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Joint Venture
3 Months Ended
Sep. 30, 2019
Equity Method Investments And Joint Ventures [Abstract]  
Joint Venture

Note 14. Joint Venture

 

In January 2019, the Company’s wholly-owned subsidiary, Accuray Asia, entered into an agreement with the CIRC Subsidiary, a wholly-owned subsidiary of China Isotope & Radiation Corporation, to form the JV to manufacture and sell radiation oncology systems in China. Accuray Asia will have a 49% ownership interest in the joint venture and the CIRC Subsidiary initially has a 51% ownership interest in the joint venture. The JV was granted a business license in April 2019.

 

In exchange for the initial 49% equity interest in the JV, the Company, through Accuray Asia, expects to make its initial capital contributions to the JV by December 31, 2019 in the form of in-kind contributions consisting of components for two full radiation oncology systems from the Company’s inventory. The Company has not made any capital contribution as of September 30, 2019. One of the two radiation oncology systems was contributed in October 2019. Any remaining amount of capital contributions due, if not satisfied by such in-kind contributions, will be made by the Company, through Accuray Asia, in accordance with the schedule set by the board of directors of the JV.

 

In September 2019, the Company sold a CyberKnife System to the JV and recorded revenue of $2.8 million upon transfer of control of the system to the JV.  As of September 30, 2019 the Company had a receivable balance equal to $2.8 million for which collection is expected in the quarter ending December 31, 2019.