China CGame, Inc.

CIK:0001287668|SEC Filings

EARNINGS (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2011

18.	EARNINGS (LOSS) PER SHARE

Components of basic and diluted earnings per share were as follows:

	Three months ended September 30,						Nine months ended September 30,
	2011			2010			2011			2010
Basic Earnings Per Share Numerator
Net Loss	$	(2,871,827	)	$	(8,742,250	)	$	(10,973,631	)	$	(15,595,416	)
Net loss attributable to non-controlling interest		306,784			256,303			1,200,580			259,249
Loss from owner of the Company		(2,565,043	)		(8,485,947	)		(9,773,051	)		(15,336,167	)
Income (Loss) from Discontinued Operations		354,526			(4,177,857	)		(256,749	)		(7,535,795	)
Less: Preferred Dividends		-			-			-			-
Loss Available to owner of the Company		(2,565,043	)		(8,485,947	)		(9,773,051	)		(15,336,167	)
Loss from Continuing Operations Available to owner of the Company		(2,919,569	)		(4,308,090	)		(9,516,302	)		(7,800,372	)
Loss from Continuing Operations Available to non-controlling interest		(306,784	)		(256,303	)		(1,200,580	)		(259,249	)
Income(Loss) from Discontinued Operations Available to owner of the Company		354,526			(4,177,857	)		(256,749	)		(7,535,795	)
Diluted Earnings Per Share Numerator
Loss Available to owner of the Company Stockholders		(2,565,043	)		(8,485,947	)		(9,773,051	)		(15,336,167	)
Loss from Continuing Operations Available to owner of the Company		(2,919,569	)		(4,308,090	)		(9,516,302	)		(7,800,372	)
Loss from Continuing Operations Available to non-controlling interest		(306,784	)		(256,303	)		(1,200,580	)		(259,249	)
Income(Loss) from Discontinued Operations Available to owner of the Company		354,526			(4,177,857	)		(256,749	)		(7,535,795	)
Add: Preferred Dividends		-			-			-			-
Loss Available to owner of the Company on Converted Basis		(2,565,043	)		(8,485,947	)		(9,773,051	)		(15,336,167	)
Loss from Continuing Operations Available to owner of the Company on Converted Basis		(2,919,569	)		(4,308,090	)		(9,516,302	)		(7,800,372	)
Loss from Continuing Operations Available to non-controlling interest on Converted Basis		(306,784	)		(256,303	)		(1,200,580	)		(259,249	)
Income (Loss) from Discontinued Operations Available to Common Stockholders on Converted Basis		354,526			(4,177,857	)		(256,749	)		(7,535,795	)

Original Shares:		20,039,825			16,742,515			20,039,825			14,742,344
Additions from Actual Events		-			-			-			-
Issuance of Common Stock		-			-			-			-
Basic Weighted Average Shares Outstanding		20,039,825			16,742,515			20,039,825			14,742,344
Dilutive Shares:
Additions from Potential Events		-			-			-			-
Conversion of Preferred Stock		-			-			-			-
Diluted Weighted Average Shares Outstanding:		20,039,825			16,742,515			20,039,825			14,742,344

Earnings Per Share
Basic-Net (Loss)	$	(0.13	)	$	(0.62	)	$	(0.49	)	$	(1.12	)
-Loss from Continuing Operations		(0.15	)		(0.32	)		(0.48	)		(0.57	)
-Loss from non-controlling interest		(0.02	)		(0.02	)		(0.06	)		(0.02	)
-Income(Loss) from Discontinued Operations		0.02			(0.30	)		(0.01	)		(0.55	)
Diluted- Net Income/(Loss)	$	(0.13	)	$	(0.62	)	$	(0.49	)	$	(1.12	)
- Loss from Continuing Operations		(0.15	)		(0.32	)		(0.48	)		(0.57	)
-Loss from non-controlling interest		(0.02	)		(0.02	)		(0.06	)		(0.02	)
-Income(Loss) from Discontinued Operations		0.02			(0.30	)		(0.01	)		(0.55	)
Weighted Average Shares Outstanding
-Basic		20,039,825			16,742,515			20,039,825			14,742,344
-Diluted		20,039,825			16,742,515			20,039,825			14,742,344

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010	Dec. 31, 2010
Cash flows from operating activities
Net Loss	$ (2,871,827)	$ (8,742,250)	$ (10,973,631)	$ (15,595,416)	$ (23,195,174)
Discontinued Operation Loss(Income), net of tax	(354,526)	4,177,857	256,749	7,535,795
Depreciation expense	(136)	160,643	455,080	361,427
Bad debt expense	610	3,154,132	610	3,366,552
Amortization expenses on intangible assets		32,470	16,727	42,082
Amortization expenses on convertible bond discount	1,010,840	1,119,741	3,572,531	3,124,795
Stock compensation and options expenses		4,974		1,976,902
Loss(Gain) on disposal of fixed assets	242,048	(13,163)	278,082	(17,167)
Loss(Gain) on disposal of intangible assets	(424,625)		(380,912)
(Increase)/decrease in inventories	(329)	(2,806)	(1,020)	554,617
(Increase)/decrease in deferred tax assets	141	45	145	45
Decrease in receivables	(12,396)	(821,629)	(290,749)	8,890,926
Decrease in other assets	15,682,141	(1,224,976)	(3,526,989)	55,648
Increase/(decrease) in payables	(2,619,017)	1,896,522	5,128,322	(3,623,219)
Cash Provided by operating activities - continuing operations	10,652,294	(258,440)	(5,465,055)	6,672,987
Cash Provided by operating activities - discontinued operations	(984,689)	(3,138,192)	516,329	(1,026,836)
Net cash provided by/(used in) operating activities	9,668,235	(3,396,632)	(4,948,726)	5,646,151
Cash flows from investing activities
Decrease/(increase) in restricted cash	13,924	(916,402)	13,919	(910,286)
Purchases of intangible assets		(146,113)		(146,113)
Purchases of fixed assets		(1,165,966)	(8,826)	(1,152,710)
Purchase of goodwill		(15,775,740)		(15,775,740)
Investments in associates	35,687		(1,264,242)
Cash Used in investing activities - continuing operations	49,611	(12,454,905)	(1,259,149)	(17,984,849)
Cash Used in investing activities - discontinued operations	(1,005)	(2,864,832)	(314,333)	2,774,658
Net cash provided/(used) in investing activities	48,607	(15,139,389)	(1,573,482)	(15,210,191)
Cash flows from financing activities
Issuance of stock for subsidiary acquisition		15,375,000		15,375,000
(Repayments)/proceeds of short-term loans	658	645,026	(44,279)	627,446
(Repayments)/proceeds of long-term loans	32,013	(19,029)		(57,853)
(Repayments)/proceeds shareholder loan	(10,302,660)	2,102,913	3,428,551	(4,846,309)
Cash provided by financing activities - continuing operations	(10,269,989)	18,103,910	3,384,272	11,098,284
Cash provided by financing activities - discontinued operations	38,356	2,743,893	(1,759,195)	611,289
Net cash provided in financing activities	(10,231,633)	20,847,803	1,625,077	11,709,573
Net Increase/(Decrease) in Cash & Cash Equivalents for the Period - continuing operations	432,546	(158,751)	(3,339,932)	(213,578)
Net Increase/(Decrease) in Cash & Cash Equivalents for the Period - discontinued operations	(947,338)	2,470,533	(1,557,199)	2,359,111
Net decrease in cash and cash equivalents for the Period	(514,792)	2,311,782	(4,897,131)	2,145,533
Effect of Currency Translation - continuing operations	(517,849)	(100,796)	2,703,298	(118,947)
Effect of Currency Translation - discontinued operations	(277,910)	166,633	(19,252)	242,352
Effect of Exchange Rate on Cash and Cash Equivalents	(795,762)	65,837	2,684,046	123,405
Cash & Cash Equivalents at Beginning of Period - continuing operations	186,653	424,785	737,984	497,763	497,763
Cash & Cash Equivalents at Beginning of Period - discontinued operations	3,040,805	206,659	3,392,008	242,362	242,362
Total Cash and cash equivalents.	3,227,458	631,444	4,129,992	740,125	740,125
Cash & Cash Equivalents at End of Period - continuing operations	101,350	165,238	101,350	165,238	737,984
Cash & Cash Equivalents at End of Period - discontinued operations	1,815,557	2,843,825	1,815,557	2,843,825	3,392,008
Cash & Cash Equivalents at End of Period	1,916,907	3,009,063	1,916,907	3,009,063	4,129,992
Cash paid during the year for:
Interest paid	301,881	1,383,918	332,644	2,794,277
Income tax paid	$ 113,709		$ 121,428	$ 9,575

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2011	Dec. 31, 2010
Current assets
Cash and cash equivalents	$ 101,350	$ 737,984
Restricted cash	227,197	241,116
Contract receivables, net	43,823,970	43,812,422
Costs and earnings in excess of billings	3,288,078	3,009,487
Job disbursements advances	27,213	3,478
Other receivables, net	26,173,487	23,308,127
Inventories	116,632	30,117
Deferred income taxes, current	112,480	112,625
Other current assets	169,658	182,454
Current assets held for sale	41,242,788	46,688,400
Total current assets	115,282,853	118,126,210
Non-current assets
Plant and equipment, net	1,598,273	2,322,604
Intangible Assets	531,408	167,223
Goodwill	23,771,636	23,771,636
Other non-current assets	422,145	414,980
Investments in associates	1,264,242
Long-term assets held for sale	598,274	598,580
Assets, Noncurrent, Total	28,185,979	27,275,023
TOTAL ASSETS	143,468,831	145,401,233
Current liabilities
Short-term bank loans	4,562,643	4,606,922
Convertible Bond Payable due within one year, net	23,322,000	22,687,021
Notes payable	234,551
Accounts payable	8,544,970	8,706,583
Billings over costs and estimated earnings	2,945,273	2,955,309
Amount due to shareholder	8,015,103	13,592,883
Other payables	14,299,518	2,777,422
Business and other taxes payable	150,297	146,627
Customers' deposits	208,272	208,244
Other Accruals	9,994,523	6,476,946
Current liabilities associated with assets held for sale	33,783,468	40,483,030
Total current liabilities	106,060,618	102,640,987
Non-current liabilities
Long term bank loans	19,183	32,013
Convertible bond payable, net	9,254,624	6,304,242
Liabilities, Noncurrent, Total	9,273,807	6,336,255
TOTAL LIABILITIES	115,334,425	108,977,242
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value, 10,000,000 shares authorized, 0 shares issued and outstanding at September 30, 2011 and December 31, 2010
Common stock, $0.001 par value, 100,000,000 shares authorized, 20,039,825 shares issued and outstanding at September 30, 2011 and December 31, 2010.	20,040	20,040
Additional paid in capital	43,880,995	43,880,995
Statutory reserves	3,040,595	3,040,595
Accumulated other comprehensive income	4,256,886	1,572,840
Retained earnings	(20,945,150)	(11,172,099)
Total Company shareholders' equity	30,271,163	37,342,371
Non-controlling interests	(2,118,960)	(918,380)
TOTAL SHAREHOLDERS' EQUITY	28,134,406	36,423,991
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 143,468,831	$ 145,401,233