XML 30 R21.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Note 13 - Taxation | 6 Months Ended
--- | ---
Jun. 30, 2022
Notes to Financial Statements |
Income Tax Disclosure [Text Block] |
13. | Taxation
As of June 30, 2022 and December 31, 2021, taxes payable consists of:
|  | June 30, 2022 |  |  | December 31, 2021 |
|  | US$(’000) |  |  | US$(’000) |
|  | (Unaudited) |  |  |  |  |
Turnover tax and surcharge payable |  |  | 1,351 |  |  |  | 1,414 |
Enterprise income tax payable |  |  | 2,025 |  |  |  | 2,120 |
Total taxes payable |  |  | 3,376 |  |  |  | 3,534 |
For the six and three months ended June 30, 2022 and 2021, the Company’s income tax benefit consisted of:
|  | Six Months Ended June 30, |  |  | Three Months Ended June 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
|  | US$(’000) |  |  | US$(’000) |  |  | US$(’000) |  |  | US$(’000) |
|  | (Unaudited) |  |  | (Unaudited) |  |  | (Unaudited) |  |  | (Unaudited) |
Current |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Deferred |  |  | 4 |  |  |  | 40 |  |  |  | 2 |  |  |  | 22 |
Income tax benefit |  |  | 4 |  |  |  | 40 |  |  |  | 2 |  |  |  | 22 |
The Company’s deferred tax assets as of June 30, 2022 and December 31, 2021 were as follows:
|  | June 30, 2022 |  |  | December 31, 2021 |
|  | US$(’000) |  |  | US$(’000) |
|  | (Unaudited) |  |  |  |  |
Tax effect of net operating losses carried forward |  |  | 12,540 |  |  |  | 12,130 |
Operating lease cost |  |  | 27 |  |  |  | 23 |
Bad debts provision |  |  | 687 |  |  |  | 559 |
Valuation allowance |  |  | (12,831 | ) |  |  | (12,271 | )
Deferred tax assets, net |  |  | 423 |  |  |  | 441 |
The U.S. holding company has incurred aggregate NOLs of approximately US$32.0 million and US$31.0 million as of June 30, 2022 and December 31, 2021, respectively. The NOLs carryforwards as of December 31, 2017 gradually expire over time, the last of which expires in 2037. NOLs incurred after December 31, 2017 will no longer be available to carry back but can be carried forward indefinitely, subject to an annual limit of 80% on the amount of taxable income that can be offset by NOLs arising in tax years ending after December 31, 2017. The Company maintains a full valuation allowance against its net U.S. deferred tax assets, since due to uncertainties surrounding future utilization, the Company estimates there will not be sufficient future earnings to utilize its U.S. deferred tax assets. The NOLs carried forward incurred by the Company’s PRC subsidiaries and VIEs were approximately US$20.1 million and US$18.3 million as of June 30, 2022 and December 31, 2021, respectively. The losses carryforwards gradually expire over time, the last of which expires in 2027. The related deferred tax assets were calculated based on the respective NOLs incurred by each of the PRC subsidiaries and VIEs and the respective corresponding enacted tax rate that will be in effect in the period in which the losses are expected to be utilized. The Company recorded approximately US$12.8 million and US$12.3 million valuation allowance as of June 30, 2022 and December 31, 2021, respectively, because it is considered more likely than not that a portion of the deferred tax assets will not be realized through sufficient future earnings of the entities to which the operating losses related. For the six and three months ended June 30, 2022, the Company recorded approximately US$0.82 million and US$0.50 million deferred tax valuation allowance, respectively. For the six and three months ended June 30, 2021, the Company recorded approximately US$1.96 million and US$1.65 million deferred tax valuation allowance, respectively.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration