU

No.

2014

and the amendments in other related ASUs that affected the guidance in ASU

2014

should be applied to annual reporting periods beginning after

December 15, 2017,

including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after

December 15, 2016,

including interim reporting periods within that reporting period. The Company did

not

early adopt this ASU in fiscal

2017,

and will apply the new revenue standard beginning

January

2018.

Based on the Company’s preliminary evaluation, the Company does

not

currently expect the adoption of these amendments to have a material impact on its consolidated financial position and results of operations. However, adopting the new revenue standard will significantly increase the disclosure requirements of the sufficient information (qualitatively and quantitatively) to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company plans to continue the evaluation and analysis of its adoption of ASU

2014

(including those subsequently issued updates that clarify or amend ASU

2014

09’s

provisions) throughout

2017

as the Company works towards the implementation and finalizes its determination of the impact that the adoption will have on its consolidated financial statements.