In conjunction with the U.S. Department of Energy (“DOE”) grant, the DOE owns 51% of all property reimbursed under the terms of the grant with a fair value in excess of $5,000 but allows for the grantee to purchase the DOE’s share at the end of the grant. The DOE grant was under novation negotiations and terminated as of December 31, 2013. On August 8, 2014, the DOE notified the Company that it would not novate the DOE grant. On September 2, 2014, the Company was notified by DOE that DOE had no property interest in the 93 DC fast chargers in the Company’s inventory resulting in a release from liability to the DOE of $482,611.

 

Additionally, the DOE notified the Company that it continues to have a property interest in the 107 installed DC fast chargers if the fair market value of each DC fast charger had a market value in excess of $5,000 on October 16, 2013, the date of the Blink purchase agreement approved by the bankruptcy court. The DOE requested documentation describing the data, assumption and methodologies that the Company used to determine the value as of the closing date. The Company provided the DOE with additional documentation and calculations supporting its belief that each DC fast charger acquired as of the closing date of the Blink purchase agreement approved by the bankruptcy court had a fair market value of less than $5,000. On May 5, 2015 the DOE notified the Company that it had reviewed the Company’s fair market value analysis of DC fast chargers procured and installed under the grant at the time of closing, which indicated that the fair market value per unit of the DC fast chargers was less than $5,000. The DOE concurred with the Company’s analysis and had determined that the DOE’s interest in the DCfast chargers was extinguished. The Company will reverse the accrued liability in the second quarter of 2015 comensurate with the date of the DOE notification.