Investments in Foreign Joint Ventures (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020 and 2019 and operational results for the year ended December 31, 2020 and for the period from July 27, 2019 to December 31, 2019 in U.S. dollars (in thousands):


	December 31,
	2020		2019
Assets:
Total current assets	$	51,811	$	81,247
Total non-current assets	7,136		5,775
Total assets	$	58,947	$	87,022
Liabilities and equity:
Total liabilities	$	26,355	$	58,176
Total joint ventures’ equity	32,592		28,846
Total liabilities and equity	$	58,947	$	87,022


	December 31,		July 27- December 31,
	2020		2019

Revenue	$	66,260	$	50,421
Gross Profit	12,066		7,182
Earnings	6,521		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 year ended December 31, 2020 and for the period from July 27, 2019 to December 31, 2019 in U.S. dollars (in thousands):


	December 31,		July 27- December 31,
	2020		2019
Investments in BOMAY(1)(2)
Initial investment	$	9,333	$	9,333
Undistributed earnings:
Balance at beginning of period	1,257		—
Equity in earnings	2,705		1,257
Dividend distributions	(2,054)		—
Balance at end of period	1,908		1,257
Foreign currency translation:
Balance at beginning of period	(69)		—
Change during the period	725		(69)
Balance at end of period	656		(69)
Total investment in BOMAY at end of period	$	11,897	$	10,521

________

(1)Accumulated statutory reserves in equity method investments of $2.66 million at December 31, 2020 and 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)The Company’s initial investment in BOMAY differed from the Company’s 40% share of BOMAY’s equity as a result of applying fair value accounting pursuant to ASC 805. The basis difference of approximately $1.2 million will be accreted over the remaining eight year life of the joint venture. The Company's accretion during the years ended December 31, 2020 and 2019 totaled approximately $129 thousand and $54 thousand, respectively, and is included in income from equity investments in foreign joint ventures in the accompanying consolidated statement of operations. As of December 31, 2020 and 2019, accumulated accretion totaled $183 thousand and $54 thousand, respectively.