Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes

Schedule of reconciliation between the effective income tax rate and the PRC statutory income tax rate

	For the Years Ended December 31,
	2012		2013		2014
	%		%		%
PRC Statutory income tax rates	25.0		25.0		25.0
Change in valuation allowance	(19.9	)	(20.1	)	(22.4	)
Permanent book — tax difference	(5.2	)	(4.9	)	(12.1	)
Difference in EIT rates of certain subsidiaries	0.0		0.0		0.0
Effect of tax holiday	—		—		9.5
Total	(0.1	)	0.0		0.0

Schedule of aggregate amount and per share effect of the tax holidays

	For the Years Ended December 31,
	2012	2013	2014
					US$ (Note 2(c))
Aggregate amount	—	—	(42,567,098	)	(6,860,571	)
Basic net loss per share effect	—	—	(0.40	)	(0.06	)
Diluted net loss per share effect	—	—	(0.40	)	(0.06	)

Schedule of significant components of deferred tax assets and liabilities

	As of December 31,
	2013		2014
					US$ (Note 2(c))
Current deferred tax assets:
Accruals and others	3,726,090		16,299,132		2,626,943
Less: valuation allowance	(3,726,090	)	(16,299,132	)	(2,626,943	)
Total current deferred tax assets, net	—		—		—
Non-current deferred tax assets:
Net operating loss carry forwards	40,980,595		133,592,894		21,531,266
Carryforwards of un-deducted advertising expenses	1,414,030		925,081		149,096
Subtotal	42,394,625		134,517,975		21,680,362
Less: valuation allowance	(42,394,625	)	(134,517,975	)	(21,680,362	)
Total non-current deferred tax assets, net	—		—		—

Schedule of movement of valuation allowance

	For the Years Ended December 31,
	2012	2013	2014
					US$ (Note 2(c))
Balance as the beginning of the year	23,627,054	34,315,042	46,120,715		7,433,310
Additions	10,687,988	11,805,673	112,421,222		18,119,012
Utilization of previously unrecognized tax losses and un-deductible advertising expenses	—	—	(7,724,830	)	(1,245,017	)
Balance as the end of the year	34,315,042	46,120,715	150,817,107		24,307,305