Note 2 - Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Variable Interest Entities [Table Text Block]

	June 30, 2018		December 31, 2017
	US$(’000)		US$(’000)
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	1,130	$	2,904
Accounts receivable, net		6,600		7,215
Other receivables, net		47		2,629
Prepayment and deposit to suppliers		2,392		4,009
Due from related parties, net		-		14
Total current assets		10,169		16,771

Property and equipment, net		123		177
Intangible assets, net		52		2,112
Goodwill		-		5,277
Deferred tax assets, net		609		975
Total Assets	$	10,953	$	25,312

Liabilities
Current liabilities:
Short-term bank loan	$	756	$	765
Accounts payable		1,464		2,848
Advances from customers		1,398		3,559
Accrued payroll and other accruals		178		159
Due to Control Group		11		11
Payable for acquisition of noncontrolling interest		756		-
Payable for purchasing of software technology		-		436
Taxes payable		2,603		2,711
Other payables		84		155
Total current liabilities		7,250		10,644

Total Liabilities	$	7,250	$	10,644

Financial Performance of VIEs [Table Text Block]

	Six Months Ended June 30,
	2018			2017
	US$(’000)			US$(’000)
	(Unaudited)			(Unaudited)

Revenues		30,773			17,733
Cost of revenues		(29,211	)		(14,792	)
Total operating expenses		(10,025	)		(3,159	)
Net loss before allocation to noncontrolling interests		(8,861	)		(516	)

	Three Months Ended June 30,
	2018			2017
	US$(’000)			US$(’000)
	(Unaudited)			(Unaudited)

Revenues		22,520			10,469
Cost of revenues		(21,552	)		(8,800	)
Total operating expenses		(8,763	)		(1,526	)
Net loss before allocation to noncontrolling interests		(8,183	)		(163	)

- 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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