Letter To Shareholders - Mitac

3) Property transactions:
In 2009 and 2008, the Company sold equipment and molds to third region and
Mainland China subsidiaries amounting to $20 and $267, respectively. The total
disposal gain was $4 and $109, respectively.
In 2009 and 2008, the Company purchased equipments and molds from third region
and Mainland China subsidiaries amounting to $1,095 and $0, respectively.
4) Accounts payable:
The Company to Mainland China subsidiaries:
December 31,
2009 2008
MiTAC Computer (Shunde) Corp. $ 447,141 $ 415,004
MiTAC Computer (Kunshan) Co., Ltd. 2,486,416 1,584,515
$ 2,933,557 $ 1,999,519
5) Loans to third region and Mainland China subsidiaries: None.
6) The endorsements and guarantees provided by the Company to Mainland China
subsidiaries:
i) As of December 31, 2009 and 2008, the Company guaranteed and endorsed the
bank loans of MiTAC Computer (Shunde) Corp. through Silver Star
Developments Ltd. amounting to $0 and $388,800, respectively.
7) Other significant transactions which affect current income or financial conditions:
i) In 2009 and 2008, the Company paid warranty expense to the subsidiaries in
Mainland China amounting to $266,707 and $343,516, respectively.
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