Note 2 - Variable Interest Entities

3 Months Ended

Mar. 31, 2020

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, 2020

and

December 31, 2019,

respectively:

	March 31, 2020		December 31, 2019
	US$(’000)		US$(’000)
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	1,301	$	699
Accounts receivable, net		2,384		2,876
Prepayment and deposit to suppliers		2,302		3,998
Due from related parties, net		51		81
Other current assets, net		9		6
Total current assets		6,047		7,660
Long-term investments		34		35
Operating lease right-of-use assets		9		12
Property and equipment, net		39		40
Intangible assets, net		20		25
Deferred tax assets, net		706		713
Total Assets	$	6,855	$	8,485
Liabilities
Current liabilities:
Short-term bank loan	$	-	$	430
Accounts payable		257		408
Advances from customers		1,601		2,006
Accrued payroll and other accruals		86		132
Taxes payable		2,539		2,568
Lease payment liabilities related to short-term leases		39		19
Other current liabilities		112		84
Total current liabilities		4,634		5,647
Total Liabilities	$	4,634	$	5,647

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

three

months ended

March 31, 2020

and

2019,

respectively:

	Three Months Ended March 31,
	2020			2019
	US$(’000)			US$(’000)
	(Unaudited)			(Unaudited)
Revenues	$	2,936		$	8,567
Cost of revenues		(2,845	)		(8,125	)
Total operating expenses		(744	)		(711	)
Net loss before allocation to noncontrolling interests		(651	)		(322	)