PREPAID EXPENSES AND OTHER ASSETS
 12 Months Ended
Dec. 31, 2013
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
PREPAID EXPENSES AND OTHER ASSETS
NOTE G – PREPAID EXPENSES AND OTHER ASSETS
 
Prepaid expenses and other current assets consisted of the following (in thousands):
 
   
As of December 31,
  
   
2013
    
2012
  
Prepaid expenses
     1,223       531  
Deferred costs
     488       772  
Other
     122       161  
    $ 1,833     $ 1,464  
 
Other noncurrent assets consisted of the following (in thousands):
 
   
As of December 31,
  
   
2013
    
2012
  
Prepaid carrier fees
   $ 1,658     $ 1,879  
Cost method investments
     200       522  
Deposits
     168       186  
Other
     272       102  
    $ 2,298     $ 2,689  
 
During 2011, we purchased and installed telecommunication infrastructure equipment and related equipment to improve the capacity and functionality of our devices operating on one of our carrier networks. To comply with the needs of one of our carriers and in exchange for more favorable carrier fees, we transferred the legal right to the equipment to the vendor. Thus, our existing agreement with this vendor was amended to provide for the new carrier fees and the legal transfer of the equipment. We accounted for this transaction as a non-monetary exchange. The $2.2 million cost of the equipment was determined to be its fair value and we recorded this transaction by transferring the equipment cost to prepaid carrier fees. The prepaid expense is being amortized in cost of sales for subscription revenue on a straight-line basis over the term of the agreement, which is ten years.
  
Cost method investments include our minority interests of less than 20% in two privately-held businesses. In October 2013, we completed the sale of a cost method investment in a privately-held M2M solutions company based in the United Kingdom. The carrying value of our investment was $0.3 million and we sold it for net proceeds of $0.6 million resulting in a gain of $0.3 million.
 
Our investments did not provide us the ability to exercise significant influence over operating and financial policies of the entities. Since the entities were not publicly traded, no established market for the securities existed. Our cost-method investment is carried at historical cost in our consolidated financial statements and assessed for impairment when indicators of impairment exist. We have not recorded any impairment charges for the cost-method investments for any period during the three years ended December 31, 2013.