XML 53 R23.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 17 - Related Party Transactions
6 Months Ended
Jun. 30, 2013
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]

17. Related Party Transactions


In September 2012, Solar Green Technology SA (“SGT”) transferred its interest in its wholly owned subsidiary, Moiac Solare Srl (“Moiac”), to Terrasol Solar SA (“Terrasol”). Terrasol’s parent, Century Solar Jewel SA is 40% owned by LDK Solar Europe Holding SA, a wholly owned subsidiary of LDK. The total contract value from the EPC agreements for the construction of 641kW solar development projects owned by Moiac is $1.9 million.


In June 2012, SGT began construction on multiple solar development projects under EPC agreements with Terrasol. The total contract value from the construction of these solar development projects is $16.1 million.


During the three months ended June 30, 2013 and 2012, the Company recorded net sales to LDK and North Palm Springs Investments, LLC (“NPSLLC”) of zero and $2.6 million with a cost of goods sold of zero and $2.5 million, primarily consisting of solar development costs. During the six months ended June 30, 2013 and 2012, the Company recorded net sales to LDK and NPSLLC of zero and $16.2 million with a cost of goods sold of zero and $15.5 million, primarily consisting of solar development costs. As of June 30, 2013 and December 31, 2012, accounts receivable from LDK was $11.4 million and $11.9 million, primarily related to the receivables from solar development projects with and inventory sale to LDK.


As of June 30, 2013 and December 31, 2012, the Company had accounts payable to LDK of $47.6 million and $51.8 million, respectively, primarily related to purchases of solar panels for solar development projects. See Note 2 —Going Concern Considerations and Management’s Plan for further discussion related to the accounts payables with LDK.


In the second quarter of 2013, LDK forgave $2.6 million in indebtedness to provide an injection of capital to SGT to keep their shareholder capital from going negative and triggering liquidity accounting under Italian statutory law. SGT is currently taking additional steps to keep a positive shareholder capital.