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, 2022
Stockholders' Equity Note [Abstract]  
ACCUMULATED OTHER COMPREHENSIVE LOSS

NOTE 14 - ACCUMULATED OTHER COMPREHENSIVE LOSS

 

Comprehensive income (loss) includes net loss and foreign currency translation gains and losses.

 

The accumulated balances for each classification of other comprehensive loss for the three-month period ended March 31, 2022 are as follows:

 

    Foreign currency translation adjustment     Accumulated other comprehensive income/(loss)  
             
Balance at January 1, 2022   $ 391     $ 391  
Net current period change     253       253  
               
Balance at March 31, 2022   $ 644     $ 644  

 

The accumulated balances for each classification of other comprehensive loss for the three-month period ended March 31, 2021 are as follows:

 

    Foreign currency translation adjustment     Accumulated other comprehensive income/(loss)  
             
Balance at January 1, 2021   $ 399     $ 399  
Net current period change     (1,334 )     (1,334 )
               
Balance at March 31, 2021   $ (935 )   $ (935 )

 

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 $1,334 and $(253) at March 31, 2021 and 2022, 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 (losses) gains for the three-month periods ended March 31, 2021 and 2022 of $150 and $(203), respectively, are included in selling, general and administrative expenses in the Consolidated Statement of Operations. Foreign currency translation gains (losses) related to long-term debt of $1,027 and $544, respectively, for the three-month periods ended March 31, 2021 and 2022 are included in interest expense in the Consolidated Statement of Operations.