Note 2 - Variable Interest Entities

6 Months Ended

Jun. 30, 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 June 30, 2015 and December 31, 2014, respectively:

	June 30, 2015		December 31, 2014
	US$(’000)		US$(’000)
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	3,613	$	4,239
Term deposit		3,468		3,465
Accounts receivable, net		3,954		2,407
Other receivables, net		6,520		8,349
Prepayment and deposit to suppliers		6,859		8,091
Due from related parties		56		-
Other current assets		43		58
Deferred tax assets-current		285		107
Total current assets		24,798		26,716
Long-term investments		1,034		865
Property and equipment, net		723		869
Intangible assets, net		8,531		9,238
Deposit and prepayment for purchasing of software technology		851		850
Goodwill		6,778		6,772
Deferred tax assets-non current		869		795
Total Assets	$	43,584	$	46,105
Liabilities
Current liabilities:
Short-term bank loan	$	818	$	817
Accounts payable		510		782
Advances from customers		2,325		832
Accrued payroll and other accruals		330		357
Due to Control Group		11		11
Due to noncontrolling interest of VIE		557		638
Payable for purchasing of software technology		865		2,826
Taxes payable		2,744		2,846
Other payables		556		580
Total current liabilities		8,716		9,689
Deferred tax Liabilities-non current		887		964
Total Liabilities	$	9,603	$	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 six months ended June 30, 2015, the financial performance of the VIEs reported in the Company’s consolidated statements of operations and comprehensive loss includes sales of approximately US$15,244,000, cost of sales of approximately US$12,291,000, operating expenses of approximately US$5,049,000 and net loss before allocation to noncontrolling interests of approximately US$1,710,000.

For the three months ended June 30, 2015, the financial performance of the VIEs reported in the Company’s consolidated statements of operations and comprehensive loss includes sales of approximately US$9,500,000, cost of sales of approximately US$7,345,000, operating expenses of approximately US$2,772,000 and net loss before allocation to noncontrolling interests of approximately US$502,000.

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.