Note 2 - Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of Variable Interest Entities [Table Text Block]

	September 30, 2017		December 31, 2016
		US$(’000)		US$(’000)
		(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	1,217	$	2,915
Term deposit		-		3,056
Accounts receivable, net		4,653		3,315
Other receivables, net		2,863		-
Prepayment and deposit to suppliers		5,382		4,710
Due from related parties, net		217		197
Other current assets		41		71
Total current assets		14,373		14,264

Long-term investments		45		43
Property and equipment, net		201		286
Intangible assets, net		4,934		5,468
Goodwill		5,195		4,970
Deferred tax assets		1,180		1,241
Total Assets	$	25,928	$	26,272

Liabilities
Current liabilities:
Short-term bank loan	$	753	$	721
Accounts payable		612		83
Advances from customers		2,267		1,388
Accrued payroll and other accruals		195		256
Due to Control Group		11		10
Payable for purchasing of software technology		429		411
Taxes payable		2,639		2,480
Other payables		214		162
Total current liabilities		7,120		5,511

Deferred tax Liabilities
Total Liabilities	$	7,120	$	5,511

Financial Performance of VIEs [Table Text Block]

	Nine Months Ended September 30,
	2017			2016
	US$(’000)			US$(’000)

Revenues		31,231			25,289
Cost of revenues		(26,954	)		(19,186	)
Total operating expenses		(5,895	)		(6,384	)
Loss from discontinued operations		-			(60	)
Net loss before allocation to noncontrolling interests		(1,928	)		(603	)

	Three Months Ended September 30,
	2017			2016
	US$(’000)			US$(’000)

Revenues		13,498			11,902
Cost of revenues		(12,162	)		(9,872	)
Total operating expenses		(2,736	)		(2,290	)
Net loss before allocation to noncontrolling interests		(1,412	)		(343	)

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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