Note 2 - Variable Interest Entities

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Variable Interest Entities Disclosure [Text Block]

2. Variable interest entities

The Company is not an operating company in China, but a Nevada holding company with no equity ownership in the VIEs. The Company primarily conducts its operations in China through its PRC subsidiaries, the VIEs, with which the Company has entered into contractual arrangements, and their subsidiaries in China. 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, 2024 and December 31, 2023, respectively:

	March 31, 2024		December 31, 2023
	US$(’000)		US$(’000)
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	164	$	367
Accounts receivable, net		749		844
Prepayment and deposit to suppliers		2,690		2,005
Other current assets, net		5		2
Total current assets		3,608		3,218
Goodwill, net		78		-
Intangible assets, net		15		-
Property and equipment, net		125		139
Deferred tax assets, net		404		401
Total Assets	$	4,230	$	3,758
Liabilities
Current liabilities:
Accounts payable	$	266	$	201
Advance from customers		1,427		843
Accrued payroll and other accruals		59		37
Taxes payable		2,551		2,555
Lease payment liability related to short-term leases		99		99
Other current liabilities		333		56
Total current liabilities		4,735		3,791
Long-term liabilities:
Deferred tax liabilities		4		-
Total Liabilities	$	4,739	$	3,791

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, 2024 and 2023, respectively:

	Three Months Ended March 31,
	2024			2023
	US$(’000)			US$(’000)
	(Unaudited)			(Unaudited)
Revenues	$	3,531		$	6,148
Cost of revenues		(3,459	)		(6,327	)
Total operating expenses		(497	)		(370	)
Net loss		(444	)		(550	)