Quarterly report pursuant to Section 13 or 15(d)

Accumulated Other Comprehensive Loss

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Accumulated Other Comprehensive Loss
6 Months Ended
Jun. 30, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Loss

NOTE 12 - 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 six -month period ended June 30, 2017 are as follows:

 

          Unrealized     Accumulated  
    Foreign     gain (losses)     other  
    currency     on     comprehensive  
    items     investments     income  
                   
Balance at January 1, 2017   $ (92,000 )   $ (11,000 )   $ (103,000 )
Net current period change     (258,000 )     4,000       (254,000 )
                         
Balance at June 30, 2017   $ (350,000 )   $ (7,000 )   $ (357,000 )

 

The accumulated balances for each classification of other comprehensive loss for the six-month period ended June 30, 2016 are as follows:

 

          Unrealized     Accumulated  
    Foreign     gain (losses)     other  
    currency     on     comprehensive  
    items     investments     income  
                   
Balance at January 1, 2016   $ (500,000 )   $ -     $ (500,000 )
Net current period change     193,000       4,000       197,000  
                         
Balance at June 30, 2016   $ (307,000 )   $ 4,000     $ (303,000 )

 

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 gains (losses) of $193,000 and $(258,000) for the six-month periods ended June 30, 2016 and 2017, 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 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- and six-month periods ended June 30, 2016 of $(192,000) and $(123,000), respectively, and for the three- and six-month periods ended June 30, 2017 of $211,000 and $273,000 respectively, respectively, are included in selling, general and administrative expenses in the Condensed Consolidated Statement of Operations.