On  January 10, 2023, the Company acquired a 51% ownership interest in Byrna LATAM, a corporate joint venture formed to expand the Company’s operations and presence in South American markets, for $0.5 million. The Company accounts for the investment in the joint venture using the equity method since the Company does not have voting control of Byrna LATAM.  Additionally, the Company does not have substantive participating rights that would result in the Company having control of Byrna LATAM. 

The Company recorded its share of the joint venture’s loss during the twelve months ended  November 30, 2023 of $0.6 million in the Consolidated Statements of Operations and Comprehensive Loss as loss from joint venture. The carrying value of the Company's investment in the joint venture at  November 30, 2023 is $0.0 million and is recorded as investment in joint venture in the Consolidated Balance Sheet.

On  January 10, 2023, the Company loaned $1.6 million to Byrna LATAM.  The loan bears interest at a rate equal to Secured Overnight Financing Rate ("SOFR") plus 3.0%.  The interest rate on the loan was 8.3% as of  November 30, 2023.  The loan amount must be repaid within five years from the date of the loan, or  January 10, 2028.  Interest income related to the loan receivable totaled $0.1 million for the twelve months ended  November 30, 2023 and is included in interest income in the Consolidated Statements of Operations and Comprehensive Loss.  The interest receivable on the loan is recorded in the Consolidated Balance Sheet under prepaid expenses and other current assets. During the twelve months ended  November 30, 2023, the cumulative net losses of Byrna LATAM exceeded the equity method investment by $0.1 million.  The carrying basis of the loan receivable was reduced by the $0.1 million excess loss from $1.6 million to $1.5 million.

Condensed financial data for Byrna LATAM is summarized below (in thousands).

Management regularly evaluates its investment in Byrna LATAM for impairment. Based on evaluations, management concluded that its investment in Byrna LATAM was not impaired in 2023.