Parent Company Only Condensed Financial Information

12 Months Ended

Dec. 31, 2018

Condensed Financial Information Disclosure [Abstract]

PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

25. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

Condensed balance sheets

		As of December 31,
	Note	2017			2018
		$			$
ASSETS
Current assets
Cash and cash equivalents			2			-
Prepaid expenses and other current assets			164			10,076
Amount due from related parties	(b)		68,643			6,893
Total current assets			68,809			16,969
Non-current assets
Investments in subsidiaries and Consolidated VIEs			(13,197	)		(32,236	)
Total non-current assets			(13,197	)		(32,236	)
Total assets			55,612			(15,267	)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accrued expenses and other payables			2,810			6,911
Short-term bank and other borrowings			5,000			-
Total current liabilities			7,810			6,911
Total liabilities			7,810			6,911
Shareholders' equity
Additional paid-in capital			120,642			124,062
Accumulated deficit			(72,333	)		(144,097	)
Accumulated other comprehensive loss			(507	)		(2,143	)
Total shareholders' equity (deficit)			47,802			(22,178	)
Total liabilities and shareholders' equity (deficit)			55,612			(15,267	)

Condensed statements of operations

	For the years ended December 31,
	2016			2017			2018
	$			$			$
Operating Expenses
General and administrative expenses		(383	)		(856	)		(15,018	)
Operating loss		(383	)		(856	)		(15,018	)
Interest expense		-			(68	)		-
Share of profits (losses) of subsidiaries and Consolidated VIEs		383			(18,601	)		(56,981	)
Loss before income taxes		-			(19,525	)		(71,999	)
Income tax expense		-			-			-
Net loss		-			(19,525	)		(71,999	)

Condensed statements of comprehensive income (loss)

	For the years ended December 31,
	2016			2017			2018
	$			$			$
Net profit (loss)		3,228			(12,569	)		(71,999	)
Other comprehensive (loss) income, net of tax of nil:
Foreign currency translation adjustments, net of tax of nil		(1,477	)		2,119			(1,709	)
Other comprehensive income (loss), net of tax of nil:
Comprehensive income (loss)		1,751			(10,450	)		(73,708	)
Comprehensive income (loss) attributable to the Company's ordinary shareholders		1,751			(10,450	)		(73,708	)

Condensed statements of cash flows

	For the years ended December 31,
	2016		2017			2018
	$		$			$
Net cash generated from operating activities		5		4,118			-
Net cash used in investing activities		-		(17,117	)		(10,048	)
Net cash generated from (used in) financing activities		-		12,986			-
Net increase (decrease) in cash and cash equivalent and restricted cash		5		(13	)		(10,048	)
Cash and cash equivalent and restricted cash at beginning of the year		10		15			10,048
Cash and cash equivalent and restricted cash at end of the year		15		2			-
Reconciliation of cash and cash equivalents and restricted cash
Cash and cash equivalents at end of the year		15		2			-
Restricted cash at the end of the year		-		-			-
Total cash and cash equivalents and restricted cash at the end of year		15		2			-

(a) Basis of presentation

In the Company-only financial statements, the Company's investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since inception.

The Company records its investment in its subsidiary under the equity method of accounting as prescribed in ASC Subtopic 323-10, Investment-Equity Method and Joint Ventures, ("ASC 323-10"), and such investments are presented on the balance sheet as "Investment in subsidiaries and Consolidated VIEs" and the share of the subsidiaries' profit or losses are presented as "Share of profits (losses) of subsidiaries and Consolidated VIEs" on the statements of operations.

The subsidiaries did not pay any dividends to the Company for the years presented.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted and as such, these Company-only financial statements should be read in conjunction with the Company's consolidated financial statements.

(b) Intercompany transactions

The Company had the following related party balances as of December 31, 2017 and 2018:

	As of December 31,
	2017		2018
	$		$
Amount due from (to) related parties
- Borqs HK		68,643		(1,018	)
- Borqs Beijing		-		7,911