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Investment in Aizu Fujitsu Semiconductor Wafer Solution Limited ("AFSW") (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company’s investment activities in AFSW for the nine months ended September 30, 2020 and the year ended December 31, 2019 are summarized below (in thousands):


	For the Nine Months Ended September 30, 2020		For the Year Ended December 31, 2019
Beginning balance	$	(1,688)	$	(659)
Investment	5,327		2,698
Loss	(5,218)		(3,703)
Effect of exchange rate change	(105)		(24)
Ending balance	$	(1,684)	$	(1,688)

Summarized financial information (unaudited) of AFSW for the periods indicated, as provided by the controlling owner, are as follows (in thousands):


					As of
					September 30, 2020		December 31, 2019
Current assets					$	1,138	$	3,733
Long-term assets					$	5,412	$	5,101
Other current liabilities					$	2,557	$	931
Due to controlling owner					$	19,633	$	17,913
Due to Transphorm					$	10,910	$	5,349
Net deficit					$	(26,550)	$	(15,359)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Sales	$	492	$	2,613	$	2,278	$	8,864
Gross loss	$	(3,170)	$	(835)	$	(8,515)	$	(4,002)
Net loss	$	(3,965)	$	(1,585)	$	(10,649)	$	(6,130)

The Company’ investment activities in AFSW for the years ended December 31, 2019 and 2018 are summarized below (in thousands):


	2019		2018
Beginning balance at January 1,	$	(659)	$	(98)
Investment	2,698		1,852
Loss	(3,703)		(2,404)
Effect of exchange rate change	(24)		(9)
Ending balance at December 31,	$	(1,688)	$	(659)

Summarized financial information of AFSW as of December 31, 2019 and 2018 and are as follows (in thousands) as provided by the controlling owner:


	As of December 31,
	2019		2018
Current assets	$	3,733	$	4,096
Long-term assets	$	5,101	$	4,194
Other current liabilities	$	931	$	961
Due to controlling owner	$	17,913	$	12,031
Due to Transphorm	$	5,349	$	2,960
Net deficit	$	(15,359)	$	(7,662)

	Year Ended December 31,
	2019		2018
Sales	$	11,599	$	22,283
Gross loss	$	(4,849)	$	(2,523)
Net loss	$	(7,557)	$	(4,906)

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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