Prepaid and other current assets consist of the following at:

 

		September 30, 2014			December 31, 2013
Prepaid consulting fees		$	—		$	23,493
Prepaid compensation			126,107			256,171
Prepaid inventory conversion costs			83,315			—
Short term storage, utility and other deposits			—			42,187
Prepaid host fees			38,630			—
Prepaid network fees			16,740			—
Prepaid software application			85,000			150,000
Sundry prepaid expenses and other current assets			79,808			90,711
Subtotal			429,600			562,562
Less: non-current portion			(30,508)			(290,887)
Prepaid and other current assets		$	399,092		$	271,675

 

On December 6, 2012, the Company retained an individual to serve as chairman of the Company’s Board of Directors for three years. As part of the chairman’s compensation, the Company issued to him 200,000 fully vested shares of the Company’s common stock valued at $316,000 which is based on the market value on the date of issuance. As of September 30, 2014, the prepaid portion of the compensation was $126,107. The expense is being recognized ratably over the term of the agreement.

 

On February 5, 2013, the Company entered into a binding memorandum of understanding with a firm to develop application software. As part of its fee, the firm was issued 113,636 fully vested shares of the Company’s common stock at a price of $1.32 per share based on the market price on the date of issuance totaling $150,000.  The Company introduced the application in the commercial market in May 2014 and anticipates an estimated useful life of one year to be recognized ratably over the year. As of September 30, 2014, the prepaid portion was $85,000.

 

In May 2014, the Company entered into an agreement with a firm to convert 500 pole unit EVSEs into 500 wall unit chargers. The prepaid amount for inventory conversion costs represents a 50% prepayment to the firm for the work to be performed which is contemplated to be completed by September 2015.

 

In September 2014, the Company entered intent into a letter of intent (“LOI”) with a host to assume license agreements from 350 Green at various host locations throughout the United States. As part of the LOI, the Company is obligated to pay the host $113,111 for past amounts due to them by 350 Green through August 31, 2014, which is due to the host as of December 15, 2014 and is recorded in cost of revenues in the Condensed Consolidated Statement of Operations as of September 30, 2014. The Company made the December payment on December 26, 2014. Additionally, the LOI required the Company to pay the host a fixed annual, beginning September 1, 2014, rent in advance in the amount of $42,349 on September 1, 2014 and to sign amended and restated host agreements. As of September 30, 2014, $38,630 is prepaid. On February 27, 2015 the Company paid $42,349.