Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of amortizing and indefinite lived intangible assets

		September 30, 2016										December 31, 2015
Amortizing Intangible		Gross Carrying		Accumulated			Impairment			Net		Gross Carrying		Accumulated			Impairment		Net
Assets		Amount		Amortization			Loss			Balance		Amount		Amortization			Loss		Balance
Charter/Cooperation agreements	$	2,755,821	$	(849,716	)	$	-		$	1,906,105	$	2,755,821	$	(746,372	)	$	-	$	2,009,449
Software and licenses		274,017		(241,778	)		-			32,239		253,930		(234,947	)		-		18,983
Website and mobile app development (ii)		616,218		(444,502	)		(171,716	)		-		653,830		(403,961	)		-		249,869
Workforce (i)		305,693		(50,949	)					254,744		-		-			-		-
Total amortizing intangible assets	$	3,951,749	$	(1,586,945	)	$	(171,716	)	$	2,193,088	$	3,663,581	$	(1,385,280	)	$	-	$	2,278,301
Indefinite lived intangible assets
Website name		134,290		-			-			134,290		134,290		-			-		134,290
Total intangible assets	$	4,086,039	$	(1,586,945	)	$	(171,716	)	$	2,327,378	$	3,797,871	$	(1,385,280	)	$	-	$	2,412,591

(i) On April 1, 2016, Wecast Network entered into an agreement with Mr. Liu Changsheng, under which Wecast Network agreed to pay Mr. Liu Changsheng cash consideration of $187,653 and 66,500 shares of restricted shares with a six month restriction period and a fair value of $121,695 in exchange for a workforce of 10 personnel experienced in programing content mobile apps. All 10 personnel enter into three year employment contracts with Wecast Network effective from April 1, 2016. The Company also acquired certain laptop and desktop computers with fair value of $3,655. According to the agreement, 30% of the cash consideration is due upon the signing of the agreement, 20% is due 2 months after the signing of the agreement and 50% is due 6 months after the signing of the agreement. Cash consideration of $93,825 has been paid as of September 30, 2016, and $93,828 was paid on October 31, 2016. If any of three key staff, as defined, terminated their employment with Wecast Network during the first 12 months of employment, Wecast Network has right to forfeit the unpaid cash consideration. In addition, Mr. Liu Changsheng would be required to pay a default penalty at minimal of $129,180.

Wecast Network has accounted for the transaction as an asset acquisition in which Wecast Network mainly acquired a workforce, which is recognized as an intangible asset at cost. Subsequently, the workforce intangible is amortized over the employment term of three years.

We recorded amortization expense related to our amortizing intangible assets of approximately $90,000 and $243,000 for the three and nine months ended September 30, 2016 and $52,000 and $137,000 for the three and nine months ended September 30, 2015 respectively, which included the amortization expense of the workforce acquired as stated above.

(ii) Considering a new mobile app is being developed to be put into market in October, 2016, we determined that the future cash flows generated from the old mobile app was nil. In accordance with ASC 350, Intangibles – Goodwill and Other, recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. We estimated the fair value of this intangible asset to be nil as of September 30, 2016. Impairment loss recognized from this intangible asset for the three months ended September 30, 2016 and 2015 is $172,000 and nil, respectively.

Schedule of amortization expense for the next five years

	Amortization to be
Years ending December 31,	Recognized
2016 (3 months)	$	65,090
2017		251,003
2018		250,665
2019		168,049
2020		137,792
2021		137,792
Thereafter		1,182,697
Total amortization to be recognized	$	2,193,088