Note 25 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

25. Commitments and contingencies

The following table sets forth the Company’s operating lease commitment as of

December

31,

2016:

	Office Rental
	US$(’000)
Year ending December 31,
-2017		529
-2018		528
-2019		110
Total		1,167

Excluding rental expenses included in discontinued operation, for the years ended

December

31,

2016

and

2015,

rental expenses under operating leases were approximately

US$580,000

and

US$377,000,

respectively.

In accordance with the contract entered into between the Company and

one

of its largest internet resources suppliers, the Company agreed to purchase in the aggregate of

RMB100

million (“the minimum consumption amount”) (approximately

US$14.4

million) from this supplier for a

one

-year period commencing on

June

13,

2015.

In accordance with this contract, if the Company failed to meet the minimum consumption amount, the supplier was 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 was able to achieve

50%

of the minimum consumption amount. If the Company failed to achieve

50%

of the minimum consumption amount, the Company was not eligible to enjoy any discount. As of

December

31,

2015,

the Company believed that it could not achieve the minimum consumption amount. The Company then estimated its loss from loss contingencies based on the negotiation between the supplier at that time and concluded that more likely than not, the Company would only be charged for approximately

US$0.13

million as compensation for not achieving the original minimum consumption amount, which equaled to the deposit withheld by this supplier upon entering into the original contract. The contract expired on

June

12,

2016,

based on the final agreed compensation plan between the

two

parties, the Company compensated the supplier approximately

US$0.13

million for failing to meet the minimum consumption amount.