Quarterly report pursuant to Section 13 or 15(d)

Accumulated Other Comprehensive Loss

v3.20.2
Accumulated Other Comprehensive Loss
9 Months Ended
Sep. 30, 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 gain (loss) in stockholders’ equity on the Company’s Consolidated Balance Sheets.

 

The accumulated balances for each classification of other comprehensive loss for the nine-month period ended September 30, 2020 are as follows:

 

    Foreign currency items     Unrealized gain (losses) on investments     Accumulated other comprehensive loss  
Balance at January 1, 2020   $ 265     $ -     $ 265  
Net current period change     (1,942 )     -       (1,942 )
                         
Balance at September 30, 2020   $ (1,677 )   $ -     $ (1,677 )

 

The accumulated balances for each classification of other comprehensive loss for the nine-month period ended September 30, 2019 are as follows:

 

   

Foreign currency

items

    Unrealized gain (losses) on investments     Accumulated other comprehensive loss  
Balance at January 1, 2019   $ (388 )   $ (47 )   $ (435 )
Net current period change     133       47       180  
                         
Balance at September 30, 2019   $ (255 )   $ -     $ (255 )

 

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 statements of $133 and $(1,942) at September 30, 2019 and 2020, respectively, 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- and nine-month periods ended September 30, 2019 of $(258) and $(288), respectively, and for the three- and nine-month periods ended September 30, 2020 of $296 and $155, respectively are included in selling, general and administrative expenses. Foreign currency translation (losses) related to long-term debt of $(220) and $(130), respectively, for the three- and nine-month periods ended September 30, 2020 are included in interest expense in the Consolidated Statement of Operations.