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Note 11 - Cost to Obtain and Fulfill a Contract
 6 Months Ended
Jun. 30, 2023
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, 2023, the Company deferred $89.4 million and amortized $85.9 million of contract costs. There was no impairment loss recognized in relation to the costs capitalized during the six months ended June 30, 2023. 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, 2023 is as follows (Dollar amounts in thousands of U.S. dollars). 

 

  June 30, 2023 
     

Balance, beginning of period

 $110,674 

Deferral of costs

  89,366 

Recognized costs

  (85,882)

Balance, end of period

 $114,158