Note 6 - Prepayments and Deposit to Suppliers

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Prepayments and Deposits to Suppliers Disclosure [Text Block]

6. Prepayments and deposit to suppliers

	As of December 31,
	2022		2021
	US$(’000)		US$(’000)
Deposits to advertising resources providers		1,077		934
Prepayments to advertising resources providers		3,036		5,185
Deposit for a potential investing contract		-		1,000
Other deposits and prepayments		454		440
		4,567		7,559

As of December 31, 2022 and 2021, contractual deposits were primarily paid to the Company’s major Internet advertising 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, 2022 and 2021, prepayments were primarily paid for purchasing Internet resources from the Company’s major Internet advertising resources suppliers.

Other deposits and prepayments as of December 31, 2022 and 2021 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 services, etc.

As of December 31, 2021, deposit for a potential investing contract represented a US$1.0 million refundable deposit paid for a potential acquisition transaction, which had been refunded in December 2022 as there was no definitive agreement reached among the contract parties by the date as agreed upon.