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Note 10 - Investment in Affiliates
12 Months Ended
Dec. 31, 2013
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]  
Investments in and Advances to Affiliates, Schedule of Investments [Text Block]

10.          Investment in Affiliates


In April 2012, the Company entered into an EPC agreement with KDC to construct a 5.4 MW photovoltaic solar electricity project located in Mountain Creek, New Jersey (the “Mountain Creek Project”). In December 2013, the Company entered into an exchange and release agreement with KDC and agreed to exchange its $15.0 million note receivable due to the Company from KDC under the EPC agreement for construction of the Mountain Creek Project in exchange for a 64.50% limited ownership interest in KDC Solar Mountain Creek Parent LLC (the “LLC”). The LLC holds all of the assets of the Mountain Creek Project. The construction of the Mountain Creek Project was approximately 25% complete at December 31, 2013. KDC is the managing member and holds a 35.5% managing member interest in the LLC. KDC has the power to control and manage the business and affairs of the LLC and is the only member that has the authority to bind the LLC. The Company holds protective rights with respect to approving (1) a sale or transfer of the Project; (2) the acquisition of real estate not related to the Project; (3) a merger of the LLC with another entity; (4) the alteration of the primary purpose of the LLC; and (5) the addition of new members. The Company does not have the substantive ability to dissolve (liquidate) the LLC or otherwise remove the managing member. As a result, the Company does not have a controlling financial interest in the LLC. The Company accounts for its investment in the LLC using the equity method of accounting. The Company determined the fair value of its investment in the LLC was $7.5 million based on an income approach applying discounted cash flows to measure the fair value using a 10% discount rate. The Company also used a market approach by comparing the fair value to other similar sized MW photovoltaic solar electricity projects taking into consideration the expected time and cost to complete the project. As a result, the Company recorded a $7.5 million impairment charge in the Consolidated Statement of Operations during the year ended December 31, 2013. There were no earnings or losses of the investee included in the Company’s consolidated statement of operations for the year ended December 31, 2013.


Prior to the exchange and release agreement, the Company accumulated $2.7 million of costs and estimated earnings in excess of billings on the uncompleted Mountain Creek project. As the costs and estimated earnings in excess of billings were not a part of the Company’s investment in the LLC, the Company recorded a $2.7 million provision for losses on contracts in the consolidated statement of operations for the year ended December 31, 2013 and reducing the costs and estimated earnings in excess of billings on the uncompleted contracts to $0 at December 31, 2013.