4 - OTHER ASSETS

6 Months Ended

Jun. 30, 2014

Disclosure Text Block Supplement [Abstract]

4 – OTHER ASSETS

	June 30,		December 31,
	2014		2013
	(Unaudited)

Investment in securities - Zowie Technology	$	405,000	$	405,000
Investment in joint venture - Grand Shine Mgmt		751,000		849,000
Other		23,000		22,000
Other Assets	$	1,179,000	$	1,276,000

Our $405,000 investment in securities as of June 30, 2014 relates to our ownership of 1,037,739 common shares of Zowie Technology Corporation (Taipei Hsien, Taiwan), a supplier of electronic component products. Our investment relates to 9.2% 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 $751,000 investment in joint venture as of June 30, 2014, 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. During the second quarter of 2014, we included a ($98,000) loss related to our year-to-date proportionate share of net losses for the six months ending June 30, 2014.