Investments in Foreign Joint Ventures (Tables)

12 Months Ended

Dec. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Financial Information of Foreign Joint Venture

Below is summary financial information for BOMAY at December 31, 2019 and operational results for the period from July 27, 2019 to December 31, 2019 in U.S. dollars (in thousands):



	December 31, 2019
Assets:
Total current assets	$	81,247
Total non-current assets	5,775
Total assets	$	87,022
Liabilities and equity:
Total liabilities	$	58,176
Total joint ventures’ equity	28,846
Total liabilities and equity	$	87,022



	July 27 - December 31,
	2019

Revenue	$	50,421
Gross Profit	7,182
Earnings	3,143

Schedule of Activity in Investment in Foreign Joint Ventures

The following is a summary of activity in our investment in BOMAY for the period from July 27, 2019 to December 31, 2019 in U.S. dollars (in thousands):



	December 31, 2019
Investments in BOMAY⁽¹⁾
Balance at July 26, 2019	$	9,333
Undistributed earnings:
Balance at July 26, 2019	—
Equity in earnings	1,257
Dividend distributions	—
Balance at end of period	1,257
Foreign currency translation:
Balance at July 26, 2019	—
Change during the period	(69		)
Balance at end of period	(69		)
Total investment in BOMAY at December 31, 2019 (2)	$	10,521

________

(1)

Accumulated statutory reserves in equity method investments of $2.81 million at December 31, 2019 is included in our investment in BOMAY. In accordance with the People’s Republic of China, (“PRC”), regulations on enterprises with foreign ownership, an enterprise established in the PRC with foreign ownership is required to provide for certain statutory reserves, namely (i) General Reserve Fund, (ii) Enterprise Expansion Fund and (iii) Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends.

(2)

At December 31, 2019, the Company’s investment in BOMAY of $10.5 million differs from the Company’s 40% share of BOMAY’s equity of $11.5 million as a result of applying fair value accounting pursuant to ASC 805. The basis difference of approximately $1.0 million will be accreted over the remaining nine year life of the joint venture. The Company's accretion during the year ended December 31, 2019 totaled approximately $54 thousand and is included in income from equity investments in foreign joint ventures in the accompanying consolidated statement of operations.