7. Noncontrolling Interests

3 Months Ended

Mar. 31, 2013

Notes

7. Noncontrolling Interests

7.  NONCONTROLLING INTERESTS

The Company owns 100% of all subsidiaries, except for its UK subsidiary Omega Flex, Limited, of which it owns 95%.  A noncontrolling interest owns the other 5%, and held a value of $62,000 at December 31, 2012.  The total equity of the Company including the non-controlling interest was $19,742,000 at December 31, 2012.

For the three months ended March 31, 2013, the operations of Omega Flex, Limited had income of $34,000.  The noncontrolling interest’s portion of the income was $2,000.

The noncontrolling interest must also recognize its share of any currency translation adjustment, since the subsidiary’s functional currency is British Pounds, and the local books are translated into US Dollars for consolidation purposes.  The noncontrolling interest’s share of foreign currency translation loss was $4,000 as of March 31, 2013.

At March 31, 2013, after considering the income and foreign currency translation components described above, the balance of the noncontrolling interest was $60,000.