Quarterly report pursuant to Section 13 or 15(d)

Accumulated Other Comprehensive Loss

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Accumulated Other Comprehensive Loss
3 Months Ended
Mar. 31, 2019
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Loss

NOTE 13 - ACCUMULATED OTHER COMPREHENSIVE LOSS

 

Comprehensive loss includes net loss and unrealized gains or losses on available-for-sale investments and foreign currency translation gains and losses. Cumulative unrealized gains and losses on available-for-sale investments are reflected as accumulated other comprehensive loss in stockholders’ equity on the Company’s Condensed Consolidated Balance Sheets.

 

The accumulated balances for each classification of other comprehensive loss for the three-month period ended March 31, 2019 are as follows:

 

          Unrealized     Accumulated  
    Foreign     gain (losses)     other  
    currency     on     comprehensive  
    items     investments     loss  
                   
Balance at January 1, 2019   $ (388,000 )   $ (47,000 )   $ (435,000 )
Net current period change     (12,000 )     47,000       35,000  
                         
Balance at March 31, 2019   $ (400,000 )   $ -     $ (400,000 )

 

The accumulated balances for each classification of other comprehensive loss for the three-month period ended March 31, 2018 are as follows:

 

          Unrealized     Accumulated  
    Foreign     gain (losses)     other  
    currency     on     comprehensive  
    items     investments     loss  
                   
Balance at January 1, 2018   $ (465,000 )   $ (113,000 )   $ (578,000 )
Net current period change     (137,000 )     (60,000 )     (197,000 )
                         
Balance at March 31, 2018   $ (602,000 )   $ (173,000 )   $ (775,000 )

 

Income and expense accounts of foreign operations are translated at actual or weighted-average exchange rates during the period. Assets and liabilities of foreign operations that operate in a local currency environment are translated to U.S. dollars at the exchange rates in effect at the balance sheet date. Translation gains or losses are reported as components of accumulated other comprehensive income or loss in consolidated stockholders’ equity. Net translation gains or losses resulting from the translation of foreign currency financial statements and the effect of exchange rate changes on intercompany transactions of a long-term investment nature with IDS GmbH resulted in translation losses of $(137,000) and $(12,000) for the three-month periods ended March 31, 2018 and 2019, respectively, which are included in comprehensive loss in the Consolidated Statement of Changes in Stockholders’ Equity. Effective December 1, 2015, the intercompany transactions with IDS GmbH are not considered of a long-term investment nature and the effect of the exchange rate changes subsequent to December 1, 2015 on the intercompany transactions are included selling, general and administrative expenses in the Condensed Consolidated Statement of Operations.

 

Gains and losses resulting from foreign currency transactions are included in determining net income or loss. Foreign currency transactions gains (losses) for the three-month periods ended March 31, 2018 and 2019 of $181,000 and $(26,000), respectively, are included in selling, general and administrative expenses in the Condensed Consolidated Statement of Operations.