CHINA GLOBAL MEDIA INC

CIK:0001450015|SEC Filings

Note 17 - Earnings Per Share

6 Months Ended

Jun. 30, 2013

NOTE 17 – EARNINGS PER SHARE

The Company presents earnings per share on a basic and diluted basis. Basic earnings per share has been computed by dividing net earnings by the weighted average number of shares outstanding. Diluted earnings per share has been computed by dividing net earnings by the weighted average number of shares outstanding including the dilutive effect of equity securities. The weighted average number of shares calculated for Diluted EPS excludes the potential common stock that would be exercised under the warrants granted to investors because of their anti-dilutive effect.


	For the Three Months Ended
		June 30, 2013	June 30, 2012
Net income attributable to CGLO	$	226,417	$2,137,085

Weighted average common shares
(denominator for basic earnings per share)		48,891,256	47,485,700

Effect of dilutive securities:
Warrants		—	-

Weighted average common shares
(denominator for diluted earnings per share)		48,891,256	47,485,700

Basic earnings per share	$	0.00	$0.05
Diluted earnings per share	$	0.00	$0.05


	For the Six Months Ended
		June 30, 2013	June 30, 2012


Net income attributable to CGLO	$	376,921	$4,229,288

Weighted average common shares
(denominator for basic earnings per share)		49,340,949	47,264,706

Effect of dilutive securities:
Warrants		—	50,631

Weighted average common shares
(denominator for diluted earnings per share)		49,340,949	47,315,337

Basic earnings per share	$	0.01	$0.09
Diluted earnings per share	$	0.01	$0.09

Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash flows from operating activities:
Net Income	$ 315,632	$ 4,229,288
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	109,296	111,521
Change in fair value of warrants liability	4,987	(245,389)
Provision for registration rights liability		12,300
Changes in current assets and current liabilities:
Accounts receivable	(594,875)	(2,090,007)
Advance payments	252,376	462,077
Other current assets	(872,724)	(174,045)
Accounts payable and accrued expenses	(1,060,268)	(951,822)
Due to related party	1,670,822
Advances from customers	(3,521,118)	(3,878,753)
Income taxes payable	397,976	1,367,196
Other taxes payable	(49,110)	124,864
Other current liabilities	(206,723)	(7,090)
Total adjustments	(3,869,361)	(5,269,148)
Net cash used in operating activities	(3,553,729)	(1,039,860)
Cash flows from investing activities:
Advance payment for long-term investment	808,996
Loans made to unrelated parties	96,168	136,448
Due from related parties	791,556
Acquisition of property and equipment	(18,121)	(24,792)
Acquisition of intangible assets	(2,564,480)
Net cash provided by (used in) investing activities	(885,881)	111,656
Cash flows from financing activities:
Repayment of short-term bank loan	(961,680)
Proceeds from short-term bank loans	1,442,520
Net cash provided by financing activities	480,840
Effect of foreign currency translation on cash	47,555	12,742
Net decrease in cash and cash equivalents	(3,911,215)	(915,462)
Cash and cash equivalents-beginning	5,581,867	3,572,443
Cash and cash equivalents-ending	1,670,652	2,656,981
Supplemental schedule of non-cash activities:
Advances payment converted to intangible assets	1,804,753
Intangible assets contributed from minority shareholder	2,041,967
Capital lease payment made by a shareholder on behalf of the Company		35,560
Conversion of additional paid-in capital to common stock		4,000
Supplemental disclosure information:
Cash paid for interest	176,316	7,048
Cash paid for income taxes

Consolidated Balance Sheets (June 30, 2013 Unaudited) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Current Assets
Cash and cash equivalents	$ 1,670,652	$ 5,581,867
Accounts receivable, net of allowance for doubtful accounts of $1,015,930 and $995,235 at June 30, 2013 and December 31, 2012, respectively	14,211,362	13,332,861
Advance payments, net	19,636,330	19,486,219
Loans receivable, net	1,071,196	1,144,595
Due from related parties	1,019,760	1,782,738
Bank loan security deposit	544,320	533,232
Other current assets	1,658,964	761,047
Total current assets	39,812,584	42,622,559
Property and equipment, net	2,897,036	2,928,299
Intangible assets, net	6,480,000
Advance payment for long-term investment		2,587,984
Total assets	49,189,620	48,138,842
Current liabilities:
Accounts payable and accrued expenses	1,086,131	2,114,957
Short-term bank loans	5,670,000	5,078,400
Due to related party	1,688,752
Advances from customers	1,354,475	4,813,291
Income taxes payable	8,297,069	7,734,001
Other taxes payable	2,996,730	2,984,311
Due to shareholders	198,866	198,889
Other current liabilities	218,821	419,738
Total current liabilities	21,510,844	23,343,587
Warrants liability	530,908	525,921
Total liabilities	22,041,752	23,869,508
Stockholders' equity:
Preferred stock, $0.001 par value, 1,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.001 par value, 99,000,000 shares authorized, 49,785,700 and 47,485,700 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively	49,786	47,486
Additional paid-in capital	3,417,541	3,419,841
Statutory reserve	1,001,993	1,001,993
Retained earnings	19,510,517	19,133,596
Accumulated other comprehensive income	1,166,098	666,418
Total stockholders' equity	25,145,935	24,269,334
Noncontrolling interest	2,001,933
Total liabilities and equity	$ 49,189,620	$ 48,138,842