INVESTMENTS IN FOREIGN JOINT VENTURES (Tables)

12 Months Ended

Dec. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Financial Information of Foreign Joint Venture

The tables below present a summary of BOMAY's assets and liabilities and its operational results as of and for the years ended December 31, 2021 and 2020 in U.S. dollars (in thousands):


	Year Ended December 31,
	2021		2020
Revenue	$	72,884	$	66,260
Gross Profit	13,923		12,066
Earnings	5,041		6,521


	December 31,
	2021		2020
Assets:
Total current assets	$	75,249	$	51,811
Total non-current assets	3,544		7,136
Total assets	$	78,793	$	58,947
Liabilities and equity:
Total liabilities	$	45,253	$	26,355
Total joint ventures’ equity	33,540		32,592
Total liabilities and equity	$	78,793	$	58,947

Schedule of Activity in Investment in Foreign Joint Ventures

The following is a summary of activity in our investment in BOMAY for the years ended December 31, 2021 and 2020 in U.S. dollars (in thousands):


	At December 31,
Investments in BOMAY(1)(2)	2021		2020
Fair value at merger	$	9,333	$	9,333
Undistributed earnings:
Balance at beginning of period	1,908		1,257
Equity in earnings	2,146		2,705
Dividend distributions	(2,089)		(2,054)
Balance at end of period	1,965		1,908
Foreign currency translation:
Balance at beginning of period	656		(69)
Change during the period	371		725
Balance at end of period	1,027		656
Total investment in BOMAY at end of period	$	12,325	$	11,897

_______________

(1)Accumulated statutory reserves in equity method investments of $2.66 million at December 31, 2021 and 2020 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 is being accreted over eight years (the expected life of the joint venture) and summarized in the following table at December 31, 2021 and 2020 (amounts in thousands):


	December 31,
	2021		2020
Original basis difference	$	1,165	$	1,165
Less accumulated accretion	(314)		(185)
Net remaining basis difference, net at end of period	$	851	$	980