Consolidation Of Joint Venture Entity And Noncontrolling Interest	6 Months Ended
Jun. 30, 2011
Consolidation Of Joint Venture Entity And Noncontrolling Interest
Consolidation Of Joint Venture Entity And Noncontrolling Interest	(13) Consolidation of Joint Venture Entity and Noncontrolling Interest The Company holds a 51% controlling interest in a joint venture established in mid August 2010 in China, Rimage Information Technology (Shanghai) Co., Ltd. ("RIT"). Taiwan Electronic Data Processing ("TEDPC"), a Taiwanese software provider in the healthcare solutions market, holds the remaining 49% interest. RIT purchases digital publishing systems from Rimage, and integrates medical disc system software purchased from TEDPC with Rimage's digital publishing systems to allow deployment of a complete digital publishing solution for medical imaging in hospitals in China. RIT has a commitment to pay TEDPC a minimum of $1,000,000 over the first three years of operations for the purchase of the software source code and associated intellectual property, which was acquired by RIT from TEDPC in December 2010. To the extent RIT's sales over the initial three-year period exceed established thresholds, RIT has agreed to pay TEDPC an incremental fee based on unit sales volumes. The Company capitalized the $1,000,000 purchase price for the software source code in other non-current assets and recorded the associated liability in current accounts payable ($400,000) and other non-current liabilities ($600,000) in the accompanying condensed consolidated balance sheets as of December 31, 2010. RIT paid the first installment payment of $400,000 for the purchase of the software source code to TEDPC during the first quarter of 2011, and the remaining liability is included in current accounts payable ($300,000) and other non-current liabilities ($300,000) as of June 30, 2011. The software source code is being amortized over its expected useful life of five years. Amortization expense recognized during the three and six months ended June 30, 2011, was approximately $50,000 and $100,000, respectively. Accumulated amortization was approximately $175,000 and $75,000 as of June 30, 2011, and December 31, 2010, respectively. The Company includes the financial statements of RIT in its condensed consolidated financial statements, with the equity and loss attributed to the noncontrolling interest identified separately in the accompanying condensed consolidated balance sheets and statements of income. During the six months ended June 30, 2011, RIT earned revenues of $292,000 and incurred a net loss of $151,000, of which $74,000 was attributed to the noncontrolling interest. Consolidated stockholders' equity included $442,000 and $506,000 attributable to the noncontrolling interest as of June 30, 2011, and December 31, 2010, respectively.

Consolidation Of Joint Venture Entity And Noncontrolling Interest

6 Months Ended

Jun. 30, 2011

Consolidation Of Joint Venture Entity And Noncontrolling Interest

Consolidation Of Joint Venture Entity And Noncontrolling Interest

(13) Consolidation of Joint Venture Entity and Noncontrolling Interest

The Company holds a 51% controlling interest in a joint venture established in mid August 2010 in China, Rimage Information Technology (Shanghai) Co., Ltd. ("RIT"). Taiwan Electronic Data Processing ("TEDPC"), a Taiwanese software provider in the healthcare solutions market, holds the remaining 49% interest. RIT purchases digital publishing systems from Rimage, and integrates medical disc system software purchased from TEDPC with Rimage's digital publishing systems to allow deployment of a complete digital publishing solution for medical imaging in hospitals in China.

RIT has a commitment to pay TEDPC a minimum of $1,000,000 over the first three years of operations for the purchase of the software source code and associated intellectual property, which was acquired by RIT from TEDPC in December 2010. To the extent RIT's sales over the initial three-year period exceed established thresholds, RIT has agreed to pay TEDPC an incremental fee based on unit sales volumes. The Company capitalized the $1,000,000 purchase price for the software source code in other non-current assets and recorded the associated liability in current accounts payable ($400,000) and other non-current liabilities ($600,000) in the accompanying condensed consolidated balance sheets as of December 31, 2010. RIT paid the first installment payment of $400,000 for the purchase of the software source code to TEDPC during the first quarter of 2011, and the remaining liability is included in current accounts payable ($300,000) and other non-current liabilities ($300,000) as of June 30, 2011. The software source code is being amortized over its expected useful life of five years. Amortization expense recognized during the three and six months ended June 30, 2011, was approximately $50,000 and $100,000, respectively. Accumulated amortization was approximately $175,000 and $75,000 as of June 30, 2011, and December 31, 2010, respectively.

The Company includes the financial statements of RIT in its condensed consolidated financial statements, with the equity and loss attributed to the noncontrolling interest identified separately in the accompanying condensed consolidated balance sheets and statements of income. During the six months ended June 30, 2011, RIT earned revenues of $292,000 and incurred a net loss of $151,000, of which $74,000 was attributed to the noncontrolling interest. Consolidated stockholders' equity included $442,000 and $506,000 attributable to the noncontrolling interest as of June 30, 2011, and December 31, 2010, respectively.

- Definition

The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.

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