Note 2 - Variable Interest Entities

3 Months Ended

Mar. 31, 2015

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 March 31, 2015 and December 31, 2014, respectively:

	March 31, 2015		December 31, 2014
	US$(’000)		US$(’000)
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	1,984	$	4,239
Term deposit		3,452		3,465
Accounts receivable, net		2,549		2,407
Other receivables, net		8,132		8,349
Prepayment and deposit to suppliers		10,234		8,091
Due from related parties		8		-
Other current assets		51		58
Deferred tax assets-current		222		107
Total current assets		26,632		26,716
Long-term investments		1,025		865
Property and equipment, net		789		869
Intangible assets, net		8,847		9,238
Deposit and prepayment for purchasing of software technology		847		850
Goodwill		6,746		6,772
Deferred tax assets-non current		864		795
Total Assets	$	45,750	$	46,105
Liabilities
Current liabilities:
Short-term bank loan	$	814	$	817
Accounts payable		741		782
Advances from customers		2,105		832
Accrued payroll and other accruals		288		357
Due to Control Group		11		11
Due to noncontrolling interest of VIE		636		638
Payable for purchasing of software technology		2,489		2,826
Taxes payable		2,811		2,846
Other payables		586		580
Total current liabilities		10,481		9,689
Deferred tax Liabilities-non current		922		964
Total Liabilities	$	11,403	$	10,653

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 three months ended March 31, 2015, the financial performance of the VIEs reported in the Company’s consolidated statements of operations and comprehensive loss includes sales of approximately US$5,744,000, cost of sales of approximately US$4,946,000, operating expenses of approximately US$2,277,000 and net loss before allocation to noncontrolling interests of approximately US$1,208,000.

For the three months ended March 31, 2014, the financial performance of the VIEs reported in the Company’s consolidated statements of operations and comprehensive loss includes sales of approximately US$5,099,000, cost of sales of approximately US$3,822,000, operating expenses of approximately US$1,612,000 and net loss before allocation to noncontrolling interests of approximately US$385,000.