Note 7 - Prepayments and Deposit to Suppliers

3 Months Ended

Mar. 31, 2016

Prepayments And Deposits To Suppliers Disclosure [Abstract]

Prepayments And Deposits To Suppliers Disclosure [Text Block]

7. Prepayments and deposit to suppliers

	March 31, 2016		December 31, 2015
	US$(’000)		US$(’000)
	(Unaudited)
Deposits to internet resources providers		1,477		622
Prepayments to internet resources providers		2,860		3,623
Deposits to other services providers		1,548		1,540
Other deposits and prepayments		128		58
		6,013		5,843

The Company purchases internet resources from large internet search engines and technical services from suppliers to attract more internet traffic to its advertising portals and provide value-added services to its clients.

Deposits to internet resources providers are paid as contractual deposits to the Company’s resources and services suppliers. As of March 31, 2016 and December 31, 2015, deposit to internet resources providers primarily consisted of the contractual deposits paid for purchasing internet resources from two of the Company’s largest internet resources suppliers. The increase in deposits to internet resources providers was primarily due to contractual deposits paid during the first fiscal quarter of 2016 for the internet resources purchase contracts signed for fiscal 2016. The deposits for fiscal 2015 purchase contracts is expected to be refunded before June 2016.

According to the contracts signed between the Company and its suppliers, the Company is normally required to pay the contract amounts in advance. These prepayments will be transferred to cost of revenues when the related services are provided.

Deposits to other service providers consisted of an approximately US$0.77 million deposit to an intermediary service provider, which the Company engaged to facilitate the Company to find, select and negotiate with its internet, TV or other media resource suppliers, and another approximately US$0.77 million deposit for an advisory contract related to finding buyers for liansuo.com and new investors for the Company. The contract with the intermediary service provider expired on April 30, 2016, and the deposit is expected to be refunded during the second fiscal quarter of 2016.