4 Business Acquisition The Company accounted for its acquisitions in accordance with ASC 805, Business Combination (ASC 805). The results of the acquirees operations have been included in the consolidated financial statements since the acquisition date. The excess of the fair value of the acquired entities over the fair value of net tangible and intangible assets acquired was recorded as goodwill, which is not deductible for corporate income taxation purposes. (a) Acquisition of Buzzinate In November 2014, the Company entered into a SPA with Buzzinate and its shareholders and acquired 33.3% equity interest in Buzzinate as the first tranche, at a cash consideration of US$750. In the SPA, the Company has also agreed to purchase up to 57.1% equity interests in Buzzinate in stages from April 2015 to April 2016, and there was an agreement to purchase the remaining 42.9% equity interests in Buzzinate when the purchase of equity interests up to 57.1% was completed. Pursuant to the SPA, the Company had an option to accelerate the completion dates of the remaining tranches by paying the cash consideration upon exercising the option. On February 13, 2015, the Company acquired in one go the equity interests in Buzzinate of the remaining five tranches at cash considerations of US$250 for each tranche purchased, and exercised the option to acquire the remaining equity interests in Buzzinate by issuing 142,151 shares of the Company which amounted to US$2,027. Buzzinate then became a wholly owned subsidiary of the Company. The movement of carrying value of the equity method investment in Buzzinate from January 1, 2015 to February 13, 2015 (the period) is as follows: Balance at beginning of the period 533 Share of loss of equity investee for the period (38 ) Balance at February 13, 2015 495 Fair value gain on re-measurement of equity investee 1,161 1,656 Fair value of consideration transferred: Cash 1,250 Ordinary shares of the Company 2,027 Total 3,277 Fair value of previously held interest in Buzzinate 1,656 Recognized