Quarterly report pursuant to Section 13 or 15(d)

NOTE 11: SUBSIDIARY MERGER

v2.3.0.15
NOTE 11: SUBSIDIARY MERGER
9 Months Ended
Sep. 30, 2011
Mergers, Acquisitions and Dispositions Disclosures [Text Block]
NOTE 11:                      SUBSIDIARY MERGER

In July 2011, the Company merged its Israeli subsidiary Electric Fuel (E.F.L.) Ltd. (“EFL”) into its Israeli subsidiary Epsilor Electronic Industries, Ltd. (“Epsilor”), changing the name of the merged company to Epsilor-Electric Fuel Ltd. (the “Merged Company”). The purpose of this merger was to enable unified management and operation of these two Israeli battery companies and to achieve cost savings through elimination of duplications and inefficiencies. An agreement was reached with the Israeli tax authorities regarding the use of EFL’s loss carry forwards by the Merged Company, which for tax purposes is effective June 30, 2009. The Merged Company will continue to market Epsilor’s and EFL’s products under their respective trademarks, and, for so long as the Merged Company continues to make use of benefits granted to Epsilor by the Israel Investment Center, the Merged Company will continue to maintain separate books for the two business operations.