Investments

9 Months Ended

Sep. 30, 2018

Investments [Abstract]

Investments

Note 6 – 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 September 30, 2018 and December 31, 2017
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:

	Year ended Septembet 30, 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		(31,047	)	$	(121	)

	Year ended December 31, 2017
Equity investee	Beginning Equity Investment Basis		Proportional Share of the Equity Accounted Affiliate's Net Income (loss)			Ending Equity Investment Basis
PT IONSOFT	$	85,026		(54,100	)	$	30,926

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

	September 30, 2018		December 31, 2017
Total current assets	$	39,194	$	48,483
Total assets		205,972		222,096
Total current liabilities		359,714		238,017
Total liabilities		107,934		332,453

	Three-months Period Ended September 30,						Nine-months Period Ended September 30,
	2018			2017			2018			2017
Net sales		33,560			3,792			121,840			5,099
Gross profit		(61,586	)		(93,493	)		(154,196	)		(221,434	)
Income from operations		(61,586	)		(93,503	)		(154,196	)		(222,225	)
Net income		(61,746	)		(93,503	)		(155,237	)		(222,225	)

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 September 30, 2018:

Company	Balance		Percentage of Ownership
4GRIT	$	44,940		2.50	%
E-channel		42,505		0.07	%
KSFC		11,819		0.00	%
Total investment securities	$	99,264

The following table summarize the Company’s investment securities at December 31, 2017:

Company	Balance		Percentage of Ownership
4GRIT	$	46,672		2.50	%
E-channel		44,143		0.07	%
KSFC		12,275		0.00	%
Total investment securities	$	103,090