Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 |
Accounting Method [Policy Text Block] | Accounting Method |
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The Company’s consolidated financial statements are prepared using the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and have been consistently applied in the preparation of the consolidated financial statements. |
Use of Estimates [Policy Text Block] | Use of Estimates |
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The preparation of consolidated financial statements in accordance with generally accepted accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the consolidated financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions and could have a material effect on the reported amounts of the Company’s consolidated financial position and consolidated results of operations. |
Cash and Cash Equivalents [Policy Text Block] | Cash and Cash Equivalents |
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The Company considers all unrestricted cash, short-term deposits, and other investments with original maturities of no more than ninety days when acquired to be cash and cash equivalents for the purposes of the statement of cash flows. Under the Loan Guarantee Agreement at Neal Hot Springs with the Department of Energy, all funds for USG Oregon LLC are deposited into PNC Bank subject to certain procedural restrictions on the use of the funds. The waterfall of funds out of the Revenue account is processed semi-annually. At December 31, 2014, $3.8 million in USG Oregon LLC funds were deposited at PNC Bank in the Revenue account and $271,000 in Oregon USG Holdings LLC funds were deposited at Umpqua Bank, and were unavailable for immediate corporate needs. Discussion regarding restricted cash is included in Note 3. |
Accounts Receivable Allowance for Doubtful Accounts [Policy Text Block] | Accounts Receivable Allowance for Doubtful Accounts |
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Trade Accounts Receivable Management estimates the amount of trade accounts receivable that may not be collectible and records an allowance for doubtful accounts. The allowance is an estimate based upon aging of receivable balances, historical collection experience, and the periodic credit evaluations of our customers’ financial condition. Receivable balances are written off when we determine that the balance is uncollectible. As of December 31, 2014 and 2013, there were no balances that were over 90 days past due and no balance in allowance for doubtful accounts was recognized. |
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Grant Accounts Receivable For receivables from grants from Federal or State agencies, the Company records the receivable amounts net of the funds expected to be received. Therefore, no allowance accounts are considered to be necessary for receivables from grants at December 31, 2014 and 2013. |
Concentration of Credit Risk [Policy Text Block] | Concentration of Credit Risk |
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The Company’s cash and cash equivalents, including restricted cash, consisted of commercial bank deposits, money market accounts, and petty cash. Cash deposits are held in commercial banks in Boise, Idaho and Portland, Oregon. Deposits are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 per legal entity. At December 31, 2014, the Company’s total cash balance, excluding money market funds, was $4,487,085, and bank deposits amounted to $4,577,004. The primary difference was due to outstanding checks and deposits. Of the bank deposits, $3,156,637 was not covered by or was in excess of FDIC insurance guaranteed limits. At December 31, 2014, the Company’s money market funds invested, primarily, in government backed securities totaled $30,515,067 and were not subject to deposit insurance. |
Equity Securities [Policy Text Block] | Equity Securities |
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The Company determines the appropriate classification of marketable securities at the time of purchase and reevaluates this designation as of each balance sheet date. The Company classifies these securities as either held-to-maturity, trading, or available-for-sale. All marketable securities and restricted investments were classified as available-for-sale securities. The Company classifies its investments as “available for sale” because it does not intend to actively buy and sell for short-term profits. The Company's investments are subject to market risk, primarily interest rate and credit risk. The fair value of investments is determined using observable or quoted market prices for those securities. |
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Available-for-sale securities are carried at fair value, with unrealized gains and losses included as a component of accumulated other comprehensive income (loss). Realized gains and losses, declines in value judged to be other than temporary and interest on available-for-sale securities are included in net income. The cost of securities sold is based on the specific identification method whereby the gain or loss is calculated based upon the cost of specifically identified securities for each sales transaction. |
Property, Plant and Equipment [Policy Text Block] | Property, Plant and Equipment |
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Property, plant and equipment, including assets under capital lease, are recorded at historical cost. Costs of acquisition of geothermal properties are capitalized in the period of acquisition. Major improvements that significantly increase the useful lives and/or capabilities of the assets are capitalized. A primary factor in determining whether to capitalize construction type costs is the stage of the potential project’s development. Once a project is determined to be commercially viable, all costs directly associated with the development and construction of the project are capitalized. Until that time, all development costs are expensed. A commercially viable project will have, among other factors, a reservoir discovery well or other significant geothermal surface anomaly, a power transmission path that is identified and available, and an electricity off-taker identified. A valid reservoir discovery is generally defined when a test well has been substantially completed that indicates the presence of a geothermal reservoir that has a high probability of possessing the necessary temperatures, permeability, and flow rates. After a valid discovery has been made, the project enters the development stage. Generally, all costs incurred during the development stage are capitalized and tracked on an individual project basis. If a geothermal project is abandoned, the associated costs that have been capitalized are charged to expense in the year of abandonment. Expenditures for repairs and maintenance are charged to expense as incurred. Interest costs incurred during the construction period of defined major projects from debt that is specifically incurred for those projects are capitalized. Funds received from grants associated with capital projects reduce the cost of the asset directly associated with the individual grants. The offset of the cost of the asset associated with grant proceeds is recorded in the period when the requirements of the grant are substantially complete and the amount can be reasonably estimated. |
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Direct labor costs, incurred for specific major projects expected to have long-term benefits will be capitalized. Direct labor costs subject to capitalization include employee salaries, as well as, related payroll taxes and benefits. With respect to the allocation of salaries to projects, salaries are allocated based on the percentage of hours that our key managers, engineers and scientists work on each project and are invoiced to the project each month. These individuals track their time worked at each project. Major projects are, generally, defined as projects expected to exceed $500,000. Direct labor includes all of the time incurred by employees directly involved with construction and development activities. General and/or indirect management time and time spent evaluating the feasibility of potential projects is expensed when incurred. Employee training time is expensed when incurred. |
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Depreciation is calculated on a straight-line basis over the estimated useful life of the asset. Where appropriate, terms of property rights and revenue contracts can influence the determination of estimated useful lives. Estimated useful lives in years by major asset categories are summarized as follows: |
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| | Estimated Useful |
Asset Categories | | Lives in Years |
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Furniture, vehicle and other equipment | | 3 to 5 |
Power plant, buildings and improvements | | 3 to 30 |
Wells | | 30 |
Well pumps and components | | 5 to 15 |
Pipelines | | 30 |
Transmission lines | | 30 |
Intangible Assets [Policy Text Block] | Intangible Assets |
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All costs directly associated with the acquisition of geothermal and surface water rights are capitalized as intangible assets. These costs are amortized over their estimated utilization period. There are several factors that influence the estimated utilization periods as well as underlying fair value that include, but are not limited to, the following: |
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- | contractual expiration terms of the right, | |
- | contractual terms of an associated revenue contract (i.e., PPAs), | |
- | compliance with utilization and other requirements, and | |
- | hierarchy of other right holders who share the same resource. | |
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Currently, amortization expense is being calculated on a straight-line basis over an estimated utilization period of 30 years for assets placed in service. If an intangible water or geothermal right is forfeited or otherwise lost, the remaining unamortized costs are expensed in the period of forfeiture. An impaired right is reduced to its estimated fair market value in the year the impairment is realized. Costs incurred that extend the term of an intangible right are capitalized and amortized over the new estimated period of utilization. |
Impairment of Long-Lived Assets [Policy Text Block] | Impairment of Long-Lived Assets |
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The Company evaluates its long-term assets annually for impairment and when circumstances/events occur that may impact the fair value of the assets. An impairment loss would be recognized if the carrying amount of a capitalized asset is not recoverable and exceeds its fair value. The most recent assessment was performed based upon financial conditions and assumptions as of December 31, 2014, and there have not been any significant changes in financial conditions and assumptions subsequent to that assessment date. Management believes that there have not been any circumstances that have warranted the recognition of losses due to the impairment of long-lived assets. |
Stock Options Granted to Employees and Non-employees [Policy Text Block] | Stock Options Granted to Employees and Non-employees |
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The Company follows financial accounting standards that require the measurement of the value of employee services received in exchange for an award of an equity instrument based on the grant-date fair value of the award. For employees, directors and officers, the fair value of the awards are expensed over the vesting period. The current vesting period for all such options is eighteen months. |
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Non-employee stock-based compensation is granted at the Board of Director’s discretion to reward select consultants for exceptional performance. Prior to issuance of the awards, the Company was not under any obligation to issue the stock options. Subsequent to the award, the recipient was not obligated to perform any services. Therefore, the fair value of these options was expensed on the grant date, which was also the measurement date. |
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Under the fair value recognition provisions, share-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the vesting period. Determining the fair value of share-based awards at the grant date requires judgment. In addition, judgment is also required in estimating the amount of share-based awards that are expected to be forfeited. If actual results differ significantly from these estimates, stock-based compensation expense and our results of operations could be materially impacted. |
Stock Based Compensation Granted to Employees [Policy Text Block] | Stock Based Compensation Granted to Employees |
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The Company recognizes the value of common stock granted to employees and directors over the periods in which the services are received. The value of those services is based upon the estimated fair value of the common stock to be awarded. Estimated fair value is adjusted each reporting period. At the end of each vesting period, estimated fair value is adjusted to fair market value. The adjustment is reflected in the reporting period in which the vesting occurs. |
Earnings Per Share [Policy Text Block] | Earnings Per Share |
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The Company follows financial accounting standards, which provides for calculation of "basic" and "diluted" earnings per share. Basic earnings per share includes no dilution and is computed by dividing net income available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity similar to fully diluted earnings per share. Both basic and diluted were presented for the calculation of the income per share for the periods that reported income. Stock equivalents were not included in the calculation for the periods that reported losses since their inclusion would be considered anti-dilutive. Total common stock equivalents on a fully diluted basis at December 31, 2014 and 2013 were 126,744,104 ( 126,006,172 annual weighted average) and 124,494,963 ( 123,497,883 annual weighted average); respectively. |
Financial Instruments [Policy Text Block] | Financial Instruments |
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The Company’s financial instruments consist of cash and cash equivalents, trade account and other receivables, refundable tax credits, and accounts payable and accrued liabilities. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. The fair values of these financial instruments approximate their carrying values, unless otherwise noted. |
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The Company’s functional currency is the U.S. dollar. Monetary items are converted into U.S. dollars at the rate prevailing at the balance sheet date. Resulting gains and losses are generally included in determining net income for the period in which exchange rates change. |
Revenue [Policy Text Block] | Revenue |
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Revenue Recognition |
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Energy Sales The energy sales revenue is recognized when the electrical power generated by the Company’s power plants is delivered to the customer who is reasonably assured to be able to pay under the terms defined by the Power Purchase Agreements (“PPAs”). |
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Renewable Energy Credits (“RECs”) Currently, the Company operates three plants that produce renewable energy that creates a right to a REC. The Company earns one REC for each megawatt hour produced from the geothermal power plant. The Company considers the RECs to be an inventory item held for sale, and outputs that are an economic benefit obtained directly through the operation of the plants. The Company does not currently hold any RECs for our own use. Revenues from RECs sales are recognized when the Company has met the terms and conditions of certain energy sales agreements with a financially capable buyer. At Raft River Energy I LLC, each REC is certified by the Western Electric Coordinating Council and sold under a REC Purchase and Sales Agreement to Holy Cross Energy. At San Emidio and Neal Hot Springs, the RECs are owned by our customer and are bundled with energy sales. At all three plants, title for the RECs pass during the same month as energy sales. As a result, costs associated with the sale of RECs are not segregated on the statement of operations. |
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Revenue Source |
All of the Company’s operating revenues (energy sales and energy credit sales) originate from energy production from its interests in geothermal power plants located in the states of Idaho, Oregon and Nevada. |
Asset Retirement Obligations [Policy Text Block] | Asset Retirement Obligations |
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The Company records the fair value of estimated asset retirement obligations (“AROs”) associated with tangible long-lived assets in the period incurred or acquired. AROs are legal obligations to settle under existing or enacted law, statue, or contract. The value of these obligations are originally based upon discounted cash flow estimates and are accreted to full value over time through charges to operations. Costs associated with future conditions are recognized as AROs in the period the condition occurs or is known to the Company. Generally, costs associated with AROs are earthwork, revegetation, well capping, and structure removal necessary to return the sites to their original conditions. |
Reclassification [Policy Text Block] | Reclassification |
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Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported income, total assets, or stockholders’ equity as previously reported. |
Recent Accounting Pronouncements [Policy Text Block] | Recent Accounting Pronouncements |
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Management has considered all recent accounting pronouncements. The following pronouncements were deemed applicable to our financial statements: |
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Stock Compensation |
In June 2014, FASB issued Accounting Standards Update No. 2014-12 (“Update 2014-12”), Compensation-Stock Compensation, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (Topic 718). Update 2014-12 provides guidance on how to account for share-based payment awards that require a specific performance target to be achieved in order for the employees to become eligible to vest in the awards. Update 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Management is still evaluating the applicability and possible impact this update may have on the accounting treatment and its financial statement presentation. |
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Presentation of Property, Plant and Equipment |
In April 2014, FASB issued Accounting Standards Update No. 2014-08 (“Update 2014-08”), Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360), Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Update 2014-08 provides guidance to address the issues surrounding the reporting of discontinued operations and enhance the convergence of the FASB’s and the International Accounting Standard Board’s reporting requirements for discontinued operations. Update 2014-08 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Management is still evaluating the applicability and possible impact this update may have on the accounting treatment and its financial statement presentation. |
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Business Combinations In December 2014, FASB issued Accounting Standards Update No. 2014-18 (“Update 2014-18”), Accounting for Identifiable Intangible Assets in Business Combination, Business Combinations (Topic 805). Update 2014-18 provides modifications to the evaluation of variable interest entities that may impact consolidation of reporting entities. Update 2014-18 is effective for fiscal year beginning after December 15, 2015, and the effective date of adoption depends on the timing of that first in-scope transaction. If the first in-scope transaction occurs in the first fiscal year beginning after December 12, 2015, the elective adoption will be effective for that fiscal year’s annual financial reporting and all interim and annual periods thereafter. The focus of this Update addresses the types of intangible assets that the Company, typically, has not acquired or does not seek to acquire; however, Management will continue to evaluate the possible impact that this Update may have on the accounting treatment of applicable elements and the financial presentation of these elements. |
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Consolidation In February 2015, FASB issued Accounting Standards Update No. 2015-02 (“Update 2015-02”), Amendments to the Consolidation Analysis, Consolidation (Topic 810). Update 2015-02 provides modifications to the evaluation of variable interest entities that may impact consolidation of reporting entities. Update 2015-02 is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company currently consolidates variable interest entities and may create or acquire variable interest entities for future endeavors. Management is still evaluating the possible impact this update may have on the financial presentation of the Company’s consolidated financial statements. |