Taitron Components (TAIT) 10-Q 14 Nov 13 2013 Q3 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	9 Months Ended
	Sep. 30, 2013	Oct. 30, 2013	Oct. 30, 2013
		Common Class A [Member]	Common Class B [Member]
Document Information [Line Items]	'	'	'
Entity Registrant Name	'TAITRON COMPONENTS INC	'	'
Document Type	'10-Q	'	'
Current Fiscal Year End Date	'--12-31	'	'
Entity Common Stock, Shares Outstanding	'	4,777,144	762,612
Amendment Flag	'false	'	'
Entity Central Index Key	'0000942126	'	'
Entity Current Reporting Status	'Yes	'	'
Entity Voluntary Filers	'No	'	'
Entity Filer Category	'Smaller Reporting Company	'	'
Entity Well-known Seasoned Issuer	'No	'	'
Document Period End Date	30-Sep-13	'	'
Document Fiscal Year Focus	'2013	'	'
Document Fiscal Period Focus	'Q3	'	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
Current Assets:	'	'
Cash and cash equivalents	$2,633,000	$2,475,000
Restricted cash (Note 4)	0	100,000
Accounts receivable, less allowances of $62,000 and $87,000, respectively	870,000	853,000
Inventories, less reserves for obsolescence of $5,714,000, and $5,108,000, respectively	10,250,000	10,986,000
Prepaid expenses and other current assets	80,000	66,000
Total current assets	13,833,000	14,480,000
Property and equipment, net	4,499,000	4,630,000
Other assets (Note 5)	1,444,000	1,297,000
Total assets	19,776,000	20,407,000
Current Liabilities:	'	'
Accounts payable	695,000	668,000
Accrued liabilities	393,000	428,000
Current portion of long-term debt from related party (Note 6)	0	1,500,000
Total current liabilities	1,088,000	2,596,000
Long-term debt from related party (Note 6)	1,500,000	0
Total Liabilities	2,588,000	2,596,000
Commitments and contingencies (Notes 6, 8 and 9)	'	'
Shareholdersb Equity:	'	'
Preferred stock, $0.001 par value. Authorized 5,000,000 shares; None issued or outstanding	0	0
Additional paid-in capital	10,654,000	10,635,000
Accumulated other comprehensive income	131,000	128,000
Retained earnings	6,275,000	6,892,000
Total Shareholdersb Equity - Taitron Components Inc	17,066,000	17,661,000
Noncontrolling interest in subsidiary	122,000	150,000
Total Shareholdersb Equity	17,188,000	17,811,000
Total Liabilities and Shareholdersb Equity	19,776,000	20,407,000
Common Class A [Member]	'	'
Shareholdersb Equity:	'	'
Common Stock, value, issued	5,000	5,000
Common Class B [Member]	'	'
Shareholdersb Equity:	'	'
Common Stock, value, issued	$1,000	$1,000

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parentheticals) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Accounts receivable, allowances (in Dollars)	$62,000	$87,000
Inventories, reserves for obsolescence (in Dollars)	$5,714,000	$5,108,000
Preferred stock, par value (in Dollars per share)	$0.00	$0.00
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common Class A [Member]	'	'
Common stock par value (in Dollars per share)	$0.00	$0.00
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	4,777,144	4,777,144
Common stock, shares outstanding	4,777,144	4,777,144
Common Class B [Member]	'	'
Common stock par value (in Dollars per share)	$0.00	$0.00
Common stock, shares authorized	762,612	762,612
Common stock, shares issued	762,612	762,612
Common stock, shares outstanding	762,612	762,612

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net sales	$1,574,000	$1,945,000	$4,869,000	$5,045,000
Cost of goods sold	1,203,000	1,518,000	3,807,000	3,992,000
Gross profit	371,000	427,000	1,062,000	1,053,000
Selling, general and administrative expenses	575,000	609,000	1,784,000	1,849,000
Operating loss	-204,000	-182,000	-722,000	-796,000
Interest expense, net	-9,000	-8,000	-25,000	-25,000
Other income, net	36,000	27,000	102,000	73,000
Loss before income taxes	-177,000	-163,000	-645,000	-748,000
Income tax provision	-1,000	-1,000	-2,000	-2,000
Net loss	-178,000	-164,000	-647,000	-750,000
Net loss attributable to noncontrolling interest in subsidiary	-1,000	-9,000	-30,000	-25,000
Net loss attributable to Taitron Components Inc.	-177,000	-155,000	-617,000	-725,000
Net loss per share: Basic & Diluted (in Dollars per share)	($0.03)	($0.03)	($0.12)	($0.14)
Weighted average common shares outstanding: Basic & Diluted (in Shares)	5,539,756	5,539,756	5,539,756	5,539,756
Net loss	-178,000	-164,000	-647,000	-750,000
Other comprehensive income (loss):	'	'	'	'
Foreign currency translation adjustment	0	-2,000	3,000	2,000
Comprehensive loss	-178,000	-166,000	-644,000	-748,000
Comprehensive loss attributable to noncontrolling interests	0	-9,000	-28,000	-25,000
Comprehensive loss attributable to Taitron Components Inc.	($178,000)	($157,000)	($616,000)	($723,000)

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Operating activities:	'	'
Net loss	($647,000)	($750,000)
Adjustments to reconcile net loss to net cash provided by operating activities:	'	'
Depreciation and amortization	140,000	161,000
Provision for sales returns and doubtful accounts	59,000	19,000
Stock based compensation	19,000	13,000
Changes in assets and liabilities:	'	'
Restricted cash	100,000	100,000
Trade accounts receivable	-76,000	-306,000
Inventory	736,000	1,048,000
Prepaid expenses and other current assets	-14,000	-3,000
Trade accounts payable	27,000	224,000
Accrued liabilities	-35,000	33,000
Other assets and liabilities	-10,000	-2,000
Total adjustments	946,000	1,287,000
Net cash provided by operating activities	299,000	537,000
Investing activities:	'	'
Acquisition of property & equipment	-9,000	-16,000
Payments for investment in joint venture	-294,000	0
Payments for investment in securities	0	-350,000
Return of capital from investment in joint venture	159,000	0
All other investing activity	0	0
Net cash used for investing activities	-144,000	-366,000
Impact of exchange rates on cash	3,000	2,000
Net increase in cash and cash equivalents	158,000	173,000
Cash and cash equivalents, beginning of period	2,475,000	1,905,000
Cash and cash equivalents, end of period	2,633,000	2,078,000
Supplemental disclosures of cash flow information:	'	'
Cash paid for interest	39,000	39,000
Cash paid for income taxes, net	$3,000	$3,000

1_ORGANIZATION

1 - ORGANIZATION	9 Months Ended
	Sep. 30, 2013
Disclosure Text Block [Abstract]	'
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	'
	1 – ORGANIZATION
	In 1989, we were formed and incorporated in California.  We maintain a majority-owned subsidiary in Mexico (since 1998) and two subsidiaries in each of Taiwan (since 1998) and China (since 2005).  Our Mexico location is for regional distribution, sales and marketing purposes and our Taiwan and China locations are for supporting inventory sourcing, purchases and coordinating the manufacture of our products.  Our China location also serves as the engineering center responsible for making component datasheets and test specifications, arranging pre-production and mass production at our outsourced manufacturers, preparing samples, monitoring quality of shipments, performing failure analysis reports, and designing circuits with partners for our projects.

2_BASIS_OF_PRESENTATION

2 - BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2013
Disclosure Text Block [Abstract]	'
Business Description and Basis of Presentation [Text Block]	'
	2 – BASIS OF PRESENTATION
	The unaudited consolidated interim financial statements include the accounts of the Company and all wholly owned subsidiaries, including its 60% majority-owned subsidiary, Taitron Components Mexico, S.A. de C.V.  All significant intercompany accounts and transactions have been eliminated in consolidation.
	These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 8 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.  In the opinion of management, all adjustments of a normal recurring nature and considered necessary for a fair presentation of its financial condition and results of operations for the interim periods presented in this Quarterly Report on Form 10-Q have been included.  Operating results for the interim periods are not necessarily indicative of financial results for the full year.  These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.  In preparing these financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements and the reported amount of revenues and expenses during the reporting periods.  Actual results could differ from those estimates.  Significant estimates and assumptions included in the Company’s consolidated financial statements relate to the allowance for sales returns, doubtful accounts, inventory reserves, accrued liabilities and deferred income taxes.  Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year presentation.

3_RECENT_ACCOUNTING_DEVELOPMEN

3 - RECENT ACCOUNTING DEVELOPMENTS	9 Months Ended
	Sep. 30, 2013
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]	'
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	'
	3 – RECENT ACCOUNTING DEVELOPMENTS
	Recently Adopted Accounting Pronouncements
	Effective January 2013, we adopted FASB ASU No. 2011-11, Balance Sheet (Topic 210):  Disclosures about Offsetting Assets and Liabilities (ASU 2011-11).  The amendments in ASU 2011-11 require the disclosure of information on offsetting and related arrangements for financial and derivative instruments to enable users of its financial statements to understand the effect of those arrangements on its financial position.  Amendments under ASU 2011-11 will be applied retrospectively for fiscal years, and interim periods within those years, beginning after January 1, 2013.  The adoption of this update did not have a material impact on the consolidated financial statements.
	Effective January 2013, we adopted FASB ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive (ASU 2013-02).  This guidance is the culmination of the FASB’s deliberation on reporting reclassification adjustments from accumulated other comprehensive income (AOCI).  The amendments in ASU 2013-02 do not change the current requirements for reporting net income or other comprehensive income.  However, the amendments require disclosure of amounts reclassified out of AOCI in its entirety, by component, on the face of the statement of operations or in the notes thereto.  Amounts that are not required to be reclassified in their entirety to net income must be cross-referenced to other disclosures that provide additional detail.  This standard is effective prospectively for annual and interim reporting periods beginning after December 15, 2012.  The adoption of this update did not have a material impact on the consolidated financial statements.
	New Accounting Pronouncements Not Yet Adopted
	In February 2013, the FASB issued ASU No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. The amendments in ASU 2013-04 provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this Update is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance in this Update also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in this standard are effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. We are evaluating the effect, if any, adoption of ASU No. 2013-04 will have on our consolidated financial statements.
	In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. The amendments in ASU No. 2013-05 resolve the diversity in practice about whether Subtopic 810-10, Consolidation—Overall, or Subtopic 830-30, Foreign Currency Matters—Translation of Financial Statements, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. In addition, the amendments in this Update resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. The amendments in this standard are effective prospectively for fiscal years, and interim reporting periods within those years, beginning December 15, 2013. We are evaluating the effect, if any, adoption of ASU No. 2013-05 will have on our consolidated financial statements.

4_RESTRICTED_CASH

4 - RESTRICTED CASH	9 Months Ended
	Sep. 30, 2013
Policy Text Block [Abstract]	'
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]	'
	4 – RESTRICTED CASH
	At September 30, 2013 and December 31, 2012, we had $0 and $100,000, respectively, of restricted cash on deposit as collateral for our irrevocable letter of credit in favor of a trade vendor for inventory purchasing.

5_OTHER_ASSETS

5 - OTHER ASSETS	9 Months Ended
	Sep. 30, 2013
Disclosure Text Block Supplement [Abstract]	'
Other Assets Disclosure [Text Block]	'
	5 – OTHER ASSETS
		September 30,		December 31,
		2013		2012
		(Unaudited)
	Investment in securitites - Zowie Technology	$	437,000	$	423,000
	Investment in joint venture - Taiteam Technology		-		147,000
	Investment in joint venture - Grand Shine Mgmt		997,000		703,000
	Other		10,000		24,000
	Other Assets	$	1,444,000	$	1,297,000
	Our $437,000 investment in securities as of September 30, 2013 relates to our ownership of 154,808 common shares and 1,007,902 preferred shares of Zowie Technology Corporation (Taipei Hsien, Taiwan), a supplier of electronic component products.  Our investment relates to 3.5% of their total outstanding shares and we do not have significant influence or control.  This investment is accounted for under the cost method basis of accounting.
	Our $147,000 investment in Taiteam (Yangzhou) Technology Corporation Limited (Yangzhou, China) was returned during the quarter ended September 30, 2013.  This joint venture was liquidated and capital returned during July 2013.
	Our $997,000 investment in joint venture as of September 30, 2013, relates to our 49% ownership of Grand Shine Management Limited (Dong Guan, China), an electronic device contract manufacturer, and joint venture with its 51% owner, Teamforce Company Limited.  This joint venture is not considered to be a “Variable Interest Entity”, and as such, is accounted for under the equity method basis of accounting.

6_LONGTERM_DEBT_FROM_RELATED_P

6 - LONG-TERM DEBT FROM RELATED PARTY	9 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]	'
Debt Disclosure [Text Block]	'
	6 – LONG-TERM DEBT FROM RELATED PARTY
	Secured credit facility - On April 21, 2008 we entered into a $3,000,000 credit facility, collateralized by real property, from K.S. Best International Co. Ltd., a company controlled by the brother of our Chief Executive Officer.  On April 12, 2013 we renewed and extended maturities to June 30, 2015 and beyond.  Credit is available in $500,000 advances, each advance payable in monthly interest only installments, at the rate of Prime + 0.25% per annum.  As of September 30, 2013 and December 31, 2012, the aggregate outstanding balance on this credit facility was $1,500,000.  The advance history of the credit line is such that on June 3, 2008, we borrowed $500,000, on April 3, 2009, we borrowed $500,000 and on April 1, 2010, we borrowed $500,000.  All advances are due from June 30, 2015 to June 30, 2017.

7_RELATED_PARTY_TRANSACTIONS

7 - RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2013
Related Party Transactions [Abstract]	'
Related Party Transactions Disclosure [Text Block]	'
	7 – RELATED PARTY TRANSACTIONS
	We made payments of approximately $6,000 for both of the quarters ending September 30, 2013 and 2012, to K.S. Best International Co. Ltd., a company controlled by the brother of our Chief Executive Officer.  These payments were for professional fees related to the operational management of our Taiwan office.  In addition, we also made payments of $13,000 for both of the quarters ended September 30, 2013 and 2012, for interest expense on our credit facility from K.S. Best International Co. Ltd.  See Note 6.
	We have a $3,000,000 credit facility, collateralized by real property, from K.S. Best International Co. Ltd., a company controlled by the brother of our Chief Executive Officer.  See Note 6 for additional details.

8_SHARE_BASED_COMPENSATION

8 - SHARE BASED COMPENSATION	9 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	'
	8 – SHARE BASED COMPENSATION
	Accounting for stock options issued to employees measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award.  That cost is recognized over the period during which an employee is required to provide service in exchange for the award.  Outstanding options to purchase Class A common stock (“the Options”) vest in three equal annual installments beginning one year from the date of grant and are subject to termination provisions as defined in our 2005 Stock Incentive Plan.  The fair value of options was determined using the Black-Scholes option-pricing model with the following weighted average assumptions for 2013: dividend yield of 0%,; expected volatility of 40%; risk free interest rate of approximately 2.13% and an expected holding period of five years.  We granted 20,000 shares of options and forfeited 67,000 shares of options during the nine months ended September 30, 2013.   The option activity during the three months ended September 30, 2013 is as follows:
		Number of Shares			Weighted Average Exercise Price		Weighted Average Years Remaining Contractual Term		Aggregate Intrinsic Value
	Outstanding at December 31, 2012		454,500		$	1.35		4.6	$	12,000
	Grants		20,000			0.92		8.7
	Forfeited		(67,000	)		1.22
	Outstanding at September 30, 2013		407,500			1.35		4.6	$	15,400
	Exercisable at September 30, 2013		288,167		$	1.47		3.8	$	8,300
	At September 30, 2013 the range of individual outstanding weighted average exercise prices was $0.93 to $1.80.

9_INCOME_TAXES

9 - INCOME TAXES	9 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Income Tax Disclosure [Text Block]	'
	9 – INCOME TAXES
	As of September 30, 2013, we had approximately $251,000 and $871,000 in net operating loss carryforwards for federal and state income tax purposes, respectively.  In assessing the realizability of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized.  We consider the scheduled reversal of deferred tax assets, the level of historical taxable income and tax planning strategies in making the assessment of the realizability of deferred tax assets.
	At September 30, 2013, we have $2,389,000 of unrecognized tax benefits.  We will continue to classify income tax penalties and interest, if any, as part of interest and other expenses in its statements of operations.  We have incurred no interest or penalties as of September 30, 2013.

10_COMMITMENTS_AND_CONTINGENCI

10 - COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies Disclosure [Text Block]	'
	10 – COMMITMENTS AND CONTINGENCIES
	Inventory Purchasing
	Outstanding commitments to purchase inventory from suppliers aggregated $2,000,000 as of September 30, 2013.

5_OTHER_ASSETS_Tables

5 - OTHER ASSETS (Tables)	9 Months Ended
	Sep. 30, 2013
Disclosure Text Block Supplement [Abstract]	'
Schedule of Other Assets [Table Text Block]	'
		September 30,		December 31,
		2013		2012
		(Unaudited)
	Investment in securitites - Zowie Technology	$	437,000	$	423,000
	Investment in joint venture - Taiteam Technology		-		147,000
	Investment in joint venture - Grand Shine Mgmt		997,000		703,000
	Other		10,000		24,000
	Other Assets	$	1,444,000	$	1,297,000

8_SHARE_BASED_COMPENSATION_Tab

8 - SHARE BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	'Accounting for stock options issued to employees measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award. Outstanding options to purchase Class A common stock (“the Options”) vest in three equal annual installments beginning one year from the date of grant and are subject to termination provisions as defined in our 2005 Stock Incentive Plan. The fair value of options was determined using the Black-Scholes option-pricing model with the following weighted average assumptions for 2013: dividend yield of 0%,; expected volatility of 40%; risk free interest rate of approximately 2.13% and an expected holding period of five years. We granted 20,000 shares of options and forfeited 67,000 shares of options during the nine months ended September 30, 2013. The option activity during the three months ended September 30, 2013 is as follows:
		Number of Shares			Weighted Average Exercise Price		Weighted Average Years Remaining Contractual Term		Aggregate Intrinsic Value
	Outstanding at December 31, 2012		454,500		$	1.35		4.6	$	12,000
	Grants		20,000			0.92		8.7
	Forfeited		(67,000	)		1.22
	Outstanding at September 30, 2013		407,500			1.35		4.6	$	15,400
	Exercisable at September 30, 2013		288,167		$	1.47		3.8	$	8,300

2_BASIS_OF_PRESENTATION_Detail

2 - BASIS OF PRESENTATION (Details) (Taitron Components Mexico [Member])	9 Months Ended
	Sep. 30, 2013
Taitron Components Mexico [Member]	'
2 - BASIS OF PRESENTATION (Details) [Line Items]	'
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions	60.00%

4_RESTRICTED_CASH_Details

4 - RESTRICTED CASH (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Policy Text Block [Abstract]	'	'
Restricted Cash and Cash Equivalents, Current	$0	$100,000

5_OTHER_ASSETS_Details

5 - OTHER ASSETS (Details)	Sep. 30, 2013
Zowie Technology [Member] | Common Shares [Member]	'
5 - OTHER ASSETS (Details) [Line Items]	'
Investment Owned, Balance, Shares (in Shares)	154,808
Zowie Technology [Member] | Preferred Shares [Member]	'
5 - OTHER ASSETS (Details) [Line Items]	'
Investment Owned, Balance, Shares (in Shares)	1,007,902
Zowie Technology [Member]	'
5 - OTHER ASSETS (Details) [Line Items]	'
Equity Method Investment, Ownership Percentage	3.50%
Grand Shine Management Limited [Member] | Joint Venture [Member] | Taitron Components Incorporated [Member]	'
5 - OTHER ASSETS (Details) [Line Items]	'
Equity Method Investment, Ownership Percentage	49.00%
Joint Venture [Member] | Teamforce Company Limited [Member]	'
5 - OTHER ASSETS (Details) [Line Items]	'
Equity Method Investment, Ownership Percentage	51.00%

5_OTHER_ASSETS_Details_Schedul

5 - OTHER ASSETS (Details) - Schedule of Other Assets (USD $)	Sep. 30, 2013	Dec. 31, 2012
5 - OTHER ASSETS (Details) - Schedule of Other Assets [Line Items]	'	'
Other	$10,000	$24,000
Other Assets	1,444,000	1,297,000
Zowie Technology [Member]	'	'
5 - OTHER ASSETS (Details) - Schedule of Other Assets [Line Items]	'	'
Investments	437,000	423,000
Taiteam Technology Corporation Limited [Member]	'	'
5 - OTHER ASSETS (Details) - Schedule of Other Assets [Line Items]	'	'
Investments	0	147,000
Grand Shine Management Limited [Member]	'	'
5 - OTHER ASSETS (Details) - Schedule of Other Assets [Line Items]	'	'
Investments	$997,000	$703,000

6_LONGTERM_DEBT_FROM_RELATED_P1

6 - LONG-TERM DEBT FROM RELATED PARTY (Details) (Line of Credit [Member], USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2012
6 - LONG-TERM DEBT FROM RELATED PARTY (Details) [Line Items]	'	'	'	'	'
Line of Credit Facility, Amount Outstanding	$1,500,000	'	'	'	$1,500,000
Proceeds from Secured Lines of Credit	'	500,000	500,000	500,000	'
Debt Instrument, Maturity Date, Description	'All advances are due from June 30, 2015 to June 30, 2017.	'	'	'	'
Immediate Family Member of Management or Principal Owner [Member]	'	'	'	'	'
6 - LONG-TERM DEBT FROM RELATED PARTY (Details) [Line Items]	'	'	'	'	'
Line of Credit Facility, Maximum Borrowing Capacity	$3,000,000	'	'	'	'
Line of Credit Facility, Collateral	'collateralized by real property	'	'	'	'
Line of Credit Facility, Description	'Credit is available in $500,000 advances	'	'	'	'
Line of Credit Facility, Frequency of Payment and Payment Terms	'each advance payable in monthly interest only installments	'	'	'	'
Line of Credit Facility, Interest Rate Description	'Prime + 0.25%	'	'	'	'

7_RELATED_PARTY_TRANSACTIONS_D

7 - RELATED PARTY TRANSACTIONS (Details) (A Company Controlled By Immediate Family Member [Member], USD $)	9 Months Ended		3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
	Line of Credit [Member]	Line of Credit [Member]
7 - RELATED PARTY TRANSACTIONS (Details) [Line Items]	'	'	'	'
Related Party Transaction, Amounts of Transaction	'	'	$6,000	$6,000
Related Party Transaction, Description of Transaction	'	'	'professional fees related to the operational management of our Taiwan office	'professional fees related to the operational management of our Taiwan office
Interest Paid	13,000	13,000	'	'
Line of Credit Facility, Maximum Borrowing Capacity	$3,000,000	'	'	'

8_SHARE_BASED_COMPENSATION_Det

8 - SHARE BASED COMPENSATION (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
8 - SHARE BASED COMPENSATION (Details) [Line Items]	'
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	40.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	2.13%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	'5 years
2005 Stock Incentive Plan [Member]	'
8 - SHARE BASED COMPENSATION (Details) [Line Items]	'
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award	'three equal annual installments beginning one year from the date of grant and are subject to termination provisions as defined in our 2005 Stock Incentive Plan
Minimum [Member]	'
8 - SHARE BASED COMPENSATION (Details) [Line Items]	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share)	0.93
Maximum [Member]	'
8 - SHARE BASED COMPENSATION (Details) [Line Items]	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share)	1.8

8_SHARE_BASED_COMPENSATION_Det1

8 - SHARE BASED COMPENSATION (Details) - Schedule of Share-based Compensation, Stock Options, Activity (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012
	Number of Shares [Member]	Weighted Average Exercise Price [Member]	Weighted Average Years Remaining, Contractual Term [Member]	Aggregate Intrinsic Value [Member]	Aggregate Intrinsic Value [Member]
8 - SHARE BASED COMPENSATION (Details) - Schedule of Share-based Compensation, Stock Options, Activity [Line Items]	'	'	'	'	'
Outstanding at December 31, 2012	454,500	'	'	'	'
Outstanding at December 31, 2012 (in Dollars per share)	'	$1.35	'	'	'
Outstanding at December 31, 2012	'	'	'4 years 219 days	'	'
Outstanding at December 31, 2012 (in Dollars)	'	'	'	$15,400	$12,000
Grants	20,000	'	'	'	'
Grants (in Dollars per share)	'	$0.92	'	'	'
Grants	'	'	'8 years 255 days	'	'
Forfeited	-67,000	'	'	'	'
Forfeited (in Dollars per share)	'	$1.22	'	'	'
Outstanding at September 30, 2013	407,500	'	'	'	'
Outstanding at September 30, 2013 (in Dollars per share)	'	$1.35	'	'	'
Outstanding at September 30, 2013	'	'	'4 years 219 days	'	'
Outstanding at September 30, 2013 (in Dollars)	'	'	'	15,400	12,000
Exercisable at September 30, 2013	288,167	'	'	'	'
Exercisable at September 30, 2013 (in Dollars per share)	'	$1.47	'	'	'
Exercisable at September 30, 2013	'	'	'3 years 292 days	'	'
Exercisable at September 30, 2013 (in Dollars)	'	'	'	$8,300	'

9_INCOME_TAXES_Details

9 - INCOME TAXES (Details) (USD $)	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Deferred Tax Assets, Operating Loss Carryforwards, Domestic	$251,000
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	871,000
Unrecognized Tax Benefits	$2,389,000

10_COMMITMENTS_AND_CONTINGENCI1

10 - COMMITMENTS AND CONTINGENCIES (Details) (USD $)	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Purchase Commitment, Remaining Minimum Amount Committed	$2,000,000