Note 11 - Prepayment for Blockchain and Other Software Applications Development

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Research, Development, and Computer Software Disclosure [Text Block]

11. Prepayment for blockchain and other software applications development

In

February 2018,

the Company entered into a contract with an unrelated entity to develop certain blockchain technology based applications. Total amount of the contract was

US$4.5

million. As of

June 30, 2018,

the Company had paid

US$3.38

million in accordance with the payment schedule set forth in the contract. The preliminary version of the applications will be ready for trial test by the end of

December 2018,

and the development project is expected to be completed before

June 2019.

In

March 2018,

the Company entered into a contract with another unrelated entity to develop a social network (WeChat) based marketing campaign application. Total amount of the contract was

RMB3.0

million (approximately

US$0.45

million). As of

June 30, 2018,

the Company had paid

RMB2.4

million (approximately

US$0.36

million) in accordance with the payment schedule set forth in the contract. The preliminary version of the application will be ready for trial test by the end of

October 2018,

and the development project is expected to be completed before

December 2018.