Property and Equipment

12 Months Ended

Dec. 31, 2011

9. Property and Equipment

During 2010, the Company analyzed for impairment the equipment at its Jinan Broadband subsidiary, as the equipment was taken out of service in July 2010 due to changes in customer needs. As of December 31, 2010, the Company determined there were no other uses for the equipment and that the equipment cannot be sold. As such, the Company recorded a total equipment impairment charge of approximately $1,505,000 in 2010 which was allocated to headeand facilities and machinery. In 2011, the Company recorded impairment charges of $188,000 related to furniture and office equipment at Sinotop and AdNet. An impairment charge of approximately $183,000 related to Sinotop was due to faulty equipment. After settlement with the vendor we recorded a net impairment expense of approximately $33,000 related to the faulty equipment.

Property and equipment approximated the following:

	December 31,			December 31,
	2011			2010

Furniture and office equipment	$	2,088,000		$	1,241,000
Headend facilities and machinery		16,724,000			14,257,000
Leasehold improvements		310,000			144,000
Vehicles		30,000			30,000
Total property and equipment		19,152,000			15,672,000
Less: accumulated depreciation		(14,053,000	)		(11,064,000	)
Net carrying value	$	5,099,000		$	4,608,000

We recorded depreciation expense of approximately $2,505,000 and $2,899,000 for the years ended December 31, 2011 and 2010, respectively.

- 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.

+ References+ Details