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Note 7 - Prepayments and Deposit to Suppliers
9 Months Ended
Sep. 30, 2016
Notes to Financial Statements  
Prepayments and Deposits to Suppliers Disclosure [Text Block]
7. Prepayments and deposit to suppliers
 
    September 30,
2016
  December 31,
2015
    US$(’000)   US$(’000)
    (Unaudited)    
         
Deposits to internet resources providers     1,116       622  
Prepayments to internet resources providers     4,108       3,623  
Deposits to other services providers     1,497       1,540  
Other deposits and prepayments     123       58  
      6,844       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 September 30, 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.
 
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$0.75 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$0.75 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 was extended to October 31, 2016. In accordance with the extended contract, the deposit will be refunded to the Company no later than December 31, 2016.