VISIONCHINA MEDIA INC.

CIK:0001415911|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Third-parties:
Advertising service revenue	$ 37,971,760	$ 51,440,494	$ 52,752,697
Advertising equipment revenue	1,708,869	208,246	187,609
Wi-Fi revenue	1,400,187
Total third-parties revenues	41,080,816	51,648,740	52,940,306
Related parties:
Advertising service revenue		768,789	806,127
Advertising equipment revenue	383,157	254,931	297,368
Total related-parties revenue	383,157	1,023,720	1,103,495
Total revenues	41,463,973	52,672,460	54,043,801
Third-parties:
Advertising service cost	39,119,233	58,073,338	48,335,638
Advertising equipment cost	1,825,994	444,311	212,304
Wi-Fi cost	5,166,698
Total third-parties cost of revenues	46,111,925	58,517,649	48,547,942
Related parties:
Advertising equipment cost		94,206	300,791
Total cost of revenues	46,111,925	58,611,855	48,848,733
Gross profit (loss)	(4,647,952)	(5,939,395)	5,195,068
Operating expenses:
Selling and marketing expenses	10,660,024	12,612,949	22,235,707
General and administrative expenses	9,038,056	13,352,143	9,078,104
Contingent loss in connection with a litigation			2,149,903
Research and development	1,378,083
Total operating expenses	21,076,163	25,965,092	33,463,714
Government grant	135,381	4,165,627	2,783,085
Share of (losses) profits from equity method investees	410,467	(57,777)	(93,217)
Dividend income from other investments	44,827	254,759	128,611
Gain on settlements of consideration payable		1,800,047
Impairment loss on a cost method investee	(808,304)
Impairment loss on investments under equity method	(537,939)
Other operating income			1,307
Operating loss	(26,479,683)	(25,741,831)	(25,448,860)
Interest income	116,894	307,007	418,673
Interest expense	(5,964,443)	(4,569,207)	(1,425,625)
Change in fair value through profit and loss	(562,738)	157,518
Other (expenses) income	176,790	(587,937)	(669,018)
Net loss from continuing operations before income taxes	(32,713,180)	(30,434,450)	(27,124,830)
Income tax expenses		(142,554)	(373,584)
Net loss from continuing operations after income taxes	(32,713,180)	(30,577,004)	(27,498,414)
Net loss attributable to noncontrolling interest	1,923,314	388,732	88,489
Net loss from continuing operations	(30,789,866)	(30,188,272)	(27,409,925)
Net profit (loss) from discontinued operations	7,389,520	(888,943)	3,442,055
Net loss attributable to VisionChina Media Inc. shareholders	$ (23,400,346)	$ (31,077,215)	$ (23,967,870)
Net loss per share from continuing operations:
Basic (in dollars per share)	$ (0.30)	$ (0.30)	$ (0.27)
Diluted (in dollars per share)	(0.30)	(0.30)	(0.27)
Net profit per share from discontinued operations:
Basic (in dollars per share)	0.07	(0.01)	0.03
Diluted (in dollars per share)	0.07	(0.01)	0.03
Net loss per share:
Basic (in dollars per share)	(0.23)	(0.31)	(0.24)
Diluted (in dollars per share)	$ (0.23)	$ (0.31)	$ (0.24)
Weighted average shares used in computation of net loss per share:
Basic (in shares)	102,353,956	101,601,913	101,495,442
Diluted (in shares)	102,353,956	101,601,913	101,495,442
Share-based compensation expenses during the related periods included in:
Share-based compensation expenses	$ 183,814	$ 570,681	$ 842,290
Cost of revenues [Member]
Share-based compensation expenses during the related periods included in:
Share-based compensation expenses	48,988	72,778	73,225
Selling and marketing expenses [Member]
Share-based compensation expenses during the related periods included in:
Share-based compensation expenses	4,761	107,404	379,246
General and administrative expenses [Member]
Share-based compensation expenses during the related periods included in:
Share-based compensation expenses	$ 130,065	$ 390,499	$ 389,819

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net loss	$ (25,323,660)	$ (31,465,947)	$ (24,056,359)
Adjustments to reconcile net loss to net cash used in operating activities:
(Reversal of) allowance for doubtful accounts	3,356,199	7,697,124	(169,731)
Write-off for doubtful accounts	16,615,881
Depreciation and amortization	1,922,057	3,346,438	4,163,497
Impairment loss on other investments	808,304
Loss on disposal of fixed assets	321,516	308,337	120,763
Impairment loss on investments under equity method	537,939
Gain on disposal of equity interest in subsidiaries			(1,309)
Share of losses (profits) from equity method investees	(429,458)	1,946	76,412
Share-based compensation	183,814	570,681	842,290
Change in fair value of derivative instrument	562,738	(157,518)
Interest accretion to convertible promissory notes	870,885	574,834
Gain on settlements of consideration payable		(1,800,047)
Finance cost on consideration payable			2,149,903
Deferred tax		151,837	303,158
Changes in operating assets and liabilities:
Accounts receivable	(5,670,471)	(5,342,268)	(1,295,946)
Amounts due from related parties	374,746	(149,088)	(158,835)
Prepaid expenses and other current assets	(657,416)	9,492,824	8,036,598
Placement of restricted bank balances	(2,287,365)	(325,812)	(492,142)
Accounts payable	7,039,516	1,251,333	(2,135,965)
Accrued expenses and other current liabilities	3,738,607	10,058,611	3,804,911
Amounts due to related parties	859,994	(492,374)	(207,932)
Income tax payable		(51,162)	26,057
Net cash (used in) provided by operating activities	2,823,826	(6,330,251)	(8,994,630)
Cash flows from investing activities:
Settlements of consideration payable		(12,000,000)
Acquisitions of fixed assets	(15,345,481)	(2,196,289)	(1,533,617)
Proceeds from the disposal of fixed assets	93,274		74,931
Acquisitions of intangible assets	(1,363)	(1,784)	(91,615)
Withdrawal of restricted cash		12,365,432	2,500,000
Investment in an equity method investee			(160,382)
Net cash flow from disposal of equity interest in subsidiaries			1,309
Net cash provided by (used in) investing activities	(15,253,570)	(1,832,641)	790,626
Cash flows from financing activities:
Proceeds from bank loans	15,406,659	1,629,062	24,548,311
Repayment of bank loans	(19,258,323)	(14,001,792)	(7,487,235)
Capital injection in a subsidiary from noncontrolling interests	10,231,004	1,635,162
Net cash provided by (used in) financing activities	6,379,340	(10,737,568)	17,061,076
Effect of changes in exchange rate	(4,764,547)	(564,346)	1,079,906
Net increase (decrease) in cash and cash equivalents	(10,814,951)	(19,464,806)	9,936,978
Cash and cash equivalents at the beginning of the year	19,484,553	38,949,359	29,012,381
Less: cash and cash equivalents in assets held for sale	(127,712)	(17,818)	(16,425)
Cash and cash equivalents at the end of the year	8,541,890	19,466,735	38,932,934
Supplemental disclosure of cash flow information:
Income taxes paid		51,162	73,442
Interest paid	2,843,282	3,028,323	1,836,787
Settlement of consideration payable by issuance of convertible promissory notes		$ 58,000,000

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 8,541,890	$ 19,466,735
Restricted cash	3,519,898	488,719
Accounts receivable, net of allowance for doubtful accounts of $15,479,534 and $2,465,977 as of December 31, 2014 and 2015, respectively	14,019,697	17,986,681
Amounts due from related parties	1,684,937	2,159,079
Prepaid expenses and other current assets	16,240,896	17,870,518
Assets held for sale - current	16,624,878	23,783,163
Total current assets	60,632,196	81,754,895
Non-current Assets:
Fixed assets, net	16,819,538	4,393,900
Intangible assets, net	287,813	359,695
Investments under equity method	6,874,627	7,431,629
Other investments	2,177,341	3,125,885
Long-term prepayments and deposits	3,875,185	4,100,566
Restricted cash	308,133	1,140,344
Total non-current assets	30,342,637	20,552,019
TOTAL ASSETS	90,974,833	102,306,914
Current Liabilities:
Short-term bank loans (including short-term bank loans of the consolidated variable interest entities ("VIEs") without recourse to VisionChina Media Inc. (the "Company") of $13,847,031 and $9,243,995 as of December 31, 2014 and 2015, respectively)	9,243,995	13,847,031
Convertible promissory notes - maturity within one year	55,889,559	4,000,000
Derivative instrument - embedded conversion option	3,961,380	3,398,642
Accounts payable (including accounts payable of the consolidated VIEs without recourse to the Company of $2,433,984 and $11,626,248 as of December 31, 2014 and 2015, respectively)	12,775,514	4,460,702
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs without recourse to the Company of $1,177,490 and $1,973,591 as of December 31, 2014 and 2015, respectively)	1,973,591	1,177,490
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to the Company of $24,567,559 and $23,294,058 as of December 31, 2014, and 2015, respectively)	32,858,747	31,128,677
Liabilities held for sale - current	2,139,528	3,528,936
Total current liabilities	118,842,314	61,541,478
Non-current Liability:
Convertible promissory notes - maturity over one year		51,018,674
Total non-current liability		51,018,674
Total liabilities	118,842,314	112,560,152
Commitments and contingencies
Equity (deficit)
Common shares ($0.0001 par value; 200,000,000 shares authorized; 102,121,144 and 102,741,977 shares issued and outstanding as of December 31, 2014 and 2015, respectively)	10,274	10,212
Additional paid-in capital	350,769,364	344,083,552
Accumulated deficit	(418,583,838)	(395,183,492)
Accumulated other comprehensive income	36,874,260	39,579,661
Total VisionChina Media Inc. shareholders' deficit	(30,929,940)	(11,510,067)
Noncontrolling interest	3,062,459	1,256,829
Total deficit	(27,867,481)	(10,253,238)
TOTAL LIABILITIES AND DEFICIT	$ 90,974,833	$ 102,306,914