Quarterly report pursuant to Section 13 or 15(d)

Investment in At Equity

v3.4.0.3
Investment in At Equity
3 Months Ended
Mar. 31, 2016
Equity Method Investments and Joint Ventures [Abstract]  
Investment in At Equity

Note 5 – Investment in At Equity

 

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.

 

   

March 31,

2016

 
       
Current assets   $ 276,220  
Non-current assets   $ 42,678  
Current liabilities   $ 348,770  
Members' equity   $ (29,872 )

 

The equity balance carried on the Company's balance sheet amounts to $11,030 as of March 31, 2016.

 

   

Three Months

Ended

March 31,

2015

 
       
Net sales   $ 418,924  
Gross profit   $ 93,386  
Operating expenses   $ 117,310  
Net income(loss)   $ (18,174 )

 

The Company's share of the net loss from Secure Infrastructure & Services, LLC for the three months ended March 31, 2016 was $9,087.