Quarterly report pursuant to Section 13 or 15(d)

Joint Venture

Joint Venture
6 Months Ended
Jun. 30, 2013
Joint Venture [Abstract]  
Joint Venture
Note 5 – Joint Venture
The Company has a 50% non-controlling ownership interest in Secure Infrastructure & Services, LLC who provides infrastructure-as-a-Service (IaaS) for IBM iSeries and AIX v7 systems, Power HA services and network infrastructure hardware and services as needed to support the IaaS and PowerHA implementation and ongoing needs for customers and services sold under the Company.. ASC 810 requires the Company to evaluate non-consolidated entities periodically and as circumstances change to determine if an implied controlling interest exists. During Fiscal 2013, the Company evaluated this equity investment and concluded that this is a variable interest entity and the Company is not the primary beneficiary. Secure Infrastructure & Services, LLC's fiscal year end is December 31.
The following presents unaudited summary financial information for Secure Infrastructure & Services, LLC. Such summary financial information has been provided herein based upon the individual significance of this unconsolidated equity investment to the consolidated financial information of the Company.
June 30, 2013
Current assets
  $ 46,204  
Non-current assets
  $ 16,150  
Current liabilities
  $ 36,902  
Members' equity
  $ 25,452  
The equity balance carried on the Company's balance sheet amounts to $13,557 for the six months ended June 30, 2013.
Six Months Ended
June 30, 2013
Net sales
  $ 9,055  
Gross profit
  $ 5,566  
Operating expenses
  $ 11,164  
Net income(loss)
  $ (5,598 )
The Company's share of the net loss from Secure Infrastructure & Services, LLC for the six months ended June 30, 2013 was $2,243.