In January 2019, the Company’s wholly-owned subsidiary, Accuray Asia Limited (“Accuray Asia”), entered into an agreement with CNNC High Energy Equipment (Tianjin) Co., Ltd. (the “CIRC Subsidiary”), a wholly-owned subsidiary of China Isotope & Radiation Corporation, to form a joint venture, CNNC Accuray (Tianjin) Medical Technology Co. Ltd. (the “JV”), to manufacture and sell radiation oncology systems in China. As of September 30, 2023, the Company owned a 49% interest in the JV, which is reported as an investment in joint venture on the Company’s unaudited condensed consolidated balance sheets.

The Company applies the equity method of accounting to its ownership interest in the JV as the Company has the ability to exercise significant influence over the JV but lacks controlling financial interest and is not the primary beneficiary. The Company recognizes the 49% proportionate share of the JV income or loss on a one-quarter lag due to the timing of the availability of the JV’s financial records. The Company recognizes revenue on sales to the JV in the current period, eliminating a portion of profit to the extent goods sold have not been sold through by the JV to an end customer at the end of such reporting period.

The following table shows the reconciliation between the carrying value of the Company's investment in the JV and its proportional share of the underlying equity in net assets of the JV (in thousands):


	September 30, 2023			June 30, 2023
Carrying value of investment in joint venture	$	13,121		$	15,128
Deferred intra-entity profit margin		7,314			5,737
Equity method goodwill		(4,720	)		(4,720	)
Proportional share of equity investment in joint venture	$	15,715		$	16,145

As of September 30, 2023, the Company’s carrying value of the investment in the JV was decreased for the Company's proportional share of the JV's currency translation adjustment by $0.9 million. As of June 30, 2023, the Company’s carrying value of the investment in the JV for the Company's proportional share of the JV's currency translation adjustment was not material.

Summarized financial information of the JV is as follows (in thousands):


	Three Months Ended June 30,
Statement of Operations Data:	2023		2022
Revenue	$	31,855	$	26,740
Gross profit		5,813		4,596
Net income (loss)		879		(752	)
Net income (loss) attributable to the Company		431		(368	)


Summarized Balance Sheet Data:	As of June 30, 2023		As of June 30, 2022
Assets
Current assets	$	76,394	$	72,241
Non-current assets		14,345		19,701
Total assets	$	90,739	$	91,942
Liabilities and Stockholders' Equity
Current liabilities	$	57,898	$	63,006
Non-current liabilities		227		862
Stockholders' equity		32,614		28,074
Total liabilities and stockholders' equity	$	90,739	$	91,942

The following table shows the activity of the Company’s deferred intra-entity profit margin from sales (in thousands):


	Three Months Ended September 30,
	2023			2022
Previously deferred intra-entity profit margin from sales - recognized	$	(1,585	)	$	(2,348	)
Intra-entity profit margin from sales - deferred		3,161			2,387
Total change in deferred intra-entity profit margin from sales	$	1,576		$	39