Note 11 - Costs to Obtain and Fulfill a Contract

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Capitalized Contract Costs [Text Block]

11.

Costs to obtain and fulfill a contract

Deferred costs of fulfillment

Deferred costs to fulfill contracts generally consist of domain registration costs which have been paid to a domain registry, and are capitalized as Prepaid domain name registry and ancillary services fees. These costs are deferred and amortized over the life of the domain which generally ranges from

one

to

ten

years. For the

three

months ended 

March 31, 2020

, the Company capitalized

$44.4

 million and also amortized

$41.6

 million of contract costs. There was

no

impairment loss recognized in relation to the costs capitalized during the

three

months ended 

March 31, 2020

. Amortization expense is primarily included in cost of revenue. The breakdown of the movement in the prepaid domain name registry and ancillary services fees balance for the

three

months ended

March 31, 2020

is as follows (Dollar amounts in thousands of U.S. dollars). 

	March 31, 2020
Balance, beginning of period	$	109,167
Deferral of costs		44,436
Recognized costs		(41,583	)
Balance, end of period	$	112,020