Investment in Joint Venture

9 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

From April 1, 2022 through April 10, 2023, JCP Capital and the Company were responsible for 75% and 25%, respectively, of the funding obligations and losses of AFSW (through GaNovation). Beginning April 10, 2023, JCP Capital and the Company are responsible for 67.5% and 32.5%, respectively, of the funding obligations and losses of AFSW (through GaNovation). Notwithstanding this allocation of funding responsibilities, JCP Capital’s total funding obligations or investment in GaNovation shall not exceed $35 million and the Company’s total funding obligations or investment in GaNovation shall not exceed $12 million for the three-year period beginning August 1, 2021. As of December 31, 2023, the Company had provided $6.1 million of the Company’s $12.0 million commitment to GaNovation.

The Company’s investment activities in GaNovation for the periods presented are summarized below (in thousands):


	Three Months Ended December 31,				Nine Months Ended December 31,
	2023		2022		2023		2022
Beginning Balance	$	(59)	$	414	$	715	$	143
Investment	—		1,032		807		2,569
Loss	(978)		(799)		(2,559)		(2,065)
Effect of exchange rate change	(259)		—		(259)		—
Ending Balance	$	(1,296)	$	647	$	(1,296)	$	647

Summarized financial information of GaNovation for the periods indicated are as follows (in thousands):


	Three Months Ended December 31,				Nine Months Ended December 31,
	2023		2022		2023		2022
Sales	$	2,593	$	3,926	$	8,419	$	9,958
Gross loss	(1,879)		(2,716)		(6,166)		(6,964)
Net loss	(2,587)		(3,197)		(7,483)		(8,351)