XML 27 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
4 - OTHER ASSETS
 12 Months Ended
Dec. 31, 2011
Marketable Securities [Text Block]
4  -  OTHER ASSETS

Other assets is summarized as follows:

   
December 31,
 
   
2011
   
2010
 
Investment in securitites
  $ 68,000     $ 68,000  
Investment in joint venture - Taiteam Technology
    147,000       147,000  
Investment in joint venture - Grand Shine Mgmt
    637,000       -  
Other
    22,000       48,000  
  Other Assets
  $ 874,000     $ 263,000  

Our $68,000 investment in securities as of December 31, 2011 relates to our ownership of 154,808 common shares of Zowie Technology Corporation (Taipei Hsien, Taiwan), a supplier of electronic component products (see Part I: Item 1 – Business – Suppliers).  Our investment relates to less than 1% of their outstanding shares and we do not have significant influence or control.  This investment is accounted for under the cost method basis of accounting.  See also Note 14 – Subsequent Events.

Our $147,000 investment in joint venture as of December 31, 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 since 2009.

Our $637,000 investment in joint venture as of December 31, 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 at December 31, 2012 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.