NOTES RECEIVABLE AND ACCRUED INTEREST

12 Months Ended

Jan. 31, 2016

NOTES RECEIVABLE AND ACCRUED INTEREST

NOTES RECEIVABLE AND ACCRUED INTEREST

NOTE 9 — NOTES RECEIVABLE AND ACCRUED INTEREST

Notes receivable relate primarily to the Company’s business development activities and the balance included in the consolidated balance sheet as of January 31, 2016 reflects an allowance for doubtful amounts of $208,000. Payments 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 the discussions of the Moxie Project Entities and Moxie Freedom in Note 5) that would be awarded upon the completion of successful project development efforts. The balance of notes receivable and related accrued interest in the consolidated balance sheet as of January 31, 2016 included overdue amounts from the developer of a series of biomass-fired power plants; management believes these amounts to be collectible and has not established an allowance against the amounts.