Note 5 - Gain (Loss) on Solar Development

12 Months Ended

Jun. 30, 2020

Statement Line Items [Line Items]

Disclosure of gain (loss) on sale of assets [text block]

5. Gain/(lo ss ) on solar development

On

July 2, 2019,

the Company sold its

100%

interest in VivoRex, LLC, for

$1

and recorded a gain for accounting purposes of

$2.3

million as a result of the disposal of onerous contract obligations of

$2.0

million and other liabilities of

$0.5

million, less cash and other current assets of

$0.2

million. Results of operations for VivoRex, LLC, are reported within the Solar Development operating segment, as disclosed in Note

4.2,

and for the year ended

June 30, 2020

accounted for

$nil

(

three

months ended

June 30, 2019:

$0.1

million; year ended

March 31, 2019:

$1.959

million;

2018:

$0.645

million) of the operating loss reported for this segment.

The Company also recorded a gain on sale of

$0.5m

for Solar projects in Australia, related primarily to the sale of its

100%

interest in the Sun Connect portfolio, in

October 2019.

The gain on sale of

$0.3

million, comprised proceeds

$1.0

million, less disposal of

$0.8

million net book value of intangible assets and

$0.1

million other net liabilities. Results of operations for the Sun Connect portfolio are reported within the Solar Development operating segment, as disclosed in Note

4.2.

The Company also recorded a

$1.2

million loss on discontinued solar development projects in the ISS Joint Venture.

The loss on solar development for the year-ended

March 31, 2019,

totaling

$2.6

million, is comprised of a

$1.9

million provision for onerous contracts related to future obligations to purchase Solar Renewable Energy Certificates (“SRECs”) from the NC Projects, discontinued solar development projects in the ISS Joint Venture (

$0.8

million), and a correction to the gain on the sale of Amaroo solar project reported in the prior year (

$0.3

million), offset by a gain on sale of the NC Projects (

$0.4

million).

On

May 25, 2018,

the Company sold its

14.5%

and

10.0%

equity interests in the NC-

31

and NC-

47

projects, respectively, to the majority investor at the fair market value of these projects. The proceeds of sale, net of transaction costs, were

$11.4

million. A gain on sale of

$0.4

million was realized after the impairment recognized in the prior year.