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Note 2 - Going Concern Considerations and Management's Plan

9 Months Ended

Sep. 30, 2014

Policy Text Block [Abstract]

Liquidity Disclosure [Policy Text Block]

2. Going Concern Considerations and Management’s Plan

As shown in the accompanying Condensed Consolidated Financial Statements, the Company incurred a net loss of $9.9 million during the nine months ended September 30, 2014 and has an accumulated deficit of $65.9 million as of September 30, 2014. Working capital levels have improved from negative $36.6 million on December 31, 2013 to positive $2.5 million at September 30, 2014. In February 2014, the Company’s largest shareholder, LDK Solar Co., Ltd. (“LDK”), which owns approximately 30.2% of the Company’s outstanding Common Stock as of the date of this filing, announced that LDK filed an application for provisional liquidation in the Grand Court of the Cayman Islands (“Cayman Court”) in connection with its plans to resolve its offshore liquidity issues. On February 27, 2014, the Cayman Court issued an order placing LDK into provisional liquidation and appointing joint provisional liquidators for the purpose of arriving at an agreeable scheme of arrangements for LDK’s creditors. In October 2014, LDK filed a petition in the United States Bankruptcy Court for the District of Delaware (“Delaware Bankruptcy Court”) for recognition of the provisional liquidation proceeding in Cayman Court as a foreign main proceeding under Chapter 15 of the United States Bankruptcy Code, and three U.S. subsidiaries of LDK, LDK Solar Systems, Inc., LDK Solar USA, Inc. and LDK Solar Tech USA, Inc., filed voluntary petitions to reorganize under Chapter 11 of the United States Bankruptcy Code in the same court. In October 2014, creditors affirmatively voted for the scheme of arrangements of LDK and its subsidiaries in the Cayman Islands and Hong Kong. On November 7, 2014, the Cayman Court sanctioned the scheme of arrangements of LDK and its subsidiaries relating to LDK’s assets in the Cayman Islands. However, the scheme of arrangements relating to LDK’s assets in Hong Kong is subject to the sanction by courts in Hong Kong of competent jurisdiction and confirmation of Delaware Bankruptcy Court as well as the satisfaction of other conditions as to the effectiveness of such sanction and confirmation. It is unknown at this time if LDK’s provisional liquidation will require or result in the Company disposing of assets to repay payables due to LDK, including waived payables. If the Company is required to dispose of assets to repay LDK’s creditors, the Company may incur additional losses.

		The Company is experiencing the following risks and uncertainties in the business:

	●	As of September 30, 2014 and December 31, 2013, the Company has accounts payable due to LDK of $34.4 million and $50.9 million. All of the accounts payable due to LDK are currently past due and payable to LDK. Although there are no formal agreements, prior to May 2014, LDK had verbally indicated that it would not demand payment until the receivables from the Company’s customers have been substantially collected. During the nine months ended September 30, 2014, the Company received $11.0 million from the issuance of convertible bonds and $35.75 million for the sale of common stock in private placements. $12.5 million of these cash proceeds were used to repay accounts payable due to LDK from the Company. In May 2014, the Company entered into a Settlement and Mutual Release Agreement with LDK under which LDK waived $18.4 million of the Company’s payables to LDK, $4 million of which was waived by a People’s Republic of China (“PRC”) subsidiary of LDK and the remaining portion of which was proposed to be waived by LDK and is currently subject to the approval of the Joint Provisional Liquidator of LDK in the Cayman Islands. In light of LDK's filings for liquidation and its U.S. subsidiaries’ filings for reorganization, it is unclear whether LDK will be able to continue to allow the Company to defer repayment of the outstanding accounts payable to LDK, or whether its liquidator or bankruptcy administrator will bring a clawback action against the receivables due from the Company and waived by LDK. Should LDK change its position and demand payment for the remaining past due amount prior to collection of the receivables from our customers, or should LDK’s provisional liquidators or bankruptcy administrator decide to bring clawback action to recover the receivables waived by LDK, the Company does not have the ability to make the payment currently due without additional financing. With LDK as our largest shareholder, the significant risks and uncertainties associated with its filings for liquidation and its U.S. subsidiaries’ filings for reorganization could have a significant negative impact on the financial viability of Solar Power, Inc. as well as indicate an inability for LDK to support the Company's business.

The significant risks and uncertainties described above have a significant negative impact on the financial viability of the Company and raise substantial doubt about the Company’s ability to continue as a going concern.

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Management has made changes to the Company’s cash management through cost cutting measures, securing full project financing for each stage of project development, and requesting cash payments for projects under development. Management believes the Company is no longer dependent upon financing from China Development Bank to complete project development.

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In the nine months ended September 30, 2014, the Company raised $46.7 million through the issuance of its common stock and convertible bonds. Additionally, October 7, 2014, the Company entered into two purchase agreements, whereby the Company agreed to issue 21,739,500 shares and 10,000,000 shares, respectively, of its Common Stock to two non-U.S. investors in a private placement, for an aggregate price of $43,800,510. The proceeds from this private placement are for general corporate purpose. Management may continue to seek additional debt and equity financing in order to meet its working capital needs.

There is no assurance that management’s plans to accelerate the collection of outstanding receivables or to obtain additional debt or equity financing will be successfully implemented, or implemented on terms favorable to the Company. As of September 30, 2014, the Company had $12.8 million in cash and cash equivalents. The Condensed Consolidated Financial Statements do not include any adjustments related to the recoverability and classification of recorded assets or the amounts and classification of liabilities or any other adjustments that might result from the outcome of this uncertainty.

Disclosure of accounting policy for reporting when there is a substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time (generally a year from the balance sheet date). Disclose: (a) pertinent conditions and events giving rise to the assessment of substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time, (b) the possible effects of such conditions and events, (c) management's evaluation of the significance of those conditions and events and any mitigating factors, (d) possible discontinuance of operations, (e) management's plans (including relevant prospective financial information), and (f) information about the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities. If management's plans alleviate the substantial doubt about the entity's ability to continue as a going concern, disclosure of the principal conditions and events that initially raised the substantial doubt about the entity's ability to continue as a going concern would be expected to be considered. Disclose whether operations for the current or prior years generated sufficient cash to cover current obligations, whether waivers were obtained from creditors relating to the company's default under the provisions of debt agreements and possible effects of such conditions and events, such as: whether there is a possible need to obtain additional financing (debt or equity) or to liquidate certain holdings to offset future cash flow deficiencies. Disclose appropriate parent company information when parent is dependent upon remittances from subsidiaries to satisfy its obligations.

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