Note 2 - Variable Interest Entities

3 Months Ended

Mar. 31, 2026

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 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, 2026 and December 31, 2025, respectively:

		March 31, 2026				December 31, 2025
		US$(’000)				US$(’000)
		(Unaudited)
Assets
Current assets:
Cash and cash equivalents		$	6			$	13
Accounts receivable, net			-				-
Prepayment and deposit to suppliers			1,084				1,073
Other current assets, net			1				2
Total current assets			1,091				1,088

Property and equipment, net			62				66
Total Assets		$	1,153			$	1,154

Liabilities
Current liabilities:
Accounts payable		$	97			$	95
Advance from customers			469				461
Accrued payroll and other accruals			23				26
Taxes payable			2,618				2,578
Other current liabilities			660				624
Total current liabilities			3,867				3,784

Long-term liabilities:
Deferred tax liabilities			-				-
Total Liabilities		$	3,867			$	3,784

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, 2026 and 2025, respectively:

		Three Months Ended March 31,
		2026				2025
		US$(’000)				US$(’000)
		(Unaudited)				(Unaudited)

Revenues		$	-			$	49
Cost of revenues			-				39
Total operating expenses			69				36
Net loss			69				29