| Commitments and contingencies |
Note 20 – Commitments and contingencies
From time to time, the Company is involved in legal matters arising
in the ordinary course of business. Management currently is
not aware of any legal matters or pending litigation, which would
have a significant effect on the Company’s consolidated
financial statements as of December 31, 2011 and 2010.
Our contractual obligations primarily consist of operating lease
obligations and capital commitments. The following table sets forth
a breakdown of our contractual obligations as of December 31, 2011,
and their maturity profile:
| |
|
Payment Due by Period |
|
| |
|
Total |
|
|
Less than 1
Year |
|
|
1-3 Years |
|
|
3-5 Years |
|
|
More than 5
Years |
|
| |
|
(U.S. Dollar) |
|
| Capital contributions
(1) |
|
|
2,250,040 |
|
|
|
500,000 |
|
|
|
1,750,040 |
|
|
|
- |
|
|
|
- |
|
| Operating lease obligations
(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| - Honesty
Group |
|
|
314,057 |
|
|
|
68,109 |
|
|
|
147,569 |
|
|
|
98,379 |
|
|
|
- |
|
| Total |
|
|
2,564,097 |
|
|
|
568,109 |
|
|
|
1,897,609 |
|
|
|
98,379 |
|
|
|
- |
|
|
(1) |
The registered capital of SGOCO
(Fujian) and Beijing SGOCO are $2,200,000 and $500,000,
respectively. As of December 31, 2011, SGOCO International had paid
capital of $449,960 and $nil to SGOCO (Fujian) and Beijing SGOCO,
respectively. SGOCO International must pay the rest obligations
within two years of the date of issuance of each subsidiary’s
business license according to PRC registration capital management
rules. As of March 19, 2012, SGOCO International had paid
registered capital of $100,950 to Beijing SGOCO. |
|
(2) |
Lease
obligations for our office premises,
warehouses, computer and other hardware. Following the Sale
of Honesty Group, the Company rents from Honesty Group 3,000 square
meters for office premises, warehouses and staff dormitory in
Fujian at a monthly rent of RMB41,000 for a period of 1-7 years
from July 1, 2011. |
|