Asus 2010 Annual Report Download - page 123
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119
estimated and recognized the possible expenses for this litigation. In 2010, this patentee has
withdrawn its lawsuit as the parties have reached a settlement.
C. In July 2009, a US W company filed a lawsuit against the Company and its US subsidiary
for patent infringement of notebooks. In 2010, the Court dismissed the case. The
Company and its subsidiary were dismissed without prejudice.
D. In July 2009, a US B company filed a lawsuit against the Company’s US subsidiary and
other third parties for patent infringement of flash memory chips. In July 2009, B company
also filed an investigation with the United Sates International Trade Commission (‘ITC)
against the Company’s suppliers and its customers. In 2010, B Company and Supplier S
have reached a settlement.
E. In May 2010, as US G Company filed a lawsuit against the Company’s US subsidiary for
patent infringement of notebooks. The case has been settled in 2010.
F. Several patentees filed lawsuits or investigations for patent infringement against the
Company. These lawsuits or investigations are currently under investigation in a
Delaware court, in an East Texas court, in a California court, in a Florida court and in a
Shanghai court. The outcome of these lawsuits is not certain. The Company
continuously evaluates the possible loss, and a provision has been estimated and recognized
in the books.
(3) To ensure the supply of raw materials, the Company has entered into an agreement with a
supplier for a guaranteed quantity of materials supply at a discount to market price or at agreed
price. The Company prepaid $5,453,742, which was recognized as prepayment as of
December 31, 2010.
(4) The Company entered into operating lease contracts for its offices and parking spaces.
Future lease payments under those leases are as follows:
Year Amount
2011 $ 202,240
2012 189,339
2013 105,833
8. SIGNIFICANT DISASTER LOSS: NONE.
9. SUBSEQUENT EVENTS:
The Board of Directors of the Company in December, 2010 adopted a resolution to buy back
10,000,000 shares of the Company’s issued and outstanding stocks as treasury stocks from
December 10, 2010 to February 9, 2011, with the purposes of enhancing the Company’s credit
rating and the stockholders’ equity. As of the financial reporting date, all the shares above had
been bought back in the amount of $2,609,422.
10.OTHERS
(1) Financial statement presentation
Certain accounts in the financial statements as of and for the year ended December 31, 2009
were reclassified to conform with the 2010 financial statements presentation.