3 - OTHER ASSETS

12 Months Ended

Dec. 31, 2015

Disclosure Text Block Supplement [Abstract]

3 - OTHER ASSETS

The following table presents a summary rollforward of other assets:

	Investment in securities - Zowie Technology			Investment in joint venture - Grand Shine Mgmt			Other			Other Assets Total

Balance at December 31, 2013	$	405,000		$	849,000		$	22,000		$	1,276,000
Payments for investment during the period		-			245,000			-			245,000
Net unrealized investment losses during the period		-			(226,000	)		-			(226,000	)
Impairment of investment during the period		(305,000	)		-			-			(305,000	)
Other changes		-			-			(2,000	)		(2,000	)
Balance at December 31, 2014		100,000			868,000			20,000			988,000
Net unrealized investment losses during the period		-			(297,000	)		-			(297,000	)
Other changes		-			-			(3,000	)		(3,000	)
Balance at December 31, 2015	$	100,000		$	571,000		$	17,000		$	688,000

Our $100,000 investment in securities as of December 31, 2015 relates to our ownership of 1,037,739 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 approximately 9.2% of their total outstanding shares although we do not have significant influence or control. This investment is accounted for under the cost method basis of accounting, however when facts and circumstances indicate that the carrying value of this asset may not be recoverable, we recognize an impairment loss. The impairment loss recognized is the amount by which the carrying amount exceeds the estimated fair value. In 2014, due to our estimated valuation assessment, we recognized an impairment loss of $305,000.

Our $571,000 investment in joint venture as of December 31, 2015, 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.