Note 4. Equity Investment

12 Months Ended

Feb. 29, 2012

Equity Method Investments Disclosure [Text Block]

Equity Investment

The Company has a 50% non-controlling ownership interest in ASA Electronics, LLC and Subsidiary (“ASA”) which acts as a distributor to markets for specialized vehicles, such as RV’s, van conversions and marine vehicles, of televisions and other automotive sound, security and accessory products. ASC 810 requires the Company to evaluate non-consolidated entities periodically, and as circumstances change, to determine if an implied controlling interest exists. During Fiscal 2012, the Company evaluated this equity investment and concluded that this is still a variable interest entity and the Company is not the primary beneficiary. ASA’s fiscal year end is November 30, 2011, however, the proportionate results of ASA as of and through February 29, 2012 have been recorded in the consolidated financial statements.

The following presents unaudited summary financial information for ASA. Such summary financial information has been provided herein based upon the individual significance of this unconsolidated equity investment to the consolidated financial information of the Company.



	February 29, 2012		February 28, 2011
	(unaudited)		(unaudited)
Current assets	$	28,934	$	24,521
Non-current assets	5,068		5,240
Current liabilities	4,216		4,233
Members' equity	29,786		25,528

The equity balance carried on the Company’s balance sheet amounts to $14,893 and $12,764 at February 29, 2012 and February 28, 2011, respectively.



	Year Ended		Year Ended		Year Ended
	February 29, 2012		February 28, 2011		February 28, 2010
	(unaudited)		(unaudited)		(unaudited)
Net sales	$	73,392	$	68,796	$	51,341
Gross profit	21,735		18,478		12,705
Operating income	8,039		5,756		3,032
Net income	8,071		5,810		3,314

The Company's share of income from ASA for the years ended February 29, 2012, February 28, 2011 and February 28, 2010 was $4,035, $2,905 and $1,657, respectively. In addition, the Company received cash distributions from ASA totaling $1,906, $1,413 and $3,504 during the years ended February 29, 2012, February 28, 2011 and February 28, 2010, respectively.

Undistributed earnings from equity investments included in retained earnings amounted to $9,567 and $7,438 at February 29, 2012 and February 28, 2011, respectively.

The following represents summary information of transactions between the Company and ASA:



	Year Ended		Year Ended		Year Ended
	February 29, 2012		February 28, 2011		February 28, 2010
	(unaudited)		(unaudited)		(unaudited)
Net Sales	$	633	$	477	$	804
Purchases	—		—		—
Royalty expense	—		—		278



	February 29, 2012		February 28, 2011
Accounts receivable	$	4	$	27
Royalty payable	—		—

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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