Annual report pursuant to Section 13 and 15(d)

Investment in Joint Venture

Investment in Joint Venture
12 Months Ended
Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]  
Investment in Joint Venture Investment in Joint Venture
On March 24, 2019, and as amended on February 25, 2020, the Company entered into a joint venture agreement and a license agreement (the “First Amended Joint Venture and License Agreements”) with Hunch Ventures and Investments Private Limited, a private limited company incorporated under the laws of India (“Hunch”) and FlyBlade India Private Limited, a company incorporated and validly existing under the provisions of the Companies Act, 2013 (“FlyBlade India”), whereby the Company and Hunch initially invested $200 for 10% interest and $1,800 for 90% interest, respectively, for undertaking the business of FlyBlade India. Subsequently, upon the issuance of additional shares to Hunch in exchange for additional investment by Hunch, the Company’s interest fell below 10%. In third quarter 2022 the Company made an additional investment of $190. Pursuant to the First Amended Joint Venture and License Agreements, the Company and Hunch agreed to establish FlyBlade India as a joint venture and support it in carrying on the business operations. The Company agreed to provide the licensed IP support related to the software developed for short distance aviation services along with its trademarks in exchange for quarterly royalty payments of 4% of gross revenue for the period where gross revenue was up to $10,000 in a calendar year, quarterly royalty payments of 3% on gross revenue in excess of $10,000 and up to $40,000 in a calendar year, and quarterly royalty payments of 1.5% on gross revenue exceeding $40,000 (collectively, the royalties) in a calendar year. In addition to the royalties, the Company could receive 3% of FlyBlade India’s profits before tax in each year that FlyBlade India attained a minimum of $3,500 in annual profits before income tax. Hunch agreed to provide support in carrying out the day to day operations, including the implementation of the business plan and hiring of personnel, ensuring compliance with local requirements and assisting with legal arrangements as needed by the business. For the years ended December 31, 2022, September 30, 2021, and the transition period ended December 31, 2021, the Company recorded royalty revenue of $12, $28 and $4, respectively, under this arrangement.
The investment is accounted for at cost less impairment if any (see Note 2 - Summary of Significant Accounting Policies, Joint Venture). No impairment was warranted as of December 31, 2022.
As of December 31, 2022 and December 31, 2021, other non-current assets included amounts due from Blade India of $66 and $120, respectively.