Property and Equipment

6 Months Ended

Jun. 30, 2012

8.	Property and Equipment

During 2011, the Company recorded an impairment charge of $39,000 related to furniture and office equipment at Sinotop and AdNet. After settlement with the vendor we recorded a net impairment expense of approximately $33,000 related to the faulty equipment at Sinotop.

Property and equipment approximated the following:

	June 30,			December 31,
	2012			2011

Furniture and office equipment	$	3,313,000		$	2,088,000
Headend facilities and machinery		16,007,000			16,724,000
Leasehold improvements		171,000			310,000
Vehicles		108,000			30,000
Total property and equipment		19,599,000			19,152,000
Less: accumulated depreciation		(15,593,000	)		(14,053,000	)
Net carrying value	$	4,006,000		$	5,099,000

We recorded depreciation expense of approximately $733,000 and $1,477,000 for the three and six months ended June 30, 2012 and we recorded depreciation expense of approximately $604,000 and $1,168,000 for the three and six months ended June 30, 2011.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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