5 - OTHER ASSETS

9 Months Ended

Sep. 30, 2011

5 – OTHER ASSETS

	September 30,		December 31,
	2011		2010
	(Unaudited)

Investment in securities - Zowie Technology	$	68,000	$	68,000
Investment in joint venture - Taiteam Technology		147,000		147,000
Investment in joint venture - Grand Shine Mgmt		539,000		-
Other		23,000		48,000
Other Assets	$	777,000	$	263,000

Our $68,000 investment in securities as of September 30, 2011 relates to our ownership of 154,808 common shares of Zowie Technology Corporation (Taipei Hsien, Taiwan), a manufacturer of discrete semiconductors and also a supplier of our electronic component products. Our investment relates to less than 5% of Zowie’s outstanding shares and we do not have significant influence or control. This investment is accounted for under the cost method basis of accounting.

Our $147,000 investment in joint venture as of September 30, 2011, relates to our 49% ownership of Taiteam (Yangzhou) Technology Corporation Limited (Yangzhou, China), a joint venture with its 51% owner, Full Harvest Development Limited. This joint venture is not considered to be a “Variable Interest Entity”, and as such, is accounted for under the equity method basis of accounting. This joint venture is not operational and as such, there has been no material activity in this joint venture during the recent quarter ending September 30, 2011.

Our $539,000 investment in joint venture as of September 30, 2011, relates to our initial cumulative investment as part of our planned acquisition of 49% ownership of Grand Shine Management Limited (Dong Guan, China), a joint venture with its 51% owner, Teamforce Company Limited. Our total investment in 2011 is expected to aggregate $686,000, of which $245,000 is for the 49% ownership interest and $441,000 is for our 49% proportional share of operating capital requirements. This joint venture is not considered to be a “Variable Interest Entity”, and as such, is accounted for under the equity method basis of accounting.