Note 2 - Variable Interest Entities

6 Months Ended

Jun. 30, 2021

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, 2021 and December 31, 2020, respectively:

	June 30, 2021		December 31, 2020
	US$(’000)		US$(’000)
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	485	$	277
Accounts receivable, net		3,321		1,142
Prepayment and deposit to suppliers		3,022		2,818
Due from related parties		104		61
Other current assets		3		10
Total current assets		6,935		4,308
Long-term investments		450		67
Operating lease right-of-use assets		26		48
Property and equipment, net		90		32
Intangible assets, net		-		9
Long-term deposits and prepayments		85		-
Deferred tax assets, net		439		536
Total Assets	$	8,025	$	5,000
Liabilities
Current liabilities:
Accounts payable	$	1,015	$	270
Advance from customers		1,397		1,436
Accrued payroll and other accruals		93		168
Taxes payable		2,729		2,755
Operating lease liabilities		9		18
Lease payment liability related to short-term leases		109		108
Other current liabilities		55		213
Total current liabilities		5,407		4,968
Operating lease liabilities-Non current		9		32
Total Liabilities	$	5,416	$	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 loss for the six and three months ended June 30, 2021 and 2020, respectively:

	Six Months Ended June 30,						Three Months Ended June 30,
	2021			2020			2021			2020
	US$(’000)			US$(’000)			US$(’000)			US$(’000)
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Revenues	$	20,618		$	12,548		$	12,671		$	9,612
Cost of revenues		(23,132	)		(12,322	)		(14,394	)		(9,477	)
Total operating expenses		(712	)		(1,392	)		(322	)		(648	)
Net loss before allocation to noncontrolling interests		(3,407	)		(1,160	)		(2,126	)		(509	)