Note 2 - Variable Interest Entities

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Variable Interest Entities Disclosure [Text Block]

2. Variable interest entities

Summarized below is the information related to the VIEs’ assets and liabilities reported in the Company’s condensed consolidated balance sheets as of

June 30, 2017

and

December 31, 2016,

respectively:

	June 30, 2017		December 31, 2016
	US$(’000)		US$(’000)
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	1,740	$	2,915
Term deposit		3,129		3,056
Accounts receivable, net		5,084		3,315
Prepayment and deposit to suppliers		4,607		4,710
Due from related parties, net		212		197
Other current assets		121		71
Total current assets		14,893		14,264
Long-term investments		44		43
Property and equipment, net		227		286
Intangible assets, net		5,087		5,468
Goodwill		5,090		4,970
Deferred tax assets		1,156		1,241
Total Assets	$	26,497	$	26,272
Liabilities
Current liabilities:
Short-term bank loan	$	738	$	721
Accounts payable		125		83
Advances from customers		2,519		1,388
Accrued payroll and other accruals		183		256
Due to Control Group		10		10
Payable for purchasing of software technology		421		411
Taxes payable		2,578		2,480
Other payables		206		162
Total current liabilities		6,780		5,511
Total Liabilities	$	6,780	$	5,511

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.

Summarized below is the information related to the financial performance of the VIEs reported in the Company’s condensed consolidated statements of operations and comprehensive loss for the

six

and

three

months ended

June 30, 2017

and

2016,

respectively:

	Six Months Ended June 30,
	2017			2016
	US$(’000)			US$(’000)
Revenues	$	17,733		$	13,387
Cost of revenues		(14,792	)		(9,314	)
Total operating expenses		(3,159	)		(4,094	)
Loss from discontinued operations		-			(60	)
Net loss before allocation to noncontrolling interests		(516	)		(260	)

	Three Months Ended June 30,
	2017			2016
	US$(’000)			US$(’000)
Revenues	$	10,469		$	8,348
Cost of revenues		(8,800	)		(5,859	)
Total operating expenses		(1,526	)		(2,211	)
Loss from discontinued operations		-			(14	)
Net (loss)/income before allocation to noncontrolling interests		(163	)		75