Note 2 - Variable Interest Entities

9 Months Ended

Sep. 30, 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

September 30, 2020

and

December 31, 2019,

respectively:

	September 30, 2020		December 31, 2019
	US$('000)		US$('000)
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	249	$	699
Accounts receivable, net		1,198		2,876
Prepayment and deposit to suppliers		4,176		3,998
Due from related parties, net		58		81
Other current assets, net		9		6
Total current assets		5,690		7,660
Long-term investments		64		35
Operating lease right-of-use assets		4		12
Property and equipment, net		39		40
Intangible assets, net		13		25
Deferred tax assets, net		815		713
Total Assets	$	6,625	$	8,485
Liabilities
Current liabilities:
Short-term bank loan	$	-	$	430
Accounts payable		290		408
Advance from customers		2,553		2,006
Accrued payroll and other accruals		188		132
Taxes payable		2,632		2,568
Lease payment liability related to a short-term lease		52		19
Other current liabilities		157		84
Total current liabilities		5,872		5,647
Total Liabilities	$	5,872	$	5,647

All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Furthermore, 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

nine

and

three

months ended

September 30, 2020

and

2019,

respectively:

	Nine Months Ended September 30,						Three Months Ended September 30,
	2020			2019			2020			2019
	US$('000)			US$('000)			US$('000)			US$('000)
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Revenues	$	23,683		$	39,523		$	11,135		$	15,503
Cost of revenues		(24,051	)		(37,828	)		(11,729	)		(14,616	)
Total operating expenses		(1,515	)		(2,407	)		(123	)		(545	)
Net (loss)/income before allocation to noncontrolling interests		(1,802	)		(742	)		(642	)		344