DSP GROUP INC /DE/ | 2013 | FY | 3


NOTE 9:-     INVESTMENT IN OTHER COMPANY


On October 24, 2013, the Company made an investment of $2,200 in a private company in Asia which enables it to expand its reach and presence as well as leverage a base of local professional experts. The investment was in return for approximately 14% of the equity of the company, on a fully diluted basis. The Company also signed a buyout agreement pursuant to which the Company had the option to purchase from all holders of the Asian private company, under agreed terms, all of the remaining outstanding securities by no later than December 31, 2014. The investment is accounted under the cost-method in accordance with ASC 325-20.



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