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Investments in Foreign Joint Ventures (Tables)
 3 Months Ended
Mar. 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 equity at March 31, 2022 and December 31, 2021, and its operational results for the three months ended March 31, 2022 and 2021 in U.S. dollars (in thousands, unaudited):
March 31,
2022		December 31, 2021
Assets:
Total current assets
$83,964 $75,249 
Total non-current assets
3,487 3,544 
Total assets
$87,451 $78,793 
Liabilities and equity:
Total liabilities
$53,426 $45,253 
Total joint ventures’ equity
34,025 33,540 
Total liabilities and equity
$87,451 $78,793 
Three Months Ended
March 31,
20222021
Revenue
$10,079 $14,216 
Gross Profit
1,609 2,233 
Earnings
323 970 
Schedule of Activity in Investment in Foreign Joint Ventures
The table below presents a summary of activity in our investment in BOMAY for the three months ended March 31, 2022 in U.S. dollars (in thousands, unaudited):
March 31,
2022
Initial Investment in BOMAY (1)(2)
$9,333 
Undistributed earnings:
Balance at the beginning of the period1,965 
Equity in earnings162 
Dividend distributions— 
Undistributed earnings at March 31, 20222,127 
Cumulative foreign currency translation:
Balance at the beginning of the period1,027 
Change during the period37 
Cumulative foreign currency translation at March 31, 20221,064 
Investment in BOMAY at end of period$12,524 
_______________
(1)Accumulated statutory reserves in equity method investments of $2.66 million at March 31, 2022 and December 31, 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). The Company's accretion during the three months ended March 31, 2022 and 2021 totaled approximately $32 thousand and $32 thousand, respectively, and is included in income from equity investments in foreign joint ventures in the accompanying Consolidated Statement of Operations. The remaining basis difference, net of accumulated accretion at March 31, 2022 and December 31, 2021 is summarized in the following table (amounts in thousands):
March 31,
2022
December 31,
2021
Original basis difference
$1,165 $1,165 
Less accumulated accretion
(346)(314)
Net remaining basis difference, net at end of period
$819 $851