Note 2 - Variable Interest Entities

6 Months Ended

Jun. 30, 2014

Variable Interest Entities Disclosure [Abstract]

Variable Interest Entities Disclosure [Text Block]

2. Variable Interest Entities

Summarized below is the information related to the consolidated VIEs’ assets and liabilities as of June 30, 2014 and December 31, 2013, respectively:

	June 30, 2014		December 31, 2013
	US$(’000)		US$(’000)
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	2,585	$	3,326
Term deposit		3,443		3,467
Accounts receivable, net		5,046		7,637
Other receivables, net		2,138		3,416
Prepayment and deposit to suppliers		18,039		14,690
Due from related parties		260		174
Other current assets		72		27
Deferred tax assets-current		134		118
Total current assets		31,717		32,855
Investment in and advance to equity investment affiliates		737		801
Property and equipment, net		766		918
Intangible assets, net		5,447		6,013
Deposit and prepayment for purchasing of software technology		3,281		2,453
Goodwill		11,368		11,450
Deferred tax assets-non current		606		482
Total Assets	$	53,922	$	54,972
Liabilities
Current liabilities:
Short-term bank loan	$	812	$	818
Accounts payable		412		421
Advances from customers		1,012		995
Accrued payroll and other accruals		373		279
Due to Control Group		11		11
Due to noncontrolling interest of VIE		715		-
Taxes payable		6,668		6,542
Other payables		415		142
Total current liabilities		10,418		9,208
Deferred tax Liabilities-non current		1,317		1,439
Total Liabilities	$	11,735	$	10,647

All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets.

For the six months ended June 30, 2014, the financial performance of the VIEs reported in the Company’s consolidated statements of operations and comprehensive loss includes sales of approximately US$15,307,000, cost of sales of approximately US$12,486,000, operating expenses of approximately US$4,337,000 and net loss before allocation to noncontrolling interests of approximately US$1,668,000.

For the three months ended June 30, 2014, the financial performance of the VIEs reported in the Company’s consolidated statements of operations and comprehensive loss includes sales of approximately US$10,208,000, cost of sales of approximately US$8,664,000, operating expenses of approximately US$2,725,000 and net loss before allocation to noncontrolling interests of approximately US$1,283,000.

For the six months ended June 30, 2013, the financial performance of the VIEs reported in the Company’s consolidated statements of income and comprehensive income includes sales of approximately US$15,740,000, cost of sales of approximately US$9,756,000, operating expenses of approximately US$4,322,000 and net income before allocation to noncontrolling interests of approximately US$1,245,000.

For the three months ended June 30, 2013, the financial performance of the VIEs reported in the Company’s consolidated statements of income and comprehensive income includes sales of approximately US$8,790,000, cost of sales of approximately US$5,289,000, operating expenses of approximately US$2,232,000 and net income before allocation to noncontrolling interests of approximately US$845,000.