INVESTMENT IN JOINT VENTURE

9 Months Ended

Sep. 30, 2018

INVESTMENT IN JOINT VENTURE

INVESTMENT IN JOINT VENTURE

NOTE 6. INVESTMENT IN JOINT VENTURE

The investment in Joint Venture on the Company’s consolidated balance sheet represents the Company’s ownership interest in the Mitigation Bank (the “JV Investment”). We have concluded the Mitigation Bank is a variable interest entity and is accounted for under the equity method of accounting as the Company is not the primary beneficiary as defined in FASB ASC Topic 810, Consolidation. The Mitigation Bank is jointly controlled by the members. Under the guidance of FASB ASC 323, Investments-Equity Method and Joint Ventures, the Company uses the equity method to account for the JV Investment.

The following table provides summarized financial information of the Venture as of September 30, 2018:

	As of
	September 30, 2018
	($000's)
Assets, cash and cash equivalents	$	2,340
Assets, prepaid expenses		30
Assets, investment in mitigation credit assets		1,461
Assets, property, plant, and equipment		19
Total Assets	$	3,850
Liabilities, accounts payable, accrued expenses, deposits	$	27
Equity	$	3,823
Total Liabilities & Equity	$	3,850