7. Project Assets

As of March 31, 2015, project assets mainly consist of the SEF development across U.S.A., UK, Japan and the PRC, with the amount of $53,971 (2014: $48,520), $44,912 (2014: $14,000), $14,872 (2014: $12,826) and $25,613 (2014: 19,849) respectively.

Project assets consist of the following:


	March 31, 2015		December 31, 2014
Under development-Company as project owner	$	113,948	$	75,346
Under development-Company expected to be project owner upon the completion of construction*		25,420		19,849

Total project assets		139,368		95,195
Current, net of impairment loss	$	107,354	$	73,930
Noncurrent	$	32,014	$	21,265

*	All of the projects costs under this category were recorded as project assets, noncurrent.

Project assets under development-Company as project owner is primarily related to consist of the following projects:

Solar Hub Utilities, LLC and Calwaii, LLC

As of March 31, 2015 and December 31, 2014, the project asset costs recorded and included in project held for development for these PV solar systems under the Calwaii’s projects amounted to $28,646 and $23,943.

Pursuant to a sales agreement dated September 18, 2014, the Company agreed to sell four out of the thirty-nine PV solar systems of Calwaii’s project upon their completion of construction at a consideration of $5,850. The Company accounted for this sales transaction using the full accrual method under ASC 360-20, real estate accounting, and did not recognize any revenue and profit for this sales transaction for the three-month ended March 31, 2015 and year ended December 31, 2014 as certain closing conditions, including but not limited to grid connection specified in the sales agreement, had not been met.

KDC Solar Mountain Creek Parent LLC (“LLC”)

The carrying amount of this project amounted to $17,864, net of impairment of $2,055 as of March 31, 2015 and December 31, 2014.

Pursuant to a letter of intent dated November 10, 2014 and a sales agreement dated December 31, 2014, the Company agreed to sell the PV solar systems of this project upon its completion of construction at a consideration of $17,864. Management assessed the recoverable amounts of this project asset and as a result the carrying amount of this project asset was written down to the recoverable amount by $2,055. The estimate of recoverable amount of this project asset was based on this asset’s fair value less costs of disposal, and the fair value was determined by reference to the quoted price from third party for this project asset. The Company accounted for this sales transaction using the full accrual method under ASC 360-20, real estate accounting, and did not recognize any revenue and profit for this sale transaction for the three-month period ended March 31, 2015 as certain closing conditions, including but not limited to grid connection as specified in the sales agreement, had not been met.

Mauka FIT One LLC

In January 2015, the Company acquired Mauka-Makai FIT LLC’s 100% membership interest in Mauka FIT One LLC (“Mauka”) in exchange for a consideration of $4,179 cash. Mauka’s total assets and liabilities only included land leasing rights and pre-contract cost related to one solar project of 4.2MW. Additionally, Mauka had not entered into any power generation contracts with any utilities companies. As a result, Management concluded that the acquisition of 100% managing member interest in Mauka did not meet the definition of a business combination as the primary inputs (the solar plant, which had yet to be constructed) were not available on the acquisition date. The Company has accounted for the transaction as an asset acquisition. The net assets acquired were recognized at the Company’s cost of $4,179.