Letter To Shareholders - Mitac

E. Accounts payable
As of December 31, 2009 and 2008, the accounts payable to related parties were
$791,833 and $452,834, respectively.
F. Other payables
As of December 31, 2009 and 2008, the other payables to related parties were $32,377
and $42,757, respectively.
G. During 2009 and 2008, the Company paid to related parties expenses amounting to
$103,328 and $55,247, respectively.
H. (a) During 2009 and 2008, the Company sold machinery and mold equipment to
related parties at the sales price of $4,640 and $2,999 and recognized a gain of
$254 and $1,210, respectively. In 2009, the Company disposed of land and
buildings to MiTAC Inc. in the amount of $587,000. Gain on disposal was
$196,386. According to the sales agreement, the total selling price will be
collected in three installments within two years. MiTAC Inc. had issued
installment notes to the Company. As of December 31, 2009, notes of $397,650
had not been cashed yet.
(b) During 2009 and 2008, the Company purchased machinery and mold equipment
from Getac Technology Corp.(GTC) and its subsidiaries at the purchase price of
$296,032 and $254,135, respectively.
During 2009 and 2008, the Company purchased machinery and mold equipment
from other related parties at the purchase price of $4,407 and $1,669,
respectively.
I. As of December 31, 2009 and 2008, MiTAC Technology Corp. provided guarantees
for rent to the Company amounting to $3,600.
J. In 2009 and 2008, the Company earned rent revenue from related parties amounting to
$63,743 and $33,020, respectively.
In 2009 and 2008, the Company paid rent expenses to related parties amounting to
$10,216 and $9,644, respectively.
K. Directors’, supervisors’ and key managers’ salary, bonus, and remuneration
2009 2008
Salaries, bonus, and service execution fees $ 94,099 $ 129,439
Remuneration 5,534 4,008
$ 99,633 $ 133,447
(a)Salaries included wages, bonuses, meal expense, retirement pension, employees’
bonuses and travel allowance.
(b)Remuneration included appropriation of directors’ and supervisors’ remuneration and
employees’ bonuses.
(c)The relevant information above was disclosed in the Company’s annual report.
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