Dividend to Series A convertible preferred stockholders was accrued at the per annum rate of 10% and calculated based on US$2.5 per share liquidation preference and the actual number of days of each share of the Series A convertible preferred stock outstanding for each of the reporting periods. On August 21, 2011, all of the Company’s outstanding Series A convertible preferred stock, which had not been voluntarily converted into the Company’s common shares, were fully converted into the Company’s common shares under the mandatory conversion clause entered into by and between the Company and its Series A convertible preferred stockholders. For the six months ended June 30, 2012 and 2011, the Company paid dividends of approximately US$5,000 and US$283,000 to its Series A convertible preferred stockholders, respectively. For the three months ended June 30, 2012 and 2011, the Company paid US$nil and approximately US$112,000 to its Series A convertible preferred stockholders, respectively.