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 June 30, 2024, the Company owned a 49% interest in the JV, which is reported as an investment in joint venture on the Company’s 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 of control transfer, eliminating a portion of profit to the extent goods sold have not been sold through by the JV to an end customer by the end of each 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):


	June 30, 2024			June 30, 2023
Carrying value of investment in joint venture	$	9,826		$	15,128
Deferred intra-entity profit margin		9,835			5,737
Equity method goodwill		(4,720	)		(4,720	)
Proportional share of equity investment in joint venture	$	14,941		$	16,145

As of June 30, 2024, 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 decreased by $0.6 million. In June 2024, the JV declared a $2.5 million dividend to the Company payable in fiscal year 2025. The Company recorded this dividend as a reduction to its carrying value in the JV. At June 30, 2023, the Company’s carrying value of the investment in the JV was increased for the Company's proportional share of the investee's currency translation adjustment was not material. No impairment was identified as of June 30, 2024 and June 30, 2023.

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


Statement of Operations Data:	Twelve Months Ended March 31, 2024		Twelve Months Ended March 31, 2023		Twelve Months Ended March 31, 2022
Revenue	$	114,942	$	109,097	$	55,190
Gross profit	$	22,137	$	21,522	$	15,915
Net income	$	3,750	$	5,280	$	422
Net income attributable to the Company	$	1,838	$	2,572	$	241


Summarized Balance Sheet Data:	As of March 31, 2024		As of March 31, 2023
Assets
Current assets	$	102,500	$	87,662
Non current assets		12,425		16,504
Total assets	$	114,925	$	104,166
Liabilities and Stockholders' Equity
Current liabilities	$	79,300	$	70,189
Non current liabilities		113		398
Stockholder's equity		35,512		33,579
Total liabilities and stockholders' equity	$	114,925	$	104,166

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


	Years Ended June 30,
	2024			2023			2022
Deferred intra-entity profit margin recognized on sales to the JV	$	9,061		$	10,436		$	4,007
Deferred intra-entity profit margin on sales to the JV		(13,159	)		(10,718	)		(7,307	)
Net deferred profit margin on sales to the JV (1)	$	(4,098	)	$	(282	)	$	(3,300	)

(1)

Profit earned by the Company from the JV is eliminated through cost of goods sold until it is realized; such profits would generally be considered realized when the inventory has been sold through to third parties.