I did some research on 50/50 JV's. (since I know a 51% JV reports revenues through their books).
a 50/50 JV is treated like an investment
we only receive "revenue" if they issue a dividend to us as shareholders.
our holding is treated as an asset just as if we had bought stock in the company. Its value can go up and down I guess?
So what I think we will see for Q4 is a lot of our cash on hand being transferred to the "Investment asset" category based on how much we have transferred in terms of equipment, service and people . this would be laid out in the agreement.
moving forward initially HYVIA may be buying Progen fuel cells and other parts from us - electrolysers and dispensers for their clients etc as part of their supply chain until they are in a position to manufacture themselves. That would be booked as revenues.
Once their factory is set up though - with equipment and services from PLUG - they will be just part of the Assets and we would wait for dividends to be paid to us.
I hope they have high margins so we start to see dividends by end 2022.
This will be the same with FFI Accinoa and others.
the good thing s it isn't cash burn the cash on the balance sheet moves to another category and isn't "burnt", the bad news is we don't see $200m for setting up HYVIA as revenues.
I may be wrong but this is my interpretation of the rules - I think it was investopedia I was reading
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