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NOTE H - INVESTMENTS
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12 Months Ended |
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Dec. 31, 2011
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| Investment [Text Block] |
NOTE H –
INVESTMENTS
Amperion,
Inc.
On
November 30, 2004, Telkonet entered into a Stock Purchase
Agreement (“Agreement”) with Amperion, Inc.
("Amperion"), a privately held company. Amperion is engaged
in the business of developing networking hardware and
software that enables the delivery of high-speed broadband
data over medium-voltage power lines. Pursuant to the
Agreement, the Company invested $500,000 in Amperion in
exchange for 11,013,215 shares of Series A Preferred Stock
for an equity interest of approximately
4.7%. Telkonet accounted for this investment under
the cost method, as the Company does not have the ability to
exercise significant influence over operating and financial
policies of the investee. The remaining value of
Telkonet’s investment in Amperion was $8,000 at
December 31, 2009. On December 31, 2010, management
determined that the entire investment in Amperion, Inc. was
impaired and the remaining value of $8,000 was written off
during the year ended December 31, 2010.
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