18. Non-consolidated Variable Interest Entity

The Company, through its wholly owned subsidiary DP Engineering, effectively holds a 48% membership interest in DP-NXA Consultants LLC ("DP-NXA").

DP-NXA was established to provide industrial services that include civil, structural, architectural, electrical, fire protection, plumbing, mechanical consulting engineering services to customers. DP-NXA sub-contracts their work to its two owners, NXA Consultants LLC ("NXA"), which owns 52% of the entity, and DP Engineering. DP Engineering and NXA contributed $48 and $52, respectively, for 48% and 52% interest in DP-NXA. DP Engineering recorded the contributed cash as an equity investment.

The Company evaluated the nature of DP Engineering's investment in DP-NXA and determined that DP-NXA is a variable interest entity (“VIE”). Since the Company does not have the power to direct activities that most significantly impact DP-NXA, it cannot be DP-NXA’s primary beneficiary. Furthermore, the Company concluded that it did not hold a controlling financial interest in DP-NXA since NXA, the VIE's majority owner, makes all operation and business decisions. The Company accounts for its investment in DP-NXA using the equity method of accounting due to the fact the Company exerts significant influence with its 48% of membership interest, but does not control the financial and operating decisions.

The Company's maximum exposure to any losses incurred by DP-NXA is limited to its investment. As of June 30, 2019, the Company has not made any additional contributions to DP-NXA and believes its maximum exposure to any losses incurred by DP-NXA was not material. As of June 30, 2019, the Company does not have existing guarantee with or to DP-NXA, or any third-party work contracted with it.

For the three and six months ended June 30, 2019, the carrying value of the investment in DP-NXA is zero. We do not have any investment income or loss from DP-NXA for the three and six months ended June 30, 2019.

The following table presents the carrying amount and classification of the assets related to the Company’s variable interests in non-consolidated VIE and the maximum exposure to loss at June 30, 2019.

(In thousands)	June 30, 2019
Assets
Cash:
Checking account	$	184
Total assets	$	184
Liabilities
Credit card and other payables		184
Total liabilities		184
Total net assets	$	-
Maximum exposure to loss	$	-