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Note 7 - Prepayments and Deposit to Suppliers
12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Prepayments and Deposits to Suppliers Disclosure [Text Block]
7.
Prepayments and deposit to suppliers
 
    As of December 31,
    2016   2015
    US$(’000)   US$(’000)
         
Deposits to internet resources providers    
1,074
     
622
 
Prepayments to internet resources providers    
2,874
     
3,623
 
Deposits to other service providers    
721
     
1,540
 
Other deposits and prepayments    
85
     
58
 
     
4,754
     
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
December
31,
2016
and
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.
 
As of
December
31,
2015,
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
October
31,
2016
and the related deposit was refunded to the Company in
December
2016.
Deposit related to the advisory contract for finding new investors for the Company will expire on
December
31,
2017.