Note 2 - Variable Interest Entities

6 Months Ended

Jun. 30, 2018

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, 2018

and

December 31, 2017,

respectively:

	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

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. See additional discussion related to restrictions on foreign currency exchange in the PRC in Note

21

and Note

23.

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, 2018

and

2017,

respectively:

	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	)