Quarterly report pursuant to Section 13 or 15(d)

Investment in At Equity

v2.4.0.8
Investment in At Equity
 9 Months Ended
Sep. 30, 2014
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 providing 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,
 
 
 
2014
 
 
 
 
 
Current assets
 
$
371,033
 
Non-current assets
 
$
36,600
 
Current liabilities
 
$
369,204
 
Members' equity
 
$
38,429
 
 
The investment balance carried on the Company's balance sheet amounts to $20,595 as of September 30, 2014.
 
 
 
Nine
 
 
 
Months
 
 
 
Ended
 
 
 
September
 
 
 
30,
 
 
 
2014
 
 
 
 
 
Net sales
 
$
719,791
 
Gross profit
 
$
249,537
 
Operating expenses
 
$
234,847
 
Net ordinary income
 
$
14,690
 
Other income
 
$
26,500
 
Net income
 
$
41,190
 
 
The Company's share of the net income from Secure Infrastructure & Services, LLC for the nine months ended September 30, 2014 was $20,595.