XML 54 R13.htm IDEA: XBRL DOCUMENT

7. NOTES RECEIVABLE

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

NOTES RECEIVABLE

NOTE 7 – NOTES RECEIVABLE

The Company loaned Condor funds for operations pursuant to a promissory note entered into on February 14, 2013, which permitted multiple loans to be made up to $8,000,000 as separate “advances”. As of December 31, 2014, the balance of the notes receivable prior to applying the excess loss from Condor was $6,979,000 plus accrued interest of $121,000 due from Condor.

In accordance with ASC 323-10-35, the losses from Condor that exceeded the equity investment of the Company were used to reduce the notes receivable balance. If the losses were to exceed the notes receivable balance, no additional losses would be recorded for the equity investment. The net receivable balance as of December 31, 2014, after applying the excess loss was $1,363,000. After applying the losses to the equity investment and the note receivable, the Company has unrecorded excess losses of zero. The following table reflects the activity related to the note receivable-related party (in thousands):

		September 30,				December 31,
		2015				2014
Note receivable-related party prior to applying excess losses		$	6,979			$	6,979
Equity change in net loss at 20% applied to note receivable-related party as of December 31, 2013			(5,193)				(5,193)
Equity change in net loss at 20% for year ended December 31, 2014			(271	)			(271	)
Equity change in net loss at 20% for period from January 1 through February 23, 2015			(91	)			-
Previously unrecognized losses for year ended December 31, 2013			(273	)			(273)
Interest accrued			160				121
Portion of Settlement Agreement with MIEJ			(1,311	)			-
Net note receivable		$	-			$	1,363

As part of the Settlement Agreement with MIEJ on February 19, 2015, the notes receivable were settled. See Note 8.