Note 12 - Deposit for Purchasing of Software Technology

9 Months Ended

Sep. 30, 2015

Deposits For Purchasing Assets [Abstract]

Deposits For Purchasing Assets [Text Block]

12. Deposit and prepayment for purchasing of software technology

The Company entered into a contract to purchase software products related to cloud video management system from an unrelated third party with a total contract amount of RMB9.5 million (approximately US$1.5 million). The Company has paid in the aggregate of RMB6.65 million (approximately US$1.05 million) in accordance with the payment schedule set forth in the contract. As of the date hereof, the Company is trial testing these software applications. The transaction as contemplated under the contract is expected to be consummated in mid 2016.

The amount of US$0.85 million as of December 31, 2014 was related to a software development contract which has been terminated in early November 2015. In accordance with the agreement between the Company and the counter party, the Company agreed to compensate the counter party RMB0.39 million (approximately US$0.06 million), and the remaining balance of the prepayment, which has been transferred to other receivable account, will be refunded to the Company.