Investments

3 Months Ended

Mar. 31, 2019

Investments [Abstract]

Investments

Note 7. Investments

Equity Method

The Company applies the equity method for investments in affiliate, which a privately-held company where quoted market prices are not available, in which it has the ability to exercise significant influence over operating and financial policies of the affiliate. Significant influence is generally defined as 20% to 50% ownership in the voting stock of an investee. Under the equity method, the Company initially records the investment at cost and then adjusts the carrying value of the investment to recognize the proportional share of the equity-accounted affiliate’s net income (loss) including changes in capital of the affiliate.

The Company had the following equity investment accounted under the equity method:

	As of March 31, 2019 and December 31, 2018
Equity investee	Type of Shares Owned	Number of Shares Owned		Original Investment Amount		Equity Investment Ownership
PT IONSOFT	Common stock		160,000	$	160,000		20	%

The following is the roll-forward basis of equity investment accounted under the equity method:

	Period ended Mar 31, 2019
Equity investee	Beginning Equity Investment Basis			Proportional Share of the Equity Accounted Affiliate's Net Income (loss)			Ending Equity Investment Basis
PT IONSOFT	$	(2,589	)		(3,556	)	$	(6,146	)

	Year ended December 31, 2018
Equity investee	Beginning Equity Investment Basis		Proportional Share of the Equity Accounted Affiliate's Net Income (loss)			Ending Equity Investment Basis
PT IONSOFT	$	30,926		(33,515	)	$	(2,589	)

Summarized audited financial information of significant equity investments in affiliate are as follows:

	March 31,		December 31,
	2019		2018
Total current assets	$	132,877	$	175,272
Total assets		267,918		344,468
Total current liabilities		440,852		520,198
Total liabilities		108,862		106,482

Three-months ended March 31,	2019			2018
Net sales	$	6,647		$	52,987
Gross profit		(17,096	)		(40,228	)
Income (loss) from operations		(17,752	)		(40,228	)
Net income (loss)		(17,781	)		(40,758	)

Available-for-sale securities

The Company’s investments also include privately-held companies, where quoted market prices are not available, and the cost method, combined with other intrinsic information, is used to assess the fair value of the investment.

The following table summarize the Company’s investment securities at March 31, 2019 and December 31, 2018:

Available-for-sale securities	Percentage of Ownership			3/31/2019		12/31/2018
4Grit		2.50	%	$	43,948	$	44,723
E-channel		0.07	%	$	41,567	$	42,299
KSFC		0.00	%	$	11,558	$	11,762
Total investment securities				$	97,074	$	98,784