Note 5 - Prepayments and Deposit to Suppliers

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Prepayments and Deposits to Suppliers Disclosure [Text Block]

5. Prepayments and deposit to suppliers

	As of December 31,
	2019		2018
	US$(’000)		US$(’000)
Deposits to advertising resources providers		1,315		963
Prepayments to advertising resources providers		4,361		727
Prepayment of license fee		1,062		-
Other deposits and prepayments		242		464
		6,980		2,154

As of

December 31, 2019

and

2018,

contractual deposits were primarily paid to the Company’s largest internet resources suppliers and other advertising resource providers. 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 certain of the contract amounts in advance. These prepayments will be transferred to cost of revenues when the related services are provided. As of

December 31, 2019

and

2018,

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

License fee prepayment as of

December 31, 2019

was related to the usage of a software system during a

12

-month period through

December 31, 2020.

Other deposits and prepayments as of

December 31, 2019

and

2018

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.