v3.25.4
Note 6 - Investment in Foreign Joint Venture - Schedule of Activity in Investment in Foreign Joint Ventures (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Balance $ 11,659  
Equity in earnings 1,453 $ 1,770
Less: dividend distributions (1,637) (1,716)
Balance 11,946 11,659
Original basis difference 1,165 1,165
Less accumulated accretion (831) (702)
Net remaining basis difference, net at end of period 334 463
Bomay [Member]    
Balance, initial investment [1],[2],[3],[4],[5],[6] 9,333 9,333
Balance, undistributed earnings 3,021 2,967
Balance, foreign exchange translation (695) (291)
Balance 11,659 12,009
Equity in earnings 1,453 1,770
Equity in earnings 1,453 1,770
Less: dividend distributions (1,637) (1,716)
Foreign currency translation loss 471 (404)
Balance, initial investment [1],[6] 9,333 9,333 [2],[3],[4],[5]
Balance, undistributed earnings 2,837 3,021
Balance, foreign exchange translation (224) (695)
Balance $ 11,946 $ 11,659
[1] Accumulated statutory reserves in equity method investments of $2.66 million at December 31, 2025 and 2024 is included in our investment in BOMAY. In accordance with the People’s Republic of China, (“PRC”), regulations on enterprises with foreign ownership, an enterprise established in the PRC with foreign ownership is required to provide for certain statutory reserves, namely (i) General Reserve Fund, (ii) Enterprise Expansion Fund and (iii) Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends.
[2] Accumulated statutory reserves in equity method investments of $2.7 million at March 31, 2025 and December 31, 2024 is included in our investment in BOMAY. In accordance with the People’s Republic of China, (“PRC”) regulations on enterprises with foreign ownership, an enterprise established in the PRC with foreign ownership is required to provide for certain statutory reserves, namely (i) General Reserve Fund, (ii) Enterprise Expansion Fund and (iii) Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends.
[3] Accumulated statutory reserves in equity method investments of $2.7 million at September 30, 2025 and December 31, 2024 is included in our investment in BOMAY. In accordance with the People’s Republic of China, (“PRC”) regulations on enterprises with foreign ownership, an enterprise established in the PRC with foreign ownership is required to provide for certain statutory reserves, namely (i) General Reserve Fund, (ii) Enterprise Expansion Fund and (iii) Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends.
[4] The Company’s initial investment in BOMAY differed from the Company’s 40% share of BOMAY’s equity as a result of applying fair value accounting pursuant to ASC 805. The basis difference is being accreted over an original period of nine years (the expected life of the joint venture). The Company's accretion during the three and nine months ended September 30, 2025 and 2024 was approximately $32 thousand and $97 thousand for both years, respectively and is included in income from equity investment in foreign joint venture in the accompanying Condensed Consolidated Statements of Operations. The remaining basis difference, net of accumulated accretion at September 30, 2025 and December 31, 2024 is summarized in the following table (in thousands):
[5] The Company’s initial investment in BOMAY differed from the Company’s 40% share of BOMAY’s equity as a result of applying fair value accounting pursuant to ASC 805. The basis difference is being accreted over an original period of nine years (the expected life of the joint venture). The Company's accretion during the three months ended March 31, 2025 and 2024 both totaled approximately $32 thousand each, respectively, and is included in income from equity investment in foreign joint venture in the accompanying Condensed Consolidated Statements of Operations. The remaining basis difference, net of accumulated accretion at March 31, 2025 and December 31, 2024 is summarized in the following table (in thousands):
[6] The Company’s initial investment in BOMAY differed from the Company’s 40% share of BOMAY’s equity as a result of applying fair value accounting pursuant to ASC 805. The basis difference is being accreted over eight years (the expected life of the joint venture). The Company's accretion during the years ended December 31, 2025 and 2024 were both approximately $0.1 million, and is included in income from equity investments in foreign joint ventures in the accompanying Consolidated Statements of Operations. The remaining basis difference is summarized in the following table at December 31, 2025 and 2024 (amounts in thousands):