Mecox Lane Ltd

CIK:0001501775|SEC Filings

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net revenues	$ 49,609,483us-gaap_SalesRevenueGoodsNet	$ 42,623,591us-gaap_SalesRevenueGoodsNet	$ 38,819,954us-gaap_SalesRevenueGoodsNet
Cost of goods sold (excluding depreciation and amortization)	17,334,312	15,896,128	12,958,247
Operating expenses:
Selling, general and administrative expenses	24,880,448	24,987,475	19,530,250
Depreciation and amortization	1,618,791	2,279,191	1,204,679
Other operating income, net	(1,088,346)us-gaap_OtherOperatingIncomeExpenseNet	(6,182,764)us-gaap_OtherOperatingIncomeExpenseNet	(852,888)us-gaap_OtherOperatingIncomeExpenseNet
Total operating expenses	25,410,893us-gaap_OperatingExpenses	21,083,902us-gaap_OperatingExpenses	19,882,041us-gaap_OperatingExpenses
Income from operations	6,864,278us-gaap_OperatingIncomeLoss	5,643,561us-gaap_OperatingIncomeLoss	5,979,666us-gaap_OperatingIncomeLoss
Interest expense	(15,988)us-gaap_InterestExpense	(341,773)us-gaap_InterestExpense
Interest income	273,984us-gaap_InvestmentIncomeInterest	977,104us-gaap_InvestmentIncomeInterest	2,143,396us-gaap_InvestmentIncomeInterest
Other income (expense), net	(133,818)	1,039,084	120,315
Income before income tax, equity in an affiliate and noncontrolling interests	6,988,456	7,317,976	8,243,377
Income tax expense			(323,911)us-gaap_IncomeTaxExpenseBenefit
Income before equity in an affiliate and noncontrolling interests	6,988,456	7,317,976	7,919,466
Loss from equity in an affiliate	(4,876,523)	(5,491,484)
Gain on disposal of the equity interest of an affiliate	1,330,165
Income from continuing operations	3,442,098	1,826,492	7,919,466
Loss on discontinued operations, net of tax of nil	(19,792,358)	(28,436,783)	(30,351,616)
Net loss	(16,350,260)us-gaap_ProfitLoss	(26,610,291)us-gaap_ProfitLoss	(22,432,150)us-gaap_ProfitLoss
Accretion of interest to redeemable noncontrolling interests	3,836	102,958	20,416
Net loss attributable to redeemable noncontrolling interests	(3,836)	(102,958)	(20,416)
Net loss attributable to Mecox Lane Limited shareholders	(16,350,260)us-gaap_NetIncomeLoss	(26,610,291)us-gaap_NetIncomeLoss	(22,432,150)us-gaap_NetIncomeLoss
Other comprehensive income (loss), net of tax of nil:
Change in cumulative foreign currency translation adjustment	(472,357)	1,408,045	91,198
Comprehensive loss	(16,822,617)	(25,202,246)	(22,340,952)
Comprehensive loss attributable to Mecox Lane Limited shareholders	$ (16,822,617)us-gaap_ComprehensiveIncomeNetOfTax	$ (25,202,246)us-gaap_ComprehensiveIncomeNetOfTax	$ (22,340,952)us-gaap_ComprehensiveIncomeNetOfTax
Net income per share attributable to Mecox Lane-Basic and diluted
Income from continuing operations	$ 0.01	$ 0.01	$ 0.02
Loss on discontinued operations	$ (0.04)	$ (0.07)	$ (0.08)
Net loss	$ (0.03)us-gaap_EarningsPerShareBasicAndDiluted	$ (0.06)us-gaap_EarningsPerShareBasicAndDiluted	$ (0.06)us-gaap_EarningsPerShareBasicAndDiluted
Net income per ADS attributable to Mecox Lane-Basic and diluted
Income from continuing operations	$ 0.27	$ 0.15	$ 0.69
Loss on discontinued operations	$ (1.53)	$ (2.38)	$ (2.63)
Net loss	$ (1.26)	$ (2.23)	$ (1.94)
Weighted average ordinary shares used in per share calculation
Basic (in shares)	452,758,464	418,347,060	404,247,016
Diluted (in shares)	452,758,464	422,251,663	404,387,223
Weighted average ADS used in per share calculation
Basic (in shares)	12,935,956	11,952,773	11,549,914
Diluted (in shares)	12,935,956	12,064,333	11,553,921

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:
Net loss	$ (16,350,260)us-gaap_ProfitLoss	$ (26,610,291)us-gaap_ProfitLoss	$ (22,432,150)us-gaap_ProfitLoss
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Share-based compensation	985,772us-gaap_ShareBasedCompensation	4,175,756us-gaap_ShareBasedCompensation	2,119,171us-gaap_ShareBasedCompensation
Depreciation and amortization	3,330,010	5,227,083	4,216,264
Impairment loss		4,962,756us-gaap_AssetImpairmentCharges	1,684,668us-gaap_AssetImpairmentCharges
Loss on disposal of property and equipment	977,737us-gaap_GainLossOnDispositionOfAssets	1,205,853us-gaap_GainLossOnDispositionOfAssets	951,933us-gaap_GainLossOnDispositionOfAssets
Gain on the contribution of intangible assets to an affiliate		(6,000,000)
Equity in loss of an affiliate	4,876,523	5,491,484
Gain from disposal of equity interest in an affiliate	(1,330,165)
Loss on impairment of A&A business	9,280,050
Gain from disposal of A&A business	(1,049,254)
Changes in operating assets and liabilities:
Accounts receivable	(263,944)	(230,254)	543,961
Amount due from related parties	224,479	(224,479)	356,090
Other receivables	763,988	1,125,938	1,782,226
Advances to suppliers and prepaid expenses	(55,069)	(516,950)	843,454
Merchandise inventories	952,080	3,580,255	3,998,614
Other non-current assets	(17,394)	(563,774)	583,524
Accounts payable	(5,087,559)	(2,571,157)	(2,492,648)
Advances from customers	266,829	(1,094,995)	(164,059)
Accrued expenses	215,113	(1,668,397)	(3,580,741)
Amount due to related parties	(635,770)	88,292	547,478
Income tax payable			(17,368)
Other current liabilities	161,174	(1,467,010)	(254,229)
Deferred tax			323,911
Change in held for sale net assets of A&A business	8,133,824
Net cash provided by (used in) operating activities	5,378,164	(15,089,890)	(10,989,901)
Cash flows from investing activities:
Purchase of property and equipment	(7,007,522)	(4,088,108)	(10,166,624)
Purchase of intangible assets		(109,616)	(640,506)
Proceeds from sale of property and equipment	209,705	843,149	246,580
Purchase of short-term investments	(6,787,405)	(8,032,489)	(20,682,480)
Proceeds from sale of short-term investments	6,133,705	28,714,969	20,631,910
Prepayment for the new equity investment			(5,000,000)
Proceeds from disposal of equity interest in an affiliate	2,000,000
Proceeds from disposal of A&A business	6,134,272
Net cash provided by (used in) investing activities	682,755	17,327,905	(15,611,120)
Cash flows from financing activities
Collection of note receivable from option exercise			9,325
Proceeds from short-term borrowings		18,715,385us-gaap_ProceedsFromShortTermDebt
Repayment of short-term borrowings	(1,640,180)us-gaap_RepaymentsOfShortTermDebt	(17,075,205)us-gaap_RepaymentsOfShortTermDebt
Repurchase of treasury shares		(701,196)	(572,168)
Net cash provided by (used in) financing activities	(1,640,180)	938,984	(562,843)
Effect of exchange rate changes	(501,255)	(731,641)	357,382
Net increase (decrease) in cash and cash equivalents	3,919,484	2,445,358	(26,806,482)
Cash and cash equivalents at beginning of year	14,261,249	13,291,063	40,097,545
Cash held in discontinued business as of December 31,2013		(1,475,172)
Cash and cash equivalents at end of year	18,180,733	14,261,249	13,291,063
Supplemental disclosure of cash flow information
Income taxes paid			41,987us-gaap_IncomeTaxesPaid
Non-cash investing and financing activities:
Payables for purchase of property and equipment	$ 232,558	$ 4,180,100	$ 4,840,689

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 18,180,733	$ 14,261,249
Short-term investments	653,700us-gaap_ShortTermInvestments
Accounts receivable	1,206,780us-gaap_AccountsReceivableNetCurrent	944,447us-gaap_AccountsReceivableNetCurrent
Amount due from related parties		224,479us-gaap_DueFromRelatedPartiesCurrent
Other receivables	1,588,285us-gaap_OtherReceivablesNetCurrent	2,366,047us-gaap_OtherReceivablesNetCurrent
Advances to suppliers and prepaid expenses	806,758	754,039
Merchandise inventories	3,075,386us-gaap_InventoryNet	4,048,609us-gaap_InventoryNet
Held-for-sale assets		69,365,235
Total current assets	25,511,642us-gaap_AssetsCurrent	91,964,105us-gaap_AssetsCurrent
Property and equipment, net	37,249,769us-gaap_PropertyPlantAndEquipmentNet	4,025,765us-gaap_PropertyPlantAndEquipmentNet
Prepaid land use right	5,656,453mcox_PrepaidLandUseRight
Intangible assets, net	473,419	872,529
Investment in an affiliate		5,546,358us-gaap_EquityMethodInvestments
Other non-current assets	257,547us-gaap_OtherAssetsNoncurrent	240,906us-gaap_OtherAssetsNoncurrent
TOTAL ASSETS	69,148,830us-gaap_Assets	102,649,663us-gaap_Assets
Current liabilities:
Short-term borrowing		1,640,180us-gaap_ShortTermBorrowings
Accounts payable (including accounts payable of the consolidated VIEs without recourse to Mecox Lane Limited of $91,666 and nil as of December 31, 2013 and 2014, respectively)	6,242,761us-gaap_AccountsPayableCurrent	13,001,974us-gaap_AccountsPayableCurrent
Advances from customers	2,790,812us-gaap_CustomerAdvancesCurrent	2,531,312us-gaap_CustomerAdvancesCurrent
Amount due to related parties		635,770us-gaap_DueToRelatedPartiesCurrent
Accrued expenses	3,441,317us-gaap_AccruedLiabilitiesCurrent	3,236,435us-gaap_AccruedLiabilitiesCurrent
Other current liabilities	2,570,288us-gaap_OtherLiabilitiesCurrent	4,172,225us-gaap_OtherLiabilitiesCurrent
Income tax payable	1,751,744us-gaap_AccruedIncomeTaxesCurrent	1,752,631us-gaap_AccruedIncomeTaxesCurrent
Held-for-sale liabilities (including held for sale liabilities of the consolidated VIEs without recourse to Mecox Lane Limited of $7,490,383 and nil as of December 31, 2013 and 2014, respectively)		7,490,383
Total current liabilities	16,796,922us-gaap_LiabilitiesCurrent	34,460,910us-gaap_LiabilitiesCurrent
Commitments and contingencies (Note 18)
Equity:
Ordinary shares ($0.0001 par value; 10,000,000,000 shares authorized, 439,876,279 and 455,223,849 shares issued and outstanding as of December 31, 2013 and 2014, respectively)	45,523us-gaap_CommonStockValue	43,988us-gaap_CommonStockValue
Additional paid-in capital	169,817,779us-gaap_AdditionalPaidInCapital	168,833,542us-gaap_AdditionalPaidInCapital
Accumulated deficit	(125,124,090)us-gaap_RetainedEarningsUnappropriated	(109,433,074)us-gaap_RetainedEarningsUnappropriated
Accumulated other comprehensive income	7,228,441	7,700,798
Statutory reserve	284,255us-gaap_RetainedEarningsAppropriated	943,499us-gaap_RetainedEarningsAppropriated
Total Mecox Lane Limited equity	52,251,908us-gaap_StockholdersEquity	68,088,753us-gaap_StockholdersEquity
Noncontrolling interests	100,000us-gaap_MinorityInterest	100,000us-gaap_MinorityInterest
Total equity	52,351,908	68,188,753
TOTAL LIABILITIES AND EQUITY	$ 69,148,830	$ 102,649,663