Quarterly report pursuant to Section 13 or 15(d)

Joint Venture

v2.4.0.8
Joint Venture
 9 Months Ended
Sep. 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.
 
   
September 30, 2013
  
       
Current assets
  
$
65,822
  
Non-current assets
  
$
20,610
  
Current liabilities
  
$
59,778
  
Members' equity
  
$
26,654
  
 
The investment balance carried on the Company's balance sheet amounts to $3,848 as of September 30, 2013.
 
 
Nine Months Ended
September 30, 2013
  
       
Net sales
  
$
24,795
  
Gross profit
  
$
18,708
  
Operating expenses
  
$
51,354
  
Net income(loss)
  
$
(32,646
)
 
The Company's share of the net loss from Secure Infrastructure & Services, LLC for the nine months ended September 30, 2013 was $17,452