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TGSV ENTERPRISES, INC. <br /> <br />NOTES TO FINANCIAL STATEMENTS <br /> <br />DECEMBER 31, 2017 <br /> <br /> <br />1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) <br /> <br />Short-term investments (continued) <br /> <br />Investments with maturities beyond one year may be classified as short-term based on their <br />highly liquid nature and because these investments represent cash that is available for current <br />operations. The Company classifies these investments with maturities beyond 12 months as <br />current assets under the caption short-term investments in the accompanying balance sheet. <br />The fair value of these investments approximates their carrying values. <br /> <br />Marketable equity securities <br /> <br />Investments in marketable equity securities are classified as trading and are stated at fair <br />value. Fair value is based on quoted market prices using prevailing financial market <br />information. Unrealized holding gains or losses are reflected in earnings. Realized gains or <br />losses on the sale of securities are determined using the specific identification method and <br />are included in earnings. <br /> <br />Contracts receivable <br /> <br />Contracts receivable are based on contracted prices. The Company provides, when necessary, <br />an allowance for doubtful collections based upon a review of outstanding receivables, <br />historical collection information, and existing economic conditions. Normal contracts <br />receivable are due 30 days after the issuance of the invoice. Contract retentions are due after <br />completion of the project and acceptance by the customer. Receivables past due more than <br />120 days are considered delinquent. Delinquent receivables are reviewed by management and <br />may be written off based on individual credit evaluation and specific circumstances of the <br />customer. As of December 31, 2017, management has determined that no allowance is <br />deemed necessary. <br /> <br />Unbilled receivables result from the accrual of revenues on completed contracts for which <br />billings have not yet been rendered. <br /> <br />Property and equipment <br /> <br />Property and equipment are stated at cost. Depreciation is computed using the straight-line <br />method over the estimated useful lives of the assets, which range from 5 to 7 years. <br />Leasehold improvements are amortized over the shorter of the lease term or the estimated <br />useful lives of the improvements. <br />See independent accountants’ review report. <br />-7-