ACCOUNTS AND NOTES RECEIVABLE

3 Months Ended

May 31, 2013

Notes to Financial Statements

ACCOUNTS AND NOTES RECEIVABLE

Accounts receivable is generated from sales of wind turbine systems and power efficiency products. At May 31, 2013, accounts receivable were substantially comprised of balances due from end customers.

An allowance for doubtful accounts is provided against accounts and notes receivable for amounts management believes may be uncollectible. The Company determines the adequacy of this allowance by regularly reviewing the composition of its receivable aging and evaluating individual customer receivables, considering the customer’s financial condition, credit history and current economic circumstance. As of May 31, 2013 and February 28, 2013 an allowance for doubtful accounts of $132,237 and $143,587, respectively, has been provided.

	May 31, 2013			February 28, 2013
Accounts and notes receivable	$	310,952		$	430,259
Less: Allowance for doubtful accounts		(132,237	)		(143,587	)
Accounts and notes receivable, net	$	178,715		$	286,672

Notes receivable is generated from sales of wind turbine systems. At May 31, 2013, notes receivable were comprised of balances due from six end customers. The term of the notes receivable vary from five to seven years at an annual interest rate ranging from 4.5% to 7%. Payments are received on a monthly basis.