Quarterly report pursuant to sections 13 or 15(d)

COMMITMENTS

v2.4.0.8
COMMITMENTS
6 Months Ended
Jun. 30, 2013
Commitments and Contingencies Disclosure [Abstract]  
Commitments Disclosure [Text Block]
 
26.
COMMITMENTS
 
 
(a)
Operating lease commitments
 
China Dredging
 
The total future minimum lease payments under non-cancellable operating leases with respect to dredgers, crew, consumable parts and office as of June 30, 2013 were payable as follows:
 
 
 
Hire charge
 
Hire charge
 
Consumable
 
 
 
 
 
 
 
 
 
of dredgers
 
of crew
 
parts supply
 
Office rental
 
Total
 
For the years ended
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2013
 
$
2,505,133
 
$
868,217
 
$
6,069,345
 
$
-
 
$
9,442,695
 
2014
 
 
2,186,050
 
 
942,018
 
 
4,046,230
 
 
12,836
 
 
7,187,134
 
2015
 
 
773,943
 
 
586,568
 
 
-
 
 
12,836
 
 
1,373,347
 
 
 
$
5,465,126
 
$
2,396,803
 
$
10,115,575
 
$
25,672
 
$
18,003,176
 
 
The operating lease commitments below include both the related parties commitments and non-related parties commitments. The total future lease payments as of June 30, 2013 are summarized as follows:
 
 
 
Hire charge
 
Hire charge
 
Consumable
 
 
 
 
 
 
 
 
 
of dredgers
 
of crew
 
parts supply
 
Office rental
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Related parties commitments
 
$
-
 
$
360,109
 
$
-
 
$
25,672
 
$
385,781
 
Non-related parties commitments
 
 
5,465,126
 
 
2,036,694
 
 
10,115,575
 
 
-
 
 
17,617,395
 
 
 
$
5,465,126
 
$
2,396,803
 
$
10,115,575
 
$
25,672
 
$
18,003,176
 
 
Rental expenses under non-cancellable operating leases arrangements for the three months ended June 30, 2013 and 2012 was $2,659,020 and $5,931,600, respectively, of which $130,109 and $287,409 respectively, was paid to the related parties (see Note 24).
 
Rental expenses under non-cancellable operating leases arrangements for the six months ended June 30, 2013 and 2012 was $5,397,288 and $11,893,927, respectively, of which $257,750 and $575,180, respectively, was paid to the related parties (see Note 24).
 
Merchant Supreme
 
Pingtan Fishing leased office from Ping Lin. Pursuant to a rental agreement entered into on July 31, 2012 with three-year term, annual lease is $13,590. The total future minimum lease payments under non-cancellable operating leases with respect to the office as of June 30, 2013 were as follows:
 
 
 
Office rental
 
Total
 
For the years ended December 31,
 
 
 
 
 
 
 
2013
 
$
6,843
 
$
6,843
 
2014
 
 
13,687
 
 
13,687
 
2015
 
 
7,984
 
 
7,984
 
 
 
$
28,514
 
$
28,514
 
 
The operating lease commitments below include both the related parties commitments and non-related parties commitments. The total future lease payments as of June 30, 2013 are summarized as follows:
 
 
 
Office rental
 
Total
 
 
 
 
 
 
 
 
 
Related parties commitments
 
$
28,514
 
$
28,514
 
Non-related parties commitments
 
 
-
 
 
-
 
 
 
$
28,514
 
$
28,514
 
 
Rental expenses under non-cancellable operating leases arrangements for the three months ended June 30, 2013 and 2012 was $76,024 and $114,834, respectively, of which $3,417 and $67,739 are paid to the related parties (Note 24).
 
Rental expenses under non-cancellable operating leases arrangements for the six months ended June 30, 2013 and 2012 was $151,177 and $240,237, respectively, of which $6,795 and $193,142 are paid to the related parties (Note 24).
 
 
(b)
Capital commitments
 
PME
 
PME had the following capital commitments as of June 30, 2013:
 
Promissory note:
 
 
 
 
Outstanding principal
 
$
155,166,195
 
Outstanding interest
 
 
12,430,301
 
 
 
$
167,596,496
 
 
The future payments required under the promissory note as of June 30, 2013 are as follows:
 
For the years ended December 31,
 
 
 
 
 
2013
 
 
$
3,332,885
 
2014
 
 
 
6,206,648
 
2015
 
 
 
158,056,963
 
 
 
 
$
167,596,496
 
 
China Dredging
 
CDGC had the following capital commitments as of June 30, 2013:
 
Contracted, but not provided for:
    Acquisition of dredgers, net of deposit paid
 
$
51,324,665
 
 
The future payments required under the construction contracts as of June 30, 2013 are as follows:
 
For the year ended December 31, 2013
 
$
51,324,665
 
 
Merchant Supreme
 
Merchant Supreme had the following capital commitments as of June 30, 2013:
 
Contracted, but not provided for:
    Acquisition of fishing vessels, net of deposit paid
 
$
4,316,877
 
 
The future payments required under the purchase contracts as of June 30, 2013 are as follows:
 
For the year ended December 31, 2013
 
$
4,316,877