ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I FINANCIAL INFORMATION OF PARENT COMPANY

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I FINANCIAL INFORMATION OF PARENT COMPANY

AIRMEDIA GROUP INC.

ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I

FINANCIAL INFORMATION OF PARENT COMPANY

BALANCE SHEETS

(In U.S. dollars in thousands, except share related data or otherwise noted)

	As of December 31,
	2014			2015
Assets
Current assets
Cash and cash equivalents	$	2,029		$	332
Amount due from subsidiaries		178,347			179,619
Other current assets		556			1,369
Total current assets		180,932			181,320
Non-current assets
Investment in subsidiaries		71,023			205,501
TOTAL ASSETS		251,955			386,821
Liabilities
Current liabilities
Amount due to subsidiaries		3,135			-
Accrued expenses and other current liabilities		84			253
Total liabilities		3,219			253
Equity
Ordinary Shares ($0.001 par value; 900,000,000 shares authorized in 2014 and 2015; 127,662,057 shares and 127,662,057 shares issued as of December 31, 2014 and 2015, respectively; 119,942,413 shares and 124,395,645 shares outstanding as of December 31, 2014 and 2015, respectively)		128			128
Additional paid in capital		323,167			317,414
Treasury stock (7,719,644 and 3,266,412 shares as of December 31, 2014 and 2015, respectively)		(9,236	)		(3,778	)
Accumulated deficits		(99,138	)		49,876
Accumulated other comprehensive income		33,815			22,928
Total equity		248,736			386,568
TOTAL LIABILITIES AND EQUITY	$	251,955		$	386,821

AIRMEDIA GROUP INC.

ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I

FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENTS OF OPERATIONS

(In U.S. dollars in thousands)

	For the years ended December 31,
	2013			2014			2015
Operating expenses
Selling and marketing	$	-		$	(144	)	$	-
General and administrative		(2,239	)		(1,676	)		(2,070	)
Total operating expenses		(2,239	)		(1,820	)		(2,070	)
Investment (loss) income in subsidiaries		(8,387	)		(23,875	)		151,717
Net (loss) income attributable to holders of ordinary shares	$	(10,626	)	$	(25,695	)	$	149,647

AIRMEDIA GROUP INC.

ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I

FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(In U.S. dollars in thousands)

	For the years ended December 31,
	2013			2014			2015
Net (loss) income	$	(10,626	)	$	(25,695	)	$	149,647
Other comprehensive income (loss), net of tax:
Change in cumulative foreign currency translation adjustment		7,281			(6,414	)		(10,887	)
Comprehensive (loss) income attributable to Parent Company	$	(3,345	)	$	(32,109	)	$	138,760

AIRMEDIA GROUP INC.

ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I

FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENTS OF CHANGES IN EQUITY

(In U.S. dollars in thousands, except share related data or otherwise noted)

															Accumulated
												(Accumulated			other
	Ordinary shares					Additional			Treasury			deficits)			comprehensive			Total
	Shares			Amount		paid in capital			stock			retained earnings			income			equity
Balance as of January 1, 2013		122,112,485		$	128	$	278,652		$	(7,035	)	$	(62,817	)	$	32,948		$	241,876
Ordinary shares issued for share based compensation		18,400			-		-			21			-			-			21
Share repurchase as treasury stock		(2,996,750	)		-		-			(2,846	)		-			-			(2,846	)
Share-based compensation		-			-		1,251			-			-			-			1,251
Foreign currency translation adjustment		-			-		-			-			-			7,281			7,281
Capital contribution from non-controlling interests		-			-		39,825			-			-			-			39,825
Acquisition of non-controlling interests		-			-		(5,816	)		-			-			-			(5,816	)
Net loss		-			-		-			-			(10,626	)		-			(10,626	)
Balance as of December 31, 2013		119,134,135		$	128	$	313,912		$	(9,860	)	$	(73,443	)	$	40,229		$	270,966
Ordinary shares issued for share based compensation		808,278			-		-			624			-			-			624
Share-based compensation		-			-		1,359			-			-			-			1,359
Foreign currency translation adjustment		-			-		-			-			-			(6,414	)		(6,414	)
Capital contribution from non-controlling interests		-			-		6,463			-			-			-			6,463
Disposal of equity interests of AM Film and AirMedia Lianhe		-			-		1,433			-			-			-			1,433
Net loss		-			-		-			-			(25,695	)		-			(25,695	)
Balance as of December 31, 2014		119,942,413		$	128	$	323,167		$	(9,236	)	$	(99,138	)	$	33,815		$	248,736
Ordinary shares issued for share based compensation		4,453,232			-		-			5,458			(633	)		-			4,825
Share-based compensation		-			-		598			-			-			-			598
Foreign currency translation adjustment		-			-		-			-			-			(10,887	)		(10,887	)
Net income		-			-		-			-			149,647			-			149,647
Capital contribution from non-controlling interests		-			-		271			-			-			-			271
Capital contribution to Guangzhou Meizheng		-			-		(459	)		-			-			-			(459	)
Purchase the non-controlling interest in subsidiary AirMedia Lianhe		-			-		(6,163	)		-			-			-			(6,163	)
Balance as of December 31, 2015		124,395,645		$	128	$	317,414		$	(3,778	)	$	49,876		$	22,928		$	386,568

AIRMEDIA GROUP INC.

ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I

FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENTS OF CASH FLOWS

(In U.S. dollars in thousands)

	For the years ended December 31,
	2013			2014			2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$	(10,626	)	$	(25,695	)	$	149,647
Investment loss (income) in subsidiaries		8,387			23,875			(151,717	)
Share-based compensation		1,251			1,359			598
CHANGES IN WORKING CAPITAL ACCOUNTS
Other current assets		444			(221	)		(813	)
Accounts payable		-			-			-
Accrued expenses and other current liabilities		(3	)		(308	)		169
Amount due to subsidiaries		3,231			(517	)		(3,135	)
Amount due from subsidiaries		(41	)		2,898			(1,272	)
Net cash provided by (used in) operating activities		2,643			1,391			(6,523	)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash paid for treasury stock		(2,846	)		-			-
Proceeds from exercises of stock options		21			624			4,826
Net cash (used in) provided by financing activities.		(2,825	)		624			4,826
Net (decrease)/increase in cash		(182	)		2,015			(1,697	)
Cash, at beginning of year		196			14			2,029
Cash, at end of year	$	14		$	2,029		$	332

AIRMEDIA GROUP INC.

NOTES TO ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I

FINANCIAL INFORMATION OF PARENT COMPANY

(In U.S. dollars in thousands)

Notes:

1. BASIS FOR PREPARATION

The condensed financial information of the parent company, AirMedia Group Inc., only has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the parent company has used equity method to account for its investment in its subsidiaries, AM Technology, Shenzhen AM, Xi’an AM, and its VIEs, AirMedia Shengshi, Jiaming Advertising, AM Yuehang and AM Online, and VIEs’ subsidiaries, AM Film, Flying Dragon, AM Wenzhou, Hainan Jinhui, Dongding, GreatView Media, Guangzhou Meizheng, AM Tianyi, Guangzhou Xinyu, Guangzhou Tech, AM Mobile, AMHL Mobile, AM Jiaming, and the eleven-months’ financial information from discontinued operations, AM Advertising and its subsidiaries AM Jinshi, Tianjin Jinshi, AM Outdoor, AirMedia Lianhe, AirTV United and Jiangxi AM.

2. INVESTMENTS IN SUBSIDIARIES AND VARIABLE INTEREST ENTITIES

The Company, its subsidiaries, its VIEs and VIEs’ subsidiaries are included in the consolidated financial statements where the inter-company balances and transactions are eliminated upon consolidation. For the purpose of the Company’s stand-alone financial statements, its investments in subsidiaries, VIEs and VIEs’ subsidiaries are reported using the equity method of accounting. The Company’s share of income and losses from its subsidiaries, VIEs and VIEs’ subsidiaries is reported as earnings from subsidiaries, VIEs and VIEs’ subsidiaries in the accompanying condensed financial information of parent company.

3. INCOME TAXES

The Company is a tax exempted company incorporated in the Cayman Islands.