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5 - OTHER ASSETS

9 Months Ended

Sep. 30, 2013

Disclosure Text Block Supplement [Abstract]

5 – OTHER ASSETS

	September 30,		December 31,
	2013		2012
	(Unaudited)

Investment in securitites - Zowie Technology	$	437,000	$	423,000
Investment in joint venture - Taiteam Technology		-		147,000
Investment in joint venture - Grand Shine Mgmt		997,000		703,000
Other		10,000		24,000
Other Assets	$	1,444,000	$	1,297,000

Our $437,000 investment in securities as of September 30, 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 3.5% 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 Taiteam (Yangzhou) Technology Corporation Limited (Yangzhou, China) was returned during the quarter ended September 30, 2013. This joint venture was liquidated and capital returned during July 2013.

Our $997,000 investment in joint venture as of September 30, 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.