Note 11 - Grant Incentives

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Grant Incentives Disclosure [Text Block]

NOTE

11

– GRANT INCENTIVES

In conjunction with the Land Use Rights obtained by Northern Altair (Note

9),

Northern Altair applied for and received various incentives and grants from the Wu’an China Government. Such grants and incentives are required to be used to support the construction of planned facilities in Wu’an China and the purchase of related manufacturing equipment. During the years ended

December

31,

2016

and

2015,

the Company received grant incentives of

$0.67

million and

$2.58

million, respectively.

The Company received

$2.7

million in a loan interest subsidy during the year ended

December

31,

2016.

Part of the loan interest subsidy was capitalized and the remaining amount of the subsidy,

$0.28

million, should be amortized based on the useful life of the plant. The Company received grant incentives

$0.64

million to be used for plant construction during year ended

December

31,

2015.

Grant amounts received are included in the balance sheet as deferred income and are recognized as income over the useful life of the related assets upon placing such assets into service. The following summarizes grant incentives for the years ended

December

31

(In thousands of dollars):

	2016			2015
Beginning balance, January 1,	$	26,743		$	25,505
Grants received in the current year		664			3,216
Foreign currency translation adjustment		(1,741	)		(1,429	)
Grants recognized in other income		(594	)		(549	)
Ending balance December 31	$	25,072		$	26,743
Less: current portion of deferred income – grant incentive	$	(536	)	$	(551	)
Deferred income – grant incentive - non current	$	24,536		$	26,192