Note 2 - Variable Interest Entities

9 Months Ended

Sep. 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 September 30, 2014 and December 31, 2013, respectively:

	September 30, 2014		December 31, 2013
	US$(’000)		US$(’000)
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	1,539	$	3,326
Term deposit		3,444		3,467
Accounts receivable, net		2,454		7,637
Other receivables, net		1,586		3,416
Prepayment and deposit to suppliers		19,772		14,690
Due from related parties		-		174
Other current assets		65		27
Deferred tax assets-current		144		118
Total current assets		29,004		32,855
Investment in and advance to equity investment affiliates		844		801
Property and equipment, net		904		918
Intangible assets, net		5,186		6,013
Deposit and prepayment for purchasing of software technology		3,281		2,453
Goodwill		11,371		11,450
Deferred tax assets-non current		626		482
Total Assets	$	51,216	$	54,972
Liabilities
Current liabilities:
Short-term bank loan	$	812	$	818
Accounts payable		434		421
Advances from customers		1,401		995
Accrued payroll and other accruals		339		279
Due to Control Group		11		11
Due to noncontrolling interest of VIE		699		-
Due to former VIE		1,400		-
Taxes payable		3,018		6,542
Other payables		504		142
Total current liabilities		8,618		9,208
Deferred tax Liabilities-non current		1,261		1,439
Total Liabilities	$	9,879	$	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 nine months ended September 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$27,049,000, cost of sales of approximately US$22,481,000, operating expenses of approximately US$7,294,000 and net loss before allocation to noncontrolling interests of approximately US$2,331,000.

For the three months ended September 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$11,742,000, cost of sales of approximately US$9,995,000, operating expenses of approximately US$2,957,000 and net loss before allocation to noncontrolling interests of approximately US$663,000.

For the nine months ended September 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$23,120,000, cost of sales of approximately US$13,121,000, operating expenses of approximately US$6,482,000 and net income before allocation to noncontrolling interests of approximately US$2,824,000.

For the three months ended September 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$7,380,000, cost of sales of approximately US$3,365,000, operating expenses of approximately US$2,160,000 and net income before allocation to noncontrolling interests of approximately US$1,579,000.