Turnkey and Kempton are 100% owned. RDS is 50% owned. These All flow to the bottom line.
Principles of Consolidation
The consolidated financial statements include the accounts of the Company and
its wholly-owned subsidiaries, NBase Communications, Inc., NBase Communications,
Ltd. (Nbase Ltd.), NBase Europe GmbH (Nbase Europe), NBase Fibronics, Ltd.
(Fibronics), Netsoft Solutions, Ltd. (Netsoft), Turnkey, Kempton Communications,
Nbase Xyplex, its 70 percent-owned subsidiary, EDSLAN SRL (EDS) and its 50
percent-owned subsidiary, RDS. All significant intercompany transactions and
accounts have been eliminated.
The financial statements of NBase Europe, Netsoft, Turnkey, Kempton
Communications, EDS and RDS have been prepared in the companies' local
currencies and have been translated into U.S. dollars. The functional currency
for these companies is their local currency.
Assets and liabilities are translated from the local currencies into U.S.
dollars at the exchange rate prevailing at the balance sheet date. Revenues,
expenses and cash flows are translated at weighted average exchange rates for
the period to approximate translation at the exchange rates prevailing at the
dates those elements are recognized in the financial statements. Translation
adjustments resulting from the process of translating the local currency
financial statements into U.S. dollars are included in determining comprehensive
income(loss).
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