Note 5 - Prepayments and Deposit to Suppliers

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Prepayments and Deposits to Suppliers Disclosure [Text Block]

5.   Prepayments and deposit to suppliers

	September 30, 2021		December 31, 2020
	US$(’000)		US$(’000)
	(Unaudited)
Deposits to advertising resources providers		620		307
Prepayments to advertising resources providers		5,111		3,696
Deposit and prepayment for other investing contracts		2,500		-
Other deposits and prepayments		442		654
		8,673		4,657

As of September 30, 2021, deposit and prepayment for other investing contracts consisted of a US$1.0 million refundable deposit paid for a potential merge and acquisition transaction, which will be refunded if no definitive agreement is reached among the parties before the expected closing date, i.e. December 31, 2021, and a US$1.5 million prepayment paid in accordance with a cryptocurrency mining machine purchase agreement, respectively.

As of the date hereof, the Company is in the due diligence process for the potential merge and acquisition transaction.

Due to the recent policies promulgated by the Chinese government which ban cryptocurrency mining business commencing in May 2021, the Company cancelled its cryptocurrency mining machine purchase agreement with the supplier and expects to be refunded with the prepayment of US$1.5 million before the end of fiscal 2021.