Note 2 - Variable Interest Entities

6 Months Ended

Jun. 30, 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

June 30, 2019

and

December 31, 2018,

respectively:

	June 30, 2019		December 31, 2018
	US$(’000)		US$(’000)
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	660	$	2,303
Term deposit, restricted		25		25
Accounts receivable, net		6,749		6,359
Prepayment and deposit to suppliers, net		1,773		1,724
Due from related parties, net		-		26
Other current assets, net		3		11
Total current assets		9,210		10,448
Long-term investments		36		-
Property and equipment, net		58		84
Intangible assets, net		34		42
Operating lease right-of-use assets		17		-
Deferred tax assets, net		549		556
Total Assets	$	9,904	$	11,130
Liabilities
Current liabilities:
Short-term bank loan	$	873	$	874
Accounts payable		740		2,868
Advance from customers		2,766		1,059
Advance from a customer, related		53		-
Accrued payroll and other accruals		152		155
Taxes payable		2,648		2,562
Lease payment liability related to a short-term lease		48		-
Other current liabilities		75		55
Total current liabilities		7,355		7,573
Total Liabilities	$	7,355	$	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

18

and Note

20.

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, 2019

and

2018,

respectively:

	Six Months Ended June 30,						Three Months Ended June 30,
	2019			2018			2019			2018
	US$(’000)			US$(’000)			US$(’000)			US$(’000)
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Revenues	$	24,020		$	30,773		$	15,453		$	22,520
Cost of revenues		(23,212	)		(29,211	)		(15,087	)		(21,552	)
Total operating expenses		(1,862	)		(10,025	)		(1,151	)		(8,763	)
Net loss before allocation to noncontrolling interests		(1,086	)		(8,861	)		(764	)		(8,183	)