Note 2 - Variable Interest Entities

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Variable Interest Entities Disclosure [Text Block]

2. Variable interest entities

To satisfy PRC laws and regulations, the Company conducts certain business in the PRC through its PRC subsidiaries and operating entities (the “VIEs”).

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, 2021

and

December 31, 2020,

respectively:

	March 31, 2021		December 31, 2020
	US$('000)		US$('000)
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	1,055	$	277
Accounts receivable, net		1,565		1,142
Prepayment and deposit to suppliers		4,107		2,818
Due from related parties, net		102		61
Other current assets, net		3		10
Total current assets		6,832		4,308
Long-term investments		404		67
Operating lease right-of-use assets		2,199		48
Property and equipment, net		34		32
Intangible assets, net		4		9
Long-term deposits and prepayments		73		-
Deferred tax assets, net		457		536
Total Assets		10,003	$	5,000
Liabilities
Current liabilities:
Accounts payable	$	814	$	270
Advances from customers		1,554		1,436
Accrued payroll and other accruals		80		168
Taxes payable		2,713		2,755
Operating lease liabilities		267		18
Lease payment liabilities related to short-term leases		107		108
Other current liabilities		212		213
Total current liabilities		5,747		4,968
Operating lease liabilities-Non current		1,953		32
Total Liabilities	$	7,700	$	5,000

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 income/(loss) for the

three

months ended

March 31, 2021

and

2020,

respectively:

	Three Months Ended March 31,
	2021			2020
	US$('000)			US$('000)
	(Unaudited)			(Unaudited)
Revenues	$	7,947		$	2,936
Cost of revenues		(8,738	)		(2,845	)
Total operating expenses		(390	)		(744	)
Net loss before allocation to noncontrolling interests		(1,281	)		(651	)