In January 2019, the Company’s wholly-owned subsidiary, Accuray Asia Limited (“Accuray Asia”), entered into an agreement with CNNC High Energy Equipment (Tianjin) Co., Ltd. (the “CIRC Subsidiary”), a wholly-owned subsidiary of China Isotope & Radiation Corporation, to form a joint venture, CNNC Accuray (Tianjin) Medical Technology Co. Ltd. (the “JV”), to manufacture and sell radiation oncology systems in China. As of June 30, 2023, the Company owned a 49% interest in the JV, which is reported as an investment in joint venture on the Company’s consolidated balance sheets.

The Company applies the equity method of accounting to its ownership interest in the JV as the Company has the ability to exercise significant influence over the JV but lacks controlling financial interest and is not the primary beneficiary. The Company recognizes the 49% proportionate share of the JV income or loss on a one-quarter lag due to the timing of the availability of the JV’s financial records. The Company recognizes revenue on sales to the JV in the current period of control transfer, eliminating a portion of profit to the extent goods sold have not been sold through by the JV to an end customer by the end of each reporting period.

The following table shows the reconciliation between the carrying value of the Company's investment in the JV and its proportional share of the underlying equity in net assets of the JV (in thousands):


	June 30, 2023			June 30, 2022
Carrying value of investment in joint venture	$	15,128		$	13,879
Deferred intra-entity profit margin		5,737			5,456
Equity method goodwill		(4,720	)		(4,720	)
Proportional share of equity investment in joint venture	$	16,145		$	14,615

As of June 30, 2023, the Company’s carrying value of the investment in the JV for the Company's proportional share of the JV's currency translation adjustment was not material. At June 30, 2022, the Company’s carrying value of the investment in the JV was increased for the Company's proportional share of the investee's currency translation adjustment by $1.0 million. No impairment was identified as of June 30, 2023 and June 30, 2022.

Summarized financial information of the JV is as follows (in thousands):


Statement of Operations Data:	Twelve Months Ended March 31, 2023		Twelve Months Ended March 31, 2022		Twelve Months Ended March 31, 2021
Revenue	$	109,097	$	55,190	$	33,054
Gross profit	$	21,522	$	15,915	$	10,578
Net income	$	5,280	$	422	$	1,785
Net income attributable to the Company	$	2,572	$	241	$	872


Summarized Balance Sheet Data:	As of March 31, 2023		As of March 31, 2022
Assets
Current assets	$	87,662	$	71,730
Non current assets		16,504		21,754
Total assets	$	104,166	$	93,484
Liabilities and Stockholders' Equity
Current liabilities	$	70,189	$	61,877
Non current liabilities		398		1,055
Stockholder's equity		33,579		30,552
Total liabilities and stockholders' equity	$	104,166	$	93,484

The following table shows the activity of the Company’s deferred intra-entity profit margin from sales (in thousands):


	Years Ended June 30,
	2023			2022			2021
Previously deferred intra-entity profit margin from sales - recognized	$	(10,436	)	$	(4,007	)	$	(2,403	)
Intra-entity profit margin from sales - deferred		10,718			7,307			2,713
Total change in deferred intra-entity profit margin from sales	$	282		$	3,300		$	310