Contingencies and Commitments

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Contingencies and Commitments

17. Contingencies and Commitments

(a) Operating Lease Commitment

The Company is committed to paying leased property costs related to our offices in China as follows:

	Leased Property
Years ending December 31,	Costs
2017(9 months)		235,000
2018		266,000
2019		193,000
2020		199,000
Thereafter		84,000
Total	$	977,000

(b) Licensed Content Commitment

The Company is committed to paying content costs through 2019 as follows:

Years ending December 31,	Content Costs
2017 (9 months)		1,454,000
2018		217,000
2019		217,000
Total	$	1,888,000

(c) Lawsuits and Legal Proceedings

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. As of March 31, 2017, there are no such legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating results.

(d) Acquisition of Property Commitment

In consideration of the Company’s business expansion and rising rental costs, in February 2016, the Company entered into an agreement with Beijing Kuntin Taiming Investment Management Co., Ltd. for purchase of an office building. Total consideration for the property acquisition was RMB27.4 million (approximately $4,239,000), which the Company has paid RMB20.5 million (approximately $3,247,000) at the end of first quarter of 2017 and is committed to paying the remaining balance in 2017 as follows:

Years ending December 31,	Property
2017 (9 months)		992,000
Total	$	992,000

(e) Advertising and Marketing Expense Commitment

The Company is committed to paying advertising and marketing expense through 2016 as follows:

Years ending December 31,	Marketing expenses
2017 (9 months)		106,000
Total	$	106,000