|9 Months Ended|
Sep. 30, 2018
|Investments, Debt and Equity Securities [Abstract]|
Note 5 – Cost-Method Investment
The Company’s cost-method investments consist of the following:
In the second quarter of 2018, the Company acquired,for a purchase price of $250,000,
approximately a 1% ownership interest, in the form of preferred stock, in a privatecorporation in the low vision near eye display market,
valued at cost. As part of this investment, the privatecorporation
and the Company entered into a non-binding memorandum of understanding, with the goal of assisting in the Company’s development and supply of Vuzix display systems forthe private corporation’s
products. The Company expects to earn additional equity in the private corporation by being compensated for its work in kind and as a result could earn approximately a further 4% equity interest in this firm. This investment was recorded at cost as its fair value is not readily determinable. As of September 30, 2018, the investment is included in Long-Term Other Assets.
The entire disclosure for investments accounted for under the cost-method. The carrying amount of such investments may be adjusted, for example, distributions in excess of cost (return of capital) or for other-than-temporary impairments. The cost method and lower-of-cost or market, an adaptation of the cost method, is generally followed for most investments in noncontrolled corporations, in some corporate joint ventures, and to a lesser extent in unconsolidated subsidiaries in which the entity does not have the ability to exercise significant influence.
No definition available.