Note 2 - Variable Interest Entities

3 Months Ended

Mar. 31, 2019

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

March 31, 2019

and

December 31, 2018,

respectively:

		March 31, 2019		December 31, 2018
		US$(’000)		US$(’000)
		(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	673	$	2,328
Accounts receivable, net		6,830		6,359
Prepayment and deposit to suppliers		1,716		1,724
Due from related parties, net		7		26
Other current assets, net		4		11
Total current assets		9,230		10,448
Long-term investments		36		-
Property and equipment, net		68		84
Intangible assets, net		38		42
Operating lease right-of-use assets		20		-
Deferred tax assets, net		527		556
Total Assets	$	9,919	$	11,130
Liabilities
Current liabilities:
Short-term bank loan	$	891	$	874
Accounts payable		1,164		2,868
Advances from customers		1,642		1,059
Accrued payroll and other accruals		179		155
Taxes payable		2,677		2,562
Other current liabilities		65		55
Total current liabilities		6,618		7,573
Total Liabilities	$	6,618	$	7,573

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

17

and Note

19.

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

three

months ended

March 31, 2019

and

2018,

respectively:

	Three Months Ended March 31,
		2019			2018
		US$(’000)			US$(’000)
		(Unaudited)			(Unaudited)
Revenues	$	8,567		$	8,253
Cost of revenues		(8,125	)		(7,659	)
Total operating expenses		(711	)		(1,262	)
Net loss before allocation to noncontrolling interests		(322	)		(678	)