(6) Government Grant

We had a grant (the “Grant”) with the DOE under the American Recovery and Reinvestment Act for reimbursements up to a maximum of $32.4 million. The Grant provided funds to facilitate the manufacture and deployment of electric drive vehicles, batteries and electric drive vehicle components in the United States. Pursuant to the terms of the Agreement, the DOE reimbursed us for 50 percent of qualifying costs for the purchase of facilities, tooling and manufacturing equipment, and for engineering related to product qualification and testing of our electric propulsion systems. The Grant expired on January 12, 2015. We recognize government grant reimbursements, when it is probable that the Company will comply with the conditions attached to the grant arrangement and the grant proceeds will be received.

The Grant was also subject to our compliance with certain reporting requirements. The American Recovery and Reinvestment Act imposes minimum construction wages and labor standards for projects funded by the Grant. If we dispose of assets acquired using Grant funding, we may be required to reimburse the DOE upon such sale date if the fair value of the asset on the date of disposition exceeds $5,000. The amount of any such reimbursement shall be equal to 50 percent of the fair value of the asset on the date of disposition.

At December 31, 2014, we had received reimbursements from the DOE under the Grant totaling $26.7 million and had funds receivable under the Grant of $0.3 million.

The application of grant funds to eligible capital asset purchases under the Grant as of December 31, 2014 and March 31, 2014 are as follows:


	December 31, 2014
	Purchase Cost		Grant Funding		Recorded Value
Land	$	896,388	$	448,194	$	448,194
Building		9,906,736		4,953,368		4,953,368
Machinery and Equipment		8,347,478		4,173,739		4,173,739
	$	19,150,602	$	9,575,301	$	9,575,301


	March 31, 2014
	Purchase Cost		Grant Funding		Recorded Value
Land	$	896,388	$	448,194	$	448,194
Building		9,906,736		4,953,368		4,953,368
Machinery and Equipment		7,946,910		3,973,455		3,973,455
	$	18,750,034	$	9,375,017	$	9,375,017