Note 2 - Variable Interest Entities

9 Months Ended

Sep. 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

September 30, 2017

and

December 31, 2016,

respectively:

	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

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

nine

and

three

months ended

September 30, 2017

and

2016,

respectively:

	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	)