Letter To Shareholders - Mitac

B. The Company's investee, G. Marso Electronics, Inc., made a capital reduction in
2009 to cover its accumulated deficit. As a result, the number of shares invested by
the Company was reduced by 894 thousand shares. The Company assessed that
the investment value had been impaired and the probability of recovery was remote,
thus, it recognized impairment loss of $8,982 on its investment in G. Marso
Electronics, Inc. for 2009.
C. The Company's investee, Cirocomm Technology Corporation, made a capital
reduction in 2009 to cover its accumulated deficits. As a result, the number of
shares invested by the Company was reduced by 631 thousand shares. The
Company assessed that the investment value had been impaired and the probability
of recovery was remote, thus, it recognized impairment loss of $25,539 on its
investment in Cirocomm Technology Corporation for 2009.
D. The Company assessed that the investment value on its investee, Brilliant Star
Holdings Ltd., had been impaired and the probability of recovery was remote, thus,
it recognized impairment loss of $16,335 on its investment in Brilliant Star
Holdings Ltd. for 2009.
5) Accounts receivable - net
December 31,
2009 2008
Third parties $ 12,942,250 $ 9,440,135
Less: Allowance for sales rebate ( 2,658,772 ) ( 1,125,182 )
Allowance for doubtful accounts ( 283,991 ) ( 214,317 )
9,999,487 8,100,636
Related parties 2,647,292 3,071,199
$ 12,646,779 $ 11,171,835
6) Inventories – net
December 31,
2009 2008
Raw materials $ 4,895,699 $ 3,921,315
Finished goods 4,679,001 5,674,953
9,574,700 9,596,268
Less: Allowance for obsolescence and market value
decline ( 1,404,677 ) ( 1,523,435 )
$ 8,170,023 $ 8,072,833
Expense and loss incurred on inventories for the years ended December 31, 2009 and 2008
were as follows:
For the years ended
December 31,
2009 2008
Cost of goods sold $ 55,029,169 $ 55,996,250
Market value decline 346,218 872,558
Others 414,452 479,177
$ 55,789,839 $ 57,347,985
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