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CASH, CASH EQUIVALENTS AND INVESTMENTS (Tables) | 12 Months Ended
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Dec. 31, 2013
CASH, CASH EQUIVALENTS AND INVESTMENTS |
Schedule showing break-down of the Company's total long-term investments |
|  | Accounting Method |  | December 31, 2013 |  | December 31, 2012 |
--- | --- | --- | --- | --- | --- | --- | ---
|  |  |  | (in thousands) |
Cortina |  | Cost Method |  | $ | 3,348 |  | $ | 3,348 |
GCT SemiConductor, Inc. |  | Cost Method |  |  | 811 |  |  | 811 |
Xalted Networks |  | Cost Method |  |  | 22 |  |  | 279 |
SBI |  | Cost Method |  |  | 1,900 |  |  | 2,306 |
iTV Media Inc.(1) |  | Cost Method |  |  | — |  |  | 14,894 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Investment using Cost Method Total |  |  |  |  | 6,081 |  |  | 21,638 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
ACELAND |  | Equity Method |  |  | 2,109 |  |  | 2,109 |
Beijing Bodashutong Technology |  | Equity Method |  |  | — |  |  | 577 |
iTV Media Inc.(1) |  | Equity Method |  |  | 5,308 |  |  | — |
Shareholder Loan to ACELAND |  | Equity Method |  |  | 7,119 |  |  | 7,119 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Investment using Equity Method Total |  |  |  |  | 14,536 |  |  | 9,805 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
iTV Media Inc. |  | Available for sale |  |  | 25,971 |  |  | 3,000 |
AioTV |  | Available for sale |  |  | 8,000 |  |  | 8,000 |
UTStarcom Hong Kong Holdings Ltd |  | Available for sale |  |  | 20,000 |  |  | 20,000 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Investments Classified as available-for-sale Total |  |  |  |  | 53,971 |  |  | 31,000 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total Investment |  |  |  | $ | 74,588 |  | $ | 62,443 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(1) On January 2, 2013, iTV issued another convertible bond to the Company for cash in the principal amount of $5.0 million with a maturity date of December 31, 2013 (extended to December 31, 2015), which triggered a reassessment of the Company's previous cost method accounting for its investment in the preference shares. Due to the additional convertible bond investment, the preference shares of iTV Media owned by the Company now substantively participated in the risks and rewards of iTV Media, irrespective of the liquidation preferences, and were considered as in-substance common stock. Therefore, the Company concluded the equity method criteria had been met and the equity accounting commenced in the first quarter of 2013.
CASH, CASH EQUIVALENTS AND INVESTMENTS |
Summary of condensed financial information of iTV Media |
|  | (Unaudited) Condensed Year Ended December 31, 2011 |  | (Unaudited) Condensed Year Ended December 31, 2012 |  | Condensed Year Ended December 31, 2013 |
--- | --- | --- | --- | --- | --- | --- | ---
|  | (In thousands) |  | (In thousands) |  | (In thousands) |
Operating data: |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 159 |  | $ | 165 |  | $ | 1,984 |
Gross profit |  | $ | (243 | ) | $ | (1,835 | ) | $ | (3,164 | )
Loss from operations |  | $ | (5,795 | ) | $ | (13,210 | ) | $ | (16,354 | )
Net loss |  | $ | (5,953 | ) | $ | (13,460 | ) | $ | (18,170 | )
Net loss attributable to non-controlling interest |  | $ | (36 | ) | $ | (663 | ) | $ | (2,228 | )
|  | (Unaudited) Year Ended December 31, 2011 |  | (Unaudited) Year Ended December 31, 2012 |  | Year Ended December 31, 2013 |
--- | --- | --- | --- | --- | --- | --- | ---
|  | (In thousands) |  | (In thousands) |  | (In thousands) |
Balance sheet data: |  |  |  |  |  |  |  |  |  |
Current assets |  | $ | 13,693 |  | $ | 4,849 |  | $ | 8,712 |
Long-term assets |  | $ | 28,133 |  | $ | 30,151 |  | $ | 37,538 |
Current liabilities |  | $ | (1,867 | ) | $ | (5,325 | ) | $ | (1,384 | )
Long-term liabilities |  | $ | (20,341 | ) | $ | (23,371 | ) | $ | (56,047 | )
Non-controlling interests |  | $ | (16 | ) | $ | 584 |  | $ | 2,822 |
Summary of available-for-sales investments: |
|  | Amortized cost |  | Realized Losses for More Than 12 months |  | Estimated fair value |
--- | --- | --- | --- | --- | --- | --- | ---
|  | (in thousands) |
Convertible bonds of privately-held company |  | $ | 55,113 |  | $ | 9,142 |  | $ | 45,971 |
Preferred convertible shares of privately-held company |  |  | 8,000 |  |  | — |  |  | 8,000 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total available-for-sales Investments |  | $ | 63,113 |  | $ | 9,142 |  | $ | 53,971 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Schedule of financial assets measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy |
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total |
--- | --- | --- | --- | --- | --- | --- | --- | --- | ---
|  | (in thousands) |
As of December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term investment |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Long-term investment |  | $ | — |  | $ | — |  | $ | 53,971 |  | $ | 53,971 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
As of December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term investment |  | $ | 296 |  | $ | — |  | $ | — |  | $ | 296 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Long-term investment |  | $ | — |  | $ | — |  | $ | 31,000 |  | $ | 31,000 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Schedule of roll-forward of financial assets using unobservable inputs (Level 3) |
|  | Amount In thousands |
--- | --- | --- | ---
As of December 31, 2011 |  | $ | — |
​ | ​ | ​ | ​ | ​
Invested in Preferred Shares |  |  | 8,000 |
Invested in Convertible bond |  |  | 23,000 |
Less: Impairment Charge |  |  | — |
​ | ​ | ​ | ​ | ​
As of December 31, 2012 |  |  | 31,000 |
​ | ​ | ​ | ​ | ​
Invested in Convertible bond |  |  | 32,113 |
Less: Impairment Charge |  |  | (9,142 | )
​ | ​ | ​ | ​ | ​
As of December 31, 2013 |  | $ | 53,971 |
​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​
UTStarcom Hong Kong Holdings Ltd. |
CASH, CASH EQUIVALENTS AND INVESTMENTS |
Schedule of significant inputs for the valuation model used to estimate fair value of investments |
|  | Years Ended December 31 |
--- | --- | --- | ---
Total fair value of Invested capital as at valuation date |  |  | 38,000 |
Risk free rate of interest |  |  | 1.99% |
Dividend Yield |  |  | 3% |
Maturity Date |  |  | 2017/8/30 |
Volatility |  |  | 62% |
iTV |
CASH, CASH EQUIVALENTS AND INVESTMENTS |
Schedule of significant inputs for the valuation model used to estimate fair value of investments |
|  | Years Ended December 31 |
--- | --- | --- | ---
Total fair value of Invested capital as at valuation date |  |  | $32,000 |
Risk free rate of interest |  |  | 1.0% |
Dividend Yield |  |  | 0% |
Maturity Date |  |  | 2015/12/31 |
Volatility |  |  | 64.3% |

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- Definition Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27290-111563 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27357-111563 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27337-111563 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27198-111563 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27161-111563 + Details
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