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5 - OTHER ASSETS
 3 Months Ended
Mar. 31, 2012
Marketable Securities [Text Block]
5 – OTHER ASSETS

   
March 31,
   
December 31,
 
   
2012
   
2011
 
   
(Unaudited)
       
             
Investment in securities - Zowie Technology
  $ 409,000     $ 68,000  
Investment in joint venture - Taiteam Technology
    147,000       147,000  
Investment in joint venture - Grand Shine Mgmt
    637,000       637,000  
Other
    24,000       22,000  
  Other Assets
  $ 1,217,000     $ 874,000  

Our $409,000 investment in securities as of March 31, 2012 relates to our ownership of 154,808 shares of common and 1,007,902 shares of 7% convertible preferred (maturing December 2014) securities 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 March 31, 2012, 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 March 31, 2012.

Our $637,000 investment in joint venture as of March 31, 2012, relates to our initial cumulative investment as part of our planned acquisition of 49% ownership of Grand Shine Management Limited (Dong Guan, China), an electronic device contract manufacturer and joint venture with its 51% owner, Teamforce Company Limited.  Our total investment in 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.