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Note 10 - Intangible Assets, Net
 12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Intangible Assets Disclosure [Text Block]
10.
 Intangible assets, net
 
    As of December 31, 2018
Items   Gross
Carrying
Value		   Accumulated
Amortization		   Impairment   Net
Carrying
Value
   
US$(’000)
  
US$(’000)
  
US$(’000)
  
US$(’000)
Intangible assets not subject to amortization:                                
Domain name    
1,408
 
    
-
 
    
(1,408
)
    
-
 
Intangible assets subject to amortization:                                
Customer relationship    
1,941
 
    
(1,941
)
    
-
 
    
-
 
Non-compete agreements    
1,068
 
    
(580
)
    
(488
)
    
-
 
Software technologies    
299
 
    
(299
)
    
-
 
    
-
 
Cloud compute software technology    
1,353
 
    
(896
)
    
(415
)
    
42
 
Intelligent marketing data service platform    
4,705
 
    
(1,906
)
    
(2,799
)
    
-
 
Internet safety, information exchange security and data encryption software    
1,894
 
    
(426
)
    
(1,468
)
    
-
 
Cloud video management system    
1,383
 
    
(343
)
    
(1,040
)
    
-
 
Other computer software    
114
 
    
(111
)
    
-
 
    
3
 
Total   $
14,165
 
   $
(6,502
)
   $
(7,618
)
   $
45
 
  
    As of December 31, 2017
Items   Gross
Carrying
Value		   Accumulated
Amortization		   Impairment   Net
Carrying
Value
   
US$(’000)
  
US$(’000)
  
US$(’000)
  
US$(’000)
Intangible assets not subject to amortization:                                
Domain name    
1,478
 
    
-
 
    
(1,478
)
    
-
 
Intangible assets subject to amortization:                                
Customer relationship    
2,038
 
    
(2,038
)
    
-
 
    
-
 
Non-compete agreements    
1,122
 
    
(610
)
    
(512
)
    
-
 
Software technologies    
314
 
    
(314
)
    
-
 
    
-
 
Cloud compute software technology    
1,420
 
    
(923
)
    
(435
)
    
62
 
Intelligent marketing data service platform    
4,942
 
    
(1,853
)
    
(1,600
)
    
1,489
 
Internet safety, information exchange security and data encryption software    
1,990
 
    
(299
)
    
-
 
    
1,691
 
Cloud video management system    
1,454
 
    
(291
)
    
(602
)
    
561
 
Other computer software    
120
 
    
(115
)
    
-
 
    
5
 
Total   $
14,878
 
   $
(6,443
)
   $
(4,627
)
   $
3,808
 
 
Amortization expenses in aggregate for the years ended
December 31, 2018
and
2017
were approximately
US$382,000
and
US$1,226,000,
respectively.
 
The Company performs impairment analysis on its intangible assets whenever events or changes in circumstances indicate that the carrying amount of an intangible asset
may
not
be recoverable and recognizes impairment loss for the difference between the carrying amount and the fair value of the assets. The fair value of intangible assets was determined using Multi-period Excess Earning Method (the “MPEEM 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
3
(p) for significant unobservable internally-developed inputs used in the intangible assets fair value measurement).
 
For the years ended
December 31, 2018
and
2017,
the Company provided approximately
US$3.33
million and
US$2.55
million impairment losses, respectively, associated with intelligent marketing data service platform, cloud video management system, cloud compute software technology and Internet safety, information exchange security and data encryption software of its internet advertising and data service business segment, due to insufficient estimated future cash flows expected to be generated by these assets.
 
Based on the adjusted carrying value of the finite-lived intangible assets after the deduction of the impairment losses, which has a weighted average remaining useful life of
2.48
years as of
December 31, 2018,
and assuming
no
further subsequent impairment of the underlying intangible assets, the estimated future amortization expenses is approximately
US$18,000
each year for the year ending
December 31, 2019
and
2020,
and approximately
US$9,000
for the year ending
December 31, 2021.