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
 6 Months Ended
Jun. 30, 2015
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. 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, irrevocably assigned, sold and transferred 100% of the limited liability company membership interests in 350 Green to Assignee and Assignee accepted such transfer in consideration of receipt of $100 as of September 30, 2014.

 

The Company determined that it is the primary beneficiary of 350 Green due to the subordinated financing arrangements as well as the Company being the primary beneficiary in the outcome of the action against JNS as of June 30, 2015 and, as such, 350 Green’s assets and liabilities and results of operations are included in the Company’s condensed consolidated financial statements. Through April 16, 2014, 350 Green was a wholly-owned subsidiary of the Company and was consolidated. Beginning on April 17, 2014 and through June 30, 2015, 350 Green was a VIE, without recourse to the Company.

 

The following amounts pertaining to 350 Green are included in the condensed consolidated statement of operations for the three and six months ended June 30, 2015:

 

    For The Three     For The Six  
    Months Ended     Months Ended  
    June 30, 2015     June 30, 2015  
    (unaudited)     (unaudited)  
             
Revenues   $ -     $ -  
                 
Cost of Revenues     -       -  
                 
Gross Profit     -       -  
                 
Operating Expenses:                
General and administrative expenses     -       -  
Total Operating Expenses     -       -  
                 
Income (Loss) From Operations     -       -  
                 
Other Income:                
Interest income     3,042       6,052  
Gain on settlement of accrued expenses     10,215       60,942  
                 
Total Other Income     13,257       66,994  
                 
Net Income   $ 13,257     $ 66,994  

 

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

 

Balance - December 31, 2014   $ (4,400,730 )
         
Net income of 350 Green for the six months ended June 30, 2015     66,994  
         
Balance - June 30, 2015   $ (4,333,736 )

 

Accrued expenses pertaining to 350 Green consisted of the following:

 

    June 30, 2015     December 31, 2014  
    (unaudited)        
Accrued taxes   $ 120,132     $ 113,531  
Accrued host fees     -       51,064  
Accrued fees     148,030       158,021  
Total   $ 268,162     $ 322,616