Note 11 - Joint Venture

12 Months Ended

Jun. 30, 2026

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

Note 11. Joint Venture

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, 2026, 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. With the receipt of the necessary permits and licenses to operate, the JV has been manufacturing and selling a locally branded “Made in China” radiotherapy device, the Tomo C radiation therapy system, in the Class B license category. The JV also distributes other Accuray treatment delivery systems like the Radixact and CyberKnife treatment delivery systems, including the Radixact SynC and CyberKnife S7 Systems, which received NMPA approval in January 2025.

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, 2026*				*June 30, 2025*
Carrying value of investment in joint venture		$	5,024			$	4,612
Deferred intra-entity profit margin			17,466				17,501
Dividend declared			1,446				2,453
Equity method goodwill			(4,720	)			(4,720	)
Proportional share of equity investment in joint venture		$	19,216			$	19,846

As of June 30, 2026 and June 30, 2025, 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 increased by $0.3 million and decreased $0.4 million, respectively. In June 2026, the JV declared a $1.4 million dividend to the Company paid in July 2026. In June 2025, the JV declared a $2.5 million dividend to the Company paid in July 2025. The Company records the dividends as a reduction to its carrying value in the JV. No impairment was identified as of June 30, 2026 and June 30, 2025.

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

Statement of Operations Data:		*Twelve Months Ended March 31, 2026*				*Twelve Months Ended March 31, 2025*
Revenue		$	102,132			$	160,213
Gross profit		$	24,539			$	29,438
Net income		$	2,288			$	9,617
Net income attributable to the Company		$	1,124			$	4,714

Summarized Balance Sheet Data:		*As of March 31, 2026*				*As of March 31, 2025*
Assets
Current assets		$	180,187			$	172,109
Non current assets			14,855				16,426
Total assets		$	195,042			$	188,535
Liabilities and Stockholders’ Equity
Current liabilities		$	154,935			$	146,587
Non current liabilities			924				1,334
Stockholder’s equity			39,183				40,614
Total liabilities and stockholders’ equity		$	195,042			$	188,535

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,*
		*2026*				*2025*
Deferred gross profit recognized on sales to the JV		$	(7,484	)		$	(16,738	)
Deferred gross profit on sales to the JV			7,448				24,404
Net deferred gross profit on sales to the JV ⁽¹⁾		$	(36	)		$	7,666

(1)	Profits are deferred by the Company from the JV and are eliminated through cost of goods sold until it is realized. When profits are realized they are credited through cost of goods sold. Profits are considered realized when the inventory has been sold through to third parties.