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Foreign Operations
 3 Months Ended
Sep. 30, 2023
Foreign Operations  
Foreign Operations

13. Foreign Operations

 

Assets and liabilities denominated in non-U.S. currencies are translated at rates of exchange prevailing on the balance sheet date, and revenues and expenses are translated at average rates of exchange for the period. Gains or losses on the translation of the financial statements of a non-U.S. operation, where the functional currency is other than the U.S. dollar, are reflected as a separate component of equity, which was a cumulative gain of approximately $481,000 and $607,000 as of September 30, 2023 and June 30, 2023, respectively. We also recognized net foreign currency transaction gains of $25,000 and $23,000 during the three months ended September 30, 2023 and 2022, respectively, included in the unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) in the line item entitled “Other income (expense), net.”

 

Our cash, cash equivalents and restricted cash totaled approximately $6.9 million at September 30, 2023. Of this amount, greater than 25% was held by our foreign subsidiaries in China and Latvia. These foreign funds were generated in China and Latvia as a result of foreign earnings. With respect to the funds generated by our foreign subsidiaries in China, the retained earnings of the respective subsidiary must equal at least 50% of its registered capital before any funds can be repatriated through dividends. As of September 30, 2023, LPOIZ had approximately $2.7 million in retained earnings available for repatriation, and LPOI did not have any earnings available for repatriation, based on earnings accumulated through December 31, 2022, the end of the most recent statutory tax year, that remained undistributed as of September 30, 2023.

Revenues from and long-lived assets located in foreign countries are as follows:

 

 

 

Three Months Ended September 30,

 

 

 

2023

 

 

2022

 

Revenues:

 

 

 

 

 

 

United States

 

$4,293,394

 

 

$2,965,295

 

Latvia

 

 

—

 

 

 

738,612

 

China

 

 

500,138

 

 

 

827,940

 

Other European countries

 

 

2,523,545

 

 

 

2,136,229

 

Other Asian countries

 

 

562,399

 

 

 

449,888

 

Rest of world

 

 

197,772

 

 

 

248,937

 

 

 

$8,077,248

 

 

$7,366,901

 

  

 

 

September 30,

 2023

 

 

June 30,

2023

 

Long-lived assets:

 

 

 

 

 

 

United States

 

$27,345,150

 

 

$23,336,063

 

Latvia

 

 

4,954,923

 

 

 

5,282,596

 

China

 

 

3,039,911

 

 

 

3,157,434

 

 

 

$35,339,984

 

 

$31,776,093