16.	Sale of Subsidiary

In October 2015, EEI sold its interest in ECSI, LLC (“ECSI”), a majority-owned subsidiary based in Lexington, Kentucky, to ECSI’s minority shareholders for $0.3 million, payable as follows: (i) $150,000 was paid in cash in October 2015; (ii) $75,000 was paid in cash in February 2016; and (iii) $75,000 is payable on or before September 1, 2016.

EEI recognized a loss on valuation of its investment in ECSI of approximately $0.4 million in administrative and indirect operating expenses on the consolidated statements of operations during the fourth quarter of fiscal year 2015. The offsetting allowance for loss on valuation of investment in ECSI was recorded in other assets on the consolidated balance sheet at July 31, 2015.

ECSI’s total assets were $1.1 million and $1.6 million at July 31, 2015 and 2014, respectively. EEI’s share of net income (loss) reported by ECSI was less than $0.1 million and $(0.3) million for the nine months ended April 30, 2016 and the fiscal year ended July 31, 2015, respectively. Effective with consummation of the sale in October 2015, ECSI and its owners are no longer related parties to EEI or any of its consolidated subsidiaries.