Note 12 - Deposit for Purchasing of Software Technology

12 Months Ended

Dec. 31, 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). As of December 31, 2015, the Company has paid in the aggregate of RMB6.65 million (approximately US$1.02 million) in accordance with the payment schedule set forth in the contract. The Company is currently in test trials for this system. The transaction as contemplated under the contract is expected to be consummated in 2016.

The amount of US$0.85 million prepayment as of December 31, 2014 was related to a software development contract which has been terminated in 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 had been fully refunded to the Company as of December 31, 2015.

In November 2015, the Company entered into a contract to engage an unrelated third party to develop software systems related to Internet operation safety, information exchange security and data encryption and management. The total contract amount was RMB13 million (approximately US$2 million). The Company has paid approximately RMB9.1 million (approximately US$1.4 million) during the first fiscal quarter of 2016. The transaction as contemplated under the contract is expected to be consummated in 2016.