ACER — AGM Information 2016

Jul 12, 2016

MINUTES OF 2016 ANNUAL SHAREHOLDERS' MEETING

OF ACER INCORPORATED

(Translation)

The translation is intended for reference only and nothing else. The Chinese text of the Minutes of 2016 Annual Shareholders' Meeting shall govern any and all matters related to the interpretation of the subject matter stated herein.

Time and Date of Meeting: 9:00 a.m., June 24, 2016

Place of Meeting: 4F., No. 99, Sec. 1, Xintai 5th Rd. ,Xizhi Dist., New Taipei City

(Place of the Meeting: Farglory International Convention Center)

Total outstanding shares of ACER (excluding the shares without voting right as stipulated in Article 179 of the Company Law): 3,063,633,833 shares

Total shares represented by shareholders present in person or proxy: 1,601,701,674 shares

Percentage of shares held by shareholders present in person or proxy: 52.28%

The attendance list of the directors:

George Huang, Jason C.S. Chen, Philip Peng and F. C. Tseng

Chairman: George Huang

Recorder: Nancy Hu

The aggregate shareholding of the shareholders present in person or proxy constituted a quorum. The Chairman called the meeting to order.

Chairman's Address : (Omitted)

1. Proposed Resolutions (A)

Item 1

Proposal: To Approve Amendments to the Company's Articles of Incorporation. (Proposed by the Board of Directors)

Explanatory Notes:

(1) Due to the amendment of Article 235, 235-1 and 240 of Company Act made on May 20, 2015, instead of calculating by "profit after taxes" and distributed from retained earnings, a company shall, after deducting the cumulative losses (if any), calculate employee and Director remuneration from "profit before taxes" by applying the ratio prescribed in the Articles of Incorporation. Therefore, it is now proposed to modify employee and Director's remuneration ratio by amending Article 16-1, 20~ 22 of Article of Incorporation. Please refer to Attachment 1, pages 13 to 14, for the comparison table.

(2) Please discuss.

Voting Results: Shares present at the time of voting: 1,599,670,108 (votes casted electronically: 540,172,623 votes)

	Voting Results*	% of the total represented share present
Votes in favor:	1,445,130,369 votes
	(387,229,517 votes)	90.34%
Votes against :	263,553 votes
	(259,552 votes)	0.02%
Votes invalid or abstained:	154,276,186 votes
	(152,683,554 votes)	9.64%

*including votes casted electronically (number in brackets)

RESOLVED, that the above proposal be and hereby was approved as proposed.

2. Report Items

• (1) To Report the Business of 2015 Explanatory Notes: Please refer to Attachment 2, page 15.
• (2) To Report the Execution of Sound Business Plan Explanatory Notes:
• I. In accordance with the Certificated No. 1030039103 issued by Financial Supervisory Commission, R.O.C. (Taiwan) on October 21, 2014, hereby to report the execution status of sound business plan for cash injection of issuing a total number of 300,000 thousand shares. Please refer to the Attachment 3, page16.
• II. The application and purpose of the utilization plan aforesaid had been achieved as of December 31, 2015. .
• (3) Audit Committee's Review Report Explanatory Notes: Please refer to Attachment 4, page17.
• (4) To Report the Execution of 2015 Employees' Compensation and Board Directors' Remuneration Explanatory Notes: Please refer to Attachment 5, page 18.

Speech from shareholders: shareholder registered number 0519823 and 0776988 had questions about the schedule of company organizational change and the deadline of announcement for monthly revenue, the questions were responded by the Chairman and the assigned.

3.Proposed Resolutions (B)

Item 2

Proposal: To Accept 2015 Financial Statements and Business Report. (Proposed by the Board of Directors)

Explanatory Notes:

• (1) Acer's 2015 Financial Statements, including the Balance Sheets, Statements of Comprehensive Income, Statements of Changes in Equity and Statements of Cash Flow have been audited by independent auditors, Tzu-Chieh Tang and Wei-Ming Shih of KPMG.
• (2) The 2015 Business Report and the aforementioned financial statements are attached as Attachment 2, page 15 and Attachment 6, pages 19 to 32, which have been approved by the Audit Committee and resolved by the Board of Directors with resolution and are hereby submitted for acceptance.
• (3) Please discuss.
• Voting Results: Shares present at the time of voting: 1,601,101,275 (votes casted electronically: 540,172,623 votes)

	Voting Results*	% of the total represented share present
Votes in favor:	1,433,966,500 votes
	(376,520,326 votes)	89.56%
Votes against :	277,383 votes	0.02%
	(264,867 votes)
Votes invalid or abstained:	166,857,392 votes	10.42%
	(163,387,430 votes)

*including votes casted electronically (number in brackets)

RESOLVED, that the above proposal be and hereby was approved as proposed.

Item 3

Proposal: To Approve the Proposal for Distribution of 2015 Retained Earnings. (Proposed by the Board of Directors)

Explanatory Notes:

(1) The beginning balance of the un-appropriated retained earnings of the Company is NT\$0 in 2015. After plus the net income after tax for 2015, NT\$603,680,268 and deduct retained earnings of NT\$83,445,509 which is caused by the retirement of treasury stock and the restatement of IFRS version update, the total accumulative retained earnings available for appropriation is NT\$520,234,759.

• (2) In compliance with the Company Law, to appropriate the annual retained earnings, it is required to set aside NT\$52,023,476 as legal reserve and NT\$468,211,283 as special reserve, the ending balance of the un-appropriated retained earnings is NT\$0.
• (3) It is proposed not to pay dividends.
• (4) Please discuss

Acer Incorporated 2015 Statement of Distribution of Retained Earnings Unit:NT\$

Beginning Balance of Un-appropriated Retained Earnings	0
Plus:2015 Net Income after Tax	603,680,268
Deduct: retained earnings caused by the retirement of treasury
stock and the restatement of IFRS version update	(83,445,509)
Accumulative Retained Earnings Available for Appropriation in
2015	520,234,759
Items of appropriation:
Deduct: Legal Reserve	(52,023,476)
Deduct: Special Reserve	(468,211,283)
Ending Balance of Un-appropriated Retained Earnings	0

Voting Results: Shares present at the time of voting: 1,601,101,275 (votes casted electronically: 540,172,623 votes)

Voting Results*		% of the total represented
		share present
Votes in favor:	1,444,545,342 votes
	(387,116,806 votes)	90.22%
Votes against :	394,454 votes
	(364,300 votes)	0.03%
Votes invalid or abstained:	156,161,479 votes
	(152,691,517 votes)	9.75%

*including votes casted electronically (number in brackets)

RESOLVED, that the above proposal be and hereby was approved as proposed.

Item 4

Proposal: To Approve the Proposal of Cash Distribution from the Capital Surplus. (Proposed by the Board of Directors)

Explanatory Notes:

• (1) In accordance with Article 241 of the Company Act, it is proposed a cash distribution of 1,540,501,414 from the capital surplus derived from any common stock issued by the Company. The cash will be distributed to the shareholders whose names and respective shares are in the shareholders' register on the record date for ex-dividend, at a ratio of NT\$ 0.5 per share (Rounded down to full NT dollar and the fractional amounts will be aggregately recognized as the Company's other income).
• (2) Should the cash distribution be adjusted due to the amendment of laws or regulations, a request by competent authorities, or any change of the numbers of outstanding share, subject to the approved distribution, it is proposed the General Shareholders' Meeting to authorize the Board of Directors with full power to adjust the distribution ratio.
• (3) Subject to this cash distribution approved by the General Shareholders' Meeting, it is proposed the General Shareholders' Meeting to authorize the Board of Directors with full power to determine the record date for the cash distribution from capital surplus.

(4)Please discuss.

Voting Results: Shares present at the time of voting: 1,601,101,275 (votes casted electronically: 540,172,623 votes)

Voting Results*		% of the total represented share present
Votes in favor:	1,444,595,588 votes (387,185,414 votes)	90.23%
Votes against :	351,200 votes (332,684 votes)	0.02%
Votes invalid or abstained:	156,154,487 votes (152,654,525 votes)	9.75%

*including votes casted electronically (number in brackets)

RESOLVED, that the above proposal be and hereby was approved as proposed.

Item 5

Proposal: To Accept the Modification of the 2014 Utilization Plan of Funds Obtained Through the Sale of New Stocks. (Proposed by the Board of Directors)

Explanatory Notes:

(1) This 2014 capital increase had been approved by the Financial Supervisory Commission on October 21, 2014 (#1030039103). The original version of the utilization plan of funds and the estimated effects are shown in Appendix 2, page 39.

	Estimated			Utilization plan
Purpose	Utilizatio	Required		Y2015
	n Date	Amount	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Pay off bank loan	Q4, 2014	3,600,000	--	1,800,000	--	1,800,000
Redemption repayment from the put option executed by the ECB holders	Q3, 2015	3,515,899	--	--	3,515,899	--
Summary	-	7,115,899	--	1,800,000	3,515,899	1,800,000

(2) The original version of the utilization plan is as follows:

In thousands of New Taiwan Dollars

(3) Reasons of modifications of the utilization plan:

Redemption repayment from the put option executed by the ECB holders in the original plan was implemented in Q2 2015. Due to the costs is lower than the redemption repayment from the put option, Acer had been continually purchasing back and cancelling the convertible bond from the market. The current amount of the convertible bond has been lessened from USD103,800,000 to USD13, 400,000. Therefore, as of the expiration date of the options (July 27, 2015), only NT \$ 459,815,000 of the convertible bonds had been sold back by the bondholders, and NT \$ 1,340,185,000 of the increased capital remain unspent. For the effective use of the funds, it is proposed to change the purpose of the funds from "redemption repayment from the put option executed by the ECB holders" to "strengthen operating capital", which will be able to effectively save interest of short-term bank financing expenditure and reduce financial burden.

• (4) Impact on shareholders' interest: As a response to changes in the financial planning, ACER reserves to maintain a stable banking facilities and working capital. The proposed modification will increase flexibility and scheduling the use of funds and to improve the financial structure in the long run, there is no significant negative impact on shareholders' interest.

• (5) For the proposed utilization plan of funds and the estimated effects, please see Appendix 3, page 40.

• (6) Other information regarding the modifications of the plan, please see Appendix 4, pages 41 to 42.

• (7) For the evaluation by the lead securities underwriter, please see Appendix 5, pages 43 to 44.
• (8) The modification not only shall be announced to the public in accordance with relevant regulations, but also has been approved by the Board of Directors on August 6, 2015.
• (9) Please discuss.
• Voting Results: Shares present at the time of voting: 1,601,101,275 (votes casted electronically: 540,172,623 votes)

Voting Results*		% of the total represented
		share present
Votes in favor:	1,444,278,236 votes
	(386,839,445 votes)	90.21%
Votes against :	526,863 votes
	(526,863 votes)	0.03%
Votes invalid or abstained:	156,296,176 votes
	(152,806,315 votes)	9.76%

*including votes casted electronically (number in brackets)

RESOLVED, that the above proposal be and hereby was approved as proposed.

4.Extemporary Motion

Speech from shareholders: shareholder registered number 0776988, 0851799, 0866224 and 0038933 had questions and comments about the directions of company and business development, board directors' and managements' remuneration and financial statement, the questions were responded by the Chairman and the assigned.

5.Meeting Adjourned : 10:40 a.m.

Note: This document is extracted from the meeting; the details are subject to the audio and video recording.

Acer Incorporated Articles of Incorporation

(Before and After Revision Chart)

Before Revision	After Revision	Rationale
Article 16-1	Article 16-1	Amendment
The Board of Directors is authorized to determine the compensation recommended by the Remu- neration Committee for the directors, taking into account the extent and value of the services provided for the management of the Corporation and the standards of the industry within the R.O.C. and overseas, no matter whether the Company has profit or suffered loss.	The Board of Directors is authorized to determine the compensation recommended by the Remu- neration Committee for the directors, taking into account the extent and value of the services provided for the management of the Corporation and the standards of the industry within the R.O.C. and overseas, no matter whether the Company has profit or suffered loss.	of Article 235. 235-1 and 240 of Company Act.
Where this Company has earnings, the remunera- tion of directors shall be distributed in accordance with Article 20 of these Articles of Incorporation.	Where this Company has earnings, the remuneration of directors shall be distributed in accordance with Article 20 of these Articles of Incorporation. Where there is profit in each fiscal year, after covering the accumulated losses, not more than one percent (1%) of the profit shall be distributed as remuneration of directors; the standard for distribution of remuneration will be recommended by Remuneration Committee and determined by the Board of Directors.
(N/A)	Article 20 Where there is profit at the end of each fiscal year, after covering the accumulated losses, at least 5% of the profit shall be distributed as employees' compensation. The employees' compensation in the previous section shall be distributed, in the form of either cash or stock bonus, by resolution approved by a majority voting attended by two-thirds of the directors of the Company. Qualification requirements of the employees who are entitled to receive the employees' compensation may be specified by the Board of Directors.	Amendment of Article 235. 235-1 and 240 of Company Act regarding employees' compensation.

r - Paul Mund Chauden Carlos Before Revision	After Revision	Rationale
Article 20	Article 2021	Amendment of Article 235,
Where this Company has earnings at the end of the fiscal year, after paying all relevant taxes, mak- ing up losses of previous year, this Company shall first set aside ten percent (10%) of said earnings as legal reserve, except that such legal reserve amounts to the total authorized capital. There- after, this Company shall set aside or reverse a special reserve in accordance with the applicable laws and regulations. Any balance left over shall be distributed as follows:	Where this Company has earnings at the end of the fiscal year, after paying all relevant taxes, mak- ing up losses of previous year, this Company shall first set aside ten percent (10%) of said earnings as legal reserve, except that such legal reserve amounts to the total authorized capital. There- after, this Company shall set aside or reverse a special reserve in accordance with the applicable laws and regulations. Any balance left over shall be distributed as follows:	235-1 and 240 of Company Act.
1 Over Five percent (5%) for bonuses to employ- ees. When the employee bonuses will be paid in the form of share bonuses, the employees entitled to such share bonuses may include employees of subsidiaries of this Company satisfying certain cri- teria. The criteria shall be formulated by the board of directors:	1. Over Five percent (5%) for bonuses to employees. When the employee bonuses will be- paid in the form of share bonuses, the employees- entitled to such share bonuses may include employees of subsidiaries of this Company satisfying certain criteria. The criteria shall be- formulated by the board of directors;
2. Not more than one percent (1%) for remuner- ation of directors, the standard for distribution of remuneration will be recommended by Remuner- ation Committee and determined by the Board of Directors:	2. Not more than one percent (1%) for remuneration of directors, the standard for distribution of remuneration will be recommended by Remuneration Committee and determined by the Board of Directors:
The remainder together with previous year amount, after an amount is reserved for operation needs, shall be allocated to shareholders as bo- nuses. Except distribution of reserve in accordance with competent laws and regulations, the Compa- ny shall not pay dividends or bonuses when there is no profit.	The remainder together with previous year amount, after an amount is reserved for operation needs, shall be allocated to shareholders as bo- nuses. Except distribution of reserve in accordance with competent laws and regulations, the Compa- ny shall not pay dividends or bonuses when there is no profit.
Above distribution ratio may be adjusted upon the consent of shareholders meeting.	Above distribution ratio may be adjusted upon the- consent of shareholders meeting.
Article 21	Article 2422	Adjusting arti- cle numbering
The Company Law and related regulations shall govern any matter not provided in the Articles of Incorporation.	The Company Law and related regulations shall govern any matter not provided in the Articles of Incorporation.
Article 22 (omitted)	Article 2223 (omitted) The forty-third amendment was approved on June 24,2016	Adjusting arti- cle numbering and the date of approval of shareholder's meeting.

Business Report to Shareholders

I am glad to share with you that even though the overall PC industry experienced strong headwinds and challenges over the past year, Acer has steered itself through turbulent waves by the sheer determination to focus on its strengths, and closed the 2015 chapter in profit.

We continued to transform ourselves through our optimized product mix strategies targeting different market segments, and reported 2015 consolidated revenues of NT\$263.78 billion (US\$7.98 billion) and earnings per share of NT\$0.20, reflecting the macro PC industry decline and economic issues encountered in our European and Russian markets.

Along with our ongoing pursuit for product innovation and quality, making high-margin products was also a key. The effectiveness of our well-defined product positioning and product mix strategy was proven with our gross margin each quarter staying at close to 10% (Q1 - 9.8%, Q2 - 10.5%, Q3 $-8.1\%$ , and Q4 - 9.4%).

For Acer's new value creation business development, our BYOC™ cloud services has formed alliances with a variety of partners from different fields of the Internet of Things (IoT). They include smart home, healthcare applications, connected vehicles, and smart classroom applications for Acer to integrate with hardware, software and services, to innovate in the IoT together. Acer will also instill the concept of Internet of Beings (IoB) into all of our products, paving the way for the tight integration of intelligence and devices in the future.

For the development of our new core business, we will combine innovative technology with a people-centric approach. to develop well-designed products with high profitability potential. We will place more resources into new value creation businesses to expand with an even more multi-faceted approach with a broader range of applications, gather more partners to jointly develop and accelerate the growth of the IoT/IoB domain, and mark Acer's place in this exciting and booming industry.

I wish to express my high appreciation to all our shareholders for your long-term support, which has always been one of our greatest encouragements. I am confident that as long as we stand united to transform our organization together through the determination to innovate and overcome challenges, we will successfully stabilize operations and achieve each milestone step by step. I hope that all our stakeholders will continue to uphold their confidence in Acer, and together move forward for a sustainable future!

George theavy

George Huang Acer Chairman

Execution of Sound Business Plan

Units: In Millions of NTD

Executive Section Report Follows ಿ ಅಧ್ಯಕ್ಷರಾಗಿ ಸಂಪರ್ಕ ಾಸಗಳ	Actual for 2015	Proposal for 2015	Hit Rate
2015 Net Income (Loss)	604	1.761	34%
2014 Net Income (Loss)	1.791	632	283%
Net Income (Loss) 2014-2015	2.395	2.393	100%

Units: In Millions of NTD

ltems.	Actual for 2015	Proposal for 2015	Hit Rate o,
Net Revenues	263,775	352,656	75%
COGS	$-238,891$	$-322,583$	74%
Gross Margin	24,884	30,073	83%
S&M	$-17,702$	$-20,248$	87%
G&A	$-4,431$	$-4,907$	90%
R&D.	$-2,089$	$-2,581$	81%
Operating Income	939	2,337	40%
Non-operating Income and Gain	1,006	370	272%
Non-operating Expense and Loss	$-1,098$	$-472$	232%
2015 Net Income (Loss)	604	1,761	34%
Summary		Due to the Euro's sharp decline and China and other emerging markets' weak perfor- mance in 2015, the hit-rate of FY2015 net revenue accounts for merely 75%, 83% for Gross Margin, 40% for Operating Income, and 34% for Net Income.

Audit Committee's Review Report

The Board of Directors has prepared the Company's 2015 Business Report, Financial Statements, and proposal for allocation of profits. The CPA Tzu-Chieh Tang and Wei- Ming Shih from KPMG were retained to audit Acer's Financial Statements and have issued an audit report relating to the Financial Statements. The said Business Report, Financial Statements, and profit allocation proposal have been reviewed and determined to be correct and accurate by the Audit Committee of Acer Incorporated in accordance with Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Act, I hereby submit this Report.

Acer Incorporated Convener of the Audit Committee: F.C. Tseng

March 23, 2016

Execution of 2015 Employees' Compensation and Board Directors' Remuneration

The Board of Directors resolved the appropriation of compensation to employees and remuneration to directors on March 24, 2016. The details of the appropriation are stated below. The aforesaid appropriation will be distributed according to the related provisions and shall be reported to General Shareholders' Meeting.

Units: NTD

化三氯化二苯基苯 医马克氏病 医无线性神经 医单位的 经基本资本 经公司 经公司公司 化二乙酸 医白 $Item$	Amount of Appropriation Resolved by the Board of Directors
Compensation to Employees - Cash	28.200.077
Remuneration to Directors

Note: Through resolution, the Board of Directors waived the right to director's remuneration; the NTD 5,640,000 difference from the recognized expense amounts will be governed by the Changes in Accounting Estimates and deemed as operating income (loss) of 2016.

Independent Auditors' Report

The Board of Directors Acer Incorporated:

We have audited the accompanying consolidated balance sheet of Acer Incorporated (the "Company") and subsidiaries as of December 31, 2015, and their restated consolidated balance sheet as of December 31, 2014, and the related consolidated statements of comprehensive income, restated changes in equity, and cash flows for the years ended December 31, 2015 and 2014. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the "Regulations Governing Auditing and Certification of Financial Statements by Certified Public Accountants" and auditing standards generally accepted in the Republic of China. Those regulations and standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to in the first paragraph present fairly, in all material respects, the consolidated financial position of Acer Incorporated and subsidiaries as of December 31, 2015 and 2014, and the results of their consolidated financial performance and their consolidated cash flows for the years then ended, in conformity with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers", and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed by the Financial Supervisory Commission of the Republic of China.

As described in Note 3 of the consolidated financial statements, starting January 1, 2015, the Company and its subsidiaries prepared the consolidated financial statements in accordance with International Accounting Standards 19 "Employee Benefits" of 2013 Taiwan-IFRS version endorsed by the Financial Supervisory Commission.
Consequently, the consolidated financial statements as of and for the year ended December 31, 2014 have been restated retrospectively.

We have also audited the parent-company-only financial statements of Acer Incorporated as of and for the years ended December 31, 2015 and 2014, on which we have issued a modified unqualified opinion and an unqualified opinion, respectively.

Taipei, Taiwan (the Republic of China) March 24, 2016

This document is an English translation of a report originally issued in Chinese. In the event of a conflict between the English translation and the original Chinese version, the Chinese language auditor's report shall prevail.

Consolidated Balance Sheets

December 31, 2015 and 2014

(in thousands of New Taiwan dollars)

Assets		2014.12.31
	2015.12.31	(Restated)
Current assets:
Cash and cash equivalents	\$ 44,621,527	47,558,651
Financial assets at fair value through profit or loss-current	791,575	1,899,626
Available-for-sale financial assets - current	93,313	146,479
Notes and accounts receivable, net	48,173,027	59,167,731
Accounts receivable from related parties	52,749	23,837
Other receivables	1,309,972	1,261,631
Other receivables from related parties	276	9
Current income tax assets	818,938	1,244,873
Inventories	34,043,598	36,600,487
Other current assets	3,044,802	2,981,846
Total current assets	132,949,777	150,885,170
Non-current assets:
Available-for-sale financial assets - non-current	3,159,771	3,859,807
Investments in associates	155,992	142,461
Property, plant and equipment	4,827,412	5,484,061
Investment property	1,192,699	1,113,067
Intangible assets	26,609,427	26,727,547
Deferred income tax assets	838,146	1,018,564
Other non-current assets	1,065,370	701,834
Other financial assets-non-current	943,609	1,162,526
Total non-current assets	38,792,426	40,209,867
Total assets	171,742,203 \$	191,095,037

$\sim 6\%$

(Continued)

Consolidated Balance Sheets

December 31, 2015 and 2014

(in thousands of New Taiwan dollars)

Liabilities and Equity		2014.12.31
	2015.12.31	(Restated)
Current liabilities:
Short-term borrowings	\$ 2,584,377	317,000
Financial liabilities at fair value through profit or loss-current	318,934	624,227
Notes and accounts payable	42,736,897	54,824,412
Accounts payables to related parties	10,285	13,961
Other payables	38,793,970	42,165,243
Other payables to related parties	1,085	788
Current income tax liabilities	738,507	927,296
Provisions-current	6,979,705	8,972,446
	5,966,431	3,634,818
Current portion of bonds payable Current portion of long-term debt	1,800,000	3,600,000
Other current liabilities	2,645,901	2,675,700
Total current liabilities	102,576,092	117,755,891
Non-current liabilities:
Bonds payable		5,880,437
Long-term debt		3,600,000
Provisions-non-current	94,946	127,752
Deferred income tax liabilities	1,437,179	1,397,284
Other non-current liabilities	1,778,885	1,703,823
Total non-current liabilities	3,311,010	12,709,296
Total liabilities	105,887,102	130,465,187
Equity:
Common stock	30,854,428	27,965,678
Capital surplus	36,232,755	34,098,396
Retained earnings:
Legal reserve	93,166
Special reserve	838,498
Unappropriated earnings	520,235	903,649
Other reserves	228,505	845,908
Treasury stock	(2,914,856)	(3,186,038)
Equity attributable to shareholders of the Company	65,852,731	60,627,593
Non-controlling interests	2,370	2,257
Total equity	65,855,101	60,629,850
Total liabilities and equity	171,742,203 $S =$	191,095,037

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2015 and 2014

(in thousands of New Taiwan dollars, except earnings per share data)

	2015	2014
Revenue	\$ 263,775,202	329,684,271
Cost of revenue	238,891,080	300,742,087
Gross profit	24,884,122	28,942,184
Operating expenses
Selling expenses	17,701,583	19,143,432
Administrative expenses	4,431,082	4,899,465
Research and development expenses	2,089,306	2,524,381
Total operating expenses	24,221,971	26,567,278
Other operating income and loss – net	276,457	332,759
Operating income	938,608	2,707,665
Non-operating income and loss:
Other income	476,684	414,732
Other gains and losses – net	(228, 810)	17,599
Finance costs	(340, 454)	(651, 206)
Share of profits of associates and joint venture	529	125,629
Total non-operating income and loss Income before taxes	(92, 051)	(93, 246)
Income tax expenses	846,557	2,614,419
Net income	242,762 603,795	823,835 1,790,584
Other comprehensive income (loss):
Items that will not be reclassified subsequently to profit or loss:
Remeausrement of defined benefit plans	(104, 521)	(54, 382)
Income tax benefit (expense) related to items that will not be reclassified
subsequently to profit or loss	12,130	(2,607)
	(92, 391)	(56,989)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations	252,979	1,445,638
Change in fair value of available-for-sale financial assets	(990, 360)	1,049,440
Income tax benefit related to items that may be reclassified
subsequently to profit or loss	623	375
	(736, 758)	2,495,453
Other comprehensive income (loss) for the year, net of taxes Total comprehensive income (loss) for the year	\$ (829, 149)	2,438,464
Net income attributable to:	(225, 354)	4,229,048
Shareholders of the Company	\$ 603,680	1,790,690
Non-controlling interests	115	(106)
	\$ 603,795	1,790,584
Total comprehensive income (loss) attributable to:
Shareholders of the Company	\$ (225, 467)	4,229,180
Non-controlling interests	113	(132)
	\$ (225, 354)	4,229,048
Earnings per share (in New Taiwan dollars):
Basic earnings per share	\$ 0,20	0.66
Diluted earnings per share	\$ 0.20	0.63

Consolidated Statements of Changes in Equity

For the year ended December 31, 2015 and 2014
(in thousands of New Taiwan dollars)

								Attributable to shareholders of the Commany
				Retained carnings					Other reserves
	Common stock	surplus Capital	Legal reserve	reserve Special	Unappropriated earnings (accumulated deficit)	Total	Foreign currency translation differences	avallable-for-sale Unrealized gain financial assets (loss) from	Remensurements of defined benefit plans	cost arising from restricted shares of stock issued compensation to employees Unearned	Total	Treasury stock	Total	controlling interests Non-	Total equity
Balance at January 1, 2014	\$ 28,347,268	43,707,727	10,012,168	6,126,774	(24,464,794)	(8,325,852)	(262.231)	(1,163,645)			(1,425,876)	(6.054.286)	56,248.98	2,389	56,251,370
Effects of retrospective restatements					00.28	$-0.85,004$			R5.004		85,004
Restated balance at January 1, 2014	28.347,268	43.707.727	10.012.168	6.126.774	C4.540.798	0340.856	[262.23]	11163,645)	R5.004		1.340.872	(6.054.286)	56,248,981	2.389	56,251,370
Appropriation upproved by the stockholders:
Decrease in capital surplus to offset accumulated deficits	1	(8.325.852)			8,325.852	8,325.852
Decrease in legal reserve to offset accumulated deficits			(10, 012, 168)		10,012,168
Decrease in special reserve to offset accumulated deficits				3,460,642)	3,460,642
Reversal of special reserve				2,666,132)	2.666.132
Other changes in capital surplus:
Change in equity of investments in subsidiaries		168											168		168
Compensation cost arising from issuance of new shares resorved for employee subscription		90,000											90,000		90,000
Issuance of restricted shares of stock to employees	174,600	136,374								(310.974)	(310.974)				ï
Compensation cost arising from restricted shares of stock issued to employees										59,264	59,264		59264		59264
Retirement of treasury stock	(556.190)	(1,510,021)			(802,037)	(802,037)						2,868.248
Net income in 2014					1,790,690	1,790,590							1,790,690	(106)	1,790,584
Other comprehensive income in 2014							46,039	T049.440	(56.989)		2438,490		2.438,490	$^{126}$	2,438,464
Total comprehensive income in 2014					1,790,690	1.790,690	1,446,039	1,049,440	(56.989)		2,438,490		4.229.180	(132)	4,229,048
Restated Balance at December 31, 2014	27,965,678	34,098,396			903.649	913.649	1,183,808	(114.205	28,015	251.710	845.90	3.186.038	60,627,593	.2.257	60,629,850
Appropriation approved by the stockholders:
Legal reserve			93,166		(93.166)
Special reserve				838,498	(838, 498)
Other changes in capital surplus:
Change in equity of investments in subsidiaries		(4,662)											(4.662)		(4,662)
Issuance of new shares for eash	3.000.000	2,400.000											5,400,000		5,400.000
Retirement of treasury stock	(100,000)	(115,752)			(55, 430)	(55, 430)						271,182	ł		,
Retirement of restricted shares of stock issued to employees	(11,250)	11,250
Compensation cost arising from restricted shares of stock issued to employees		(156, 477)								211.74	211.744		55.267		55267
Net income in 2015					603,680	603,680					ł		603,680	$\approx$	603,795
Other comprehensive income in 2015				I			253.604	(990.360)	(92.391)		(829.147		(829,147)	ą	(829, 149)
Total comprehensive income in 2015					603,680	603.680	253.604	(990.360)	(92.391)		(829, 147)	٠	(225.467)	$\approx$	(235.35)
Balance at December 31, 2015	$s = 30.854.428$	36,33,355	$-23.166$	838,498	S20.23	GBTSFT	TRUST	CLIP1565	ASS 376	(39.966)	228,505	0.214.856	$-65,852,731$	1.320	65,855.101

$\mathcal{A}^{\mathcal{A}}$

Consolidated Statements of Cash Flows

For the years ended December 31, 2015 and 2014

(in thousands of New Taiwan dollars)

	2015	2014
Cash flows from operating activities:
Income before taxes	\$ 846,557	2,614,419
Adjustments for:
Depreciation	684,885	791,209
Amortization	1,000,991	1,202,555
Valuation loss (gain) on derivative financial assets and liabilities	1,303,264	(1,988,511)
Interest expense	340,454	651,206
Interest income	(227, 438)	(283, 592)
Dividend income	(249, 246)	(131, 140)
Share-based compensation cost	131,912	350,285
Effects of exchange rate changes on bonds payable	(103, 634)	200,218
Share of profits of associates and joint venture	(529)	(125, 629)
Loss (gain) on disposal of property, plant and equipment and
investment property, net	12,045	(65, 727)
Gain on disposal of intangible assets	(24, 107)
Loss on disposal of subsidiaries		13,291
Gain on disposal of investments in associates		(41, 495)
Gain on repurchase of bonds payable	(446, 429)
Other investment loss (gain)	(23, 613)	7,131
Intangible assets charged to cost of sale		2,174,851
Total profit and loss	2,398,555	2,754,652
Changes in operating assets and liabilities:
Net changes in operating assets:
Notes and accounts receivable	10,994,704	2,913,298
Receivables from related parties	(28,912)	(1, 125)
Inventories	2,535,275	(1,087,115)
Other receivables and other current assets	(110, 650)	533,462
Non-current accounts receivable	46,725 13,437,142	(45, 523) 2,312,997
Net changes in operating assets Net changes in operating liabilities:
Notes and accounts payable	(12,087,515)	(392, 949)
Payables to related parties	(3,379)	13,428
Other payables and other current liabilities	(3,354,855)	153,180
Provisions	(2,025,547)	(1, 548, 319)
Other non-current liabilities	75,062	103,911
Net changes in operating liabilities	(17,396,234)	(1,670,749)
Total changes in operating assets and liabilities	(3,959,092)	642,248
Cash provided by (used in) operations	(713,980)	6,011,319
Interest received	227,762	283,326
Income taxes paid	(379, 349)	(671,046)
Net cash provided by (used in) operating activities	(865, 567)	5,623,599

(Continued)

Consolidated Statements of Cash Flows

For the years ended December 31, 2015 and 2014

(in thousands of New Taiwan dollars)

	2015	2014
Cash flows from investing activities:
Purchase of available-for-sale financial assets	(345,581)	(70,000)
Proceeds from disposal of available-for-sale financial assets	52,261
Proceeds from capital return of available-for-sale investments	114,104	80,109
Additions to investments in associates	(30, 552)	(20, 462)
Proceeds from disposal of investments in associates		41,195
Proceeds from capital return of investments in associates		172,130
Additions to property, plant and equipment	(267, 654)	(228, 752)
Proceeds from disposal of property, plant and equipment and
investment property	57,138	590,954
Decrease (increase) in advances to related parties	(267)
Additions to intangible assets	(62, 930)	(103, 873)
Proceeds from disposal of intangible assets	44,643
Decrease in other non-current financial assets and other non-current
assets	1,439	177,098
Dividend received	250,150	139,854
Net cash provided by (used in) investing activities	(187, 249)	778,261
Cash flows from financing activities:
Increase (decrease) in short-term borrowings	2,267,377	(72,989)
Repayment of long-term debt	(5,400,000)	(1,800,000)
Issuance of new shares for cash	5,400,000
Repurchase of bonds payable	(3,677,046)
Interest paid	(194, 790)	(260, 250)
Net cash used in financing activities	(1,604,459)	(2, 133, 239)
Effects of foreign exchange rate changes	(279, 849)	306,367
Net (decrease) increase in cash and cash equivalents	(2,937,124)	4,574,988
Cash and cash equivalents at beginning of year	47,558,651	42,983,663
Cash and cash equivalents at end of year	44.621.527 S	47,558,651

$\label{eq:2.1} \frac{1}{2} \sum_{i=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{$

$\bar{L}$

Independent Auditors' Report

The Board of Directors Acer Incorporated:

We have audited the accompanying non-consolidated balance sheet of Acer Incorporated (the "Company") as of December 31, 2015, and the restated non-consolidated balance sheet as of December 31, 2014, and the related non-consolidated statements of comprehensive income, restated changes in equity and cash flows for the years ended December 31, 2015 and 2014. These non-consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these non-consolidated financial statements based on our audits.

We conducted our audits in accordance with the "Regulations Governing Auditing and Certification of Financial Statements by Certified Public Accountants" and auditing standards generally accepted in the Republic of China. Those regulations and standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the non-consolidated financial statements referred to above present fairly, in all material respects, the non-consolidated financial position of Acer Incorporated as of December 31, 2015 and 2014, and the results of its operations and its cash flows for the years then ended in conformity with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers.

As described in Note 3 of the non-consolidated financial statements, starting January 1, 2015, the Company prepared the non-consolidated financial statements in accordance with International Accounting Standards 19 "Employee Benefits" of 2013 Taiwan-IFRS version endorsed by the Financial Supervisory Commission. Consequently, the non-consolidated financial statements as of and for the year ended December 31, 2014 have been restated retrospectively.

Taipei, Taiwan (the Republic of China) March 24, 2016

This document is an English translation of a report originally issued in Chinese. In the event of a conflict between the English translation and the original Chinese version, the Chinese language auditor's report shall prevail.

Balance Sheets

December 31, 2015 and 2014

(in thousands of New Taiwan dollars)

Assets	2015.12.31	2014.12.31 (Restated)
Current assets:
Cash and cash equivalents	\$ 23,536,375	25,624,848
Financial assets at fair value through profit or loss-current	517,062	698,713
Available-for-sale financial assets - current	51,755	95,479
Notes and accounts receivable, net	3,745,174	4,796,199
Accounts receivables from related parties	14,240,875	19,802,924
Other receivables	555,615	932,861
Other receivables from related parties	1,168,238	1,191,059
Current income tax assets	136,987	133,300
Inventories	9,077,380	10,703,379
Other current assets	376,664	513,832
Total current assets	53,406,125	64,492,594
Non-current assets:
Available-for-sale financial assets - non-current	2,053,437	2,919,472
Investments accounted for using equity method	74,254,478	74,278,673
Property, plant and equipment	1,470,937	1,679,960
Investment property	1,314,199	1,234,365
Intangible assets	552,978	666,744
Deferred income tax assets	15,900
Other non-current assets	228,680	250,048
Other financial assets - non-current	174,350	238,837
Total non-current assets	80,064,959	81,268,099
Total assets	\$ 133,471,084	145,760,693

(Continued)

$\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\$

Balance Sheets

December 31, 2015 and 2014

(in thousands of New Taiwan dollars)

Liabilities and Equity			2014.12.31
		2015.12.31	(Restated)
Current liabilities:
Short-term borrowings	$\mathbb{S}$	1,800,000
Financial liabilities at fair value through profit or loss - current		175,138	593,322
Notes and accounts payable		34,283,848	45,825,757
Accounts payables to related parties		76,579	119,258
Other payables		18,689,002	19,220,725
Other payables to related parties		219,135	212,790
Provisions-current		625,107	996,355
Current income tax liabilities		195,970	195,970
Current portion of bonds payable		5,966,431	3,634,818
Current portion of long-term debt		1,800,000	3,600,000
Other current liabilities		2,377,373	38,307
Total current liabilities		66,208,583	74,437,302
Non-current liabilities:
Bonds payable			5,880,437
Long-term debt			3,600,000
Deferred income tax liabilities		564,339	515,181
Other non-current liabilities		845,431	700,180
Total non-current liabilities		1,409,770	10,695,798
Total liabilities		67,618,353	85,133,100
Equity:
Common stock		30,854,428	27,965,678
Capital surplus		36,232,755	34,098,396
Retained earnings:
Legal reserve		93,166
Special reserve		838,498
Unappropriated earnings		520,235	903,649
Other reserves		228,505	845,908
Treasury stock		(2,914,856)	(3,186,038)
Total equity		65,852,731	60,627,593
Total liabilities and equity	\$	133,471,084	145,760,693

Statements of Comprehensive Income

For the years ended December 31, 2015 and 2014

(in thousands of New Taiwan dollars, except earnings per share data)

		2015	2014
Revenue	\$	196,086,936	246,625,093
Cost of revenue		187,687,155	239,132,261
Gross profit		8,399,781	7,492,832
Realized (unrealized) profit on intercompany sales		56,619	(30, 833)
Realized gross Profit		8,456,400	7,461,999
Operating expenses:
Selling expenses		3,491,812	4,713,967
Administrative expenses		895,457	997,501
Research and development expenses		1,797,859	1,741,319
		6,185,128	7,452,787
Other operating income and loss - net		96,326	89,205
Operating income		2,367,598	98,417
Non-operating income and loss:
Other income		226,172	153,992
Other gains and losses - net		193,673	124,420
Finance costs		(289, 169)	(500, 143)
Share of profits (losses) of subsidiaries, associates and joint venture		(1,827,113)	2,191,206
		(1,696,437)	1,969,475
Income before taxes		671,161	2,067,892
Income tax expense		67,481	277,202
Net Income		603,680	1,790,690
Other comprehensive income (loss):
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans Share of other comprehensive loss of subsidiaries and associates		(75, 541) (29, 692)	2,031 (58, 675)
Income tax benefit (expense) related to items that will not be
reclassified subsequently to profit or loss		12,842	(345)
		(92, 391)	(56,989)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations		252,981	1,445,664
Change in fair value of available-for-sale financial assets		(853, 678)	845,730
Share of other comprehensive income (loss) of subsidiaries and
associates		(136,682)	203,710
Income tax benefit related to items that may be reclassified
subsequently to profit or loss		623	375
		(736, 756)	2,495,479
Other comprehensive income (loss) for the year, net of tax		(829, 147)	2,438,490
Total comprehensive income (loss) for the year	\$	(225, 467)	4,229,180
Earnings per share (in New Taiwan dollars):
Basic earnings per share	\$	0.20	0.66
Diluted earnings per share	${\mathbb S}$	0.20	0.63

Statements of Changes in Equity

For the years ended December 31, 2015 and 2014
(in thousands of New Taiwan dollars)

$\sim$

					Retained carnings				Other reserves
		Capital	Legal		Unappropriated (accumulated Earnings		translation currency Foreign	available-for-sale Unrealized gain (loss) from	of defined benefit Remeasurements	of stock issued to cost arising from restricted shares compensation Uncarned
Balance at January 1, 2014	Common stock 28,347,268 49	43,707,727 surplus	10,012,168 reserve	Special reserve	deficit)	Total	differences	financial assets	plans	employees	Total	Treasury stock	Total equity
				6,126,774	(24, 464, 794)	(8,325,852)	(262.231)	(1.163, 645)	$\ddot{\phantom{0}}$	j	(1.425.876)	(6.054, 286)	56,248,981
Effects of retrospective restatements			4		(85,004)	(85.004)	ᆟ		85,004		85,004	ı
Restated balance at January 1, 2014	28,347,268	43.707.72	10,012,168	6,126,774	(24, 549, 798)	(8,410,856)	(262.231)	(1.163, 645)	85,004		(1,340,872)	(6.054, 286)	56,248,981
Appropriation approved by the stockholders:
Decrease in capital surplus to offset accumulated deficits		(8,325,852)			8,325,852	8,325,852
Decrease in legal reserve to offset accumulated deficits			(10.012, 168)		10.012.168
Decrease in special reserve to offset accumulated deficits				(3.460.642)	3,460.642
Reversal of special reserve				(2,666,132)	2.666,132
Other changes in capital surplus:
Change in equity of investments in subsidiaries		168											168
Compensation cost arising from issuance of new shares reserved for employee subscription		90.000											90,000
issuance of restricted shares of stock to employees	174,600	136,374								(310,974)	(310.974)
Compensation cost arising from restricted shares of stock issued to employees										59,264	59,264		59,264
Retirement of treasury stock	(556, 190)	(1,510,021)			(802.037)	(802,037)						2,868,248	,
Net income in 2014					1,790,690	1,790,690							1,790,690
Other comprehensive income in 2014					ï	ł	1,446,039	1,049,440	(56, 989)		2,438,490	$\bullet$	2,438,490
Total comprehensive income in 2014					1,790,690	1,790,690	1,446,039	1,049,440	(56, 989)		2,438,490		1229.180
Restated Balance at December 31, 2014	27,965,678	34,098,396			903,649	903,649	1,183,808	(114, 205)	28,015	(251, 710)	845,908	(3,186,038)	60,627,593
Appropriation approved by the stockholders:
Legal reserve			93,166		(93, 166)
Special reserve				838,498	(838, 498)
Other changes in capital surplus:
Change in equity of investments in subsidiaries		(4,662)											(4,662)
Issuance of new shares for eash	3,000,000	2,400,000											5,400,000
Retirement of treasury stock	(100.000)	(115,752)			(55, 430)	(55, 430)						271,182
Retirement of restricted shares of stock issued to employees	(11,250)	11,250
Compensation cost arising from restricted shares of stock issued to employees		(156, 477)								211.744	211.744		55,267
Net income in 2015					603,680	603,680					$\mathbf{I}$		603,680
Other comprehensive income in 2015					٠		253,604	(990, 360)	(92,391)		(829, 147)		(829, 147)
Total comprehensive income in 2015					603,680	603,680	253,604	(990,360)	(92,391)		(829, 147)		(225, 467)
Balance at December 31, 2015	30.854.428	36,232,755	93.166	838.498	520.235	1.451.899	1437.412	$-0.104,565$	(64.376)	(39,966)	228,505	(2.914.856)	65,852,731

Statements of Cash Flows

For the years ended December 31, 2015 and 2014

(in thousands of New Taiwan dollars)

	2015	2014
Cash flows from operating activities:
Income before taxes	\$ 671,161	2,067,892
Adjustments for:
Depreciation	169,256	207,863
Amortization	152,318	233,563
Valuation loss (gain) on derivative financial assets and liabilities	263,973	(855, 130)
Interest expense	289,169	500,143
Interest income	(68, 212)	(56, 129)
Dividend income	(157,960)	(97, 863)
Share-based compensation cost	55,267	149,264
Effects of exchange rate changes on bonds payable	(103, 634)	200,218
Share of losses (profits) of subsidiaries, associates and joint ventures	1,827,113	(2,191,206)
Gain on disposal of property, plant and equipment and investment property, net	(230)	(52, 527)
Gain on disposal of intangible assets	(24, 107)
Other investment income	(75, 615)
Unrealized (realized) profit on intercompany sales	(56, 619)	30,833
Gain on repurchase of bonds payable	(446, 429)
Total non-cash profit and loss	1,824,290	(1,930,971)
Changes in operating assets and liabilities:
Net changes in operating assets:
Notes and accounts receivable	1,051,025	162,436
Receivables from related parties	5,562,049	(248, 620)
Inventories	1,604,385	1,679,761
Other receivables and other current assets	514,141	450,309
Net changes in operating assets	8,731,600	2,043,886
Net changes in operating liabilities:
Notes and accounts payable	(11, 541, 909)	1,204,868
Payables to related parties	(36, 334)	(37, 350)
Other payables and other current liabilities	1,818,960	1,270,244
Provisions	(371, 248)	(477, 813)
Other non-current liabilities	(10, 323)	5,670
Net changes in operating liabilities	(10, 140, 854)	1,965,619
Total changes in operating assets and liabilities	(1,409,254)	4,009,505
Cash provided by operations	1,086,197	4,146,426
Interest received	68,485	55,614
Income taxes paid	(24, 445) 1,130,237	(19, 562) 4,182,478
Net cash provided by operating activities

(Continued)

Statements of Cash Flows

For the years ended December 31, 2015 and 2014

(in thousands of New Taiwan dollars)

	2015		2014
Cash flows from investing activities:
Proceeds from disposal of available-for-sale financial assets		48,146
Proceeds from capital return of available-for-sale investment		83,550	72,975
Additions to investments in subsidiaries and associates		(1,894,000)	(706, 400)
Proceeds from capital return of investments in associates		38,703	375,779
Additions to property, plant and equipment		(26,078)	(20, 342)
Proceeds from disposal of property, plant and equipment and investment
property		1,687	381,220
Decrease (Increase) in advances to related parties		67,908	(606, 820)
Additions to intangible assets		(52, 920)	(93, 914)
Proceeds from disposal of intangible assets		44,643
Decrease (increase) in other non-current financial assets and other
non-current assets		26,668	116,565
Dividend received		428,936	2,900,643
Net cash provided by (used in) investing activities		(1, 232, 757)	2,419,706
Cash flows from financing activities:
Increase in short-term borrowings		1,800,000
Repurchase of bonds payable		(3,677,046)
Repayment of long-term debt		(5,400,000)	(1,800,000)
Issuance of new shares for cash		5,400,000
Interest paid		(108,907)	(137, 811)
Net cash used in financing activities		(1,985,953)	(1, 937, 811)
Net increase (decrease) in cash and cash equivalents		(2,088,473)	4,664,373
Cash and cash equivalents at beginning of year		25,624,848	20,960,475
Cash and cash equivalents at end of year	S	23,536,375	25,624,848

$\sim 10^{-10}$