Quarterly report pursuant to Section 13 or 15(d)

Accumulated Other Comprehensive Loss

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Accumulated Other Comprehensive Loss
3 Months Ended
Mar. 31, 2020
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Loss

NOTE 15 - ACCUMULATED OTHER COMPREHENSIVE LOSS

 

Comprehensive income (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 Consolidated Balance Sheets.

 

The accumulated balances for each classification of other comprehensive loss for the three-month period ended March 31, 2020 are as follows:

 

          Unrealized     Accumulated  
    Foreign     gain (losses)     other  
    currency     on     comprehensive  
    items     investments     loss  
Balance at January 1, 2020   $ 265     $             -     $ 265  
Net current period change     (2,326 )     -       (2,326 )
Balance at March 31, 2020   $ (2,061 )   $ -     $ (2,061 )

 

The accumulated balances for each classification of other comprehensive loss for the three-month period ended March 31, 2019 are as follows:

 

          Unrealized     Accumulated  
    Foreign     gain (losses)     other  
    currency     on     comprehensive  
    items     investments     loss  
Balance at January 1, 2019   $ (388 )   $ (47 )   $ (435 )
Net current period change     (12 )     47       35  
Balance at March 31, 2019   $ (400 )   $              -     $         (400 )

 

The Company’s reporting currency is the U.S dollar (USD). For businesses where the majority of the revenues are generated in USD or linked to the USD and a substantial portion of the costs are incurred in USD, the Company’s management believes that the USD is the primary currency of the economic environment and thus their functional currency. Due to the fact that Argentina has been determined to be highly inflationary, the financial statements of our subsidiary in Argentina have been remeasured as if its functional currency was the USD. The Company also has foreign operations where the functional currency is the local currency. For these operations, assets and liabilities are translated using the end-of-period exchange rates and revenues, expenses and cash flows are translated using average rates of exchange for the period. Equity is translated at the rate of exchange at the date of the equity transaction. Translation adjustments are recognized in stockholders’ equity as a component of accumulated other comprehensive income (loss). Net translation gains (losses) from the translation of foreign currency financial of $(12) and $2,326 at March 31, 2019 and 2020, respectively, which are included in comprehensive loss in the Consolidated Statement of Changes in Stockholders’ Equity.

 

Foreign currency translation gains and losses related to operational expenses denominated in a currency other than the functional currency are included in determining net income or loss. Foreign currency translation gains (losses) for the three-month periods ended March 31, 2019 and 2020 of $(26) and $(253), respectively, are included in selling, general and administrative expenses and $-0- and $895, respectively, are included in interest expense in the Consolidated Statement of Operations.