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Joint Venture | 3 Months Ended
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Sep. 30, 2023
Equity Method Investments and Joint Ventures [Abstract] |
Joint Venture | Note 13. Joint Venture In January 2019, the Company’s wholly-owned subsidiary, Accuray Asia Limited (“Accuray Asia”), entered into an agreement with CNNC High Energy Equipment (Tianjin) Co., Ltd. (the “CIRC Subsidiary”), a wholly-owned subsidiary of China Isotope & Radiation Corporation, to form a joint venture, CNNC Accuray (Tianjin) Medical Technology Co. Ltd. (the “JV”), to manufacture and sell radiation oncology systems in China. As of September 30, 2023, the Company owned a 49% interest in the JV, which is reported as an investment in joint venture on the Company’s unaudited condensed consolidated balance sheets. The Company applies the equity method of accounting to its ownership interest in the JV as the Company has the ability to exercise significant influence over the JV but lacks controlling financial interest and is not the primary beneficiary. The Company recognizes the 49% proportionate share of the JV income or loss on a one-quarter lag due to the timing of the availability of the JV’s financial records. The Company recognizes revenue on sales to the JV in the current period, eliminating a portion of profit to the extent goods sold have not been sold through by the JV to an end customer at the end of such reporting period. The following table shows the reconciliation between the carrying value of the Company's investment in the JV and its proportional share of the underlying equity in net assets of the JV (in thousands):
|  | September 30, 2023 |  |  | June 30, 2023 |
Carrying value of investment in joint venture |  | $ | 13,121 |  |  | $ | 15,128 |
Deferred intra-entity profit margin |  |  | 7,314 |  |  |  | 5,737 |
Equity method goodwill |  |  | (4,720 | ) |  |  | (4,720 | )
Proportional share of equity investment in joint venture |  | $ | 15,715 |  |  | $ | 16,145 |
As of September 30, 2023, the Company’s carrying value of the investment in the JV was decreased for the Company's proportional share of the JV's currency translation adjustment by $0.9 million. As of June 30, 2023, the Company’s carrying value of the investment in the JV for the Company's proportional share of the JV's currency translation adjustment was not material. Summarized financial information of the JV is as follows (in thousands):
|  | Three Months Ended June 30, |
Statement of Operations Data: |  | 2023 |  |  | 2022 |
Revenue |  | $ | 31,855 |  |  | $ | 26,740 |
Gross profit |  |  | 5,813 |  |  |  | 4,596 |
Net income (loss) |  |  | 879 |  |  |  | (752 | )
Net income (loss) attributable to the Company |  |  | 431 |  |  |  | (368 | )
Summarized Balance Sheet Data: |  | As of June 30, 2023 |  |  | As of June 30, 2022 |
Assets |  |  |  |  |  |
Current assets |  | $ | 76,394 |  |  | $ | 72,241 |
Non-current assets |  |  | 14,345 |  |  |  | 19,701 |
Total assets |  | $ | 90,739 |  |  | $ | 91,942 |
Liabilities and Stockholders' Equity |  |  |  |  |  |
Current liabilities |  | $ | 57,898 |  |  | $ | 63,006 |
Non-current liabilities |  |  | 227 |  |  |  | 862 |
Stockholders' equity |  |  | 32,614 |  |  |  | 28,074 |
Total liabilities and stockholders' equity |  | $ | 90,739 |  |  | $ | 91,942 |
The following table shows the activity of the Company’s deferred intra-entity profit margin from sales (in thousands):
|  | Three Months Ended September 30, |
|  | 2023 |  |  | 2022 |
Previously deferred intra-entity profit margin from sales - recognized |  | $ | (1,585 | ) |  | $ | (2,348 | )
Intra-entity profit margin from sales - deferred |  |  | 3,161 |  |  |  | 2,387 |
Total change in deferred intra-entity profit margin from sales |  | $ | 1,576 |  |  | $ | 39 |

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 323 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481543/323-740-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org//323/tableOfContent + Details
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