NOTES RECEIVABLE AND ACCRUED INTEREST

6 Months Ended

Jul. 31, 2015

NOTES RECEIVABLE AND ACCRUED INTEREST

NOTES RECEIVABLE AND ACCRUED INTEREST

NOTE 7 — NOTES RECEIVABLE AND ACCRUED INTEREST

Notes receivable relate primarily to the Company’s business development activities. Such amounts are due from the developers or owners of power plants upon the successful completion of project development efforts, bear interest, and are typically secured by the assets of the corresponding development entity. The Company’s primary motivation for entering into these lending arrangements is to obtain the corresponding engineering, procurement and construction contracts (see Note 3) that would be awarded upon the completion of successful project development efforts. The aggregate amount of notes receivable and related accrued interest included in the condensed consolidated balance sheet as of July 31, 2015 included the aggregate amount due from Moxie Freedom and overdue amounts from the developer of a series of biomass-fired power plants. The aggregate carrying value as of July 31, 2015 reflected an allowance for doubtful amounts of $208,000.