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Note 11 - Costs to Obtain and Fulfill a Contract | 9 Months Ended
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Sep. 30, 2021
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 MSE arrangements. For the nine months ended September 30, 2021, the Company deferred $130.5 million and amortized $128.4 million of contract costs. There was no impairment loss recognized in relation to the costs capitalized during the nine months ended September 30, 2021. Amortization expense of deferred costs is included in cost of revenue. The breakdown of the movement in the prepaid domain name registry and ancillary services fees balance for the nine months ended September 30, 2021 is as follows (Dollar amounts in thousands of U.S. dollars).
|  | September 30, 2021 |
Balance, beginning of period |  | $ | 111,066 |
Deferral of costs |  |  | 130,520 |
Recognized costs |  |  | (128,390 | )
Balance, end of period |  | $ | 113,196 |

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