Note 11 - Costs to Obtain and Fulfill a Contract

6 Months Ended

Jun. 30, 2022

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 primarily consist of domain registration costs which have been paid to a domain registry, and are capitalized as deferred costs of fulfillment. These costs are deferred and amortized over the life of the domain which generally ranges from one to ten years. The Company also defers certain technology design and data migration costs it incurs to fulfil its performance obligations contained in our platform services arrangements. For the six months ended June 30, 2022, the Company deferred $87.2 million and amortized $86.1 million of contract costs. There was no impairment loss recognized in relation to the costs capitalized during the six months ended June 30, 2022. Amortization expense of deferred costs is included in cost of revenue.

The breakdown of the movement in the deferred costs of fulfillment balance for the six months ended June 30, 2022 is as follows (Dollar amounts in thousands of U.S. dollars). 

	June 30, 2022
Balance, beginning of period	$	112,711
Deferral of costs		87,248
Recognized costs		(86,118	)
Balance, end of period	$	113,841