Investments in Companies Accounted for Using the Equity Method

12 Months Ended

Apr. 30, 2017

Investments in Companies Accounted for Using the Equity Method

Investments in Companies Accounted for Using the Equity Method

8.           Investments in Companies Accounted for Using the Equity Method

In March of 2014, the Company purchased 49% of the outstanding common stock of Altoy, a Turkish corporation founded in February 2014. During the years ended April 30, 2017, 2016 and 2015, the Company recorded 49% of the net loss of Altoy, or $119,000, $138,000 and $240,000, respectively, in “Other (expense) income” in the consolidated statement of income. At April 30, 2016 and 2015, the carrying value of the investment in Altoy was $386,000 and $230,000, respectively, and was recorded in “Other assets, long‑term.”

On February 1, 2017, the Company acquired an additional 36% interest in Altoy, increasing the Company’s total ownership interest to 85%, for total cash consideration of $625,000. As a result of the Company obtaining a controlling interest in Altoy, Altoy has been consolidated into the consolidated financial statements of the Company as of the date of the acquisition.  Refer to Note 19 - Business Acquisitions.