Quarterly report pursuant to Section 13 or 15(d)

Assets and Liabilities Transferred to Trust Mortgage - 350 Green

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Assets and Liabilities Transferred to Trust Mortgage - 350 Green
 3 Months Ended
Mar. 31, 2016
Business Combinations [Abstract]  
Assets and Liabilities Transferred to Trust Mortgage - 350 Green

4. ASSETS AND LIABILITIES TRANSFERRED TO TRUST MORTGAGE – 350 GREEN

 

On April 17, 2014, the Company’s Board of Directors executed a resolution to form a trust mortgage relating to 350 Green. On May 29, 2014, the Company and EVSE Management LLC (“EVSE”) entered into a Management Services Agreement and on June 27, 2014, EVSE purchased certain assets from 350 Green for total consideration of $860,836 which included a note receivable from Car Charging in the amount of $314,598. On September 8, 2014, the Company entered into an agreement among the trustee of 350 Green, an attorney, 350 Green and the Company whereby the Company would pay the legal fees incurred in connection with an action brought by 350 Green against JNS Power and Control Systems, Inc. (“JNS”). On September 30, 2014, the Company (“Assignor”) entered into an Assignment Agreement with Green 350 Trust Mortgage LLC (“Assignee”), an entity formed by the trustee for the sole purpose to entering into this transaction, under which Assignor, the sole member of 350 Green, assigned, sold and transferred 100% of the limited liability company membership interests in 350 Green to Assignee and Assignee accepted such transfer for nominal consideration of $100.

 

Through April 16, 2014, 350 Green was a wholly-owned subsidiary of the Company in which the Company had full control and was consolidated. Beginning on April 17, 2014, 350 Green was deemed to be a VIE and, therefore, we continued to consolidate 350 Green. On July 8, 2015, the Company and the trustee of 350 Green agreed to settle the note receivable in the amount of $314,598 for $25,000 in full satisfaction of the note. On September 9, 2015, the United States Court of Appeals for the Seventh Circuit of Chicago, Illinois affirmed the ruling of the United States District Court for the Northern District of Illinois in the matter of JNS Power & Control Systems, Inc. v. 350 Green, LLC in favor of JNS. See Note 11 – Commitments and Contingencies – Litigation for additional details. As a result of the above developments, the Company is in the process of periodically reevaluating the nature of its interests in 350 Green, including whether or not the Company has achieved full isolation of the assets and memberships interests of 350 Green, ensuring that the Company could not be required to provide direct or indirect financial support to the former subsidiary or its creditors.

 

The following amounts pertaining 350 Green are included in the condensed consolidated statement of operations for the three months ended March 31, 2016 and 2015:

 

    For The Three Months Ended  
    March 31,  
    2016     2015  
    (unaudited)  
             
Revenues   $ -     $ -  
                 
Cost of Revenues     -       -  
Gross Profit     -       -  
                 
Operating Expenses:                
General and administrative expenses     -       337  
Total Operating Expenses     -       337  
Income From Operations     -       (337 )
                 
Other Income:                
Interest income     -       3,010  
Gain on settlement of accrued expenses     -       51,064  
Total Other Income     -       54,074  
Net Income   $ -     $ 53,737  

 

The following represents the change in the balance of the non-controlling interest:

 

Balance - December 31, 2015     $ (4,011,130 )
         
Net income of 350 Green for the three months ended March 31, 2016     -  
         
Balance - March 31, 2016     $ (4,011,130 )