Note 25 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

25. Commitments and contingencies

The following table sets forth the Company’s operating lease commitment as of September 30, 2015:

	Office Rental
	US$(’000)
	(Unaudited)
Three months ending December 31,
-2015		100
Year ending December 31,
-2016		130
Total		230

For the nine months ended September 30, 2015 and 2014, rental expenses under operating leases were approximately US$337,000 and US$393,000, respectively. For the three months ended September 30, 2015 and 2014, rental expenses under operating leases were approximately US$115,000 and US$132,000, respectively.

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 and the remaining unpaid contract amount is expected to be paid before mid 2016.

In accordance with the contract entered into between the Company and its largest internet resources supplier, the Company agreed to purchase in the aggregate of RMB100 million (“the minimum consumption amount”) (approximately US$15.7 million) from this supplier for a one-year period commencing on June 13, 2015. In accordance with this contract, if the Company fails to meet the minimum consumption amount, the supplier is allowed to require the Company to retroactively compensate the supplier in cash the difference between the granted discount rate set forth based on the minimum consumption amount and any revised discount rate set forth based on further negotiation between the two parties, if the Company is able to achieve 50% of the minimum consumption amount. If the Company fails to achieve 50% of the minimum consumption amount, the Company is not eligible to enjoy any discount.

The Company evaluated the consumption amount that most probably will be achieved during the contract period, based on the most recently available information, its own historical experience and various other assumptions that the Company believed to be reasonable under the circumstances and concluded that more likely than not the Company will be able to achieve 50% of the minimum consumption amount but may not be able to achieve the minimum consumption amount. As a result, the Company calculated a most probable amount of cash compensation attributable to the nine and three months ended September 30, 2015 that may be charged by the supplier of approximately RMB 2.59 million (approximately US$0.41 million), based on a decreased discount rate that the Company believes reasonable under the circumstances.