Note 7 - Prepayments and Deposit to Suppliers

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Prepayments and Deposits to Suppliers Disclosure [Text Block]

7. Prepayments and deposit to suppliers

	September 30, 2017		December 31, 2016
	US$(’000)		US$(’000)
	(Unaudited)
Deposits to internet resources providers		888		1,074
Prepayments to internet resources providers		3,639		2,874
Deposits to other services providers		753		721
Other deposits and prepayments		170		85
		5,450		4,754

The Company purchases internet resources from large internet search engines and technical services from suppliers to attract more internet traffic to its advertising portals and provide value-added services to its clients.

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

September 30, 2017

and

December 31, 2016,

prepayments to internet resources providers primarily consisted of advance payments paid for purchasing internet resources from

two

of the Company’s largest internet resources suppliers.

As of

September 30, 2017

and

December 31, 2016,

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

December 31, 2017.