Note 5 - Prepayments and Deposit to Suppliers

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Prepayments and Deposits to Suppliers Disclosure [Text Block]

5. Prepayments and deposit to suppliers

	As of December 31,
	2020		2019
	US$('000)		US$('000)
Deposits to advertising resources providers		307		1,315
Prepayments to advertising resources providers		3,696		4,361
Prepayment of license fee		-		1,062
Other deposits and prepayments		654		242
		4,657		6,980

As of

December 31, 2020

and

2019,

contractual deposits were primarily paid to the Company's major internet resources suppliers and other advertising resource 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 certain of the contract amounts in advance. These prepayments will be recognized as cost of revenues when the related services are delivered by the suppliers. As of

December 31, 2020

and

2019,

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

Other deposits and prepayments as of

December 31, 2020

and

2019

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.