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Equity Method Investment And Receivable From Investee
 3 Months Ended
Mar. 31, 2012
Equity Method Investment And Receivable From Investee [Abstract]  
Equity Method Investment And Receivable From Investee
3. Equity Method Investment and Receivable From Investee

In connection with Real Goods Solar's acquisition of Earth Friendly Energy Group Holdings LLC dba Alteris Renewables, Inc., we loaned for twelve months Real Goods Solar $1.7 million on December 30, 2011. The remainder of the amount receivable from equity method investee represents amounts owed in the ordinary course of business under our Intercorporate Services and Industrial Building Lease Agreements with Real Goods Solar. We expect to collect during the first half of May 2012 the balance owed at March 31, 2012 for Intercorporate Services and future charges will be billed and collected at least quarterly.

As specified by our Tax Sharing Agreement with Real Goods Solar, to the extent Real Goods Solar becomes entitled to utilize certain loss carryforwards relating to periods prior to its initial public offering, it will distribute to us the tax effect (estimated to be 34% for federal income tax purposes) of the amount of such tax loss carryforwards so utilized. These net operating loss carryforwards expire beginning in 2018 if not utilized. Due to our step acquisitions of Real Goods Solar, it experienced "ownership changes" as defined in Section 382 of the Internal Revenue Code. Accordingly, its use of the net operating loss carryforwards is limited by annual limitations described in Sections 382 and 383 of the Internal Revenue Code. As of March 31, 2012, $4.4 million of these net operating loss carryforwards remained available for current and future utilization, meaning that Real Goods Solar's potential future payments to us, which would be made over a period of several years, could therefore aggregate to approximately $1.6 million based on current tax rates.

On December 19, 2011, we entered into an Industrial Building Lease Agreement with Real Goods Solar for office space located in one of our owned buildings in Colorado. The five year lease commenced on January 1, 2012 and has a monthly payment of approximately $16,300 plus common area maintenance expenses.

At March 31, 2012, we owned approximately 37.5% of Real Goods Solar's Class A common stock with an estimated fair value of $14.5 million based on the closing market price of Real Goods Solar's Class A common stock on March 31, 2012. At March 31, 2012, our equity in the net assets of Real Goods Solar was approximately $18.4 million.

 

Summarized financial information for our equity method investee, Real Goods Solar, is as follows:

 

(in thousands)

    March 31,
2012		  

Current assets

    $ 45,884   

Noncurrent assets

      34,666   
  

 

 

  

Total assets

    $ 80,550   
  

 

 

  

 

Current liabilities

    $ 30,810   

Noncurrent liabilities

      645   
  

 

 

  

Total liabilities

    $ 31,455   
  

 

 

  

 

(in thousands)

    For the Three
Months
Ended
March 31,
2012		  

Net revenue

    $ 18,256   

Gross profit

      6,427   

Net loss

      (1,856 )