Note 2 - Variable Interest Entities

9 Months Ended

Sep. 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 September 30, 2015 and December 31, 2014, respectively:

	September 30, 2015		December 31, 2014
	US$(’000)		US$(’000)
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	1,269	$	4,239
Term deposit		3,333		3,465
Accounts receivable, net		3,892		2,407
Other receivables, net		6,804		8,349
Prepayment and deposit to suppliers		5,745		8,091
Due from related parties		32		-
Other current assets		35		58
Deferred tax assets-current		239		107
Total current assets		21,349		26,716
Long-term investments		990		865
Property and equipment, net		768		869
Intangible assets, net		7,855		9,238
Deposit and prepayment for purchasing of software technology		1,046		850
Goodwill		6,514		6,772
Deferred tax assets-non current		1,218		795
Total Assets		39,740	$	46,105
Liabilities
Current liabilities:
Short-term bank loan	$	-	$	817
Accounts payable		701		782
Advances from customers		2,079		832
Accrued payroll and other accruals		394		357
Due to Control Group		227		11
Due to noncontrolling interest of VIE		11		638
Payable for purchasing of software technology		-		2,826
Taxes payable		2,719		2,846
Other payables		523		580
Total current liabilities		6,654		9,689
Deferred tax Liabilities-non current		816		964
Total Liabilities	$	7,470	$	10,653
Commitments and contingencies		407		-

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, 2015, the financial performance of the VIEs reported in the Company’s consolidated statements of operations and comprehensive loss includes sales of approximately US$23,711,000, cost of sales of approximately US$19,357,000, operating expenses of approximately US$8,134,000 and net loss before allocation to noncontrolling interests of approximately US$2,993,000.

For the three months ended September 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$8,467,000, cost of sales of approximately US$7,066,000, operating expenses of approximately US$3,085,000 and net loss before allocation to noncontrolling interests of approximately US$1,283,000.

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.