Acorn International, Inc.

CIK:0001365742|SEC Filings

Consolidated Statements of Operations - USD ($)	12 Months Ended
Consolidated Statements of Operations - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues:
Direct sales, net	$ 31,658,751	$ 20,297,424	$ 15,866,782
Distribution sales, net	5,825,742	4,789,845	1,200,247
Total revenues, net	37,484,493	25,087,269	17,067,029
Cost of revenues:
Direct sales	8,565,312	5,080,307	3,963,203
Distribution sales	1,910,990	1,550,081	596,823
Total cost of revenues	10,476,302	6,630,388	4,560,026
Gross profit	27,008,191	18,456,881	12,507,003
Operating (expenses) income
Advertising expenses	(2,438,131)	(1,290,527)	(1,725,940)
Other selling and marketing expenses	(15,740,742)	(9,513,317)	(6,980,009)
General and administrative expenses	(9,316,541)	(7,132,340)	(9,036,971)
Other operating income, net	6,033,728	2,136,263	1,473,055
Total operating expenses	(21,461,686)	(15,799,921)	(16,269,865)
(Loss) income from continuing operations	5,546,505	2,656,960	(3,762,862)
Interest expense		(95)
Interest income	295,294	400,439	533,622
Other income (expenses), net	3,185,154	32,564,328	11,638,843
Income from continuing operations before income taxes and equity in losses of affiliates	9,026,953	35,621,632	8,409,603
Income tax benefit (expense)	1,973,691	(3,183,749)	7,892,169
Income from continuing operations before equity in losses of affiliates	11,000,644	32,437,883	16,301,772
Discontinued operations:
Loss from discontinued operations	(1,061,087)	(990,235)	(3,921,926)
Loss from discontinued operations before equity in losses of affiliates	(1,061,087)	(990,235)	(3,921,926)
Equity in losses of affiliates	(109,102)	(324,900)
Net income	9,830,455	31,122,748	12,379,846
Net loss attributable to non-controlling interests	(5,776)	(4,436)	(4,457)
Net income attributable to Acorn International, Inc.	$ 9,836,231	$ 31,127,184	$ 12,384,303
Income per ordinary share:
Basic and diluted	$ 0.19	$ 0.60	$ 0.19
Continuing operations	0.21	0.62	0.25
—Discontinued operations	$ (0.02)	$ (0.02)	$ (0.06)
Shares used in calculating income per ordinary share:
Basic and diluted	51,619,218	52,546,325	65,836,869
Includes share-based compensation related to:
General and administrative expenses			$ 25,000

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating activities:
Income from continuing operations	$ 11,000,644	$ 32,437,883	$ 16,301,772
Adjustments to reconcile net income to net cash used in operating activities:
Share-based compensation			25,000
Equity in losses of affiliates	109,102	324,900
Bad debt expense (recoveries)	(25,974)	372,272	149,858
Inventory write-downs (reversals)	19,683	23,299	(147,804)
Depreciation and amortization	167,189	871,189	1,232,393
Loss from disposal of equipment and other long-term assets		82,805	151,397
Deferred income taxes	(2,501,381)	(397,477)	(7,848,378)
Interest on convertible loan receivable	(181,880)	(184,395)	(183,785)
Interest on loan to related party	(1,259,941)	(578,896)
Gains on disposal of available-for-sale securities		(960)	(11,845,796)
Gains on disposal of held-for-sales assets and subsidiaries	(5,303,626)	(32,503,096)
Other	137,029
Changes in operating assets and liabilities:
Accounts receivable	(53,844)	(2,486,954)	(835,842)
Inventory	(1,566,701)	(227,339)	2,456,821
Prepaid advertising expenses			10,747
Other prepaid expenses and current assets	(115,736)	(1,802,105)	(1,228,770)
Other long-term assets	(31,448)
Accounts payable	1,188,510	(21,815)	(521,269)
Accrued expenses and other current liabilities	(1,075,808)	(558,951)	(456,584)
Income taxes payable	(434,465)	1,844,566	(3,327,743)
Deferred revenue	(106,028)	(337,183)	131,483
Net cash used in operating activities	(143,777)	(3,467,157)	(5,936,500)
Investing activities:
Purchase of property and equipment	(137,914)	(98,290)	(337,635)
Proceeds from disposal of equipment	41,170	1,204	11,452
Proceeds from disposal of held-for-sale assets and subsidiaries	3,855,122	47,530,540
Interest on loan to related party	1,259,941	553,938
Disbursement of loan to related party	(4,778,956)	(6,247,432)	(3,628,415)
Purchase of other long-term assets	(422,773)	(181,101)	7,741
Proceeds from disposal of available-for-sale securities		1,038	11,845,796
Proceeds from advance from third party for sale of assets		5,099,365
Net cash provided by (used in) investing activities	(183,410)	46,659,262	7,898,939
Financing activities:
Repurchase of ordinary shares		(1,985,028)	(4,694,950)
Disbursement of dividend	(4,557,934)	(39,825,362)
Net cash used in financing activities	(4,557,934)	(41,810,390)	(4,694,950)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(1,148,341)	(1,583,891)	1,251,812
Cash flows from discontinued operations:
Operating activities	(649,825)	(670,276)	(2,989,951)
Investing activities	172	(5,407)	(9,273)
Financing activities
Net cash flows used in discontinued operations	(649,653)	(675,683)	(2,999,224)
Net decrease in cash, cash equivalents and restricted cash	(6,683,115)	(877,859)	(4,479,923)
Cash, cash equivalents and restricted cash at the beginning of the year	20,220,026	21,097,885	25,577,808
Cash, cash equivalents and restricted cash at the end of the year	13,536,911	20,220,026	21,097,885
Supplemental disclosure of cash flow information:
Income taxes paid	902,469	1,745,993	3,512,489
Interest paid
Supplemental disclosure of non-cash investing and financing activities:
Receivable from sale of non-core assets and subsidiaries	$ 1,508,956	$ 2,443,404

Consolidated Balance Sheets - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 13,461,368	$ 20,143,783
Restricted cash	75,543	76,243
Accounts receivable, net of allowance for doubtful accounts of $4,023,663 and $551,195 as of December 31, 2018 and 2019, respectively	3,611,177	3,520,440
Inventory, net	3,042,762	1,590,319
Other prepaid expenses and current assets	5,997,033	7,339,525
Advance to related party supplier	1,115,009	596,575
Loan receivable	3,754,735	3,597,392
Current portion of loan to related party	14,804,052
Held-for-sale assets	468,191	2,881,370
Assets to be abandoned	116,559	579,644
Total current assets	46,446,429	40,325,291
Property and equipment, net	559,964	660,157
Available-for-sale securities	25,681,848	38,858,216
Loan to related party		10,050,054
Deferred tax assets, net	4,997,111
Rights of use lease assets, net	1,785,194
Other long-term assets	693,518	243,236
Total assets	80,164,064	90,136,954
Current liabilities:
Accounts payable	3,172,263	2,057,539
Dividend payable	133,405	174,658
Accrued expenses and other current liabilities	6,564,390	12,726,641
Current operating lease liabilities	881,349
Income taxes payable	1,648,520	2,096,987
Deferred revenue	68,798	174,826
Liabilities to be abandoned	222,578	272,428
Total current liabilities	12,691,303	17,503,079
Deferred tax liability, net		630,574
Non-current operating lease liabilities	1,032,645
Total liabilities	13,723,948	18,133,653
Commitments and contingencies (Note 16)
Acorn International, Inc. shareholders' equity:
Ordinary shares ($0.01 par value; 100,000,000 shares authorized 91,884,402 and 91,884,402 shares issued and 51,619,218 and 51,619,218 shares outstanding as of December 31, 2018 and 2019, respectively)	918,844	918,844
Additional paid-in capital	117,445,969	121,962,650
Accumulated deficits	(69,563,158)	(79,399,389)
Accumulated other comprehensive income	45,635,771	56,507,394
Treasury stock, at cost (40,265,184 and 40,265,184 shares as of December 31, 2018 and 2019, respectively)	(28,320,324)	(28,320,324)
Total Acorn International, Inc. shareholders' equity	66,117,102	71,669,175
Non-controlling interests	323,014	334,126
Total equity	66,440,116	72,003,301
Total liabilities and equity	80,164,064	90,136,954
Variable Interest Entity, Primary Beneficiary [Member]
Current assets:
Cash and cash equivalents	6,284,218	2,516,248
Restricted cash	75,543	76,243
Accounts receivable, net of allowance for doubtful accounts of $4,023,663 and $551,195 as of December 31, 2018 and 2019, respectively	447,714	33,178
Inventory, net	2,289,116	326,734
Other prepaid expenses and current assets	3,059,649	2,171,913
Held-for-sale assets		159,573
Assets to be abandoned	18,359	296,658
Total current assets	12,174,599	5,580,547
Property and equipment, net	430,835	539,145
Deferred tax assets, net	3,872,076	406,129
Rights of use lease assets, net	1,062,965
Total assets	17,540,475	6,525,821
Current liabilities:
Accounts payable	2,012,762	328,265
Accrued expenses and other current liabilities	1,705,115	589,506
Current operating lease liabilities	574,201
Income taxes payable	468,021	435,100
Deferred revenue	68,798	174,826
Liabilities to be abandoned	107,726	2,854
Total current liabilities	4,936,623	1,530,551
Non-current operating lease liabilities	576,593
Total liabilities	$ 5,513,216	$ 1,530,551