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INVESTMENTS IN FOREIGN JOINT VENTURES (Tables)
 12 Months Ended
Dec. 31, 2022
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, 2022 and 2021 in U.S. dollars (in thousands):
Year Ended December 31,
20222021
Revenues$89,634 $72,884 
Gross Profit
14,306 13,923 
Earnings
4,380 5,041 
December 31,
20222021
Assets:
Total current assets$88,536 $75,249 
Total non-current assets
3,016 3,544 
Total assets
$91,552 $78,793 
Liabilities and equity:
Total liabilities
$58,482 $45,253 
Total joint ventures’ equity
33,070 33,540 
Total liabilities and equity
$91,552 $78,793 
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, 2022 and 2021 in U.S. dollars (in thousands):
December 31,
Investments in BOMAY(1)(2)
20222021
Fair value at merger$9,333 $9,333 
Undistributed earnings:
Balance at beginning of period1,965 1,908 
Equity in earnings1,880 2,146 
Dividend distributions(1,550)(2,089)
Balance at end of period2,295 1,965 
Foreign currency translation:
Balance at beginning of period1,027 656 
Change during the period(1,049)371 
Balance at end of period(22)1,027 
Total investment in BOMAY at end of period$11,606 $12,325 
_______________
(1)Accumulated statutory reserves in equity method investments of $2.66 million at December 31, 2022 and 2021 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, 2022 and 2021 (amounts in thousands):
December 31,
20222021
Original basis difference$1,165 $1,165 
Less accumulated accretion(443)(314)
Net remaining basis difference, net at end of period$722 $851