Joint Venture

The Company held a fifty percent interest in Eyston Company Limited, the former Hong Kong Joint Venture, which has manufacturing facilities in the People’s Republic of China, for the manufacturing of certain of our electronic and electrical products. The Company sold its fifty percent interest in the Hong Kong Joint Venture effective March 31, 2020. There are no material differences between US-GAAP and the basis of accounting used by the former Hong Kong Joint Venture for the periods ended September 30, 2019. The following represents summarized balance sheet and income statement information of the former Hong Kong Joint Venture as of and for the six months ended September 30, 2019:


	2019
	(Unaudited)
Net sales	$	4,919,756
Gross profit		368,790
Net loss		(1,496,807)
Total current assets		12,304,440
Total assets		18,281,656
Total current liabilities		2,267,448
Total liabilities		3,162,532

During the six months ended September 30, 2019 the Company purchased $4,528,333 of products directly from the Hong Kong Joint Venture for resale. For the six months ended September 30, 2019 the Company decreased its equity in the net loss in the investment in the Joint Venture to reflect an increase of $6,217 in inter-Company profit on purchases held by the Company in inventory.