5 - OTHER ASSETS

3 Months Ended

Mar. 31, 2013

5 – OTHER ASSETS


	March 31,		December 31,
	2013		2012
	(Unaudited)

Investment in securitites - Zowie Technology	$	428,000	$	423,000
Investment in joint venture - Taiteam Technology		147,000		147,000
Investment in joint venture - Grand Shine Mgmt		703,000		703,000
Other		25,000		24,000
Other Assets	$	1,303,000	$	1,297,000

Our $428,000 investment in securities as of March 31, 2013 relates to our ownership of 154,808 common shares and 1,007,902 preferred shares of Zowie Technology Corporation (Taipei Hsien, Taiwan), a supplier of electronic component products. Our investment relates to 3.3% of their total 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, 2013 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 $703,000 investment in joint venture as of March 31, 2013, relates to our 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. 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.