Prepayments and deposit to suppliers

	As of December 31,
	2018		2017
	US$(’000)		US$(’000)

Deposits to internet and TV resources providers		963		1,870
Prepayments to internet and TV resources providers		727		1,331
Deposits to other service provider		-		765
Other deposits and prepayments		464		107
		2,154		4,073

The Company purchases internet resources from large internet search engines for distribution of the right to use the search engine marketing service to its clients and attraction of the internet traffic to its advertising portals. The Company also purchases TV advertising time slots for the broadcasting of infomercials to promote brands, business information, products and services of its clients.

As of

December 31, 2018

and

2017,

contractual deposits were primarily paid to the same

two

of the Company’s largest internet resources suppliers. The contractual deposits will be refunded to the Company upon expiration of the contracts, which are generally for a

one

-year period.

According to the contracts signed between the Company and its suppliers, the Company is 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, 2018

and

2017,

prepayments primarily paid for purchasing internet resources from the Company’s major internet resources suppliers.

As of

December 31, 2017,

deposits to other service provider represented the deposit for an advisory contract related to finding new investors for the Company, which expired on

December 31, 2017.

The service provider refunded the deposit to the Company in

March 2018.

Other deposits and prepayments as of

December 31, 2018

and

2017

represented deposits and prepayments to the Company’s other services providers, which primarily included deposits for office lease contracts, prepayment for various kinds of professional consulting services, etc.